Q1 2020 Earnings Call

Question Bridge. So Jeff had a very well around one of the core differences between the two contracts is one's Global in nature ones are a local and and landlocked with WTI is Jeff said there's well-publicized structural issues at Cushing infrastructure issues have happened in the past with Pipeline and storage issues that create volatility and delivery and is Jeff also said the major difference between that and Brent is a prince of waterborne contract where it's much easier to load crude on the vessel and bring it anywhere in the world where there's demand in the economics makes sense. So if you see a huge demand pool at your service thing with the Brent contract and you don't have those fundamental landlocked structural constraints on the contracts, the other difference is not talked about as much and you have touched on this briefing is that WTI is a spot month contract. It expires right when the delivery schedules at Cushing or being set for example the June

These measures in our form 10-q when used on this call net revenue refers to revenue net of transaction based expenses and adjusted earnings refers to adjusted diluted earnings per share. Please see the exact notes on the second page of Yearning supplement for additional details regarding the definition of certain terms with us on the call. Today are just record chairman and CEO Scott. He'll Chief Financial Officer and Ben Jackson. Our president are now turn the call over to Scott. Thanks Warren. Good morning everyone and thank you for joining us today before we begin we want to offer our hope that you your colleagues and your fac staying safe and remain healthy during this unprecedented time. I'll begin this morning on slide for with some of the key highlights from our record first-quarter results.

Contract expires on May 19th with only a couple days left of scheduling to happen on the Cushing infrastructure for deliveries.

For the Brent contract is much more of a forward contract. So if you take that example of the June contract as well that contract expires a full month before and actually today is the expiration day of the month of June contract to the full month between that and and much less the contracts much less susceptible to issues that you'd see that can happen around around infrastructure related issues or concerns that you see in a landlocked contract like w t i

The other big difference at it. The other big difference is just highlight quickly. Rich is you know, cuz there was some misinformation put out there recently around the concept of date of birth and we give customers. Yes. We give customers the choice of dated Brent versus Brent to hedge dated Brent is a true spot month contract. So that price is car goes off the way going up into up to the delivery month.

First-quarter net revenues totaled 1.6 billion dollars up 23% year-over-year driven by record trading and clearing revenues of $883 million dollars and record data services off of 564 million dollars. It's worth noting that this quarter started with January yielding. What at the time was the best Revenue month in our history that record was nearly dead during February while growing uncertainty related to covid-19.

Dated Brent versus Brent they're two very different contracts and there's a spread relationship that develops between those two contracts that does trade because they are very different dated Brent are spread our spot contract in that contract. We see that 85% of the open interest in that contract our professional large commercials that are all over the delivery package that's happening in in crude oil. So it's a heavily heavily commercially oriented contract.

Adjusted operating expenses totaled $597 in the quarter variable license fees related to energy and Equity index Futures were roughly 5 million dollars higher than we expect entering the quarter, but we're more than offset by significantly higher related revenues in addition. And as we disclosed in our first quarter volume, press release first-quarter adjusted expenses, including a million dollars of charitable giving related to covid-19 release and four million dollars related to backs acquisition of Bridge to Solutions.

And Brent dated Brent trade is a spread to one another just like WTI front months to WTI second month trade is a spread to one another but I can say that dated Brent Brent never blew out anywhere near to the degree that WT. I did in the past week where the spread between WTI front-month the back month went back month went from 58 to $59 and at that same. Dated June to Brent was around $5.

It's these recent and past moves in WTI versus Brent that have shown the WT I can be a riskier contract to risk manage and that's why customers over select Brent to manage their risk. They also select Brent as really the basis and pricing mechanism to price all kinds of refined products that we talk about other thoughts often times is one of the fastest growth areas of our business, which is our other oil complex. So these are refined products like gas oil bunker fuels jet fuels gasoline a all trade relative to Brent and they all trade in a global nature in areas around the world such as Europe Asia and North America and it's one of the fastest-growing parts of our complex name is why if you look at the overall oil complex our market share and overall oil from an open interest perspective is 64% up from 55% Just a couple of years ago dead.

looking to

For the rest of 2020 we expect that second quarter adjusted operating expenses will improve sequentially to be in the range of $575 to $585 million dollars while. Writing and expense guidance remains unchanged at two point. Three, two, two, two point three seven billion dollars adjusted operating income increased 30% year-over-year to $962 non-operating expense total $46 million dollars helped by a seven million dollar true up of our share of 2009.

