Q2 2023 Cboe Global Markets Inc Earnings Call

Speaker 1: We will open the call to Q&A. Also joining us for Q&A will be Chris Isaacson, our Chief Operating Officer, Dave Howson, our President, and our Chief Strategy Officer, John Deeters. I'd like to point out that this presentation will include the use of slides. We will be showing the slides and providing commentary on each. A downloadable copy of the slide presentation is available on the investor relations portion of our website.

Also joining us for Q&A will be Chris Isaacson, our Chief operating officer, Dave Howson, our president and our Chief strategy Officer, John Deters.

To point out that this presentation will include the use of slides, we will be showing the slides and providing commentary on each a downloadable copy of the slide presentation is available on the Investor relations portion of our website.

Speaker 1: During our remarks we'll make some forward looking statements which represent our current judgment on what the future may hold and while we believe these judgments are reasonable, these forward looking statements are not guaranteed at future performance and involve certain assumptions, risks and uncertainties. actual outcomes and results may differ materially from what is expressed or implied in a forward looking statement.

During our remarks, we'll make some forward looking statements, which represent our current judgment of what the future may hold and while we believe these judgments are reasonable. These forward looking statements are not guarantees of future performance and involve certain assumptions risks and uncertainties.

Actual outcomes and results may differ materially from what is expressed or implied in any forward looking statements. Please refer to our filings with the SEC for a full discussion of the factors that may affect any forward looking statements.

Speaker 1: Please refer to our filings with the SEC for a full discussion on the factors that may affect...

Speaker 1: We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise after.

Undertake no obligation to publicly update any forward looking statements, whether as a result of new information future events or otherwise after this conference call.

Speaker 1: During the call this morning we will be reviewing non-GAAP measures as defined and reconciled in our earnings materials. Now, I'd like to...

During the call. This morning, we'll be reviewing non-GAAP measures as defined and reconciled in our earnings materials.

Now I'd like to turn the call over to Ed.

Speaker 2: Thank you, Ken. Good morning and thanks for joining us today. First off, I'd like to welcome Jill Grebenau, our new Chief Financial Officer to the call. During her 12-year tenure at Civo, Jill has held many roles across our global organization and has an incredible understanding of our business, bringing the breadth and depth of expertise needed to serve in this role.

Thank you Ken good morning, and thanks for joining us today.

First off I'd like to welcome Joe <unk>, our new Chief financial officers of the call. During her 12 year, China CFO Jill has held many roles across our global organization and it has an incredible understanding of our business, bringing the breadth and depth of expertise needed to serve in this role.

Speaker 2: Her leadership has helped drive our mission and strategy, enabling us to become the global market powerhouse we are today. And I'm happy to have her at the helm as CFO .

Her leadership has helped drive our vision and strategy enable us to become the global market powerhouse we are today.

Happy to have her at the helm CFO .

Speaker 2: I'm pleased to report on strong second quarter earnings receivo. During the quarter, we grew net revenue 10% year over year to $467 million and adjusted EPS by 7% to $1.78.

I am pleased to report on a strong second quarter earnings placebo during the quarter. We grew net revenue, 10% year over year to $467 million and adjusted EPS by 7% to $1 78.

Speaker 2: These results were driven by strong volumes across our derivatives franchise, specifically our proprietary index options products and the continued global expansion of our data and access solutions.

These results were driven by strong volumes across our derivatives franchise, specifically, our proprietary index options products and the continued global expansion of our data and access solutions business.

Speaker 2: Our derivatives business delivered another outstanding quarter as total organic net revenue increased 21%, driven by the strength of our index options and volatility products, and continued solid volumes of multi-list options trading. During the quarter, total net revenue in our data and access solutions business increased 9% and organic revenue growth increased over 7%.

Our derivatives business delivered another outstanding quarter as total organic net revenue increased 21% driven by the strength of our index options and volatility products and continued solid volumes in multi list options trading during the quarter total net revenue in our data and access solutions business increased 9% and ROE.

<unk> revenue growth increased over 7% total net revenue on our cash and spot markets business decreased 11% during the quarter.

Speaker 2: Total net revenue in our cash and spot markets business decreased 11%.

Speaker 2: Civo's efforts to achieve its environmental, social, and governance goal continue to gain momentum. Last month we published our fifth annual ESG.

<unk> efforts to achieve its environmental social and governance goals continue to gain momentum last month, we published our fifth annual ESG report in addition to disclosing our scope one and scope two emissions. This year for the first time, we disclosed our relevant scope three emissions in our report we plan to continue.

Speaker 2: in addition to disclosing our scope one and scope two emissions. This year for the first time we disclosed our relevant scope three emissions in our framework.

Speaker 2: We plan to continue to make strides forward each year with our ESG.

To make strides forward each year with our ESG program.

Speaker 2: In the second quarter, we advanced our top strategic road priorities, which include derivatives, data and access solutions, and CODIGIAL. Recording wins across each of these priorities during the second.

In the second quarter, we advanced our top strategic growth priorities, which include derivatives data and access solutions and SEDAR digital recording wins across each of these priorities during the second quarter I.

Speaker 2: I will turn to derivatives and data and access solutions in a moment, but first I want to provide an update and see what digital...

I will turn to derivatives and data and access solutions in a moment, but first I want to provide an update on CMO digital.

Speaker 2: During the quarter, Civo Digital recorded solid volumes with ADV of more than $50 million and $4.6 billion total traded on our spot.

During the quarter CMO digital recorded solid volumes with Adv up more than $50 million and $4 $6 billion total traded on a spot market.

Speaker 2: We are also pleased to receive regulatory approval to expand our product offering to include margin futures contracts, which we plan to launch later this year, making Z-Build Digital the first US-Ragulated crypto-native exchange in Clarenhouse platform to offer leverage to

We were also pleased to receive regulatory approval to expand our product offering to include margin futures contracts, which we plan to launch later this year, making chabot digital the first U S regulated crypto native exchange and clearinghouse platform to offer leveraged derivatives products.

Speaker 2: The initial product rollout will include physically and financially settled mid-point and either contracts and will help enable customers to trade futures in a much less capital intensive way. We are working with our customers and the ZFTC and preparation for launch and look forward to bringing this unique product to the market.

The initial product rollout will include physically and financially settled bitcoin and easily contracts and will help enable customers to trade futures in a much less capital intensive way, we are working with our customers and the C. O T C. In preparation for launch and look forward to bringing this unique product to the market.

Speaker 2: As the digital asset market continues to evolve, we remain highly active in discussions with regulators and policy makers.

As the digital asset market continues to evolve we remain highly active in discussions with regulators and policymakers. We continue to see engagement from market participants about the opportunities of this asset class affords and will continue to leverage our trusted transparent and regulated market structure to advance the industry forward.

Speaker 2: We continue to see engagement from market participants about the opportunities this asset class affords and will continue to leverage our trusted, transparent and regulated market structure to advance the industry forward.

Speaker 2: Our derivatives ecosystem continued to flourish in the second quarter. As traders and investors utilize our flagship, VIX, and S&P 500 index options products across an ever-changing market environment.

Our derivatives ecosystem continued to flourish in the second quarter as traders and investors utilize our flagship VIX and S&P 500 index options products across an ever changing market environment as.

As we have evolved our suite of products in recent years, we have created flexible products that provide opportunities for customers of all dimensions to trade a contract with is right sized for them on a timeframe that suits their unique needs.

Speaker 2: We have created flexible products that provide opportunities for customers of all dimensions to trade a contract with its right size for them. On a time frame that suits 30...

Speaker 2: Together our Vicks and SPX products anchor a remarkable...

Gather our VIX and SPX products anchor a remarkable tool kit is available for investors to help find opportunity and hedge their portfolios and changing market environments.

Speaker 2: is available for investors to help find opportunity and hedge their portfolio in changing market environment.

Speaker 2: During the second quarter, volume in our proprietary index options products increased 38% to your...

During the second quarter volume in our proprietary index options products increased 38% year over year, while multi list options increased 2% in June we reached new record monthly Adv of $3 9 million total index options contracts traded.

Speaker 2: while multi-list options increased 2%. In June , we reached new record monthly ADV of 3.9 million total index options contracts traded.

Speaker 2: SVX Options ADB increased 33% to a record 2.8 million contracts during the quarter. We also continue to see strong momentum in our mini SVX Options contract, known by its ticker symbol XSP, which increased 142% euro.

SPX options Adv increased 33% to a record $2 8 million contracts during the quarter. We also continued to see strong momentum in our mini SPX options contract known by its ticker symbol ex SP, which increased 142% year over year.

Speaker 2: ADV for SBX options opened on the same day of expiration, otherwise called zero DTE, comprised nearly 44% of overall SBX volumes in the second quarter.

Adv for SPX options opened on the same day of exploration otherwise called zero at DTE comprised nearly 44% of overall SPX volumes in the second quarter.

Speaker 2: As we've voted before, we believe there has been a fundamental evolution in how customers are training this product. And we anticipate this volume to...

As we've noted before we believe there has been a fundamental evolution in how customers are trading this product and we anticipate this volume to continue.

Speaker 2: Given this strong customer interest, we continue to focus on the development of a short term trade-all product that is designed to allow customers to more effectively trade tailiards in the market.

Given the strong customer interest we continue to focus on the development of a short term tradable product that is designed to allow customers to more effectively traded daily news in the market.

Speaker 2: While interest in zero DTE trading has gained a lot of attention, we continue to see strong volumes in our standard monthly SPX options contract that expires on the third Friday of March.

While interest in zero D. T E trading has gained a lot of attention. We continue to see strong volumes in our standard monthly SPX options contract that expires in the third Friday of every month with average open interest up 12% in June of 2023 compared to one year ago.

Speaker 2: with an average open interest of 12% in June of 2023 compared to one year ago. On the VIX index, we made SS.

While the VIX index remained at historically low levels during the second quarter, we saw a significant increase in trading activity in VIX options with a 53% increase year over year to an adv of 778000 contracts are for.

Speaker 2: We saw a significant increase in trading activity and exemptions with a 53% increase year over year to an ADV of 778,000 contracts are fourth best quarter on record.

First quarter on record.

Speaker 2: Given the flexibility and utility of both a VIX and a VIX options provide and change in market environments, we see customers utilizing both products interchangeably to manage and hedge their risk.

Given the flexibility and utility of both <unk>.

SPX options provide and changing market environments, we see customers utilizing both products interchangeably to manage and hedge their risk.

Speaker 2: and globally demand for our products continued with SPX and VIX options ADB during global trading hours increasing 81% and 16% respectively versus the second.

