Q1 2024 CME Group Inc Earnings Call

Welcome to the CME group first quarter 2024 earnings call. At this time all participants are in a listen only mode. During the Q&A session. If you'd like to ask a question press star one on your phone I'll now turn the conference over to add a minute. Please go ahead.

Addison: Good morning, and I hope, you're all doing well today, we released our executive commentary earlier. This morning, which provides extensive details on the first quarter 'twenty 'twenty, four which we won't be discussing on this call.

Addison: I'll start with the Safe Harbor language, and then I'll turn it over to Terry.

Terry: Statements made on this call and in the other reference documents on our website that are not historical facts are forward looking statements. These statements are not guarantees of future performance they involve risks uncertainties.

They're difficult.

Therefore, actual outcomes and results may differ materially from what is expressed or implied in any statements.

Terry: Detailed information about factors that may affect our performance can be found in our filings with the SEC, which are on our website.

Terry: Lastly on the final page of the earnings release, a reconciliation between GAAP and non-GAAP measures.

Speaker Change: Turn the call over.

Speaker Change: Thanks, Adam and thank you all for joining us this morning, I'm going to make a few brief comments about the quarter and the overall environment.

Adam: Following that Lynne will provide an overview of our first quarter financial results. In addition to land we have other members of our management team present to answer questions.

Lynne: After the prepared remarks, our performance in the first quarter was strong evidence of the ever growing need for risk management global.

Lynne: First quarter average daily volume up $26 4 million contracts was the third highest quarterly Adv in CME group's history.

Lynne: Do you only prior quarters or the first quarter 2020 at the onset of the pandemic and the.

Lynne: First quarter last year, which was impacted by the significant bank turmoil in March and created a much tougher comparison from March of 'twenty 'twenty four.

Lynne: Despite no specific macro event or change in federal reserve rates of curing occurring in Q1, we had the highest January adv to date up 16% year over year and in February that included the highest monthly interest rate Adv in our history of $17 2 million contracts.

Lynne: <unk> were up 6%.

Lynne: We achieved quarterly ADB records for both treasuries of $7 8 million contracts and the overall options of $5 9 million contracts, both equity index and energy options reached all time high levels, our non U S. A D. V also reached a record level of seven 4 million.

The contracts, so is driven largely by 38% growth in energy, 29% and AG products at 7% and metals.

Lynne: In total we delivered 14% adv growth across our physical commodity product to $4 7 million average daily volume, which included 16% year over year growth for both energy and AG products. This strong first quarter activity across our business lines helps.

Lynne: Generate record adjusted quarterly financial results, which Linda will detail in just a moment.

Lynne: Activity. So far in April has continued to build on many of these trends following the strong first quarter of our physical commodity asset classes. They are up 26% to date in April as of April 22nd metals, Adv, specifically is up 76% and the complex reached its highest.

Lynne: Daily volume in history at 1.7 million contracts on April 12.

Lynne: On the financial side of the business. The C. P. I released on April 10th well is a great example of how important every data point is the market to adjust positions to manage risk.

Lynne: We reached nearly 44 million contracts traded that day and the wide range of views around the health of the global economy, and the nuance related to in interpreting the many different economic indicators continues.

Lynne: As a result of.

Lynne: Strong market dynamics.

Lynne: Year to date through April 22nd R. A D V is up 4%, including year over year growth.

Lynne: All six of our asset classes.

Lynne: CME group continues to provide deep liquid markets across global benchmarks to deliver the most operational and capital efficiencies to market participants CME group's multi asset class offering is in higher demand today than ever.

Lynne: Now going to turn the call over to Linda to review our financial results.

Linda: Thanks, Perry and thank you for joining us this morning during the first quarter, we generated nearly $1 5 billion in revenue up 30% for a very strong first quarter in 2023.

Linda: Within the physical commodity classes quarterly revenue was up 14% year over year, representing approximately one third of clearing and transaction fees in the quarter.

Linda: Market data revenue reached a record level.

$275 million.

Linda: Other revenue and 37% to $104 million largely due to the increased noncash collateral be implemented in January.

Linda: Continued strong cost discipline, but when adjusted expenses of 462 million for the quarter and 374 million moving like.

Linda: Our adjusted operating margin for the quarter or eight 9% up from 68, 2% in the same period last year.

Linda: CME group had an adjusted effective tax rate of 23%.

Driven by the strong demand for management product you delivered the highest quarterly adjusted net income and earnings per share in our history at 911.

Linda: There's 50 cents.

Both up 3%.

Linda: In our life.

Linda: This represents an adjusted net income margin in the quarter of over 61%.

Linda: Capital expenditures for the first quarter were approximately $16 million in cash at the end of the period.

Linda: One 7 billion.

Linda: Jimmy group paid dividends during the quarter.

Linda: <unk> 3 billion.

Linda: Nearly 25 billion.

Linda: What about the dividend.

Linda: Variable dividend policy.

Speaker Change: Thanks, Bob.

Speaker Change: We're very proud.

Speaker Change: Quarterly earnings in our history.

Speaker Change: Pleased to see the strong start.

Bob: That's correct.

Bob: Year to date through April.

Or do you feel or more than half of our trading days have been over 25 million contacts.

Bob: It's 28 days left and a great mark consistent higher demand for aircraft.

Speaker Change: That'd be my group we can.

Speaker Change: I mean, the risk management products needed by our clients and driving earnings growth.

Speaker Change: I would now like to open up the call for you.

Speaker Change: Okay.

Speaker Change: The phone lines are now open for questions. If you would like to ask a question over the phone. Please press star one and record your name if you'd like to withdraw your question. Please press star two.

The first question in the queue is from Chris Allen with Citi. Your line is now open.

Christopher John Allen: Yes. Good morning, everyone. Thanks for taking my question I wanted to focus on the U S Treasury complex record activity in the quarter.

Christopher John Allen: Obviously always a lot of chatter out there were maybe some word peak rate activity does not seem to be the case, but maybe how you're thinking about the U S. Treasury complex, what's driving it any color on the impact from the CMA DTC Cross margining and and also U S. Treasury clearing which you apply declared cash U S Treasury.

How are you thinking about that from a structural impact perspective, but also if theres any revenue opportunities around that so sorry for the multipart question.

Speaker Change: No problem Chris.

Speaker Change: And again, we'll unpack that a little bit and I'm going to ask Tim probably Suzanne and myself, we're all kind of answer the three different parts of it. So let's just talk about I think your first part of your question was around is it the peak activity around treasuries.

