Q2 2023 Brookfield Renewable Corp Earnings Call

Speaker 1: quarter. Total net revenue in our data and access solutions business increased 9%, and organic revenue growth increased over 7%.

And access solutions business increased 9% and organic revenue growth increased over 7% total net revenue on our cash and spot markets business decreased 11% during the quarter.

Speaker 1: Total net revenue in our cash and spot markets business decreased 11 percent.

Speaker 1: Civo's efforts to achieve its environmental, social and governance goal continue to gain momentum. Last month we published our fifth annual ESG.

C. Both efforts to achieve its environmental social and governance coal continued 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 1: in addition to disclosing our scope one and scope two emissions. This year for the first time we disclosed our relevant scope three emissions.

Speaker 1: We plan to continue to make strides forward each year with our ESG.

To make strides forward each year with our ESG program.

Speaker 1: In the second quarter, we advanced our top strategic growth priorities, which include derivatives, data and access solutions, and SIBO Digital, recording wins across each of these priorities during the second quarter.

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

Speaker 1: I will turn to derivatives and data and access solutions in a moment. But first I want to provide an update on C-Mobile Digital.

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

Speaker 1: 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 1: 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 Zeebo Digital the first US-regulated crypto-native exchange and clear-house platform to offer leveraged derivatives products.

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 1: The initial product rollout will include physically and financially settled Bitcoin and Ether 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 in 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 in each of the 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 1: 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 1: 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 1: 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 1: We have created flexible products that provide opportunities for customers of all dimensions to trade a contract that is right size for them on a timeframe that suits their unique

Speaker 1: Together our VIX and SVX 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 1: is available for investors to help find opportunity and hedge their portfolios in changing market environment.

Speaker 1: During the second quarter, volume in our proprietary Index Options products increased 38%...

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

Speaker 1: 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 1: 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 1: 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 be higher.

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 1: Given this 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 trade daily items 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 tailings in the market.

Speaker 1: 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....

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 in the third Friday of every month with average open interest up 12% in June of 2023 compared to one year ago.

Speaker 1: with average open interest up 12% in June of 2023 compared to one year ago.

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 1: We saw a significant increase in trading activity and mixed options with a 53% increase year over year to an ADV of 778,000 contracts, our fourth best quarter on record.

First quarter on record.

Speaker 1: Given the flexibility and utility of both evix and SBX options providing changing 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 1: and globally demand for our products continued with SBX and XOptions ADV during global training 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 1: Through our strong foundation of 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 1: 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 function I would like to see both futures exchange, which we can leverage for additional products in the future.

Speaker 1: This quarter, we also anticipate that FINRA will receive regulatory approval for new margin requirements recently adopted by CBO related to cash settled index options written against ETFs that track the same index 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 1: that are offset by underlying ETF. For example, access P versus long SPY stock will receive margin relief enabling greater capital efficiencies in their trading.

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 1: We plan to launch a new C-Bolt S&P 500 dispersion index next...

Speaker 1: Dispersion is recognized as one of the fundamental metrics of market risk, a strategy that is predominantly traded 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 in the over the counter market. This new index aims to standardize the measurement of S&P 500 dispersion.

Speaker 1: 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 on receivable 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 1: 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 1: We look forward to providing an update on this initiative during our next Ernie School. 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 continued 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 1: 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...

Speaker 1: We anticipate new opportunities across our data and access solutions ecosystem.

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

Speaker 1: including demand for Australian equity market data now that SIBO Australia has migrated its exchange technology to SIBO's uniform trading platform.

<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.

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 people global indices offerings.

Speaker 1: We also see opportunity to expand our reach of our proprietary data products, such as C-01 data feeds and C-Voglubl Indus.

Speaker 1: 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 data office.

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 1: During the second quarter, we announced the launch of CIPO 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 1: 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 equity exchange network to provide a locally optimized and centrally coordinated recognition.

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 1: The expansion of our listings business rounds out our global activities offering, helping to enable market participants around the globe to utilize civil markets for more uniform access to equity-stripping market data and lists.