And globally demand for our products continued with SPX and VIX options Adv during global trading hours, increasing 81% and 16% respectively versus the second quarter of 2022.

Speaker 2: Through our strong foundation for proprietary index options products, we are able to further expand our diverse offerings with new products designed to help meet the evolving needs of our growing global customers.

Through our strong foundation of proprietary index options products, we're able to further expand our diverse offerings with new products designed to help meet evolving needs of our growing global customer base.

Speaker 2: Last month we launched options on our corporate bond index futures, bringing in new options on futures functionality to Zebra Futures Exchange, which we can leverage for additional products in the future.

Last month, we launched options on our corporate bond index futures, bringing a new options on futures functionality placebo futures exchange, which we can leverage for additional products in the future.

Speaker 2: This word, we also anticipate that fin run will receive regulatory approval for new marginal requirements recently adopted by SIBO related to cash settled index options written against ETFs that track the same index on the underlying the option specifically customers who are writing options against.

This quarter, we also anticipate that FINRA will receive regulatory approval for new margin requirements recently adopted by sea Boe related to cash settled index options written against Etfs that track the same index underlying the option specifically customers quite writing options against indices that are offset by.

Speaker 2: that are offset by underlying ETF. For example, access P versus long spy stock. We receive margin relief enabling greater capital efficiencies in their trading. And in part,

Underlying ETF for example, access P versus long spy stock, we received margin relief, enabling greater capital efficiencies in their trading.

And in partnership with S&P, Dow Jones indices, we plan to launch a new <unk> S&P 500 dispersion index next month.

Speaker 2: We plan to launch a new CBL S&P 500 dispersion in next...

Speaker 2: This version is recognized as one of the fundamental metrics of market risk. A strategy that is predominantly treated in the over-the-counter market. This new index aims to standardize the measurement of S&P 500 dispersion.

Dispersion is recognized as one of the fundamental metrics of market risk a strategy that is predominantly true and the over the counter market. This new index aims to standardize the measurement of S&P 500 dispersion.

Speaker 2: Additionally, we are preparing for the launch of single stock options on our SIBO Europe derivatives exchange.

Additionally, we are preparing for the launch of single stock options undersea, though Europe derivatives exchange in the fourth quarter of this year with active engagement from market participants and other members of the ecosystem, who share our vision of growing the market and delivering a simpler and more efficient pan European trading and post trade experience.

Speaker 2: this year with active engagement from our participants and other members of the ecosystem who share our vision of growing the market and delivering a simpler and more efficient Japan European trading and post trading.

Speaker 2: We look forward to providing an update on this initiative during our next Ernie School.

We look forward to providing an update on these initiatives during our next earnings call.

Turning to our data and access solutions business, we continue to see solid growth with total net revenue, increasing 9% up 7% on an organic basis during the quarter. The second quarter results build on the strong demand, we see globally from customers for our high quality data and access to our markets as we look to the SEC.

Speaker 2: We continue to see solid growth with total net revenue increasing 9%, up 7% on an organic basis during the quarter. The second quarter results build on the strong demand we see globally from customers for our high quality data and access to our markets. As we...

Half of the year, we anticipate new opportunities across our data and access solutions ecosystem will drive further growth.

Speaker 2: We anticipate new opportunities across our data and access solutions ecosystem.

Speaker 2: Including demand for Australian equity market data, now that Cevo Australia has migrated, its exchange technology to Cevo's uniform trading plan.

<unk> demand for Australia, and equity market data now, let's see the Australia has migrated its exchange technology to see both uniform trading platform.

Speaker 2: as we continue to leverage our global footprint and expanded customers.

We continue to leverage our global footprint and expanded customer base. We also see opportunity to expand our reach of our proprietary data products such as our <unk> data feeds and seaport global indices offerings.

Speaker 2: We also see opportunity to expand our reach of our proprietary data products, such as our C-01 data feeds and C-B-L-Global Indus.

Speaker 2: We continue to focus on our sales and marketing efforts in new regions to introduce market participants to the unique value proposition of our unrivaled down-off.

We continue to focus on our sales and marketing efforts in new regions to introduce market participants to the unique value proposition of our unrivaled offering.

Speaker 2: During the second quarter, we announced the launch of CFO Global Listings, of first of its kind Global Listings Network, which aims to facilitate worldwide access to capital and secondary liquidity for companies.

During the second quarter, we announced the launch of Seaport Global listings, a first of its kind global listings network, which aims to facilitate worldwide access to capital and secondary liquidity for companies and Etfs are new listings offering draws on our deep market expertise regional experience in all of the jurisdictions, where we operate.

Speaker 2: Our new listings offering draws on our deep markets expertise. Regional experiences, all of the jurisdictions will be operating in the combined strength of our global activities exchange network to provide a locally optimized and centrally coordinated listing services.

And the combined strength of our global equities exchange network to provide a locally optimized and centrally coordinated listing services and support for issuers.

Speaker 2: The expansion of our listings business rounds out our global equities offering, helping to enable market participants around the globe to utilize SIBO markets for more uniform access to equities trading market data and listings.

The expansion of our listings business rounds out our global equities offering helping to enable market participants around the globe to utilize seaborne markets for a more uniform access to equities trading market data and listings.

Speaker 2: Performance and our cash and spot markets reflected the overall muted values we saw across all global equity markets

Performance in our cash and spot markets reflected the overall muted volumes, we saw across all global equity markets in the second quarter and.

Speaker 2: In Europe , the Cibo Europe Equities business increased second quarter market share by 1% year over year to 23.8%. Additionally, Cibo Biz Europe experienced another strong quarter with 35.8% market share and remained the largest European block trading company in Europe .

In Europe placebo, Europe equities business increased second quarter market share by one percentage point year over year to 23, 8%. Additionally, see bow bids Europe experienced another strong quarter with 35, 8% market share and remains the largest European block trading that you see.

Speaker 2: Market Shared Loop 33.8% in the second quarter, up from 31.3% in the prior year quarter.

Clearly Europe market share grew to 33, 8% in the second quarter up from 31, 3% in the prior year quarter.

Speaker 2: During the quarter, C-Bloc Clear Europe also announced plans to introduce securities financing transactions or SFTs in 2024 subject to regulates.

During the quarter <unk> clear Europe also announced plans to introduce securities financing transactions or at Ts and 2024 subject to regulatory approvals.

Speaker 2: CIVO aims to bring this new service to the market to help ease capital requirements for market participants through a century clearance.

She will aims to bring this new service to the market to help ease capital requirements for market participants to a centrally cleared service for stock lending.

Speaker 2: As FT has yet another example of C-bo taking market feedback, leveraging our expansive ecosystem and building tangible solutions for our customers.

<unk> is yet another example of <unk>, taking market feedback leveraging our expansive ecosystem and building tangible solutions for our customers.

Turning to Asia Pacific Seaborne, Australia market share grew to 18, 2% in the second quarter up from 70% from the previous year in.

Speaker 2: Seba Australia market share grew to 18.2% in the second quarter, up from 70% in the previous year. In Japan, at least market share was 4.1% during the second quarter, up from 3.5% in the second.

In Japan equities market share was four 1% during the second quarter up from three 5% in the second quarter of 2022, and we remain on track for the seaborne, Japan technology migration and expected launch of <unk>, Japan in the fourth quarter of this year subject to regulatory approval.

Speaker 2: And we remain on track for the Seabode Japan Technology Migration and expected launch of Seabode Beach, Japan, in the Fort Worth of this year.

Speaker 2: With the launch of CivoBizJapan, the BizNetwork will now extend to seven of the top ten global equity markets, creating a one-of-a-kind global equity block trade.

With the launch of <unk> into Japan. This network will now extend to seven of the top 10 global equity markets, creating a one of a kind global equity block trading network.

Speaker 2: In our global FX business, that revenue is worth 7% over here.

And our global FX business that revenues were up 7% year over year in the second quarter as the business expanded spot market share to a record 19.

Speaker 2: as the business expanded spot market church will record 19.5% up from 17%.

5% up from 17% a year ago.

Speaker 2: Our NDF offering, which trace and seaball staff, our Swamp Execution Facility, continue to see strong wave results with volumes increasing 23%.

Our MTF offering, which trades unsuitable south our swap execution facility continued to see strongly results with volumes, increasing 23% in the second quarter with Adv up $937 million to meet this increased customer demand, we launched our new London matching engine for C. Both soft during the second quarter.

Speaker 2: with ADV of $937 million. To meet this increased customer demand, we launched a new London matching engine.

Speaker 2: With Asian currency pairs accounting for a significant portion of C-Bosephalians, this new matching engine is expected to enhance our service to customer space in Asia and Europe for the diversifier order flow on the platform and create greater matching opportunities for our customers.

With Asia currency pairs accounting for a significant portion of the <unk> volumes. This new matching engine is expected to enhance our service to customers based in Asia and Europe further diversify your order flow on the platform and create greater matching opportunities for our clients.

Speaker 2: In summary, Zivo delivered another solid quarter, building on our record first quarter results. With our strong foundation of derivatives, cash and spot markets, coupled with our data and access solutions, we have the ability to continue to harness the power of these markets to create new products and services that deliver innovative products to our customers.

In summary, <unk> delivered another solid quarter building on our record first quarter results with our strong foundation of derivatives cash in spot markets, coupled with our data and access solutions. We have the ability to continue to harness the power of these markets to create new products and services that deliver innovative products to our customers.

Speaker 2: We will continue to plant the seeds of opportunity that will help allow us to harvest investments across all seasons to drive consistent growth and value for our shareholders. With that, I will...

We will continue to plant the seeds of opportunity that will help allow us to harvest investments across all seasons to drive consistent growth and value for our shareholders with that I will turn it over to Jill.

Speaker 3: And thank you for that kind introduction. I couldn't be more excited to build on the strong women I'm at Cebo today. As Ed highlighted, Cebo posted a strong second quarter with adjusted deluded earnings per share of 7% on a year over your basis to $1.78.

And thank you for that kind introduction and couldn't be more excited to build on the strong momentum at all today.

And that's highlighted keep all posted a strong second quarter with adjusted diluted earnings per share up 7% on a year over year basis.

The $1 78.

Speaker 3: The performance was led by continued strength for our derivatives franchise, as well as a steady contribution from our data and access solutions.

Our performance was led by continued strength in our derivatives franchise as well as the steady contribution from our data and access solution business.