Speaker Change: That would be really difficult to draw that conclusion, a little what's going on fundamentally around the world and in the United States. So I just don't see how anybody can draw a conclusion that this is the peak of that activity activity should generate more if in fact, the fed does cut so that would generate more activity. It doesn't need to just go up in order to generate activity as you know Chris.

Speaker Change: So I would say that there is a fire.

Speaker Change: How far away are saying that we are not near a peak as it relates to activity in the treasury market as far as the DTC and declaring outlet.

Speaker Change: Tim and Suzanne respond to that respectively.

Speaker Change: Yeah. Thank you very much Gary and thank you for the question. We do continue seeing increased participation in the cross margin program between ourselves and the fixed income clearing Corporation.

Speaker Change: One of those clearing members are seeing upwards of 75% to 80% and margin savings and that's in addition to the portfolio Margining program that we offer within CME between our interest rate futures options and swaps, which in the first quarter of 2024 continued delivering average daily savings up about $7 billion.

Speaker Change: Thickly those capital efficiency solutions I think has been a great story for market participants achieving record savings overtime and continued consistent savings for the first quarter of this year.

Speaker Change: Jimmy everything Ed.

Jimmy: Chris I think that maybe just the one thing to add on the Treasury complex is when we look at.

Jimmy: The long term growth of that complex.

Jimmy: Volume and open interest continued to grow with the stock of outstanding Treasury over the last 10 years the stock of that Treasury has roughly doubled when we look out at the congressional budget office also is forecasting it to double over the next 10 years. So when we look to where then total net issuances is currently occurring in Q1, while it was little changed from Q4 in terms of the.

Jimmy: Issuance it was much more coupon heavy than previous quarters, and when we look at the treasury ramps up and notes and bonds issued to finance. These growing budget deficits that plays very well into the complex of the products that we offer and as Terry said in his remarks furthering the growth that we've seen where the treasury complex had a record Q1 of $7 8 million contracts across.

Jimmy: And options and we expect the general issuance backdrop to continue to be a tailwind for their topline and Chris Let me just add to one thing that I was going to say at the beginning but on the treasury complex to say that as at peak, you know and everybody on the call knows that the different amount of opinions that's out there as it related to what the fed is.

Chris: Going to do or not do is all over the map and everybody has been absolutely for the most part wrong. So you had anywhere from six rate cuts predicted six months ago coming into 'twenty four to three that was advertised by the fed now people are going anywhere between zero.

Chris: And somewhere in between that I have no idea, what's going to happen, but there's a big difference of opinions out there, which should also generate a tremendous amount of activity one of the things. We don't talk about and we haven't talked about SUNS SBB failed.

Chris: Failed was their duration risk and I'm, not suggesting others are going to fall into this but the longer that rates are higher you have to think that others are watching this and need to make sure. They manage that risk on duration. So I think that's an equation that most people that are sitting on these treasuries was not put the accounting for say just as little as three to six months ago.

Chris: Yes.

I appreciate the color anything on U S Treasury clearing.

Speaker Change: I'm not clear on the U S Treasury clearing I will say that we.

Speaker Change: I made the announcement that we are going to file an application as it relates to this we are in the very early stages of completing that application. It will I think we've said publicly that we will probably look in some time in the fourth quarter before we can have that being viewed by the.

Speaker Change: SEC and then we'll go from there, but again I think from our standpoint, the mandate doesn't kick in until sometime in 'twenty six and we'll be prepared either way to go forward with it if it's in the best interest of those participants.

Speaker Change: Thank you.

Speaker Change: Thanks, Chris.

Speaker Change: And the next question in the queue is from Dan Fannon with Jefferies. Your line is open.

Daniel Thomas Fannon: Thanks, Good morning.

Daniel Thomas Fannon: Hoping to get a little more color on some of the activity in the commodities and metals markets, maybe talk about the health of the customer given the robust increase in volumes has there been any change in position limits or other things that might.

Daniel Thomas Fannon: Potentially curtail some of the activity that's been happening.

Daniel Thomas Fannon: Derek Yes, I think it's a we've seen a really spectacular rise in our metals activity and Dan as you know our metals activities made at both of the precious metals side and the base metal side Q1 was a little bit quiet volumes up for the first quarter were 4% what you've seen is a significant move and change in expectations around the role. The gold is playing in the market I think a lot of a scratch.

Daniel Thomas Fannon: Our heads over the last few years about why gold was sort of stuck below 2000, we saw a significant run up in participation in growth and we've actually seen very healthy activity and participation across each of our client segments. When you look at kind of the spread of activity in that market. It's a market that has very healthy participation.

Daniel Thomas Fannon: Across not just the commercial participants the buy side as well and we've seen that activity increase and accelerate in Q1, we saw really nice growth on the base metal side of the business up 15%. There is a lot of questions. There about global growth questions around China and electrification generally of the grid globally. That's typically really good for markets like copper and <unk>.

Daniel Thomas Fannon: And where we're seeing records in that early stages of our aluminum growth. There. So when you look at the growth of activity, we see it healthy across client segments, we're seeing significant growth across about cross regions in our options business is as Terry said earlier set records not just for options, but the full complex in April so very happy with the client growth, if you're very happy with that.

Daniel Thomas Fannon: Product growth across asset classes and cross.

Terry: Regions as well and Dan Let me just add to what Derrick said, because I think it's really important we talked a moment ago in our prepared remarks about how all six asset classes are achieving the levels that they are doing I've talked to several people. Just recently is the metals run up has happened who I thought I'd never traded metals anymore because of the price action, but are back in the marketplace now so you.

Terry: I think specifically about the customer goes to customer healthy I don't know how you phrased it but.

Terry: I will tell you that it's amazing and this is the story that we've been telling for 22 years is when one asset class Mike quiet down. They go to another one we're seeing a big divergence entities metals from people that used to participate and I've gone and other places that has some really fascinating for us to continue to see but the bigger part of the picture is all success.

Terry: Classes are humming, along so I think it's really healthy for the client across CME.

Speaker Change: Great. Thank you.

Speaker Change: Thank you.

Speaker Change: And the next question that she was from Patrick <unk> with Piper Sandler Your line is open.

Patrick: Yeah. Good morning, Thanks for taking the question so Terry for a few quarters now you've expressed an openness to potential M&A as.

Patrick: And Avenue and future growth. So we're just hoping to get your updated thoughts on on M&A and kind of the areas in asset classes that you're.

Speaker Change: Focused on when it comes to potential M&A opportunities.