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 1: 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 1: 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 venue.

Speaker 1: clear your upmarked shared group 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 1: During the quarter, CivoClear Europe also announced plans to introduce securities financing transactions or FFTs in 2024 subject to regular...

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

Speaker 1: Civo aims to bring this new service to the market to help ease capital requirements for market participants through a centrally clear...

<unk> aims to bring this new service to the market to help ease capital requirements for market participants from a centrally cleared service for stock lending.

Speaker 1: SFT is yet another example of SIBO 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 1: Sebel Australia market share grew to 18.2% in the second quarter, up from 70% in the previous year. In Japan, at Quiz, 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 1: and will remain on track for the SEBO Japan technology migration and expected launch of SEBO Bidge Japan in the fourth quarter of this year.

Speaker 1: With the launch of SIPO BIDGE Japan, the BIDGE Network will now extend to 7 of the top 10 global equity markets, creating a one-of-a-kind global equity blockchain.

With the launch of <unk> into Japan bids 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 1: In our global FX business, that revenues were up 7% year over year.

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 1: as the business expanded spot market share to a record 19.5%, up from 17%.

5% up from 17% a year ago.

Speaker 1: Our NDF offering, which trace and seaball staff, our Swamp Execution Facility, continue to see strong wave results with volumes increasing 23% in...

Our MTF offering, which trades unsettled 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 1: with an ADV of $937 million. To meet this increased customer demand, we launched a new London matching engine.

Speaker 1: With Asian currency pairs accounting for a significant portion of CBOs' suffiance, this new matching engine is expected to enhance our service to customer space in Asia and Europe for the diverse supplier 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> soft 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 1: 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.

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 1: 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 2: Ed, thank you for that kind introduction. I couldn't be more excited to build on the strong momentum at Cebo today. As Ed highlighted, Cebo posted a strong second quarter with adjusted diluted earnings per share of 7% on a year-over-year basis to $1.78.

And thank you for that kind introduction I couldn't be more excited to build on our strong momentum as you know today.

And as highlighted keep all posted a strong second quarter with adjusted diluted earnings per share up 7% on a year over year to $1 78 and <unk>.

Speaker 2: The performance was led by continued strength for our derivative franchise, as well as a steady contribution from our data and access solutions.

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

Speaker 2: 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

We have done in prior quarters, we look to maximize long term shareholder value through monetizing Canadian opportunities, while investing in future growth initiatives.

Speaker 2: 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 our strong second quarter performance before providing a more detailed assessment of our segment.

Speaker 2: Our second quarter net revenue increased 10% to finish at $467 million. Driven by the strength of our derivatives 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 results Martina and access solutions.

Speaker 2: Specifically, derivatives markets produced 21% year-over-year organic net revenue growth in the second quarter as the market continued to find increasing utility in our toolkit 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 two okay and proprietary products.

Speaker 2: Data and access solutions net revenues increased 9.4% up 7.4% on an organic basis during the quarter.

Data and access solutions net revenues increased nine 4%.

Seven 4% on an organic basis during the quarter.

Speaker 2: 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 2: Cash and spot markets net revenues decreased 11% during the corner, 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 2: 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 2000.

Speaker 2: 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 2: 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 of

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 2: Total options ADD was up 10% as our higher priced index options ADD increased 38% over 2Q22 levels.

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

Speaker 2: 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 index products.

Speaker 2: and market data and access capacity fees were up 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 2: George American equities net revenue was down 2% on a year-over-year base.

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

Speaker 2: Results benefited from NEO, which was acquired in June of 22, contributing $3.6 million in inorganic net revenue during the quarter.

Results benefited from the <unk>, which was acquired in June of 'twenty contributing $3 6 million in inorganic net revenue during the quarter.

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

Speaker 2: That transaction 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 2: 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 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 2: The Europe and APAC 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 percentage point increase in market share on a year-over-year basis.

But Europe and APAC 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 one percentage point increase in market share on a year over year basis.