Speaker 3: As we have done at prior quarters, we look to maximize long-term shareholder value through monetizing today's opportunities while investing in future growth

As we have done in prior quarters, we look to maximize long term shareholder value through monetizing today's opportunities while investing in future growth initiatives.

Speaker 3: I want to highlight some high-level takeaways from the strong second quarter performance before providing a more detailed assessment of our segments.

I want to highlight the high level takeaways from the strong second quarter performance before providing a more detailed assessment of our segment.

Speaker 3: Our second quarter net revenue increased 10% to finish up 467 million. Driven by the strength of our derivative market category and the solid results from our data and access solutions business.

Our second quarter net revenue increased 10% to finish at 467 million.

Driven by the strength of our derivatives market category and the solid result, Martina and access solutions.

Speaker 3: Specifically, derivatives markets produce 21% Euro-eurochanics net revenue growth in the second quarter, as the market continue to find increasing utility in our tool kit of proprietary products.

Specifically during this market's pretty at a 21% year over year organic net revenue growth in the second quarter as the market continued to find increasingly how many in our tool kit and proprietary products.

Speaker 3: Data and Accent Solutions Net Revenue increased 9.4%. Up 7.4% on an organic basis during the quarter.

Data and access solutions net revenues increased nine 4% up seven 4% on an organic basis during the quarter.

Speaker 3: We are pleased with a sequential organic revenue improvement in the second quarter, and remain excited by the catalyst we continue to see in the second half of the year.

We are pleased with the sequential organic revenue improvement in the second quarter and remain excited by the catalysts. We continue to see in the second half of the year.

Speaker 3: Cash and spot markets net revenues decreased 11% during the quarter, or 12% on an organic basis as the trading environment remained muted across the globe.

Cash and spot markets net revenues decreased 11% during the quarter or 12% on an organic basis as the trading environment remained muted across the globe.

Speaker 3: Adjusted operating expenses increased 22% to $192 million. An adjusted EBITDA of $293 million grew a solid 7% versus the second quarter of 2022.

Adjusted operating expenses increased 22% to $192 million and adjusted EBITDA of $293 million grew a solid 7% versus the second quarter of 'twenty two.

Speaker 3: Turning to the key drivers by segment, our friends release in the appendix of our slide deck include information detailing the key metrics for each of our business segments. So I'll provide some summary thoughts.

Turning to the key drivers by segment, our press release and the appendix of our slide deck include information detailing the key metrics for each of our business segment. So I'll provide some summary.

Speaker 3: The performance of our option segment was again very robust, delivering the highest growth of any segment for the quarter, with net revenue increasing 20%. The results were driven by strong volumes in our index business and favorable revenue per contract, or RPC, trends given the mix...

The performance of our option segment was again very robust delivering the highest growth of any segment turned the corner with net revenue increasing 20%.

The results were driven by strong volumes in our index business and favorable revenue per contract or RPC trends, given the mix shift index option.

Speaker 3: Total options ADV without 10% as our higher price index option ADV increased 38% over 2Q22 level.

Total options Adv was up 10% and our higher price index options Adv increased 38% over <unk> 22 level.

Speaker 3: RPC moved 16% higher given a continued positive contribution of higher capture index products.

RPC moved 16% higher given a continued positive contribution of higher capture indexed products.

Speaker 3: And market data and access capacity fees were at 11% and 5% respectively, as compared to Q22.

And market data and access capacity fees were up 11% and 5% respectively as compared to <unk> 22.

Speaker 3: North American equities net revenue was down 2% on a year-over-year basis.

North American equities net revenue was down 2% on a year over year basis.

Speaker 3: Results benefited from Neo, which was acquired in June of 22, contributing 3.6 million in BRK's 2007 Inter-Ian Myan estos logo was acquired in Ashewick with the

<unk> benefited from Neal, which was acquired in June of 'twenty two.

<unk> $3 6 million in inorganic net revenue during the quarter.

Speaker 3: In addition, access and capacity fees increase 6% as compared to QQ22, and market data increased 1%, as for private-earned market data growth outpaced to decline in zip revenue.

In addition, access and capacity fees increased 6% as compared to <unk> 22, and marketing and increased 1%. After a primary market data growth outpaced the decline in revenue.

Speaker 3: Net transactions fees were down 13% given softer industry volumes in market share in our US.

Net transaction fees were down 13%, given softer industry volumes and market share in our U S business.

Speaker 3: And while our US on exchange market share has trended lower on an absolute basis, our share has remained relatively constant when adjusting for the increase in off exchange market volume and auction activity seen during the second quarter.

And while our U S on exchange market share has trended lower on an absolute basis. Our share has remained relatively constant when adjusting for the increase in off exchange market volume in auction activity seen during the second quarter.

Speaker 3: The Europe and APEC segment reported a 5% year-over-year decline in net revenue impacted largely by softer industry volumes in Europe . The lower activity levels were partially offset by a nearly 1% point in Greece and market share on a year-over-year base.

The Europe , and APAC segment reported a 5% year over year decline in net revenue impacted largely by softer industry volumes in Europe .

Lower activity levels were partially offset by a nearly one percentage point increase in market share on a year over year basis.

Speaker 3: and Sebel Clear Year of also grew market share during the quarter. From 31 to 34 percent.

It seems clear Europe also grew market share during the corner from 31% to 34%.

Speaker 3: Second quarter net revenue was down 1% in the future segment, as a 3% decrease in net transaction fees, was partially offset by an increase in access to capacity.

Second quarter net revenue was down 1% in the futures segment and a 3% decrease in that transaction, either with partially offset by an increase in access and capacity.

Speaker 3: Lower volumes were the primary driver of the decline in that transaction.

Lower volumes were the primary driver of the decline in that transaction.

Speaker 3: falling 11% during the quarter. The decline in activity was partially offset by a 9% increase in art.

Following an 11% during the corner.

Activity was partially offset by a 9% increase in RPC helped by pricing tweaks, we made in the VIX complex in April of this year on.

Speaker 3: Health by pricing tweaks we made in the VIX Complex in April of this year.

Speaker 3: On the non-transaction diet, access and capacity fees continue to perform well up 6% versus the second quarter of last year. And finally, net revenue in the FX segment was up a solid 7% as compared to last year. Marching the ninth, three quarter of your over year net revenue.

On the non transaction side access and capacity fees continued to perform well up 6% versus the second quarter of last year.

And finally net revenue in the FX item that was up a solid 7% as compared to last year, marking the ninth straight quarter of year over year net revenue gain.

Speaker 3: Net transaction fees revenue was up 6% as average daily no-shall value increased by 7%. And market share hit another record at 19.5% for the quarter.

Net transaction fees revenue was up 6% and average daily notional value increased by 7% and market share hit another record at 19, 5% for the quarter.

Speaker 3: Turning now to see both data and access solutions business, net revenues were up a solid 9.4% in the second quarter. Up 7.4% on an organic fee.

Turning now to see both data and access solutions business net revenues were up a solid 94% in the second quarter up seven 4% on an organic basis.

Speaker 3: Net revenue growth continued to be driven by additional subscriptions and units, accounting for 77% organic access to the growth, and 63% of organic marketated growth in the second quarter.

Net revenue growth continued to be driven by additional subscriptions and units accounting for 77% organic access fee growth and 63% of organic marketing unit growth in the second quarter.

Speaker 3: We are pleased with the sequential acceleration in organic net revenue growth and remain confident in our ability to hit our full year guidance range of 7 to 10 percent.

We are pleased with the sequential acceleration in organic net revenue growth and remain confident in our ability to hit our full year guidance range of 7% to 10%.

Speaker 3: Over the second half of the year, we expect solid contributions from proprietary data sales, benefiting from the sustained growth across our deregid complex.

Over the second half of year, we expect solid contributions from proprietary data sale benefitting from the sustained growth across our de Rendez complex.

Speaker 3: We all turn to state solid trends from Steve O'Global entities, with good momentum around index flights.

We also anticipate solid trends from Steve, Oklahoma Lindsey's with good momentum around index licensing.

Speaker 3: In Australia, we saw a solid uptick in data sales and access since the migration, in line with what we have witnessed following past technology migration.

In Australia, we saw solid I've taken data fields and access into the migration in line with what we have witnessed following passive technology migration.

Speaker 3: We expect that momentum to continue adding to the enhanced distribution capabilities that Cevo Global Cloud presents providing incremental sales potential for our suite of data products.

We expect that momentum to continue adding to that enhance distribution capabilities at seabrook global offer that providing incremental sales potential for our suite of data products.

Speaker 3: We also expect to make modest pricing increases in areas where pricing has been consistent for many years, but the utility being offered has increased dramatically. Following the selective enhancements, our products are expected to remain competitively priced relative to our peers. And we remain focused on the value proposition for our...

We also expect to make modest pricing increases in areas, where our pricing has been consistent for many years, but the utility being offered has increased dramatically. Following the selected enhancements our products are expected to remain competitively priced relative to our peers and we remain focused on the value proposition for our customers.

Speaker 3: Turning to expenses, total adjusted operating expenses were approximately $122 million for the quarter. Up 22% compared to last year.

Turning to expenses total adjusted operating expenses were approximately $192 million for the quarter up 22% compared to last year.

Speaker 3: Excluding the impact of acquisitions owned less than a year, adjusted operating expenses were up 19% or 30 million for the quarter, largely reflecting higher head count as compared to the second quarter of last year. An increased travel and promotional spend, given our 50th anniversary celebration, and increased corporate brand of marketing costs.

Excluding the impact of acquisitions owned less than a year adjusted operating expenses were up 19% or $30 million for the quarter, largely reflecting higher head count as compared to the second quarter of last year and increased travel and promotional spend given our 50th anniversary celebration and increased corporate brand and marketing costs and the SEC.

Speaker 3: And the second quarter also included a one-time $5 million true up in June to reclassify certain capitalized charges to operating expenses and the technology support service supply.

The quarter also included a one time $5 million true up in June to reclassify certain capitalized charges operating expenses in the technology support services line.

Speaker 3: Note that we do not expect any further adjustments for previously capitalized charges to impact our expense or capitalized charges moving forward.

Note that we do not expect any further adjustments for previously capitalized charges to impact our expense or capitalized charges moving forward.

Speaker 3: Moving to our expense guidance, we are lowering our full year 2023 expense guidance range to 766 to 774 million from 769 to 779 million.

Moving to our expense guidance, we are lowering our full year 2023 expense guidance range to 766 $774 million from 769 to 779 million. The three basic components of the year over year increase are outlined on slide 18 of our earnings presentation.