An ATV terms. Our market share is 56% up from 45% in recent past, you know, we're grateful that our customers are coming to us now more than ever to help manage their risk and Thursday and time.

Our next question is from Alex from UBS. Go ahead. Yeah. Hey, good morning. Everyone. Just wanted to shift gears to the data side little bit dead. I think you gave a decent amount of color already, but obviously data Guide unchanged, so Scott or anybody else will be very happy to heal a bit more why you're so confident may also what you've been seeing I guess with with sales teams displaced working from home and and how you feel like that will change over the course of the of the year to to still make your life, and then very quickly related to that, you know, if you think going forward, I mean the majority of that business is pricing analytics and fixed income so with with everything that we've seen here with everyone to being displaced, I would just assume that going to get harder to get prices the calling dealers. So just curious if you feel like this is actually an area of of incremental demand coming out of this kind of Crisis that nobody expected. Thank you.

Yeah, it's a it's a good question Alex. Thank you. Let me start with with what I don't know right? I I I don't know exactly, you know when the world goes back to work. You know, whether that's second or third quarter fourth-quarter early. Twenty Twenty-One. I I don't think it'd be useful for you. I don't have an economist on staff to tell you that it could be fast or slow or anywhere in-between. So, you know, I I don't have great visibility into exactly when things open up but I have a lot of visibility into fact that give me confidence. So one of the things I've Got Confidence based upon is I look at the pilot and and talk to Lynn in her sales team and the pipeline remains really robust. And so the opportunity exists to sell into that pipeline in to generate revenues that that as we speak here today. We believe are consistent with the original data Guide that that we provided. I I look at that. That's up 4% And if you do just a straight math on that page

Number eight it lands you right on top of where we're guiding in the second quarter and I think provides a firm foundation as we move into the third and fourth quarter. I I I listened to Lynn and her teenage talk about phone calls. We got in the middle of the crisis from customers who you know, we're thinking about or or had moved away to to one of the other competitors and realize that the tracking error on the prices from those peers were were were significantly greater than the tracking error on our prices that are coming back to us. I know we were able to to close a couple of key deals, but but those deals didn't sign off due to the work from home, which is not a loss of Revenue. It's just a delay which I think can also help us in in the back half of the year. So in the very near-term, I I see a lot of positives that give me confidence that as we move into the back half of the year. I think more importantly the the key thing message. I'd like to get across is there's nothing that's happened in the last month or two or three dead.

That's changed the medium to long-term prospects of this business and and our ability to generate.

6% Revenue growth so no matter what happens in the third of the fourth quarter or early in the next year this business is set up to grow well for exactly the reason that that you indicated it is a business that that provides mission-critical information into the fixed-income market in fact I've heard a number of our customers say during the crisis price Discovery in fixed income came from us and and I think that's going to be even more important as we get to the other side of this crisis I think the demand for fixed-income investment will continue to grow I think the evolution of Embassy ETS will continue to generate Demand on prices and and we're going to be there to serve it and and then the the last data point that I would give you that gives me confidence is we look back after two thousand and two thousand and one the IDC business grew greater than 4% we look back after 2008/2009 the business grew greater than 4% and that was when it was just pricing dead

Today it's prices and reference data and fixed income and a strong Network in. Oh, by the way, it's supplemented by a Futures exchange business that between 2009 and 2012. Also, I grew High single-digits coming out of the financial crisis. So in the near-term, it's hard to call what exactly the numbers are going to be in the back half, but I'd keep that in perspective as well because even to the extent were off a little bit. We're talking about two to three cents a share on earnings. Well above $4, so something less than a half a percent of earnings in the near-term and a long-term model still positioned very well to grow 46%

Alex this is Jeff. I'll give you one interesting interesting to me at least anecdotal piece of information that that surprised me and that was that our sales people in data may have targets and budgets as you can imagine and our people in Asia were hit with work from home, you know, very early in the quarter a lot of location in our customer base in Asia and yet we could see they were meeting or exceeding their sales targets. And so while the sales call itself became very life difficult on our people the demand became very very strong in between, you know, that dislocation our sales people in our customers figured out how to do business with one another and get them done. So we very early in the quarter felt pretty good about about where we were heading before the lockdowns hit Europe and and the phone number

And so I I feel somewhat confident that the that our entire Market is figuring out how to adjust to this. I'll call it new normal of of working from home wage.