Speaker 2: And Seabold Clear Europe also grew market share during the quarter from 31 to 34 percent.

And female clear Europe also grew market share during the corner from 31% to 34%.

Speaker 2: 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 and 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 2: Lower volumes for the primary driver of the decline in net transaction.

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

Speaker 2: falling 11% during the quarter. The decline of activity was partially offset by a 9% increase in our...

Following an 11% during the corner.

The decline in activity was partially offset by a 9% increase in RPC.

Speaker 2: helped by pricing tweaks we made in the VIX complex in April of this year.

Did my pricing tweaks, we made in the VIX complex in April of this year.

Speaker 2: On the non-transaction side, 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 time 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 2: Net transaction fees revenue was up 6% as average daily notional 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 2: Turning now to see both data and access solutions business. Net revenues were up a solid 9.4% in the second quarter, of 7.4% on an organic basis.

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

Speaker 2: Net revenue growth continued to be driven by additional subscriptions and units, accounting for 77% of organic access fee growth and 63% of organic market data growth in the second

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 2: We are pleased with a sequential acceleration in our panic 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 2: Over the second half of the year, we expect solid contributions from proprietary data sales, benefiting from the sustained growth across our derivatives complex.

Over the second half of year, we expect solid contributions from proprietary data sale.

A sitting from the sustained growth across our de Rendez complex.

Speaker 2: We also anticipate solid trends from steve-o global indices with good momentum around index settings.

We also anticipate solid trends from Steve our global indices with good momentum around index licensing.

Speaker 2: 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, 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 2: We expect that momentum to continue, adding to the enhanced distribution capabilities that SEVA Global Cloud presents, providing incremental sales potential for our suite of data products.

Speaker 2: 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 selective enhancements, our products are expected to remain competitively priced relative to our peers, and we remain focused on the value proposition for our customers.

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 selective 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 2: 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 2: 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 headcount as compared to the second quarter of last year, an increased travel and promotional spend given our 50th anniversary celebration, and increased corporate brand and 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 2: 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 services line.

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 2: 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 2: 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 2: The three basic components of the year-over-year increase are outlined on slide 18 of our earnings presentation. Expenses from 2022 acquisitions, growth investments, and core expense growth.

Expenses from 2022 acquisition growth investment and core expense growth.

Speaker 2: 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 to 35 million.

Speaker 2: Blower previously expected range of 33 to 35 million. Entiring slowed in our digital business in part due to ongoing regulatory uncertainties.

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 2: 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 2: Moving on to growth generating investments, we anticipate 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 2: 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 ecosystem.

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 2: The last component is our core expense growth, totaling approximately $59 to $64 million. As a reminder, this includes our expectations for CAD project costs 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 and inflationary factors on our business.

Speaker 2: Our updated estimates factor in an incremental $5 million for CAD expenses, as well as the one-time requestification of certain capitalized charges operating expenses for CAD expenses.

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 2: 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 2: Using forward, we will continue to put capital of the work in valuable enhancing ways across our ecosystem. While striving to strike the right balance between the revenue opportunity available and the expense outlay required to enhance value 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 2: 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 2: At a high level, we are reaffirming our organic total 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 medium-term 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 SIBO.

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 2: As mentioned earlier, we are reaffirming our DNA organic net revenue growth rate of 7-10% for 2013. In mind with our medium-term expectations.

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 2: Given the company's positive marks on its investment in the seven-rich 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 million to $40 million Asmara prior guidance, calling for $27 million to $33 million.

Speaker 2: 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 28.5 to 30.5% 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 2: 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 2: On the capital front, our focus has been and remains maximizing bond term shareholder values through the effective use of our capital. In the second quarter, we return to 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 purchases.

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 2: Our leverage ratio declined 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 matures in December of this year. We remain comfortable with our debt profile, having mocked in low-medium to longer-term 6th rates, 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 2: 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 T. Mo 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 2: Now I'd like to turn it back over to Ed for some 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 1: Thanks Jill. As you can see it has been a busy first half of the year and I want to thank the entire Civo 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 goes team for their hard work and consistently delivering outstanding results.