Thanks, Patrick I don't know if ive been open to discussing that Ah I think that I have said that with CMA is in a strong position. If in fact, the right transaction was to come along and made sense for our shareholders and our clients and so I'm not out looking for particular deals I. Just said that we are in a strong position to do so.

Speaker Change: If it were to arise.

And again that that mindset has not changed.

Speaker Change: One of the things that we are obviously excited about is what I just said all six asset classes going at the same time that may open up different opportunities as it relates to some chick potential M&A activity, if we see something but again, we're not out shopping.

Speaker Change: At the moment or anything, but we are always open to looking at something that's a value to our clients and shareholders.

Speaker Change: And what was the other part of your question Patrick.

Speaker Change: No you you hit on all of them that was great.

Speaker Change: Yeah Bye.

Speaker Change: And the next question in queue is from Alex Kramm with UBS. Your line is open.

Alex Kramm: Yes, Hey, good morning, everyone. Just quick one on market data you pointed out some kind of like onetime ish episodic.

Alex Kramm: Revenues here I think one was audit and I get that but the other one wasn't derived data and that was a bigger number. So maybe you can just remind us why that comes with sometimes episodic revenue, but then bigger picture I think a few years ago derived data was a big New initiative and we would hope that as maybe a little bit more of a stable revenue source at this.

Alex Kramm: So maybe you can just give us an update where we stand in particular as it also pertains to what you're doing with Google on the market data side. Thanks.

Alex Kramm: Thanks, Alex I'll turn it over to Julie Winkler, and I don't know Sheila wants to chime in as it relates to go to Julien Yeah. Thanks for the question Alex.

Julie Winkler: The data services business, obviously in general had a great quarter in all $175 million revenue up another 6%. This is on the back of a record year.

Alex Kramm: Sure.

Julie Winkler: Now the key growth part of that is certainly with our professional subscriber revenue that is our core revenue base that is coming in delivering.

Julie Winkler: You know over 80% of that revenue as it relates back to the more episodic and sporadic.

Julie Winkler: Revenue for right certainly we've talked a lot about the unpredictable nature of the audit.

Julie Winkler: And if you think about derived that there there's two pieces of drive data revenue, there's definitely an annual component of that as well as a variable component and so there were some true ups that we saw it does bring out I'd say consistent revenue.

Julie Winkler: These are contracts that are up for renewal. So I think we do see some certainly some repeat ability with the subscription and the nature of those agreements.

Julie Winkler: Are those two different.

Julie Winkler: There is some spikes to them occasionally and we did see that happen in this particular quarter.

Julie Winkler: I'd say as it relates back to.

Julie Winkler: Commercialization more broadly definitely continuing to work with Google in Orange is there have been very clear that our data business is a priority as we think about trying to deliver our data in new ways and new solutions with them and that work has.

Julie Winkler: Throughout the quarter. So I think in one particular right we've talked about the transaction cost analysis and TCA work.

Julie Winkler: That is in fact, a and is being used by our business team and.

With our client.

Julie Winkler: This business decisions the broker tax excise change that we're having in the seven year coming up in just a couple of weeks with.

Julie Winkler: Specifically.

Julie Winkler: Also being able to leverage this tool.

Julie Winkler: Working to be able to do.

Julie Winkler: That directly with clients for now.

Julie Winkler: That is a good example of the innovation that we're driving with our partners at Google play.

Julie Winkler: Yeah.

Speaker Change: The only thing I'll add is we have license to.

Speaker Change: Add more.

Speaker Change: Make more datasets available as risk management becomes a priority as Terry has pointed out that we'll be working with our clients.

Speaker Change: Okay.

Speaker Change: A stress scenario.

Speaker Change: Historical scenarios, so they could use that.

Speaker Change: Great.

Speaker Change: Thanks, Joey Thanks, Thanks, Alex.

Speaker Change: You.

Speaker Change: Okay.

Speaker Change: Next question.

Speaker Change: Greg We have you listed as the next speaker are you there.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yeah.

Greg: For any of US are any out there can you hear us we're having a little trouble hearing the other side come in so we're not hearing anything so bear with us for what your line is sure Craig. Your line is open Gregg you May go ahead, Sir Thank you.

Gregg: Hey, Jerry can you hear me.

Jerry: I can't know Craig. Thank you I apologize for the delay.

Jerry: <unk> always tried before but nobody could hear me now.

Jerry: Guys I know you plan to launch credit futures.

Jerry: In June there.

Jerry: Isn't attractive capital.

Jerry: Ponant here with the margin offsets, especially against the right product how do you size up the Tam for this new segment.

Jerry: And how quickly do you expect volumes to ramp just given your conversations with key participants.

Ponant: Yes, good question, Greg and I don't know if I can answer it fully because we haven't got the contract out yet but.

Ponant: That's always the multimillion dollar.

Ponant: Question as I say, but let me turn it over to Tim to talk a little bit about the market and the potential opportunity and what it might mean for not only for the credit market, but for markets that are correlated associated with it that seemingly has today Tim great. Thanks, Eric and Greg I really appreciate the question.

Tim: Ourselves and our clients are excited about the launch of credit futures on June 17th which will be index futures on the Bloomberg corporate bond indices and I think see me is uniquely positioned given our strength both in the interest rate and equity complex credit tends to be at a nice intersection of those other asset classes, but also offers a.

Tim: Unique distinct market, where when you look at the recent growth in credit markets that has an addressable market of about 90 billion average daily volume in terms of notional across the fixed on fixed income Etfs CTX, the cash bonds and even the underlying market is becoming more and more electronics. So we think that the velocity of this market will continue.

Tim: Need to hedge this market will continue as people become increasingly aware of managing their credit risk and to your point, Craig we expect to offer margin efficiencies introducing capital efficiencies to enable our clients to manage their risk is something that is tried and true here at CME and early indications, which are always subject to change we think.

Tim: There'll be a 70% margin offset between the U S Treasury futures in the investment grade credit future and 50% offsets against our E mini equity benchmarks for high yield lack of the margin efficiencies in prior products in prior offerings is something that we believe in what we're hearing from customers.

Tim: A key hurdle for some of the other offerings to become successful so to Terry's point, while we can't necessarily predict the future. We are optimistic we are hearing great things from client, but given the our ability to offer offsets against our asset classes in the base F. N O fund and our unique leadership leadership positions in the price formation of the associated asset classes.

Tim: We certainly like to see what we can do with it come June when this contract goes law.

Tim: Tim Thanks, Craig for the question appreciate it.