Speaker 3: The three basic components of the year-over-year increase are outlined on site 18 of our earnings presentation. Expenses from 2022 acquisition, growth investments, and core expense growth.

Expenses from 2022 acquisition growth investment and core expense growth.

Speaker 3: Looking at the details of our three categories, we expect the two 2022 acquisitions to add approximately 30 to 31 million in incredible expenses for 20-

Looking at the details of our three categories. We expect the 2022 acquisitions to add approximately 30 to 31 million and incremental expenses for 23 below our previously expected range of $33 million to $35 million.

Speaker 3: below our previously expected range of 33 to 35 million. As hiring flowed in our digital business in part due to ongoing regulatory uncertainty.

Hiring slowed in our digital business in part due to ongoing regulatory uncertainty, while we are still incredibly committed to the digital business. We continue to watch the regulatory landscape closely and adjust our spending to match the revenue environment.

Speaker 3: While we are still incredibly committed to the digital business, we continue to watch the regulatory landscape closely and adjust our spending to match the revenue environment.

Speaker 3: Moving on to gross generating investments, we have to state that the investments we are making in the business to help drive incremental revenue to our bottom line will be in the range of 25 to 27 million.

Moving on to growth generating investments, we anticipate that the investments, we're making in the business to help drive incremental revenue to our bottom line will be in the range of $25 million to $27 million or.

Speaker 3: Our new range is roughly $3 million lower than our prior range, but we remain committed to investing in high return areas like DNA expansion, a more aggressive marketing campaign, and targeted products and services R&D efforts across our economy.

Our new range is roughly $3 million lower than our prior range, but we remain committed to investing in high return areas like DNA expansion are more aggressive marketing campaign.

Targeted products and services R&D efforts across our ecosystem.

Speaker 3: The last component is our core expense growth, totaling approximately 59 to 64 million. As a reminder, this includes our expectations for CAD projects cost in 23 investments in infrastructure and inflationary factors on our business.

The last component is our core expense growth totaling approximately 59% to $64 million. As a reminder, this includes our expectation for cat project cost in 'twenty three investments in infrastructure at inflationary factors on our business.

Speaker 3: Our updated estimates factor in an incremental $5 million for cat expenses, as well as the one-time requestification of certain catalyzed charges to operating expenses of $5 million.

Our updated estimates factor in an incremental $5 million for cat expenses as well as the one time reclassification of certain capitalized charges operating expenses of $5 million.

Speaker 3: These higher charges were partially offset by lower expected depreciation and amortization.

These higher charges were partially offset by lower expected depreciation and amortization expenses.

Speaker 3: Moving forward, we will continue to put capital to work in failure-adhancing ways across our ecosystem. While striving to strike the right balance between the revenue opportunity available and the expense outlay required to enhance failure for shareholders.

Moving forward, we will continue to put capital to work in value enhancing ways across our ecosystem.

Striving to strike the right balance between the revenue opportunity available and the expense outlay required to enhance value for shareholders.

Speaker 3: Looking at our full year guidance more broadly on the next slide, we are making some positive revisions to reflect our solid year-to-date performance in our constructive forward outlook across our business.

Looking at our full year guidance more broadly on the next slide we are making some positive revision to reflect our solid year to date performance and our constructive forward outlook across our businesses.

Speaker 3: At a high level, we are reaffirming our organic toll net revenue growth range of 7 to 9 percent for 2023. But we now expect to finish at the higher end of the range for the year. This remains above our media-turve guidance of 5 to 7 percent introduced at our investor day a year and a half ago. A function of the meaningful engagement we have seen across the toolkit of products at CMO.

At a high level, we are reaffirming our organic total net revenue growth range of 7% to 9% for 2023, but we now expect to finish at the higher end of the range for the year.

This remains above our medium term guidance of 5% to 7% introduced at our Investor day, a year and a half ago.

Function of the meaningful engagement, we have seen across the tool kit of products that email.

Speaker 3: As mentioned earlier, we are reaffirming our DNA organic net revenue growth rate of 7 to 10% for 23. In mind, with our medium-term expectation.

As mentioned earlier, we are reaffirming our DNA organic net revenue growth rate of 7% to 10% for 'twenty three in line with our medium term expectation.

Speaker 3: Given the company's positive mark on its investment in the 7-inch fund, which owns trading technologies, we now expect the other income benefits from minority investments to be in the range of 34 to 40 million. Up from our prior items calling for 27 to 33 million.

Given the company's positive marks on its investment in the southern Rich fund, which owns trading technologies. We now expect the other income benefit from minority investments to be in the range of 34 to 40 million Asmara prior guidance, calling for $27 million to $33 million.

Speaker 3: We are lowering our full-year guidance on depreciation and amortization to $40 to $44 million from $48 to $52 million, and we expect the effective tax rate on adjusted earnings under the current tax laws to come in at $28.30 to $30.30 in 2023. Unchanged from our previous guidance.

We are lowering our full year guidance on depreciation and amortization, 240% to 44 million from $48 million to $52 million and we expect the effective tax rate on adjusted earnings under the current tax laws to come in at 28.5% to 35% in 2023 unchanged from our previous guidance.

Speaker 3: Outside of our annual guidance, net interest expense for the second quarter of 23 was 13.9 million. For 3Q, we expect net interest expense to be in the range of 12 to 13 million.

Outside of our annual guidance net interest expense for the second quarter of 'twenty three was $13 9 million for.

For <unk>, we expect net interest expense to be in the range of $12 million to $13 million.

Speaker 3: On the capital front, our focus has been and remains maximizing long-term shareholder values through the effective use of our capital. In the second quarter, we returned a total of $61 million to shareholders in the form of a 50 cent per share quarterly dividend and $8 million in the form of share repurchases.

On the capital front, our focus has been and remains maximizing long term shareholder value through the effective use of our capital in the second quarter. We returned a total of $61 million to shareholders in the form of <unk> 50 per share quarterly dividend and $8 million in the form of share repurchases.

Speaker 3: Our leverage ratio to client slightly to 1.4 times from 1.5 times in a prior quarter, as we paid down 140 million on our term loan facility that maturers in December of this year. We remain comfortable with our debt profile, having mocked in low-medium to longer-term six-trades, averaging below 3% on nearly 90% of our total debt.

Our leverage ratio declined slightly to 1.4 times from one five times in the prior quarter as we paid down $140 million on our term loan facility that matures in December of this year.

We remain comfortable with our debt profile, having locked in low medium to longer term fixed rate averaging below 3% on nearly 90% of our total debt.

Speaker 3: In summary, the second quarter of 23 was another solid quarter at Pivo. I cannot be more excited about the outlook for the company and I look forward to delivering solid returns for shareholders in the quarters ahead.

In summary, the second quarter of 'twenty three was another solid quarter at female I cannot be more excited about the outlook for the company and I look forward to delivering solid returns for shareholders in the quarters ahead.

Speaker 3: Now I'd like to turn it back over to Ed for you closing comments before we open it up to Q&A.

Now I would like to turn it back over to Ed for some closing comments before we open it up to Q&A.

Speaker 2: Thanks, Jill. As you can see, it has been a busy first half of the year. And I want to thank the entire C-Go team for their hard work and consistently delivering outstanding.

Thanks, Joe as you can see it has been a busy first half of the year and I want to thank the entire she go team for their hard work and consistently delivering outstanding results.

Speaker 2: We head into the final half of the year on stronger footing than ever. And we look forward to continuing to execute on a growth ever to do these ahead. I'll now pass it back to Ken for instructions on the Q&A portion of the call.

Head into the final half of the year on stronger footing than ever and we look forward to continue to execute on our growth opportunities.

I'll now pass it back to Ken for instructions on the Q&A portion of the call.

Speaker 1: At this point, we'd be happy to take questions. We ask, but you please limit your questions to one per person to allow time to get to everyone. Feel free to get back in the queue, and if time permits, we'll take a second question.

At this point, we'd be happy to take questions. We ask that you. Please limit your questions to one per person to allow time to get to everyone feel free to get back in the queue and if time permits we'll take a second question.

Speaker 4: Thank you. And as mentioned at this time, we will begin the question and answer session. Plus a question you may press star on the one on your touchtone phone. If you are using a speaker phone, please check up your hands at before pressing the keys. To try your question, please press star on the two. At this time, we will pause momentarily to assemble the roster. at 455.

Thank you and Thats my agenda at this time, we will begin the question and answer session. That's a question you May Press Star then one on your Touchtone phone.

Speakerphone, please pick up your handset before pressing the keys.

Please press Star then two.

We will pause momentarily to assemble the roster.

And it's one of the first question comes from Bamboos with Barclays.

Speaker 5: Hi, good morning and thanks for taking the question. Ed, I wanted to, you know, we hope that you could unpack a comment you made earlier about, you know, your expectation that, kind of, you mentioned the evolution of how customers trade as you were talking about the growth in SPX volumes. So if you could unpack that a bit in terms of, where do you think the next sort of legs of growth come from? Is it more adoption of shorter data contracts? Is it more customer types? Is it more, kind of, a global adoption of SPX? Where do you see that coming from in the next, you know, 12, 18 months?

Hi, good morning, Thanks for taking the question Ted I wanted to I was hoping you could unpack a comment you made earlier about you know your expectation that you.

You mentioned the evolution in our customers' trade as you were talking about the growth in SPX volumes I wondered if you could unpack that a bit in terms of where do you think the next legs of growth come from is it more adoption of shorter dated contracts is it more customer types is it more kind of.

Global adoption of SPX, what do you see that coming from in the next 12 to 18 months.

Speaker 2: Thanks Ben. Yeah, that's been pretty remarkable. And you can look at this from the institutional perspective or the customer perspective.

Thanks, Brian Yeah, Theres been pretty remarkable and we can look at this from the institutional perspective or the customer perspective, we do see the continuation of retail who have you know.

Speaker 2: We do see the continuation of retail, who have primarily been introduced to this market in a time of pandemic that was in public roads. But now with the transition through education and the benefits of a sustained investment that allows for not being perfect, that means,

Primarily been introduced to this market and a top a pandemic that was incredible growth.

But now with the transition through education and the benefits are of a sustained a sustained investment that allow us for not being perfect that means.

Speaker 2: adding derivatives exposure to a portfolio either to hedge or to initiate a position with limited risk. So we expect that continuation to move forward and that's in both the multi-list area and our proprietary products. What we're most excited about, I'll turn over today is the change in margin treatment in our excess key contract, which we think is very retail friendly with a lot of benefits.

And.

Derivatives exposure to our portfolio either to hedge.