Speaker 1: We head into the final half of the year on a stronger footing than ever, and we look forward to continue to execute on growth opportunities 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 3: 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.

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 the star of the one on your touchtone phone. If you are using a speaker phone, please pick up your hands at before pressing the keys. To try your question, please press star of the zoo. At this time, we will pause momentarily to assemble the roster. And it's one-

Thank you and Thats my agenda at this time, we will begin the question and answer session and ask 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, was hoping you could unpack a comment you made earlier about your expectation that, you mentioned the evolution in how customers trade as you were talking about the growth in SPX volumes. So I wonder 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 dated contracts? Is it more customer types? Is it more kind of global adoption of SPX? Where do you see that coming from in the next 12 to 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 a.

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

Speaker 1: Thanks Ben. Yeah, it's been pretty remarkable and we can look at this from the institutional perspective or the customer perspective.

Thanks, Brian Yeah, it's been pretty remarkable and we can look at this from the institutional perspective or the customer perspective, we do see the continuation of retails.

Speaker 1: We do see the continuation of retail who have primarily been introduced to this market in a time of pandemic. That was incredible growth. 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 1: 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, and I'll turn over today, is the change in margin treatment in our access p contract, which we think is very retail-friendly with a lot of benefits.

Adding a.

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 few contract, which we think is very retail friendly with a lot of benefits of the SPX, but with a much smaller wallet sides built for retail.

Speaker 1: of the S-BX, but which are with a much smaller wallet size built for retail.

Speaker 1: And then the institutional side, we continue to see growth in third Friday exposures. And for the SPX, that is the typical trade for institutions in the SPX. But 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 1: 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 1: to what we've seen the growth over the years, and in particular, I say since the pandemic. But Dave, I think the real retail ship 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 shorted dates.

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 our customers on calls like these about the increase in the number of calls that we've received over the last year. So, we're really excited to hear from our customers. We're really excited to hear from our customers. We're really excited to hear from our customers.

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.

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 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 XSP product and a little reminder on what it is for those of you out there. The XSP product is a 1 tent size SPX...

110th sides SPX.

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. And XSP has three defining categories and that fourth kicker that Ed just mentioned.

Contract.

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 inactive pay in excess payoffs redefining categories enough. Both kick up that I. Just mentioned are the first of those the excess be contracting the cash settled broad based.

Speaker 6: The first of those is that the XSP contract is a cash settled broad based...

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 and 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: The second point is that it's European exercise, there's no opportunity to be exercised or assigned early before expiring. 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 await the final regulatory approvals required to really access XSP to access that.

<unk> 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.

As we are eagerly awaiting the final regulatory approvals required.

To really access excess paint to access that ability for cash settled index options written excuse me that excess paid racing against Etfs Reed SBY. The track the same underlying option. So that you can see the opportune symbology and all sets for hedging for example, when you override amongst.

Speaker 6: ability for cash settled index options written, XSP, written against ETS, read SPY, that trap the same underlying option. And so there, you can see the opportunity for margin offset.

Speaker 6: for hedging, for example, when you override a long spire 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 onboard cash settled index options.

<unk> 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 1: in the future. So Ben, 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 buzz and the ease of trading in and out with cash settle options.

Expiry had in the marketplace and it really is the cash settlement a around the buzz 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 we're really keen to see.

Speaker 1: And I'll remind you that not all of you tell platforms allow for cash sold contracts at this point.

Speaker 1: So, you know, we're really keen to see those that still have not offered that to their customers think Robinhood.

See those that still have not offered that to their customers think robin Hood.

Speaker 1: offering that sometime next year. So exciting that we think

Offering that somehow.

Sometime next year, so exciting that we think the.

Speaker 1: The breath is increasing and certainly we'll be there with education, all the tools to help those early movers.

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

Early movers.

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

Got it I appreciate the very thorough answer.

Speaker 4: Thank you and the next question comes from Alice Graham 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.

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 benefited from on the index sides. 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.