Speaker Change: Thank you so very much. Our next question is from Kyle Voigt K B W. Sir Your line is open.

Kyle Voigt: Hi, Good morning, Thanks for taking my question, maybe a question for Lynn I noticed that $750 million of debt moved into the short term bucket this quarter due to the exploration.

Kyle Voigt: Coming in early in 2025.

Kyle Voigt: You're below your historical target leverage level of one times and I think you could even issue of $1 billion of additional debt from current levels and still be below that threshold.

Lynn: Would you consider increasing gross debt levels with upcoming refinancing to include that cash as part of the annual variable next year or should we think about the debt simply being refinanced at current levels and sorry to squeeze the second part of his question, but could you also remind us how you think about maximum leverage.

Lynn: In a if the right M&A opportunity where do present itself.

Speaker Change: Yeah. Thanks, Thanks Kyle.

Speaker Change: Our next maturity coming up in March of 2025.

Speaker Change: Something that we will be looking at over the course of this year as you know we don't have a strong need for our debt financing, but we do try and keep some bonds out in the market just to keep our name in front of the investors.

Speaker Change: That that credit work crash. So, we'll certainly be evaluating our approach for those bonds as we go through the course of the year certainly right.

Speaker Change: Are higher now than when we and when we did that issuance that we will take that into account, but we haven't made any decisions on a level of refinancing our how we will do that at this point.

Speaker Change:

Speaker Change: In terms of the maximum target for M&A, we do value our our strong investment grade rating. So that's where we came out where that one times target certainly there is black up in an M&A context, given the fact that we do generate a lot of cash and would be able to pay down that debt relatively quickly I think it would all depend on the circumstance.

Speaker Change: And the transaction, if we were to execute how.

Speaker Change: How far we would go out and elaborate so I don't have an exact target for you, but it's something that we do try and balance the use of.

The debt and equity in our transaction.

Speaker Change: Historically.

Speaker Change: Thank you.

Speaker Change: Thanks, Carl our next question.

Speaker Change: Brian Bedell with Deutsche Bank, Sir Your line is open now.

Great. Thanks, Good morning folks thanks for taking my question.

Brian Bedell: Just come back to the Treasury futures complex to what extent is the portfolio margining and agreement with DTC.

Brian Bedell: Tribute to the strong volume growth or is it just more of a sideshow relative to that.

Brian Bedell: The other market dynamics and then.

Brian Bedell: From the I appreciate it's very early in these four this treasury terrific dynamic.

Brian Bedell: With that.

Brian Bedell: Potentially changed the cross marketing agreement with DTC.

Speaker Change: And then if I could just squeeze in one more I didn't.

Speaker Change: Revenue from UBS and broker Tech and.

Speaker Change: Prep prepared.

Speaker Change: Summary, I don't know if you can comment on this for <unk>.

Speaker Change: Yes, Brian we're going to have to kind of win this one a little bit because I think we heard about every third word that you said for some reason I don't know what's going on in the line but.

Speaker Change: You're kind of tapped out a few different times there. So I can I just break this down and you asked about our treasury business.

Speaker Change: And you asked about <unk> and the offsets is that correct.

Speaker Change: You asked about.

Speaker Change: Well just give me the headline of the other things yeah. Yeah. Maybe this is clearer I was on my headset. It basically the contribution from that.

Speaker Change: On the portfolio Margining and your and your Treasury volumes, just to sort of categorically isn't really helping or is it really more of the market dynamics and then the.

Speaker Change: Back to the Treasury clearing question, maybe it's early days, but.

Speaker Change: Does your application complicate things with the DTC agreement.

Speaker Change: That's the part I missed that's the part I missed okay. We.

Speaker Change: We got it so I'm going to let I'm going to take your last question, but the first couple I'm gonna have Suzanne <unk>, who heads up our clearing and risk.

Deal with those Susanne.

Suzanne: Yes, thanks very much for the question. So just on the participation on the existing programs. We have seen some new clearing members I'd take direct membership to be able to take advantage of that cross margin program that is currently in place for house accounts between ourselves and the fixed income growing Corporation I think it's hard to quantify how much of that would be new activity.

Suzanne: Versus activity that may have been cleared as clients through existing clearing numbers prior to that Tim Mccourt may be able to chime in a little bit on his thoughts there about that growth in that activity, but generally our focus with the DTC continues to be growing the participation in that program as well as extending that program to customers. So it's something that.

Suzanne: We've been working very closely as partners on and it is still important to us and thinking about the clearing mandate and bringing the market more efficiencies for those clients that could be impacted by the clearing mandate as well.

Suzanne: Okay.

Tim you everything that I think I mean, just talk about the relationship with <unk>, but I think the one thing I would add is when we look at the additive value of the CME, one pot portfolio of margin, where we have the futures against the futures and options against the swaps is that has grown significantly over the years, while it's hard to exactly.

Tim Mccourt: <unk> draw a strict relationship that as Suzanne said that those margin savings have grown to 78 billion $7 billion to $8 billion last year per day 7 billion per day. This year along that our interest rate complex has doubled in sort of volume and open interest and that is the Testament believe if we focus on unlocking capital efficiencies for our.

Tim Mccourt: Clients, enabling them to more efficiently manage their risks we would expect any further capital savings to have similar effects, but hard to say sort of what that coefficient of growth might be but we think it is a tailwind for our complex and the more we can do to unlock those savings the better we will do on the transaction side for <unk>.

Tim Mccourt: <unk> options in swaps here at Sandridge.

Tim Mccourt: It is really important and then let me just add Brian that.

Tim Mccourt: And the relationship with D. T C C. As it relates to our treasury clearing application I have spoken to those folks it before I said anything publicly about this and what I also said publicly when we announced this is I do believe that <unk> has the most efficient offering and clearing of these products today.

Tim Mccourt: We didn't create the mandate that's coming at us in 2026, we have an obligation as I've told my friends at DTC that we have to go through with this application. We don't know what's going to happen in 2026, one day mandate kicks in what the market structure is going to look like is it going to change because it'll be the same but I can't wait till 'twenty 'twenty six to file an application.

Tim Mccourt: So that's why we're doing it now we are being prepared and hopefully we are going to use it we'll use it.

Tim Mccourt: And if it's not necessary because of the better offering comes out of the D. T. C C with the efficiencies for the clients, we will stay with DTC, So thats really where we stand on the relationship and the application of that makes sense to you.

Speaker Change: That's great answers. Thank you. Thank you for that.

And then Brian you had just a data point on.