Our next question is from Dan Fannon from Jeffrey. Go ahead. Thanks. Good morning. I guess 15 back to the energy Market that was wondering if you could you kind of discuss the health of your customer base with oil at the current prices and talk about the commercial component in particular in just a point of clarification cuz WTI is he born now? And I'm just wondering if Brent I mean they're facing the same supply issues. That WTI is in the lack of demand. So you just just curious, you know, you talked about the the same versus a cash settled in some of the differences, but you know with Debbie typing now Seaborn, does that alleviate some of that Delta or variance between the two contracts?

Thanks, Dan. This is

Then again, so on the on the latter part of your question there around around wtib and Seabourn. The reality is when you look in the physical Market when those barrels and when those when that oil hits the wall, it's most often priced by a Brent. That's when it becomes Brent. So that's you know, one of the major one of the major differences and it doesn't, you know doesn't stop or prevent any of the issues that you see around the the infrastructure related issues around storage or the pipeline capacity to get oil actually to the coast.

So that's one on the on the customer base itself, you know a couple of quick comments on that. So on every earnings call you you've either her Jeff Scott or myself for many years talk about that since the Inception of our futures business. We've really had the corporate commercial customer at the heart of our business. Those those are customers that have real directional price risk and whatever commodity is they're consuming or that they're producing in the physical markets and what the Futures markets are intended to do for them as as all of you know is to take the Hedge that risk of prices move against them and to protect them in turbulent times and we partnered with our customers very differently than than others have and built out this sweet as Geoff Mich is prepared comments of hundreds and hundreds of oil products around the world. We have many many different natural gas products around the world power contracts around the world that help our customer.

customers hedge

so we're grateful what we can say right now is that we're grateful that our customers are coming to us. Now more than ever. The evidence is showing to help them manage their risk in these in these turbulent times. We sort of Interest records in March and open interest is the best sign of of customers coming to you and showing that they're putting on positions for a period of time to manage manage their risks in April. We've seen it off on a year-over-year basis as well. We're seeing open interest across natural gas across oil continuing to build in longer-dated positions, which basically means positions that are not necessarily expertly next month but positions that are going to expire in December of this year or 2021 or 2022 and people that are tend to put on those longer-dated positions are commercials that are in fact hedging their exposure to price risks commercials represent about 44% of the open interest in contracts like Brent also our Henry Hub contract more than

Double our closest pier in their in their Benchmark products that they have.

I don't think I'd say is if you look at other, you know other evidence point I I'd look at is if you look at Past Times of stress, so you look at times when nine eleven happened when the financial crisis hit our soil came exploding onto the scene Brent ATV grew every single time the 12-month period after that crisis-hit compared to the 12 month period prior to that crisis and open interest either held a group.

all that said

We're mindful that every day. There's real stress in the marketplace that our customers are feeling and the fact that they're coming to us more than ever to hedge their exposure to price risk in these volatile times is what our markets were funding and we're going to continue to partner and help our customers through this.

Our next question is from Michael carrier from Bank of America. Go ahead.

Good morning. Thanks for being a question on this guy. Just a question on how you're looking at extension Capital Management backdrop. So extensions is actually the other ranged. How much is a base wage reflects if they like a quick return to the workforce has a longer delay and flutter that's operationally or whether that's travel in those types of items and it should be on Capital returns. Just any ship you off.

It's Michael that you you were a little bit unclear in the question. I I think what what you were asking the the latter part was was on Capitol return which I'll touch on and on the former part was expense Management in the challenging environment. That's that's the question. I'm going to answer. Hopefully it's it's right. So first of all, the way we're thinking about expense is as it consistent in terms of where we thought coming into them. And and the reason for that is we think it's really important to continue to invest in our business as we move through 2020 and the strong performance across our business office allows us to continue to do that. It's important that we continue to invest in ETF Jeff talked about some of the Milestones that we hit and that it's important to continue to invest in building out our Mortgage Solutions, you know, that's a business that when we bought it was a hundred and forty million dollar Revenue stream that that now is on track to be 170 plus and and and you I'm sure read the articles about Thursday.

Need for that business to automate Beyond where it is today. So we're going to continue to invest in that we're going to continue to invest in in the the data sales team. We talked about growth in in the European sales team and challenges in the fourth quarter that business in Europe went from a decline in the fourth quarter to growth in the first quarter and we continue to invest in the sales team because when customers are ready to start taking the meetings or is Jeff eluded to if they want to do deals over the phone, we want to make sure that we've invested in the sales team that's necessary to deliver on that. And so our guidance is consistent because we believe that this business is well-positioned to continue to grow this year and Beyond and it's important that we continue to feed the growth Engine with the Investments on on the left hand side. Now having said that you'll note that in our original guidance. We had 15 to 25 million dollars of of expense efficiencies that we were counting on and and we will certainly deliver those dead.