We made.

It's a really good question and we are really stressed the cash settlement for a reason.

Speaker 1: and from a retail platform per spec.

And from a retail.

That form perspective 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.

Speaker 1: Think of the tail, 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 in single-day. At the end of the day, the end of the day is the end of the day.

And single day at the end of the day.

Speaker 1: The assignment risk, that means they take physical delivery at the end of the day.

<unk>.

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 alethia.

Speaker 1: 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 expire.

Speaker 1: 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 1: And until the street figures out how to enter day margin and or offset the risk going into expiry and physical.

<unk> physical.

Speaker 1: You know, I just don't know how quickly those can come to market.

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

Speaker 1: 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. 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.

Speaker 1: The macro 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.

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 on Ken Mour, thank you and with JP Mour. Hi, good morning. Thanks for taking my question. Maybe changing gears. Can you talk about the outlook for a spot that calling ETF in the US? It seems like a crypto ETF would touch a number of businesses at Cebo. 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 more on ETFs 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.

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 says that he's in dominion sharing agreements in place with a number of trading.

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 thing.

It forms 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 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.

And those etfs, sending to create redeem process are going to need some with hedge that potential exposure, there and look to a spot and futures market in order to do that and in this quarter. We were very pleased to receive our approval for margin futures from the FTC and we are working together with our customers and SDN Bill.

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.

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 exchange clearinghouse on ability to spot and margin cash and physically settled futures all on one platform, which is unique.

Speaker 6: and ability to do stock and margin cash and physically settled futures all on one platform which is unique within the United States.

Within the United States.

Okay, great. Thank you very much.

Speaker 4: Thank you. And the discussion comes in project morally with Piper Sandler.

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

Okay.

Okay.

Speaker 8: Yeah, good morning. Thanks for taking my question. So congrats on a strong quarter and Jill congrats on the new role. I think, but a month, and you're already bringing 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.

Congrats on a strong quarter and Joe Congrats on the new role.

Oh pardon me about a month and you're already planning expense guidance down so we'd like to do that.

Yes.

But I was hoping maybe Joe could you talk a little bit about how.

He's a protein to roll and maybe the way to cheat might.

Different from her predecessor.

I guess, specifically as that relates to expense management.

Speaker 2: 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 step into the new enrollment back at the things that we're doing very well is we've done a really good job.

That thing 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 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.

Speaker 2: definitely want to continue to do that. Also do though 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 set forward. All right, great. Thanks.

But going forward really what I focus on the productivity of that expanded global team that we have set for it.

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

Okay.

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

Speaker 9: Great, thanks to Morning and thanks 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 know you built a substantially large global exchange through a series of acquisitions. But as we move into next year, should we be thinking about the focus on

Great. Thanks, good morning.

Thanks, and welcome Joe as well.

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.

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

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 we're trying to get at what point do you think we can swing back to positive operating leverages as early as next year?

On product introduction.

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

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.

<unk> Leverages as early as next year.

Speaker 1: That's really great. Let me take the first part of the question, then I'll turn over to Jill and Dave. We've always gone and looked at the approach of 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 1: Nothing more positive, nothing more rewarding than answering the

Nothing more positive nothing more rewarding than answering that.

Speaker 1: 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, you know, 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-market.

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 1: You 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 our labs are here to bring solutions to customers. Have an 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 us or are here to bring solutions to customers as for M&A.

Speaker 1: 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 can do.

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 1: 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 2: You bet. So just from a capital allocation perspective, our strategy will remain consistent.

Speaker 2: 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 2: We also have, you know, over time, really grown the steady dividend rate. We'd expect that to go 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 he found during the second quarter really did.

Speaker 2: 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 matured 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. So

Start to Delever on the term loan that matures in December of this year. So do you have the 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 5: Great thanks, Morning. Watch this circle back to some of the commentary on pricing increases. I feel that 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 VIX back any broad how does this sort of compare to what you guys have done in the past.

Thanks, Michael Steakhouse in here.

Speaker 6: We, during 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 system.