Speaker Change: Cash market UBS owner of trading revenue.

Brian Bedell: Yes, the total trading revenue for the quarter was 69 million similar to Q4, and the total revenue from cash markets, including data and some of the connectivity with also consistent with Q4 at $92 million.

Speaker Change: Alright, okay.

Speaker Change: And in between ABS and broker Tech group similar to Q4.

Speaker Change: Yes.

Speaker Change: Yes so.

Speaker Change: If you break that out brokers act was at $38 million inline.

In line with Q4 and EPS was at 31.

Speaker Change: Thank you.

Speaker Change: Yes. Thank you.

Speaker Change: Appreciate it thanks.

Speaker Change: Thank you all our next question now from Alex Blaustein with Goldman Sachs. Ma'am. Your line is open.

Alexander Kramm: Hey, everybody good morning.

Alexander Kramm: Question on the energy markets for you guys again.

Alexander Kramm: Good to see momentum in overall volumes picking up here in April and over the course of the first quarter, but it looks like the market share trends between you guys and <unk> continue.

Alexander Kramm: Continue to kind of move a little bit more towards ice or share gains have been relatively sticky you gave us a bit of an update I think last quarter on like the underlying composition of the mix kind of what's been driving that so hoping you could update that and give us a sense of whether or not you're seeing any shifts in the kind of underlying producers consumers more kind of core user base there.

Alexander Kramm: If <unk> is working on anything to kind of close some of the market share back. Thanks.

Speaker Change: Thanks, Alex and let me just touch on the first point on the first quarter, especially as it relates to energy on the market share the market share did not shift from Q3 into Q <unk> Q4, and Q1 excuse me.

Speaker Change: It relates to market share so they're not continuing to.

Speaker Change: Supposedly take market share and again the way, we count market share is.

Speaker Change: All of our different products that we have including our Gulf coast contracts that we did not maybe pointed out is clearly over the last several years. So I don't see the market share that you're referring to in Q1 as it relates to the other parts of your question I'm going to ask Eric to answer yes, yes. Thanks I. Appreciate the question Alex So as Terry mentioned the top of the call.

Eric: The breadth and the scale of the diversity of the franchise here is I think yielding benefits for shareholders and certainly providing multiple ways that our customers use us to manage risk energy delivered strong results in the first quarter. This year up 16%. When you look at the significant participant of where that business is growing we saw the SaaS growth for our buy side of commercial customers and we saw.

Eric: Our record options level at the overall level as well when you look at energy being a key contributor to our non U S growth or non U S growth in energy was up 38% this year as well as our record options volume up almost 60% that's helping to drive a strong RPC at a little over $1 33 in the energy business. When you look at the core benchmark products in all come.

Eric: Back to the point Terry just made when you compare our WSI contracts to Isis <unk> contracts are.

Eric: Our market share in Q1 was flat with Q4 about 74% when you look at our WTO options against Isis <unk> auctions, we actually saw an increase in market share to 89% from 86%, So where we compete directly with ice we are either maintaining or growing that market share. So let me talk a little bit about whats actually.

Eric: Going on when the U S is actually producing and exporting crude oil at record levels, followed that shows will flow and what does that mean that means we have new and record amounts of non U S customers that have exposure to U S crude and also Henry hub to the same degree. So that's an increasing set of customer participants that we have not.

Eric: Seen before which is why when you look at where the growth is happening in our Wty complex, particularly we're seeing our non USW ti growth about 30% and our commercial customers up 21%. So the very customers, whether it's the buy side or the commercial customers that are looking for that open interest and looking for the best exposure for the energy markets are coming to <unk>.

Eric: To manage that manage that risk the other parts of the franchise that Terry talked about our WTO franchise isn't just our <unk> futures and options. It's our grades contracts, which continues to grow we actually just exceeded our open interest in our grades contracts exceeding 600000 contracts, that's up almost 50% year on year to a new record and Alex <unk>.

Eric: As important because 80% of that open interest holding is with commercial customers to have exposure to the global export market out of the U S and into Europe and Asia. So when we think about that growth in the client segments in the regional growth is reflective of the physical flows going out into the rest of the world.

Speaker Change: Pivoting over to the benchmark Henry hub side of the market I'll say similar thing to what Terry just talked about when we look at our Henry hub franchise compare that to Isis Henry hub franchise, you actually see that not only have we set a record total Henry hub volumes for futures and options in first quarter of this year, but we've also hit records of <unk>.

Speaker Change: Underlying options as well from a competitive perspective, we actually grew our market share to 81% versus 80% last year and thats up from 77% in 2022.

Speaker Change: Our options business was actually up as well I think we're up at 66% market share up from 59% market share last year. So we want to be clear and I think Tony laid this out well in the markets, where we have competitive dynamics, where we have our Henry hub contracts against listed elsewhere. Our W. Check contracts against the listed elsewhere, we're maintaining stable share.

Speaker Change: And we're growing the Oi, so with that I'll pass it back to you.

Speaker Change: Thanks, Derek can help our Alex hopefully that gives you some clarity great very helpful. Thanks, guys.

Speaker Change: Thank you.

Speaker Change: Our next question now from Ken Worthington with J P. M C and your line is open.

Kenneth Worthington: Hi, good morning, Thanks for taking the question wanted to extend the competitive landscape question to rates.

Kenneth Worthington: <unk> is launching later this summer do you see merits to the SMS value proposition.

Kenneth Worthington: If so which customer segments, Mike that's the mix.

Kenneth Worthington: Best positioned to pursue and given that all have tried to compete with CME in rates in the past and have failed what would you need to see to conclude that <unk> might be different.

Kenneth Worthington: Ken Let me let me answer this in this way first of all I have sat here for 22 years as the chairman and CEO of this company since we went public and I've seen nothing but competition my entire career. So this is no different.

Kenneth Worthington: I take it every single bit of competition seriously as I'm sure others do about CME as we continue to move our business forward.

Kenneth Worthington: Have about as much information as everybody else does on what their offering is which is zero I don't know what their offering is and I won't say that the party, but Tim just referenced at our one pot margining that saves an additional $7 billion to $8 billion. A day. We also have an additional offset with FIC, which we just got approved which we have multiple <unk>.

Kenneth Worthington: Lions are using today that are exceeding 80% efficiencies using that service that we offer today. So we think we have a really strong offering going forward against whoever wants to compete in his product or any of our other asset classes. So we feel like we're in a good position. We believe that capital efficiencies are the name of the game and you.

Kenneth Worthington: You have to have them and if you want to just do a me too strategy then people will do that.