Yeah, we we absolutely do have flexibility if if things get significantly worse as we move through the year, you know for a long time of a big part of our compensation system is paid for performance. And so to the extent that the the business performance starts to slow We we've got a a natural break that that happens on comp expense which which is half of our overall expense. But as we sit here today you have alluded to our employees did a phenomenally good job from home delivering the markets the the risk management tools that that our customers needed. And again, we're both very confident in the future of this business and don't want to cut off the Investments that are necessary to generate future growth in terms of capital return, you know, we mentioned in the quarter that that we we spent, you know, we are divorcing grew 9% in in the first quarter. We just announced our second quarter dividend it it's similar to growth. That's a dividend that's grown double digits every year since we announced it back in 2013 and in addition

And to kind of what I'll call the Run rate for him.

Hundred million dollars a buyback. We spent three hundred million in addition and and I will tell you that that three hundred million dollars was spent in are open window and largely around the disconnect that happening around the eBay League or earlier in the quarter where once again we felt like the the market had completely missed priced our company and and we felt it was appropriate to opportunistically repurchase shares that window ended before the the covid-19 just really hit but you know, as we said, we we bought it about $92 a share and and those chairs sit around ninety-two as we moved forward. I I think you should continue to expect us to return a hundred percent of the capital that that we don't need for m&a that extra three hundred million. We spent in the first quarter we still were at our leverage Target will obviously continue to to monitor that as we move through the year, but given the strength of our cash flows, you know, I would anticipate you'll see our routine 400 a quarter of share buyback continue. You'll see the dividend continue at its current levels, which is growing your phone number.

In our overall approach is is not different to to Capital turns last point. I'd make on Capitol that I think is important to note that within the first quarter. Not only did we spend an extra three hundred million on Thursday back. We also spent nearly three hundred million dollars helping back to choir bridge to Solutions and yet our leverage was still at two point three times, which is a complete estimate to the the strength of the page loads of this business.

Our next question is from Brian De Belle from the bank. Go ahead.

Pretty much. Good morning particular question. Just I just a two-part question one just to go back on the data side and and some of them. Yeah. Thanks for the Color Run on a lot of the anecdotes there. Just are are you seeing any questions about price concessions as you know, some companies to reduce reduce costs and then unrelated to that on the energy side. If you can just remind of the roughly the rough portion of a users that are commercial hedgers within within your max versus versus, you know, Financial players.

On the other side got it. This is Jeff, you know on data what we're seeing is, you know, the the the the sale of the way just the US equities tape is a very mature business and it's not so much that there's pricing pressure. There's just consolidation. I think in in a way at least historically before this crisis, there'd been ongoing consolidation in in asset managers and that that we're really wasn't as much price. It was number of customers, but the rest of our business we're seeing this huge demand in in and has really no price pressure on it in the sense that that there's a rotation away from desktop terminals fixed terminals as you can imagine when you work from home.

people are looking for like

Wait portable easy to access secure information and that's that's really a technology delivery issue that that you know, we are very good at because of our investment in technology because we're prepared to give you information any form you want it we've been able to walk to move quickly to to fill kind of this new need. I think we're demonstrating to a lot of people that because we had so much capacity in our system that on these extremely volatile days our data was able to keep up and our analytics were able to deliver results where we heard anecdotally that a number of our competitors that may have had lower prices or people that had moved to them for other reasons, uh wish that they hadn't done that a month.

We saw people come back to re-engage with us, which which was a very, you know, warming feeling for for our sales team. So so long story short know not a lot of price pressure much more about can I get the right information at the right place at the right time and can I rely on it? And and that's what we're good at but in before been picked up on the question, the only other thing I would add is I mentioned earlier is we're not just selling prices anymore. Now with customers that that need the prices and the reference data and indices and it's Jeff Ludwig connectivity. It's a Full Sail solution that we have and so it tends not to be as much about the price of any one element, but how well we can bundle that package together to meet those needs.