Or to initiate a position with limited risk. So we think and expect that continuation to move forward and that's in both the multi list area.

And our proprietary products, while we're most excited about I'll turn it over to Dave.

Is the change in margin treatment and our excess fee contract, which we think is very retail friendly with a lot of benefits of the SPX, but with a much smaller wallet size built for retail.

Speaker 2: of the SPX but with a much smaller wallet size built for retail.

Speaker 2: And then the institutional size we side we continue to see growth in third Friday exposures and for the SPACs that is typical trade for institutions in the SPACs. What interest being drawn into those very very short dated contracts like we see coming from retail platforms. So that change and exposure is underway and we think that's going to continue in the quarters to come.

And then the institutional sides side, we continue to see growth and third Friday exposures for the SPX that is the typical trade for institutions in the SPX, what interest being drawn into those very very short dated contracts like we see coming from retail platforms.

That's a change and exposure is underway and we think that's going to continue in the quarters to come.

Speaker 2: We're going to keep you up to date on that because it's so exciting, but it really is a completely new exposure and it's additive.

To keep you up to date on that because it's so exciting but it really is a completely new exposure that's additive.

Speaker 2: to what we've seen the growth over the years, and in particular, as I say, since the pandemic. But Dave, I think the real retail shift and what we're optimistic about is the adoption of and the change in margin treatment and XSP and what that allows for individual retail investors, including short- payout sizes...

To what we've seen the growth over the years and in particular as I say since of the pin debit, but Dave I think the real retail shifts and what we're optimistic about is the adoption of and the change in margin treatment in excess P and what's that allows for individual retail investors, including shorter dated option.

Speaker 6: Absolutely, and it's been really encouraging to hear from my customers on calls like these about the increase.

Absolutely.

It's been really encouraging to hear from our customers on calls like these about the increased.

Speaker 6: in the options market in general. And here at SIBO we've got a whole toolkit of products that we see as complementary to each other that might either be used together or in isolation to manage risk and edge exposure throughout any market environment. For more information visit SIBO.com

Projections, though engagement in the options market in general.

Steve I would go the whole tool kit of products that we see it as complementary to each of them either be used together or in isolation to manage risk and hedge exposure throughout any market environment and as a part of that toolkit, we see the excess P product and a little reminder, on what it is that for those of you out there the X S P product.

Speaker 6: And as part of that toolkit, we see the excess people and a little reminder on what it is for those of you out there. The excess people is a one ten size SBX

One tenant size SPX.

Contract.

Speaker 6: It's very much the cash settled index options contract for the spy user. You can deploy all of the strategies that you employ in SBX, also in XSP. In XSP, I have three defining categories, and that fourth kicker that Ed just mentioned.

Very much the cash settled index options contract for the Spa user you can deploy all of the strategies that you are employing aspects also enact SP and excess payoffs redefining categories enough. Both kick up that I. Just mentioned are the first of those the extra speed contracting the cash settled broad based.

Speaker 6: The first of those is that the XSP contractual accounts settled for all of base.

Speaker 6: in-depth contract so you don't have a chance of being physically delivered or needing to physically deliver the underlying at the end of day at the expiry you move cash.

Index contracts. So you don't have a chance of being physically delivered on needing to physically deliver the underlying the end of day and the expiry of U move cash.

Speaker 6: And the second point is that you will be in exercise. There's no opportunity to be exercise nor assigned early before expiring.

The second point is the European exercise, so there's no opportunity to be.

Exercise nor signed early before expiring and the third point that is the potential for beneficial tax treatment that potential for 60 40 long term short term capital gains treatment and then we come to the evolution that we're looking at as.

Speaker 6: The third point there is the potential for beneficial tax treatment, that potential for 60-40 long term, short term capital gains treatment. And then we come to the evolution that we're looking at as we usually await the final regulatory approvals required to really access XSP to access that.

As we are eagerly awaiting the final regulatory approvals required.

To really access access pay to access that.

Speaker 6: ability for cash settled index options written x-medic x-s-p written against ets read sby The trap the same underlying option and so there you can see the opportunity to the margin offset

Ability for cash settled index options written.

Excess paid racing against Etfs read S. P Y the track the same underlying option. So that you can see the opportune symbology.

Speaker 6: for hedging, for example, when you override a long-spired position with a short XSP position, you can get that margin treatment there. So what we expect from that is a good deal of increased activity there and certainly encouraging for us to hear that retail brokerage platforms are looking to one board, test that off, made exception.

For hedging for example, when you override along spy position with a show of excess position you can get that margin treatment that so what we expect from that is.

A good deal of increased activity that certainly encouraging for us to hear that retail brokerage platforms are looking to onboard a central index options in the future. So a long answer to what we see coming at us, but I think the excitement that you hear from US is really the attention that the zero days too.

Speaker 2: So a long answer to what we see coming at us, but I think the excitement that you hear from us is really the attention that the zero days to expiry have in the marketplace. And it really is the cash settlement around the bonds and the ease of trading in and out with cash total options.

Expiry had in the marketplace and it really is the cash settlement around the buzz and.

And the ease of trading in and out with cash settle options and I'll remind you that not all retail platforms allow for cash settled contracts at this point so.

Speaker 2: And I'll remind you that not all of you tell platforms allow for cash so contracts at this point.

Speaker 2: So, you know, we're really keen to see those that still have not offered that to their customers think Robinhood.

We're really keen to see those that still have not offered that to their customers think robin hood offering that somehow.

Speaker 2: while offering that sometime next year. So exciting that we think

Sometime next year, so exciting that we think the.

Speaker 2: The breath is increasing and certainly will be there with education, all the tools to help those early movers.

The the broth is increasing and certainly we'll be there with education and all the tools to help those early.

Early movers.

Speaker 5: Got it, we appreciate the very thorough answer. Thanks.

Got it I appreciate that very thorough answer.

Speaker 4: Thank you. And the next question comes from Alice Cram with UBS.

Thank you and the next question comes from Alex Kramm with UBS.

Speaker 7: Yes. Hey, good morning, everyone. I want to ask another question on the zero DTE favorite topic of everyone. I think there's an expectation from some investors that that's that's called phenomenon is going to expand into other areas and obviously other exchanges are talking about it. And I'm particularly curious as that happens also into like single stock options, etc. Like two things. One, what's your roadmap from your perspective? And what's your expectation then secondarily?

Yes, Hey, good morning, everyone.

Want to ask another question on the Z O D E favorite topic of everyone.

There is an expectation from some investors that that's let's call. It phenomenon, it's going to expand into other areas and obviously other exchanges I'm talking about it.

I'm, particularly curious as that happens also into like single stock options et cetera.

Like two things one what's your roadmap from your perspective, and what's your expectation then secondarily.

Speaker 7: Is there a risk that as that

It is is there a risk that is.

As as that's.

Speaker 7: your DTE phenomenon again, sorry, it goes into other areas that it potentially takes away from what you've seen and then a bit of from on the index side. I guess what I'm trying to say is there's only limited attention, limited capital that people can put to use. And if some of that those trading strategies gravitate elsewhere, maybe you actually end up losing out. Sorry for the lengthy question, I hope we make that. So yeah, it's a really good question. And you know, we really stressed the cash settlement for a reason.

Zero D C E phenomenon again, sorry, it goes into other areas that it potentially takes away from what you've seen and benefited from on the on the index side I guess, what I'm trying to say is there's only limited attention limited capital that people can put to use and if if some of those trading strategies gravitated elsewhere, maybe you actually end up losing out sorry for the lengthy questions.

So really good question and we.

We are really stressed the cash settlement for a reason.

Speaker 2: and from a retail platform per spec.

From a retail platform perspective.

Speaker 2: Think of the tailors, the risk after expiring on physical summit versus cash. That's the obstacle that other exchanges are trying to solve for and really the roadblock to instantly offering zero-day exposure in single-day. At the end of the day, the...

Think of the tail risk the risk after expiry.

On physical settlement versus cash that's the obstacle that other exchanges are trying to solve for and really the roadblock to instantly offering zero day exposure and single day at the end of the day.

<unk>.

Speaker 2: The assignment risk, that means it takes physical delivery at the end of the day.

The assignment risk that means they take physical delivery at the end of the day I'm, having a naked long position overnight and I'm subject to some gap risk. The next day now the alternative would be I can offer a zero day single name exposure, but require that to be closed out at the edge.

Speaker 2: I'm having a naked long position overnight and I'm subject to some gap risk the next day. Now, the alternative would be I can offer a zero day single name exposure, but require that to be closed out at the end of the day. What cash settlement allows for is you can take the position into close.

What cash settlement allows for as you can take the position into close and as Dave said you settle in cash there is no at risk or exposure that next morning, that's a really really big difference and until the street figures out how to intraday margin and offset the risk going into expiring.

Speaker 2: And as Dave said, you settle in cash. There is no at risk or exposure the next morning. That's a really, really big difference.

Speaker 2: And until the street figures out how to intraday margin and or offset the risk going into expiry and physical.

Speaker 2: You know, I just don't know how quickly those can come to market.

Physical.

I just don't know how quickly those can come to market.

Speaker 2: Do I think it takes away from the end of the day? I don't. There are individual retail investors who look for exposure in single name stocks. We think that's a good thing. At least.

Do I think it takes away from the end of the day I don't there are individual retail investors, who look for exposure in single name stocks. We think that's a good thing at the end of the day, the macro hedging or the broad market. The U S market exposure is best represented with the product said stable so no.

Speaker 2: The material hedging or the broad market, the US market exposure is best represented with the products at Cebo. So no, if the entire environment is growing, we think that's good. We have a tool and exposure for all portfolios at any time of the day and any growth in the industry is good growth in the industry.

If the entire environment is growing and we think that's good we have a tool and exposure for all portfolios at anytime of the day.

And any growth in the industry as good growth in the industry.

Very good thanks, guys.

Speaker 4: Thank you. And the next question comes from Ken Worthington with JP Morgan. Hi. Good morning. Thanks for taking my question. Maybe changing gears. Can you talk about the outlook for a spot Bitcoin ETF in the U.S.? It seems like a crypto ETF would touch a number of businesses at Cibo. So what might broad-based approval for a spot ETF mean for the company?

Thank you and the next question comes from Ken Worthington with JP Morgan.

Hi, good morning, Thanks for taking my question.

Maybe changing gears can you talk about the outlook for a spot bitcoin Etfs in the U S. It seems like it could do ETF would touch a number of businesses. Its IBO. So what my broad based approval for a spot E. T. F mean for the company.