Kenneth Worthington: It's a very attractive business I get it but again I think you have to have the capital efficiencies, it's hard to walk away from $7 billion to $8 billion a day in efficiencies and it's hard to walk away from an additional 80 plus percent that they are receiving associated with FIC now in our new offering that we just.

Kenneth Worthington: <unk> accomplished in the last several months. So I think that's very powerful and that's all I'll say about what theyre doing.

Speaker Change: Okay, great. Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question from Owen Lau with Oppenheimer, Sir Your line is open.

Owen Lau: Good morning. Thank you for taking my questions. So just a quick one on the expense guidance first quarter adjusted expense was lower than our expectation, but you maintained your full year guidance is there any investment that youre poss in the first quarter that you expect to incur over the next few quarters or there is some concept conservatively.

Speaker Change: Pretty good thanks.

Speaker Change: Thanks. Thanks for the question. So we do have some project based work that we do expect to ramp up over the course of the year for things like the Google migration Securities clearing that we've mentioned on the call previously you'll also see a ramp up in terms of the consumption. So in the technology line as we're moving more into the cloud.

Speaker Change: <unk>, we will see that grow over the course of the year. So we do see some of those items growing as we move forward and then we do typically see that higher spend related to marketing events in the fourth quarter. So there wasn't a particular pause I just think it's timing on some of these projects. They spend that we still expect to come through in the course of the year, making us comfortable with our guidance.

Speaker Change: Thanks, a lot.

Thanks, Sean.

Speaker Change: Our next question from Michael <unk> Morgan Stanley Sir Your line is open.

Michael: Great. Thank you just wanted to ask a question on the cash rates broker tech business and the interest rate swaps. Both of those have seen a bit more limited growth I was just hoping you could unpack some of the drivers moving pieces there that youre seeing maybe you could touch upon the competitive landscape, how you see that evolving and what sort of potential uplift could we see to the broker tech business and interest.

Michael: Swaps business from the cross margining benefits that you have noted here on the call and then maybe you could speak to some other initiatives that can help accelerate growth as you look out over the next year or two.

Speaker Change: Thanks, Michael I'm going to ask Tim to start and I might join in as well as to where it goes great.

Tim Mccourt: Great. Thanks, Gary and thanks, Michael certainly when we look at our broker Tech business volatility has come in since the start of the year and that tends to favor the internalization of flow with less being sent to our club and that's what we've seen in Q1, so not necessarily surprising in that regard we still do get some of the risk lay off in the risk recycling into the club so given the <unk>.

Tim Mccourt: Drop not surprising where we are but it is important to note that when we look at the U S. Active club that's only one part of the story for broker Tech U S. Repo had a strong quarter, where that year to date Adv is just about $300 billion per day, that's up 5% year over year and also the value prop of the broker Tech platform remains extraordinary it's important that we <unk>.

Tim Mccourt: On the totality of the risk management capabilities and myself and the team look forward to engaging with all of you in the other parts of our business to better understand and showcase things like repo and broker Tech quote, which is now up to an impressive 45 to <unk> $45 billion to $50 billion per day, when we look at the interest rate the interest rate swap business here at CME, so having various.

Tim Mccourt: Strong quarter here in Q1, so we're seeing all sort of near record levels and the major three Latin American currencies that we are that is a growth story, but it's really important to Terry's earlier comments. These are these are all pieces of how we approach the totality of managing risk for the interest rate.

Tim Mccourt: Flex and the needs of our clients. These things go together and it's important that when we look at what we've been able to achieve an OTC markets, where we've been able to do in providing continued risk management for broker Tech that's alongside record futurization in the Treasury complex, where our futures and options at CME remained the leading center of price discovery and risk.

Tim Mccourt: Management with Treasury futures now at a record 113% of the cash market in terms of the value being traded every day. So you really have to look at all of the pieces of the puzzle together to understand the breadth of the offering here at CME for rate.

Speaker Change: Thanks, Tim I, you said, what I was going to say it. So that was very good not all but I didnt have all that thank you Michael hopefully that addressed your question as it relates to broker Tech and what we're doing and where we look at it from the.

Speaker Change: Percentages with others.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Our next question now is from Simon <unk> with Redburn Atlantic on your line is open.

Simon: Hi, everyone. Thanks for taking my question I mean, most of my questions have been answered already but I was wondering if you could just walk through sort of where we are in the long term.

Simon: Progress with the with the Google Cloud migration.

Simon: And I'm curious as to if you could talk about the sort of innovations.

Simon: You come out with in partnership with Google to sort of deal with the backend aims of that migration in terms of meeting the rest of the business to the cloud.

Simon: Dealing with your Colocation clients and things like that so it's a quite longer term stuff, but interesting nonetheless.

Simon: So I'm going to turn to Sunil Simon but on the back end of your question. We are obviously and I've said this from the beginning we will wait until the work is complete as I'm, assuming the backend you're referring to the markets going into the cloud is that where you're going.

Sunil Cutinho: Yes, that's right.

Sunil Cutinho: Okay. So again that is yet to be finalized.

Sunil Cutinho: And the data center is yet to be finalized we're working on all of those things, but again as I've said from the very beginning of this transaction I will not.

Sunil Cutinho: Put cme's markets into the cloud or any other platform and less is better than.

Sunil Cutinho: More efficient than what CME offers today to its clients. So.

Sunil Cutinho: When we get that we will make that final decision, but we have not seen that product yet so they're out working on it and so Neil and his team are working on it. So we can't answer the back part of that question just yet but soon you can answer the beginning part.

Speaker Change: I'll answer two aspects.

Speaker Change: All of that question, one is related to migration of the non market workloads.

Speaker Change: And then we are making very good progress we intend to.

Speaker Change: Migrate our clearing regulatory services and business intelligence services.

Speaker Change: This year.

Speaker Change: Subject to regulatory approval of course.

Speaker Change: And then the second aspect of it it says the data platform, we spoke a little bit about it what we've done is we stood up our.

Speaker Change: <unk> data platform, we have over 26 petabytes.

Speaker Change: Rich historical information that includes.

Speaker Change: You know our market data.

Speaker Change: Instantaneous order book.

Speaker Change: So this information will be available for monetization in the future.

Speaker Change: Adding to it.

Speaker Change: Risk information as we are migrating our clearing workloads and the risk information will be risk scenarios and I spoke to that later as far as monetization of those.

Speaker Change: In future.

Speaker Change: Cycles.

Speaker Change: Does that answer your question Simon.