And actually let me get the second part of the the question that that Brian had asked around mix. So in the in the comments that I made on the on the past couple of questions, I had dropped in a couple of of Statistics there, but I think the key thing to to Really frame your mind is that we are heavily commercially oriented much more so that are closest pier both Rent Em as well. As our Henry Hub are two perfect examples where about 44% of the open interest is commercials and when you do that same analysis on WTI and Henry Hub at one of our. You're going to see that that's more than double what they have. So it's heavily commercially oriented. That's it's the commercial traders that we cater to and if and have and have you know really dead our markets around the second biggest segment of the market place would be you know, swap dealers banks that are selling Structured Products too and and commercials. So you'll see that that is a log

The of the trading activity and hedging activity that we see I think one other interesting data point for you is just it's just Henry Hub alone. So for one of the things that we've seen is with the oil production coming down in the US will often times when Shale oil is being drilled a byproduct of that is is natural gas coming out of the ground in the US and not producers, you know customers have acknowledged and seen that like gas production is starting to slow and it's introduced some volatility into the basis markets in the US, but what we've seen is that customers are coming very significantly to our basis markets as much as they ever have where they managed one hundred percent of their risk in the basis markets that we managed. And in fact, they often times trade not only the basis markets but they put on longer-dated Henry Hub positions, which is much more. The longer date of positions longer expertise is much more where the commercial Commercials Suck

and manage their risk and that has historically since the Inception Inception of the company and a starting or Henry Hub contract has been the part of the market that we've

Serviced because of those Trends we've seen Henry Hub market share and open interest terms at a ten-year high right now with 46% market share loss. So we're seeing customers more than ever come to manage their exposure to price risk in our markets, which is what Futures markets were built for.

Our next question is from 10:00 Worthington from JP Morgan. Go ahead. Hi. Thank you for taking my question. I'd love to continue discussion on gas, you know, the Dutch gas business continues to do particularly. Well open interfaces has doubled year-over-year. What is the address will Mark here? Cuz that business continues to do exceptionally well and it's a high fee product and and in the Resurgence of gas again to follow up on your your own comments there, you know, we've seen not cash. Oh I continued to build both in the Futures and options side options activity got killed last year that's rebounded and you mentioned a gas. So I was at you know, ten year highs. Why is that happening now? The shell issue has been or opportunity?

Has been going on for quite a while and and and gas had sort of suffered while that business was growing but we've seen a real Resurgence. So anyway, could you further flush out your comments on the rebound seeing on the gas side?

Sure. Thanks, This is this is Ben again. So one of the things we've been watching is with this with this pandemic will that impact people's transition in particular in Europe and Asia to to conquer fuels and will that slow it down? And what we've seen is that it hasn't I mean the as we've engaged with all of our our commercials and Commercial customers and also the fact that the price of of natural gas and and LNG example is low we're seeing that it is that that transition to cleaner fuels is still really in Vogue in Europe and in Asia and that's what led to the girls that you just referenced and ttf continue to see tremendous growth in our in our in our jkm contract there still is a decent amount of that that market that trades in the OTC space. So there's a lot of Runway to go home still and in in bringing more of that that business to Futures in custom more and more customers, you know each month as we look at the volume. It's trade in the market versus Futures customers wage.

Continuing to see the benefit of of trading in a in the Futures markets and we're seeing that continue to shift and move more and more towards towards towards the future side of the business office in terms of of the on the natural gas side. You know, what we're seeing there is is very similar to what I said in a comment that I had just made with natural gas or seeing them with with with those the Shell oil wells, you know starting to shut in and starting to slow production you are seeing what was a massive glut of natural gas across the US that depressed prices in really had no volatility in the in the natural gas market all of a sudden introduce some real volatility and I know from talking with a lot of our our our commercial commercial customers, they're they're looking at adding more more than ever further out the curve longer-dated types type positions the natural gas basis Market's continuing continuing to grow and grow nicely in in open interest terms dead.

and the complimentary to trading in the basis markets is often times people trade that as a

Spread the Henry and trade trade them in a longer-dated way and you know historically that has been the area of the market that we've played in and you know, that's why we're seeing the the fact that we have the robust growth that we have in Henry as well as bases. Can this is Jeff one comment that I think you'll appreciate is in Europe. You have the Emir legislation, which is similar in scope to what the United States adopted after the financial crisis in our Dodd-Frank legislation. As you may know those those us and European legislators wanted more strength in the over the counter markets and and moo and pushed many Market participants more towards clearing of swaps and derivatives positions in Europe. There was a carve-out that the utility business if you will and utilities did not

Have to clear OTC positions, they didn't have to margin each other. And so to a certain degree when Ben says the over-the-counter Market is active a Europe. It's it's partly because the Futures Market has to really learn its way the trust of the market because people do have to post margin in the future business. So for many it can be more expensive. The reality is your counterparty is the Clearinghouse which has a lot of transparency and safe guards around it regulatory oversight as opposed to bilateral deals where you where you have less knowledge potentially of your counterparty in times of stress, like this people pay attention to their counterparties and and Sundays. We again see this as another opportunity. We saw a similar kind of outcome after Enron collapse after after the financial crisis collapsed dead.