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 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 US equities, we constantly look to optimize for market share, 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: I've come back to about 75% from new units.

Please go back to my sense of it about 75% from new units and 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 a 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 remain in line with the general movement through sweep.

Time that so going forward as we look at the DNA group. We think we can be about a third of the garage bank coming from pricing changes.

Great. Thank you.

Thank you and the next question comes from Kai Voight 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 over the last five years as well. So just given it's 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 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 have been a bit more stable since the bats deal youre fee capture has been very stable over the last five years as well.

Given it's 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 theres a certain amount of market share that you wanted to defend are 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.

There could be more direct competition.

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

Yes, as you rightly point out there's a new venues coming to vivo to list 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 again balance between market share our market quality and revenue at <unk>.

Revenue capture than the RPC, and we see ourselves coming into this pivot where they ran about 27% market share. So I saw the position that the new entrants. So far looking out as you mentioned that price time may could take a portion of the market, which today represents around about 20% of the overall.

Speaker 12: We see ourselves coming into this period with around about 27% market share, so a solid position there. The new entrants so far are looking at, as you mentioned, that price time maker taker 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 schedule 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 schedules that 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 Braun with Rosenblatt Security.

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

Speaker 13: Thanks, good morning. Stand upon the Opportunity for Corporal listings, and specifically, if CBOE plans to build out a team to compete with UNIDEN as the AC and the US for corporate listings, or for the purpose of being on the international markets and the potential for dual-wrestling in the US.

Hey, Thanks, good morning.

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

There might be a bounce back in the U S for corporate lifting so let's hope it to be on the international markets.

Thanks, Phil.

Right 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 there are 90s, haven't there, they call this back, absolutely what we're not doing. What are we doing? We're using the existing infrastructure that we've built up over inorganic and organic in the cities 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 that coupled with the fact that it's going to be what we're not doing well.

Are we doing are we using the existing infrastructure that we've built up over.

Organic and organic initiatives over the years, we using that footprint across five exchanges with the regulatory environment. The people the processes and capabilities around the world and we're using and we're leveraging off the basketball existing ETP listings business not as an ETP listings.

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 of our existing.

Speaker 12: that is an ETP listing of business which proxies at number two today in the United States.

Which puts us at number two today in the United States.

Speaker 12: 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 underserved portion of the market in that 50 to 500 million.

So what are we doing in the Cooper and the spectrum as we modulate.

Through marginal incremental investment they were able to leverage our platform and that's across the trading the market data the indexing derivatives expertise to really engage with customers and to engage with customers and issue is from a niche.

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

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 with having 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.

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.

Rolls 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 access to that global capital to those competing interests I think global investors in partnership with our global liquidity providers.

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 partnership with our global liquidity providers and legal capabilities and common technology platforms.

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 eight minutes too. Once again, is that global security network we've built out to build with an unrivaled growth trajectory?

Speaker 1: 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 ten largest markets, almost 80% of the world's GDP, the opportunity to create

Andrew This is John just one point to follow on that last item, 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 a.

Speaker 1: a survey 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 bind all of 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 for from Ryan Bedell with Twitchobank.

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 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 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 CAD build this year or is that going to move into next year?

And yeah, I don't know if it's if that's quantifiable yeah, maybe it's too early.

Then just a couple of cleanup questions or are you going to be done with the cash build this year or is that going to move.

Moving to next year.

Speaker 9: And then also on that one third pricing increase or the DNA growth that's that you set as a attributable to you pricing.

And then also on the on the one third pricing increase or are there with the DNA growth that's that.

That you said is attributable to pricing.

Speaker 9: Was there any pricing in DNA that is helping this year's growth rate, sorry for the multi-parts?

Is that or.

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 not totally transparent, we'll say that up front and then we'll get into the other two questions Brian if that's okay.

In the entire.

Cat exposure and build as a Jill 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 pretty good

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

We have we have some visibility, but it is limited so we cant really say exactly when it's going to end.

Jill can look.

So here on what what she knows and what we know about it.

Yeah.