Speaker Change: Yeah.

Speaker Change: Okay, I think the last time, but Simon Thank you very much for your question.

Speaker Change: Our next question is from Benjamin <unk> with Barclays. Your line is now open.

Benjamin: Hi, good morning, and thanks for taking the question maybe just following up on that last point on the market data side.

Benjamin: Can you maybe talk about how you think about the longer term growth potential of that offering so it sounds like theres plenty of other opportunities to kind of increasingly add value.

Benjamin: The package there what about in terms of the client base. How do you think about the penetration of potential subscribers versus opportunities to kind of enhance what you're adding.

Benjamin: Thanks, Ben Good question and I'll turn it over to Mr. Wangler for response.

Wangler: I think I'll start where.

Wangler: <unk> was talking I mean, I think as it relates to being able to have Arkansas.

Wangler: Wow.

Wangler: For R&D.

Wangler: So as we think about.

Wangler: Easing onboarding.

Speaker Change: All right.

Speaker Change: <unk> analytics.

Speaker Change: These are new opportunities that we otherwise did not have any.

The ability to really facilitate access to.

Speaker Change: Our data.

We're seeing a lot of interest from customers as well.

Speaker Change: Okay facility.

Speaker Change: Cleanability is part of our model and the sportswear business, we're here to manage risk and our ability to be able to provide them data and insight much faster. We believe last half our data business, but also be additive to that.

Speaker Change: Yes.

Speaker Change: We continue to see strong demand on the professional driver side drive data as we talked about earlier.

Speaker Change: Putting the one time.

Speaker Change: Okay fine.

Speaker Change: <unk> added $1 billion product niche.

Speaker Change: Thank you art.

Scott: Scott appreciate that Rob.

Scott: Okay.

I'd say that participation regionally is also attending.

Scott: Wrong and I.

Scott: I think collectively.

Scott: At test.

Scott: Right.

Scott: Offering.

Scott: And how are we leveraging our accuracy.

Scott: You know that more attractive as part of the package.

Scott: Record cross sell.

Scott: Bill.

Scott: That initiative over the last couple of really making sure we are selling data and those services alongside our.

Scott: Tradable product okay.

At Tilbury.

Speaker Change: Thanks Julie.

Angela and thank you for the question.

Speaker Change: Okay.

Speaker Change: We now have a question from Alex Kramm with UBS and your line is open yes.

Alex Kramm: Yes, Hey, again, just wanted to pop back in for a model cleanup can you just I missed it give us an update on cash and noncash collateral rates, you've realized et cetera and stuff like that.

Speaker Change: Often ask anyways.

Speaker Change: Lynn sure Alex so for the quarter, we average U S cash balances about 76 billion.

Lynn: And we earned about 36 basis points on that asset.

Lynn: On the noncash the average balances for the quarter were about 159 billion, earning 10 basis points.

Speaker Change: Any updates how what's trending I think cash seems to be trending a little bit softer, but maybe maybe a quick update on I know, it's only been three weeks.

Speaker Change: Yes, so far in April our average U S dollar cash balances about 73 billion.

Speaker Change: And the noncash, it's averaging 160 billion 163 billion. So similar to what we saw in Q4.

Speaker Change: Q1 excuse me.

Speaker Change: Excellent thanks for that.

Speaker Change: Thanks, Alex.

Speaker Change: Our next question from Ely Abboud with Bank of America and your line is open.

Ely Abboud: Hi, Good morning. This is the language from Craig's team. Thanks for squeezing me in.

Ely Abboud: Given the prospect of new competition I was hoping you could speak to the size of your network in interest rate futures and maybe more specifically how many unique firms are providing liquidity and rates futures on a daily basis, and and when you look at the top handful of market makers, what proportion of liquidity provision that the accounting for it.

Speaker Change #101: Yeah. Thanks Eli.

Speaker Change #102: We don't I'm not Tim go ahead and answer it then I'll jump in there as well.

Speaker Change #103: Yeah. Thank you you are as you can understand we don't comment on the number of exact firms providing liquidity in a given market or at a given time or who's in what provision program or what certain subset of participants might be doing the anonymity of the cloud is an important part of the efficacy and efficiency of risk transfer and price discovery process here at CME.

Speaker Change #103: I can tell you is that our network is strong for interest rate futures and to your question while liquidity providers are an important part of this ecosystem. There are not the only part we have a mix of customer for sonus with different trading and risk management need that lead to the efficient transfer of risk when the market and our participants needed most.

Speaker Change #103: We look to the growing and record setting atvs in our complex for Treasury futures and options as Terry said, almost nearly 8 million contracts per day, we have a record daily open interest levels in our combined futures complex sorry, our combined rate futures complex of over $33 million large open interest holders topped a new record of 3300 large traders just just earlier this month.

Speaker Change #103: And again the capital efficiencies, we've talked about at length on this call. When you combine all of these things it's fair to say our network is immensely strong global in nature and is vital to allow our participants to continue to manage their risks.

Speaker Change #104: Thanks, Tim Thanks, Sheila I appreciate your question. Thanks.

Speaker Change #104: Our next question from Brian Bedell with Deutsche Bank. Your line is now open.

Brian Bedell: Great. Thanks, very much I had my arms on the cash collateral, but I will squeeze one more in on on rates if I can.

Brian Bedell: The basis trading just if you want to if you can comment on your view on.

Brian Bedell: How that component of treating may continue to progress through the year clearly, there's a lot of value in the arbitrage process, there and yes of.

Brian Bedell: Of course, Craig Leavitt has made an acquisition of a systematic.

Brian Bedell: Traded or rates in do you see that is expanding the the.

Brian Bedell: <unk> and basis trading.

Brian Bedell: Or what are the other way round.

Speaker Change #105: Thanks, Brian Tim you want to continue sure Brian I think certainly when we look at the basis trading its a trade that has persisted in the market now for several years. When we look at the combination of trading futures alongside cash that's certainly something <unk> is uniquely positioned in our ability to help facilitate that but it is important to note that basis trading does change some of.

Brian Bedell: The characteristics of how participants may be trading where the size of it may be trading in the different modalities. They use so it's important for us to make sure we're working with all of the participants whether there.

Brian Bedell: Banks hedge funds market makers or even other providers such as trade web that you mentioned they are all connecting to see me on the futures side of the transaction. So that's something that when we combine these assets together for broker Tech and see me that's a very hard thing for the marketplace to replicate so it's an important trade is.