Speaker 6: I get Dave House and here absolutely obviously subject matter for the news. Headlines there recently and as you may know we've put forward applications for a spot bit cornyed TF on behalf of five issues so far. We have a number of surveillance and SSAs in 20 sharing limits in place with a number of trading platforms.

Hi, Kent.

Dave Howson here, absolutely obviously.

Subject matter for the news headlines there recently and as you May know, we've put forward applications for spot Bitcoin Etfs on behalf of five issuers. So far we have a number of surveillance and.

S S A's in civilian sharing agreements in place with a number of trading platforms and should these get approved we think this is good progress for the broader industry and investors alike. If you want to gain exposure to this asset class and familiar unregulated rapid. So this this would be clearly a good thing for the <unk>.

Speaker 6: And should these get approved, we think this is a good progress for the broader industry and investors alike who want to gain exposure to this asset class in familiar and regulated wrappers. So this would be clearly a good thing for the industry and overall for the underlying and."

Industry and overall for the underlying.

Speaker 6: digital crypto market in general, the market makers involved in those ETS and in the create redeem process are going to need somewhere to hedge that potential exposure. They'll look to a spot in futures market in order to do that. And in this quarter, we were very pleased to receive our approval for margin futures.

Digital crypto market in general the market makers are involved in those etfs, sending to create redeem process are going to need some with hedge that potential exposure that look to a spot and futures market in order to do that and in this quarter.

Very pleased to receive our approval for margin futures from the FTC and we are working together with our customers at STS to build out and looking to most that absolutely ended the year. So probably that Ken. We think is good for investors good for the industry and also good for our regulated platform such as C. Both digital that has a regulated.

Speaker 6: from the TSTC and we're working together with our customers at SCM to build out and looking to launch that for the end of the year. So probably that can, we think it's good for investors, good for the industry and also good for regulated platforms such as C-Bode Digital that have the regulated exchange clearing house.

Exchange clearinghouse.

Speaker 6: and ability to spot and margin cash and physically settled futures all on one platform, which is unique with the United States.

I'll introduce bumped and margin cash and physically settled futures all on one platform, which is unique within the United States.

Okay, great. Thank you very much.

Speaker 4: Thank you, and the next question comes in project morally with Biber Sandler.

Yes.

Thank you and the next question comes from Patrick Donnelly with Piper Sandler.

Okay.

Speaker 8: Yeah, good morning. Thanks for taking my questions. So congrats on a strong quarter and Jill congrats on the new role. I don't even know, but a month, and you already bring expense guidance down. So we'd like to see that. But I was hoping maybe Jill could just talk a little bit about how she's approaching the role and maybe the ways that she might differ from her predecessor. And I guess specifically is that relates to expense management. Thanks.

Hey, good morning, Thanks for taking my question. So congrats on the strong quarter and Joe Congrats on the new role.

I mean, but a month and you're already planning expense guidance down so we'd like to do that.

But I was hoping maybe Joe could you talk a little bit about how he's approaching the role and maybe the way to cheat.

Different from her predecessor, and I guess, specifically as that relates to expense management.

Speaker 3: You bet, thank you for the question. And I mean, I'll say just as I step into the new role, looking back at the things that we're doing very well, is we've done a really good job, investing behind opportunities where we see high returns.

Goodbye and thank you for the question and I mean, I'll say, just as I stepped into the new enrollment being back at the things that we're doing very well is we've done a really good job you know investing behind opportunities, where we see high returns definitely want to continue to do that also do not want to be diligent as we manage the core expense growth.

Speaker 3: definitely want to continue to do that. Also do so want to be diligent as we manage the core expense growth going forward. I think the last two years have obviously seen a noticeable uptick as we did work to play that foundation in a great acquisition, really build a nice scale. But going forward really want to focus on the productivity of the expanded global team that we have to forward. All right, great. Thanks.

Going forward I think the last two years have obviously seen a noticeable uptick we did work to lay that foundation and a great acquisitions really build a nice scale, but going forward and really want to focus on the productivity of that expanded global team that we have at that point.

Alright, great. Thanks, I'll hop back in queue.

Thank you and the next question comes from Brian , but that with Deutsche Bank.

Speaker 9: Great, thanks, good morning and welcome Jill as well. Actually just following on to that question, the prior one, as we think about the M&A strategy, obviously you built a substantially large global exchange through a series of acquisitions.

Great. Thanks, good morning.

Thanks, and welcome Joe as well and actually just following on to that.

Question the prior one.

As we think about the M&A strategy, obviously, you go to that.

It's substantially large global exchange through a series of acquisitions.

Speaker 9: But as we move into next year, should we be thinking about the focus on

But as we move into next year should we be thinking about the focus on.

On product introduction.

Speaker 9: product introduction as opposed to more deals. And if we can think about how, or if you can describe how the incremental margins may be favorable in product launches versus acquisitions. And what I'm trying to get at is, at what point do you think we can swing back to positive operating leverages that is really next year?

As opposed to more deals and it's if we can think about how or if you can describe how the incremental margins.

May fare compete.

They may be favorable and product launches versus versus acquisitions, and where I'm trying to get at is.

At what point do you think we can swing back to positive operating leverages as early as next year.

Speaker 2: That's really great. Let me take the first part of the question that I'll turn over to Jill and Dave. You know, we've always gone and looked at the approach it growth in two ways.

That's really great let me take.

The first part of the question and then I'll turn it over to Jill and Dave.

We've always gone and looked at the approach of growth and in two ways.

Speaker 2: nothing more positive, nothing more rewarding than answering the

Nothing more positive nothing more rewarding than answering that.

Speaker 2: the questions from customers on how we can standardize some exposure, some risk that they have in their portfolio, whether locally in the US or globally. So we start here in our labs with solutions for customers at all times. We announced today a dispersion contract as an example of continuing to look to the marketplace and offering solutions for investors with different exposures. So we'll always do that. They are incredibly high-mars.

If the questions from customers on how we can standardize some exposure some risk that they have in their portfolio, whether locally in the U S or globally. So we start here in our labs with solutions for our customers at all times and we announced today you know a dispersion contract. That's the example of continuing.

To look to the marketplace and offering solutions for investors with different exposure. So we will always do that they are incredibly high margin.

Speaker 2: look at the Tuesday, Thursday rounding out a daily offering, you know there's not a whole lot of investment in that. It's really listening to customers and delivering to the market what customers are asking for. So that is always going to be an approach and our labs are here to bring solutions to customers. As for M&A

Look at the Tuesday, Thursday, rounding out a daily offering.

There's not a whole lot of investment in that it's really listening to customers and delivering to the market. What customers are asking for so that is always going to be an approach and other allows his or her here to bring solutions to customers as for M&A.

Speaker 2: We do always keep an eye out for the jurisdictions that are open for competition in major market places. And you've seen us do that. We'll always have our eye out on what can be next and making sure that we're in scale, but there is nothing that we're...

We do always keeping an eye out for the jurisdictions.

Our open for competition in major market places and you've seen us do that.

We'll always have our eye out on what could be next and making sure that we're in scale, but there is nothing that we think we need to do at any given time, especially right now, but our eyes are wide open and I think Jill just the flexibility in the way you see.

Speaker 2: you need to do at any given time, especially right now, but our eyes are way open. And I think Jill, just the flexibility and the way you see our capital use and the balance sheet at this point, what that allows us to do, and then the philosophy going.

Our capital use in the balance sheet at this point what that allows us to do and then the philosophy going forward you bet. So just you know from the cabinet on capital allocation perspective, our strategy will remain consistent.

Speaker 3: You bet. So just from a capital allocation perspective, our strategy will remain consistent. The various levers or belts that we have to inform that obviously is investment in our business that can either be organic, inorganic.

Various levers or knowledge that we have to inform that obviously an investment in our team and our business I can either be organic inorganic.

Speaker 3: We also have, over time, really grown the steady dividend rate. We'd expect that as well going forward. And then finally, share repurchases are a tool that we've utilized as well.

We also have you know over time really grown a steady dividend rate, we would expect that to go as well going forward and then finally share repurchases are a tool that we've utilized as well and going back to the inorganic growth we have for certain acquisition basically financed those as you saw during the second quarter really did.

Speaker 3: And going back to the inorganic growth, we have for certain acquisitions, basically finance those. As we saw during the second quarter, really did start to deliver on the term loan that maturers in December of this year. So do have the leverage rate down to a very comfortable 1.4 times there. And again, just really wouldn't see any noticeable changes to the catapultification approach. It's really a balance of those factors over time, depending upon what the environment is. .

Start to Delever on the term loan that matures in December of this year. So do you have to be leverage rate down to a very comfortable one four times, there and again, just really wouldn't see any noticeable changes to the capital allocation approach, it's really a balance of those factors over time, depending upon what the environment is.

That's great color. Thank you.

Okay.

Okay.

Thank you.

And the next question comes from Michael Cyprus Morgan Stanley .

Speaker 1: Great thanks, morning. What did this circle back to some of the commentary on pricing increases? So you could talk about which parts of the business are you contemplating making, pricing adjustments? What's been done so far? I think you mentioned VIX back in April . How does this sort of compare to what you guys have done in the past? Thank you.

Great. Thanks, Good morning wanted to circle back to some of the commentary on pricing increases I was hoping you could talk about which parts of the business are you contemplating making pricing adjustments what's been done so far I think you mentioned the mix back any broad how does this sort of compare to what you guys have done in the past.

Thanks, Mike, let's steakhouse in here.

Speaker 6: We joined the quarter actually more philosophically. We look at both the Transaction Businesses and our Data and Access Solutions businesses a little bit differently. On the Transaction side, we continuously review our pricing to make sure we maintain a competitive stance.

We did during the quarter I've seen more philosophically, we look at both the transaction businesses and though.

Data and access solutions business is a little bit differently.

Action side, we continuously review our pricing to make sure we maintain our competitive stance and to ensure that we're reflecting the value of our offerings and also looking for web perhaps over time, maybe the usage patterns of our products and some of the price schedule that has changed over time and requires changing.

Speaker 6: and to ensure that we're reflecting the value of our offerings and also looking for where perhaps over time maybe the usage patterns of our products and some of the price schedules there has changed over time and requires changing.

Speaker 6: Also we use it to try and encourage a great diversity of flows. You saw that certainly through the second quarter. More broadly on the transaction businesses if you look at multi-list options or US equities, we constantly look to optimise for market share and market quality revenue capture and overall maximising revenues across the franchise.