Speaker 2: 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'll 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 I must say.

Do fluctuate animal look to continue to refine those in the future as we get more information.

Speaker 14: I think Dave, if you could 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 to.

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 .

We can talk a little bit about 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 July .

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 end to face see bow 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 the data and access, but really from a liquidity provider we want to be where they are, where their exposures are, and with global products that's a little bit different.

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 little bit different but glad to.

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. What we get from that, starting from not necessarily a tradable product but as Ed said, a 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 in a common format for our customers around the world.

Absolutely.

It is early stages for us as well as Ed mentioned that with the pending re platforming of the Japanese exchange in November that when we get from that starting from a no necessarily a tradable product, but as Ed said, our uniformity and interaction point of view is that uniformity of the trading system.

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. So what does that mean that means a lot low incremental effort for our customers to deliver new capabilities to their own customers I'll give you a couple of examples thinking about periodic auctions moving from Europe .

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

Speaker 12: I'll give you a couple of examples, thinking about period fortunes moving from Europe in equities to US, the USA in equities. Now the whole toolkit of the capability of the equities functionality we've got is 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 trust.

And equity T U S. The USAA and 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 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 business network. Great traction, early traction from Bid Australia with the addition of the BISIDE interaction coming in September this year. And Bid will also be part of that November migration in Japan.

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 people would 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 26 markets around the world are from that network pushing out data.

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.

That data can be delivered in multiple forms to customers either in service or if the cloud you sold 75% of all 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 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 build out we can really see the capability to bring functionality across the globe on the basis of that uniform.

<unk> reported this quarter, which gained really rapid early traction on the back of the opened and closed days 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 it.

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 a 24-5 basis.

Speaker 10: to customers around the world to trade during their trading hours.ebra

That's super helpful. Thank you so much.

Okay.

Brian .

Speaker 15: I think we have one more DNA question to answer regarding pricing, but it's Chris. On the global front, we've seen, 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 November . And then Dave mentioned bids where we have in September adding the buy 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 them. We had 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: So 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 core game and dive into the new platform. That's uniform across we're expecting around the world. So the network effect is quite durable.

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. Dave, maybe back to you on the...

Back to you on that 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.

Yeah. Thanks, Chris 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: there were always a portion of pricing increase there. It's a slight, slight increase potentially there to the proportions, but it's not really a change in philosophy or approach. Okay, great, great. Thanks so much for the...

There will 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 Cypress 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? And can you talk about some of the initiatives to accelerate growth there?

Thank you and the next question has also evolved 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 the bow indices, which of 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 SIBO global indices feet themselves and then also the SIBO global indices 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 CBO globally in the seed business and the feeds we began.

Speaker 12: The feeds we began the exclusive distribution of Morningstar indices in this quarter and have seen some good enterprise sales there and see some good forward looking pipeline there as well. And also we've built out common APIs to allow us to onboard new data sets from new customers very very quickly there so for low incremental lift we can add.

Lucy.

Distributions Morningstar and sees in these core funds and have seen some good enterprise cell phone and see some good.

Forward looking.

I find that as well and also we built out a common API is 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 an index providers alike in terms of the indices where are we.

Speaker 12: that distribution of a service or data providers and index providers are live.

Speaker 10: In terms of the indices where we see great traction is really in the derivative overlay of H marks and this is an area where we see a beautiful flywheel effect.

We see great traction is really in the derivative I when I benchmark and this is an area, where we see a beautiful flywheel and facts.

Speaker 10: The derivative overlay indices forming those defined outcome products which you see are really coming strongly to market in the United States and now globally. So that's where the flywheel comes in, the ability for us to calculate these indices and then list 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 defined outcome space in particular for the derivative overlay benchmark.

You have to overlay indices are performing those defined out components, which 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 the products that are benchmarked against our indices.

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

Speaker 10: 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 our own indices for our European Index platform.

Great. Thank you.

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

Thank you.

This concludes our question and answer session I would like to return the floor to management for any closing comments.

Speaker 3: 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.

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