In 2009 and and I suspect that that you know, you will see us working hard to convince customers that we're a better wage European customers that we're we're a better place for them to keep their positions. So, you know, there is opportunity always in in times of change.

Our next question is from Alex bloustein from Goldman Sachs. Go ahead.

Hey, good morning everyone, and thanks for taking the question. I wanted to chat about your credit business for a second. So I saw a couple of days ago you guys launched. I select to consolidate access to get a variety of liquidity platforms. Obviously you guys purchased over the years. Can you talk a little bit about how that integration process is going. How are you guys marketing that the clients maybe give us an update sense of what sort of the credit rating revenue for that whole business looks like and whether or not this is a this is a point in time for I swear we could see a more material acceleration and credit app Revenue. Thanks.

Thanks Alex. It's it's bad.

On the latter Point around around Revenue. I think the way to think about our platforms and I've said this earnings call a couple of calls ago is that the performance in terms of Iraq that you'll see will be still very similar to what you'd see in the in the 80s volumes that are reported from the Consolidated tapes less than two fifty. Cuz the execution venues is stores have been retail oriented and where we've been focused is on on building out building out our Network and getting established and getting as many touch points as we can into the institutional trading space to really start to penetrate that market. So let me let me hit the first part of your question then so our our our strategy has been to to help industry participants, you know solve real strains in that secondary Market wage be trading Market of just sourcing liquidity for bonds. It's been very difficult, especially at times of stress and we saw this in the last last couple of months to procure bonds individual bonds wage.

Um, cuz it's still mostly analog. It's still a lot done heavily over the phone. So our strategy has been to pull together our pricing or analytics capabilities in our execution Technologies to create new Innovations and the first Innovation, which we've talked about many time zones calls is ETF Hub and and Jeff gave some statistics in his in his commentary, but you know, we launch platform with equities in the beginning of Q4 last year fixed income and late Q4, and we've already had in a short period of time two hundred billion in notional trade on that platform in March on that accelerated to eighty seven billion and out of that $8,766 billion of it was fixed income.

When you think about 63 billion and fixed income in a month and primary trading that's a pretty good starting place of the market that trades electronically and and on the phone in the secondary Market where people are going to procure the bonds The Gather the basket and then they go to our primary trading offering to go ahead and swap that basket for a particular ETF shares. So we're seeing nice growth in the primary trading space. Jeff also mentioned that we have a new innovation that just it just came out with the ability to customize the basket of Securities that are swapped for an etf's chair.

We believe this is important fundamental building block for us to further grow our community of of APS and issuers that are on the platform.

In parallel to that so you saw the announcement yesterday that you referenced. So we're very happy that with with the announced we were able to make yesterday. Cuz what we what that in fact is is it for the first time we've pulled together all of the liquidity on our various venues. So Acquisitions like TMC bonpoint and credit X. We pull all the quiddity into one easy-to-use poor customers to access. We've also combined the multiple protocols that we have. So everything from RFQ to auctions to click the trade all into one interface and off but not least. We've added on our institutional analytics as part of our data services business that serves the vast majority of the institutional investment Community with tools life best execution and our real-time pricing service called CP. So now a customer can access in one portal a deep set of liquidity. You have choice of all of these different protocols.

And you have institutional analytics to tell you what's the quality of my execution that I would get in these in these electronic liquidity pools.

So where the starts to come together now? What our vision is Ben? Is that between the primary trading order flow? So that's sixty three billion that I had mentioned that we did in March and are fully booked rated businesses across ice data services as well as our ice bonds businesses through the I select portal that we announced yesterday that now positions wage for the first time to really compete for institutional flow that has traditionally been done either electronic form or still predominantly over the phone for the first time and money because we're now in that position in the second half of this year is when we're going to start publishing for all of you relevant metrics the development of our Network on the Hub as well as the development of our execution off our our execution of venues as they continue to mature

This concludes our question-and-answer session. I would not like to turn the conference back to Jeff Spector for closing remark. Thank you Kate. Well, we look forward to speaking to you about the company's current quarter on our next call and and I hope that in the mean time that you and your loved ones stay safe and and stay very positive about the opportunities that life for all of us and with that. I hope you have a great day.

The conference has now concluded thank you for attending today's presentation. You may now disconnect.