Also we use it to try and encourage a greater diversity of flows you saw that certainly through the second quarter more broadly on the transaction businesses. If you look at multi list options or U S. Equities, we constantly look to optimize full market share market quality revenue capture.

Maximizing revenues across the franchise that and then when we come to data and access solutions we had.

Speaker 6: And then when we come to data and access solutions, we had...

Speaker 6: 67.77% came from new users and

67, 77% came from new users.

Okay.

[noise] in one second.

Speaker 6: A to Mat two mon percent, about 75% from the year.

Please go back to my sense of it about 75% from new unit subscribers that.

Speaker 10: and on the pricing point we generally look to see periodically where perhaps we've had our prices remain consistent for a while. I look to review those to make sure that they remain competitive but also remain in line with the general movement through time there. So go forward as we look at the DNA group. You think we'll be about a third of the growth there coming from pricing changes.

And on the pricing point.

We generally look to see periodically where perhaps we've had all prices remained consistent for a while I look to review those to make sure that they remain competitive but also remained in line with the general movement through.

Time that so going forward as we look at the DNA group do you think we can be about a third of the growth then coming from pricing changes.

Great. Thank you.

Thank you and the next question comes from Kyle Voigt with K B W.

Speaker 11: Hi, good morning. So I think later this quarter, there will likely be some new competition in the multi-list option space.

Hi, good morning.

So I think later this quarter, there will likely be some new competition in the multi list options space.

Speaker 11: That's been an area where I'd say the competitive trends have been a bit more stable since the back field. Your fee capture has been very stable the last five years as well. So just given us not an area where we really been focused much on recently from investor standpoint, just wondering if you could give us an update on the strategy there. If there's a certain amount of market share that you want to defend there to support data or other fees. And also if you could just remind us how much of the volume is on price time priority where there could be more direct.

That's been an area, where I'd say the competitive trends had been a bit more stable since the backfield recapture has been very stable over the last five years as well.

Given us not an area, where we've really been focused much.

On recently from Investor standpoint, just wondering if you could give us an update on the strategy there.

If there's a certain amount of market share that you want to defend their to support data or other fees and also if you could just remind us how much of the volume is on price time priority.

There could be more direct competition.

Speaker 6: Thanks, Rital. As you rightly pointed out, there's no new venues going to the Autolist option space in the coming...

Thanks, Barton, yes, as you rightly pointed out there's a new venues coming to vivo to lift option space in the coming months.

Speaker 12: And really what we look at there is again, there is the balance between market share and market quality and revenue revenue captured there in the RPC

Really what we look at batteries are getting the balance between market share our market quality and revenue at <unk>.

Revenue capture them, the RPC and we see ourselves coming into this pivot where they're at about 27% market share. So I saw the position that the new entrants. So forward looking out as you mentioned not priced time may could take a portion of the market, which today represents around about 20% of the overall.

Speaker 12: And we see ourselves coming into this pivot with around about 27% market share. So a solid position there. The new entrance so far, I'm looking at, as you mentioned, that price time make a take portion of the market, which today represents.

Speaker 12: around about 20% out of the overall market. And certainly if the past is anything to go by, the pricing schedules there will be highly aggressive and really going for that lower margin type of business within that price.

Market and certainly if the past is anything to go by the pricing schedule. So it will be highly aggressive and really getting to that lower margin type of business within within that frame.

Okay.

Speaker 4: Thank you and the next question comes from Andrew Vaughan with the Rosenblatt Security.

Thank you and the next question comes from Andrew Bond with Rosenblatt Securities.

Speaker 13: Thanks, good morning. Can you stand upon the opportunity for corporate listings and specifically if CBOE plans to build out a team to compete with, you know, NASDAQ and the U.S. for corporate listings, or will the focus be on the international markets and the potential for dual listing in the U.S.?

Hey, Thanks, good morning.

And upon the opportunity for corporate listings and specifically if CBOE plans to build out the team.

With that back in the U S for corporate lifting so let's hope it to be.

On the international markets.

Thanks, Phil.

Right.

Speaker 12: Absolutely, that's the question Andrew. Yeah, we're not going to be going for the big blue chips listings that now they're in 90s, haven't they? They're called back. Absolutely what we're not doing. What are we doing? Are we using the existing infrastructure that we've built up over inorganic and organic in the United States over the years? We're using that footprint across five exchanges.

Absolutely. Thanks for the question Andrew Yeah, we're not really we're not going to be going for the big Blue Chip list of things that NASDAQ a nicely.

That does that call, but in fact, that's really what what we're not doing well are we doing are we using the existing infrastructure that we've built up.

Panic and organic initiatives over the years, we using that footprint across five exchange.

Speaker 12: with the regulatory environment, the people, the processes and the capabilities around the world there. And we're using and we're leveraging off the back bar existing.

The regulatory environment, the people the processes and capabilities around the world.

We're using and we're leveraging off the basketball existing ETP listings business not as an ETP listings business, which puts us at number two today in the United States.

Speaker 12: That is an ETP listings business which puts us at number two today in the United States.

Speaker 10: So what are we doing in the corporate end of the spectrum? As we marginally through marginal incremental investment, they were able to leverage our platform. And that's across the trading, the market data, the indexing, our derivatives expertise to really engage with customers. And to engage with customers, an issue is from a niche under serve portion of the market in that 50 to 500 million.

So what are we doing in the Copa ends of the spectrum as we marginally through marginal incremental investment that we were able to leverage our platform and that's across the trading the market data the indexing derivatives expertise to really.

Gauge with customers and to engage with customers and issue is from a niche.

Underserved portion of the market in that 50 to 500 million AR.

Speaker 12: market cap range and these companies we're terming all this purpose driven Innovation companies these are companies driven by technology driven by Research and driven by the key drivers of the new world and the new economy that we see before us

Market cap range and these companies returning all the purpose driven innovation companies. These are companies driven by technology, driven by research and driven by the key drivers of the new World and the new economy that we see before us and that includes companies like clean Tech Fintech critical mineral.

Speaker 12: And that includes companies like CleanTech, Fintech, Critical Minerals. And in particular, if you take the example of critical minerals, we've got issues in Australia who are interested in those investors who have appetite and in.

And in particular, if you take the example of critical minerals we'd go.

Issue is in Australia, who are interested in those investors, who have appetite and interest in our critical minerals companies in Canada. So that's a great opportunity for us to be able to give.

Speaker 12: in critical minerals companies in Canada, so that's a great opportunity for us to be able to give access to that global capital to those companies interested in global investors in partnerships with our global liquidity providers and legal capabilities and common technology class.

Yes to that global capital to those competing interests I think global investors in partnership with our global liquidity providers and legal legal capabilities and common technology platform, So really enabling us to once again is that global securities net what we built out to build with an unrivaled growth trajectory.

Speaker 12: So really enable it in able use to, once again, use that global securities network we've built out to build with an unrivaled growth trajectory.

Speaker 2: Andrew, this is John . Just one point to follow on that last item that Dave mentioned strategically. This is really what we mean when we talk about building one of the world's largest derivatives and securities networks to drive growth and value creation. Now that we've touched 7 of 10 largest markets, almost 80% of the world's GDP, the opportunity to create a new market is a new tool for us to use.

And Andrew This is John just one point to follow on that last item that Dave mentioned strategically.

This is really what we mean when we talk about building one of the world's largest derivatives and securities networks to drive growth and value creation now that we've touched seven of 10 largest markets almost 80% of the world's GDP the opportunity to create.

Speaker 2: Servant services and offerings that bind all that together That add value for our global customers and that drive revenue growth Is substantial and this is a great example of that

Our survey services and offerings that blend all that together.

That add value for our global customers and drive revenue growth.

Potential and this is a great example of that.

Thanks, guys.

Speaker 4: Thank you and the next questions are followed from Ryan Bedell with Twitch Abane.

Thank you and the next question is a follow up from Brian Bedell with Deutsche Bank.

Speaker 9: Great, thanks for taking my follow up. Actually, on that last theme on the global footprint that you've developed, would you say you're in early innings in terms of being able to create a global product that can be used across for global customers?

Great. Thanks for taking my follow up actually.

On that last theme on the global footprint that you've developed or would you.

Say you're in early innings in terms of.

Being able to create a global product that can be used across you know for our global customers.

Speaker 9: And I don't know if that's quantifiable yet. Maybe it's too early. And then just a couple cleanup questions. Are you going to be done with the CAT build this year or is that going to...

And yeah, I don't know if it's if that's quantifiable yet maybe it's too early and then just a couple of clean up questions or are you going to be done with the cash build this year or is that going to.

Speaker 9: move into next year and then also on the one third pricing increase or the DNA growth that you set as attributable to pricing is that, was there any pricing in DNA that is helping this year's growth rate, sorry for the multi-port?

Moving to next year.

And then also on the on the one third pricing increase or the DNA growth. That's that you said is attributable to pricing.

Is that a.

Was there any pricing and DNA that is helping this year's growth rate sorry for the multi parts.

Speaker 14: So let's take these in reverse. So Chris, maybe some comments on what we see and the process that you're aware of on the

So, let's let's take these in reverse so Chris maybe some comments on what we see and the process that you're aware of.

Speaker 14: the entire cat exposure and build and then Jill maybe you can come in on the cost and how we see that it's Britain. It's not totally transparent. We'll say that up front. And then we'll get into the the other two questions, pouring up that's okay. Yep, great. Thank you.

In the entire cat.

Cat exposure and build and then Joe maybe you can you can come in on on the cost and how we see that it's not totally transparent, we'll say that upfront.

And then we'll get into the other two questions Brian if that's okay. Great. Thank you.

Speaker 15: Good morning, Brian . Yeah. So on the cat build, you know, our visibility, as we mentioned, is quite limited. You know, we have, we have some visibility, but but it's limited. So we can't really say exactly when it's going to end. And, you know, Jill can look, Jill can advise here on what, what she knows and what we know. But it's, unfortunately, a good point, because you'll even see it you will see your diffused versus your

Hey, good morning, Brian Yes, so on the cat built our visibility as we mentioned it's quite limited.

We have we have some visibility.

Limited so we cant really say exactly when it's going to end.

Jill can look.

I'd like to hear on what what she knows and what we know about it.

Yeah.

Yeah.

Speaker 3: Yes, just from a cost perspective, you know, what we've included in our forward looking estimates indicate our best expectation at this time. They do fluctuate and will look to continue to refine those in the future as we get more information.

Yeah, just from a cost perspective, you know what we've included in our forward looking estimates indicate our best expectation at this time.

They do fluctuate and we will look to continue to refine those in the future as we get more information.