Brian Bedell: The wing and it's something with the rate environment. We're in we do expect it to continue but hard to say if it will continue to grow or shrink from here, but the important part is when clients need to manage that risk. We have both to move here excuse me for them to be able to do so.

Speaker Change #106: Thanks, Tim.

Tim Mccourt: Thanks, Brian I appreciate the question.

Tim Mccourt: Thank you. Our next question from Owen Lau with Oppenheimer. Your line is open.

Owen Lau: Thank you for squeezing me in I know, it's not material to our financial it's about it's getting much attention recently.

Owen Lau: If the SEC were to D and E Mail security Howard CMV respond to it.

Owen Lau: Okay.

Speaker Change #107: Okay all right.

Owen Lau: Yeah. Thanks, Alan on the Crypto, Tim Thanks, Harlan, it's certainly something that we've heard our customers talk about margins and whether or not either become a security. However, it's important to note our primary regulator the CFT C.

Owen Lau: That said unequivocally that either as a commodity based on that clarity. We have listed this product for years under the CDC has exclusive jurisdiction.

Owen Lau: Our objective is approach when we listed the contract so that will be the path. We take forward until we learned otherwise with respect to our ether futures and options here at CME group.

Speaker Change #108: But the way you asked your question is correct. This is not that material to CMA. We are in this asset class, but we are not all in on this asset class I think that's important where in the liquid bottle.

Speaker Change #109: Yes, absolutely.

Speaker Change #110: Thanks, a lot.

Speaker Change #111: Thank you.

Speaker Change #111: Our last question today from Michael Cyprus with Morgan Stanley. Your line is open.

Michael J. Cyprys: Hi, Thanks for taking the follow up I appreciate it I wanted to circle back on the Google Cloud migration in your migration of clearing services and market data to the cloud just curious how you think about new services that you can provide customers over time as well as new revenue monetization opportunities over time, and if you look out 510 years I guess, how do you see the evolution.

Michael J. Cyprys: Of your businesses more of it over time will be moving to the cloud.

Speaker Change #113: So Neil I will answer the capabilities and then Julie Winkler will talk a little bit about the commercialization of them. So what we've done over the last two years as we've made our margin calculation services available on the cloud.

Speaker Change #113: There are two types. One is your current market margin calculation that was the first to be released following that we allow clients to actually calculate historical calculations.

Speaker Change #113: Now, we are allowing our clients to actually compute margin intra day.

Speaker Change #114: As you can see they are progressing to give blinds increased visibility into risks.

In a highly scalable way in and far more real time.

Speaker Change #114: The next.

Speaker Change #114: The thing we are going to introduce for our clients is optimization.

We've talked a lot about portfolio margining, we've talked a lot about portfolio margining with multiple risk pools optimization is the ability to give clients.

Speaker Change #114: You know the tools to move positions between these risk pools to get the best margin treatment.

And we are.

We run our clearinghouses.

Speaker Change #114: So we're making that available.

Speaker Change #114: On Google cloud as well towards the end of this year as we migrate.

Speaker Change #114: Following that.

Speaker Change #114: A few Apis to some of our services that can be accessed by our clients are fed watch API, which gives clients.

Speaker Change #114: Dissipate.

Speaker Change #114: No. Thanks actions.

Speaker Change #114: In our in our market is now available.

Speaker Change #114: Ah <unk>.

Speaker Change #114: And taking advantage of that so I'm going to forward that now to Julie to talk a little bit of Buck.

Julie Winkler: So Joe I mean I.

Julie Winkler: Thank God, Tony will touch on a few of the items that we have in profit areas.

Julie Winkler: There is certainly a distribution component to this right we have an extremely large market data distribution.

Julie Winkler: Network, let's say and being able to offer our data in the cloud.

Julie Winkler: It gives us another avenue to do that and it also allows us to do different data packaging and what we do today R. R.

Julie Winkler: We can't provide much more customization for example, with the offering that we have today been live for a number of years.

Julie Winkler: Both.

Julie Winkler: Customers can come to us if they just want say fifth del data as one particular example.

Julie Winkler: A lot more flexibility I would say in the data packaging and the offering and the distribution.

Julie Winkler: It allows us to also package that data in a way that it's much more consumable to our clients and.

Julie Winkler: And we're working with our technology also find ways, where we can.

Julie Winkler: Environments, where customers are taking too many.

Julie Winkler: So can we create.

Julie Winkler: Say secure environments, where they can bring in CME data and use it alongside their existing data and we believe theres some commercialization opportunities among that as well and as I mentioned earlier.

Julie Winkler: About analytics and API, there will be commercial opportunities there some of Thats building on analytics that we already offer but also how we are going to.

Julie Winkler: Look to build new things that is going to take a little bit of time, and so I think I would think about that a bit more of a slow burn is as we set up those commercialization opportunities and ultimately right. It's about how we.

Julie Winkler: We have this data reinforce both the risks that we're providing to our customers and also our transaction based businesses.

Speaker Change #115: Do you want to add just one thing to add there Michael.

Michael J. Cyprys: How we commercialize these opportunities is still to be determined these may be tools that we want to get in the hands of as many people as we can because they might lead to more growth in trading opportunities and just overall scalability of access to our markets. So we could see benefits coming through trading and clearing fees, we could see specific products that we want to monetize.

Michael J. Cyprys: Subscription type piece, but that's to be determined where you will see that incremental revenue.

Michael J. Cyprys: Michael.

Michael J. Cyprys: Thanks for the clarity.

Michael J. Cyprys: Yes.

Speaker Change #118: Alright, thanks, so much.

Speaker Change #116: Thank you.

Operator: This is the operator.

Operator: <unk> for the technical difficulties experienced thank you very much for your patience now I'll hand, it back to management for closing remarks.

Speaker Change #119: I appreciate that and let me just say I appreciate everybody that participated on those that I can't we look forward to continually communicating with you I wanted to say one thing before we close I think is really interesting look at CME group, we talked about all six of our asset class being up in Q1.

Speaker Change #119: That is a great sign we've got a question about the health of the client I think that points to the health of the client and the expansion of the client and Julie Winkler and our sales team are out there, creating new plans and people are managing their risk and we're saying that because open interest year to date is also up across all six asset classes. This is exactly what we've been talking about over the last year and a half.

Speaker Change #120: Can we talk about risk and people needed to manage that risk theyre doing it across the board and new participants are coming in Thats, a very attractive wholesale CME group that being said I want to thank each and every one of you for participating again today and be safe.

Speaker Change #121: As we are concluded again, thank you for your participation. Please disconnect at this time.