Speaker 14: I think David, you can walk down the difference between a global product, perhaps, and then the network effect and the data that comes off of these exchanges and how we've already

I think David if you could walk down the difference between our global product, perhaps and then the network effect and the data that comes off of these exchanges and how we've already tried to offer access.

Speaker 14: tried to offer access to data and the differences in our data and then of course the BITS network.

Two data and the differences in our data and then of course, the bits network, which has its font its latest rollout expected in November .

Speaker 14: which has its latest rollout expected in November . And we can talk a little bit about that. And then let me say up front, where you're getting your thoughts together, that what we recognize in the beauty of operating in different jurisdictions are liquidity providers.

We can talk a little bit above that and then let me say upfront that while you're getting your thoughts together that what we recognized in the beauty of operating in different jurisdictions. Our liquidity providers are our biggest sources of global liquidity part in each and every one of the jurisdictions that we operate so giving them.

Speaker 14: our biggest sources of global liquidity are in each and every one of the jurisdictions that we operate. So giving them through the technology migrations that Chris and the team have been rolling out. And again, we look to complete that in November and June .

Through the technology migrations that Chris and the team have been rolling out and again, we look to complete that in November in Japan.

Speaker 14: is a constant repeatable expectation on how to view and to face SIBO and then global customers.

Is it is a constant repeatable expectation on on how.

To view interface Simo, and then global customers. So.

Speaker 14: In various stages of a global offering, and we can walk through a little bit as I say that data and access, but really from a liquidity provider, we wanna be where they are, where their exposures are, that's a global product, that's a little bit different. Let's go ahead and do.

In various stages of our global offering and we can walk through a little bit as I say the data access.

But really from a liquidity provider, we wanted to be where they are where their exposures are global products. That's a that's a little bit different but glad to you absolutely.

Speaker 12: Yeah, absolutely. And it is early stages for us as well, as Ed mentioned there with the ending replatforming of the Japanese exchange in November there. But what we get from that, starting from that, not necessarily a tradable product, but as Ed said, a uniformity and interaction point of view, is that uniformity of the trading system, but familiarity with how the systems work, and the ability to be able to ingest data in a common format for our customers around the world.

It is early stages for us as well as Ed mentioned that with the pending re platforming of the Japanese exchange in November that we get from that starting from.

No necessarily a tradable product.

Uniformity and interaction point of view is that uniformity of the trading system that familiarity with how the systems work and the ability to be able to ingest data and in a common format for our customers around the world. So what does that mean that means a lot low incremental effort for our customers to deliver new capabilities to their end customer.

Speaker 12: So what does that mean? That means a low incremental effort for our customers to deliver new capabilities to their own customers.

Speaker 12: I give you a couple of examples, thinking about period falcons moving from Europe in equities to USA and equities. Now the whole toolkit of the capability of the equities functionality we've got is now going to be available in Australia. It will be available in Japan in November . And with that comes a data and analytics capability that can bring and then bring that incremental value to our trust.

I'll give you a couple of examples thinking about periodic auctions moving from Europe in equities T. U S. USA in equities now the whole toolkit of the capability of the equities functionality. We've got it now going to be available in Australia, it would be available in Japan.

In November and with that comes a data and analytics capability that we can bring and then bring that incremental value to our customers.

Speaker 12: And as I've mentioned, part of that network build-out is the BIDS network. Great traction, early traction from BIDS Australia with the addition of the bi-side interaction coming in September of this year. And BIDS will also be part of that November migration in Japan.

And as I've mentioned part of that network build out is the bids network great traction early traction from Perth, Australia with the addition of the buy side interaction coming in September of this year and basically and also be part of that November migration in Japan. So then the 26 markets around the world from a network pushing out data.

Speaker 12: So then the 26th market around the world are from that network pushing out days.

Speaker 12: That data raw data can be delivered in multiple forms to customers, either as a service or of the cloud. We saw 75% of our incremental revenue in cloud coming internationally from outside the United States, a great utility being seen there. And then from that data we can create a proprietary data set.

Bad debt raw data can be delivered in multiple forms to customers either in service or if the cloud we sold 75% of our incremental revenue and cloud coming internationally from outside the United States, a great utility being seen that and then from that data. We can create proprietary datasets, we launched a short volume short equity.

Speaker 12: We launched a short volume, short equity volume report, this quarter which gained really rapid early traction on the back of that open and closed data that we saw for the SPX there. So, as we see that network, we can really see the capabilities to bring functionality across the globe on the base of that uniform.

Recall this quarter, which gained really rapid early traction on the back of the opened and closed data that we saw for the SPX that so as we see that network build out we can really see the capabilities bring functionality across the globe on the basis of a uniform uniform platform and then when you think about.

Speaker 12: uniform platform. And then when you think about us moving up the value ladder, we can then think about tradable products which are of interest globally.

Moving up the value ladder. We can then think about trading products, which are of interest globally, but already actually we've got a tradable products from our toolkit available on a 24 five basis to customers around the world to trade doing that trading hours.

Speaker 10: But already actually we've got our tradable products from our toolkit available on our 245 basis.

Speaker 10: to customers around the world to trade during that trading house.

That's super helpful. Thank you so much.

And Bryan Bryan.

Speaker 15: I think we have one more DNA question to answer regarding pricing, but in this Chris, on the global front, we've seen a meeting, we've mentioned this, we've already seen immediate access and data growth post Australia migration. We expect something similar in Japan when that comes in November . And then Dave mentioned BIDs where we have, it's September adding the BIDs side interactions as well.

I think we have one more question to answer regarding pricing, but this is Chris on on the global front. We've seen I mean, we've mentioned this we've already seen immediate access and data.

Growth post the Australia migration, we expect something similar in Japan when that comes in in November and then Dave mentioned bids where we have in September adding the buy side interactions as well. So there's immediate improvements we get from platform migrations with them is also durable.

Speaker 15: for those immediate improvements we get from platform migrations, but then there's also durable improvements and functionality that we get over the coming quarters as customers adjust and really plug in.

Improvements in functionality that we get over the coming quarters as customers adjust their really cool again.

Speaker 15: and dive into the new platform that's uniform with what they're expecting around the world. So the network effect is quite durable. They've made about key on the...

And dive into the new platform that's uniform a hub, we're expecting around the world. So the network effect is quite durable.

Back to you on the P&L.

Good question.

Speaker 12: Thanks Chris, we mentioned it in an earlier answer there that we made some changes in the early part of this quarter, we expect about one third of incremental growth across DNA to come from prices.

Yes, that's great.

We mentioned in an earlier answer that I was at the we made some changes at the early part of this quarter. We expect about one third of incremental growth in across DNA to come from pricing increases.

Speaker 9: And that's relatively new, correct? In other words, it wasn't really in the legacy numbers in terms of the price.

And that's relatively new correct in other words it wasn't really in our legacy numbers in terms of the price increases.

Okay.

Speaker 10: But there were always a portion of pricing increased. There's a slight slight increase potentially there to the proportions, but it's not really a change in full philosophy or approach. Okay, great, great. Thanks so much for the...

There was always a portion of a price increase that's a slight slight increase potentially to the proportions, but it's not really a change in philosophy or approach. Okay. Great. Great. Thanks. Thanks, so much for the detailed answers to the questions.

Speaker 4: Thank you. And then, next question is also a haul from Michael Stipepress with Morgan Stanley . Great. Thanks for taking the follow up. Wanted to come back to the SIBO indices comment you mentioned about seeing good momentum there. I always hope that you could maybe elaborate a bit more on the momentum that you're seeing across SIBO indices. Which of the indices are your most excited about it? Can you talk about some of the initiatives to accelerate growth there?

Thank you and the next question is also a follow up from Michael Cyprus with Morgan Stanley .

Great. Thanks for taking the follow up I wanted to come back to see bow indices comment you mentioned about seeing good momentum. There I was hoping you could maybe elaborate a bit more on the momentum that you're seeing across Cebu indices, which are the indices are you. Most excited about it and can you talk about some of the initiatives to accelerate growth there.

Speaker 12: Absolutely, a couple of channels I would speak about there. One is the C-Bode Global in the C-Speed themselves and then also the C-Bode Global in the C-Speed business.

Absolutely.

Of channels I want to speak about that I want to use the C, but global indices feet.

South and then also the seabed globally in the CS business at the feeds we began exclusive distribution of Morningstar and fees in this quarter <unk> seen some good enterprise cell phone and see some good.

Speaker 12: At the feed we began the exclusive distribution of mooring to our entities in this quarter and seen some good enterprise sell there and see some good forward-looking pipeline there as well. And also we built out a common API to allow us to onboard new data sets from new customers very, very quickly there. So for low incremental lift, we can add...

Forward looking pipeline that as well and also we built out a common API to allow us to onboard new data set some new customers very very quickly that so for low incremental lift you can add to that distribution is a service full data providers and index.

Speaker 10: that distribution as a service for data providers and index providers alike.

Index providers alike in terms of the indices, where we see great traction is really in the derivative I would when I benchmark and this is an area, where we see a beautiful flywheel in fact did.

Speaker 12: In terms of the indices where we see great traction is really in the derivative overlay benchmarks. And this is an area where we see a beautiful flywheel effect.

Speaker 12: The Dredi Vovolate indices forming those defined outcome products which you see are really coming strongly to market in the United States and now globally. That's where the flywalk comes in the ability for us to calculate these indices and then listen to the products that are benchmarked against those indices and then enjoy trading revenues and market data revenues off the back of that. So I would really point to that and find out in space in particular for the Dredi Vovolate and for a benchmark.

We have to overlay indices are performing those defined out components of what you see are really coming strongly to market in the United States and now globally and so that's why the flywheel comes and the ability for us to calculate these indices and then listen to the products that are benchmarked against our indices.

And then I enjoy trading revenues and market data revenues off the back of that so I would really point to that and you find out space in particular for the derivative overlays overnight benchmarks.

Speaker 12: And indeed this quarter we also began to calculate our own indices for our European index platform.

And indeed this quarter, we also began to calculate them our own and to see slowing European index platform.

Great. Thank you.

Speaker 4: Thank you. And that's going to be the question and answer session. I would like to return to full to management for any closing comments.

Thank you.

That's helpful.

And the answer session I would like to return the floor to management for any closing comments.

Speaker 1: Great, that completes our call for today. Thank you so much for your time and interest in the company and have a great weekend ever.

That completes our call for today. Thank you so much for your time and interest in the company and have a great weekend everyone.

Speaker 4: Thank you for attending today's presentation. Please like and subscribe.

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

Your lines.