Q1 2024 Tradeweb Markets Inc Earnings Call

Good morning, and welcome to trade webs first quarter 'twenty 'twenty four earnings conference call.

As a reminder, today's call is being recorded and will be available for playback to begin I'll turn the call over to head of Treasury F. P N E and Investor Relations Ashley Serrao. Please go ahead.

Unknown Executive: Thank you and good morning. Joining me today for the call are our CEO, Billy Hult, who will review the highlights for the quarter and provide a brief business update, our President, Tom Pluta, who will dive a little deeper into some growth initiatives, and our CFO, Sara Furber, who will review our financial results. We intend to use the website as a means of disclosing material and non-public information and complying with our disclosure obligations under Regulation FD.

Ashley Neil Serrao: Thank you and good morning.

Ashley Neil Serrao: Joining me today for the call are CEO, Billy Hult, who will review the highlights for the quarter and provide a brief business update.

Speaker Change: And Tom, Florida, who will dive a little deeper into some growth initiatives and our CFO, Sarah Ferber, who will review our financial results. We intend to use the website as a means of disclosing material nonpublic information and complying with disclosure obligations under regulation FD.

Unknown Executive: I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance, our forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, presentation, and periodic reports filed with the SEC.

Ashley Neil Serrao: I like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations and as such constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.

Statements related to among other things our guidance are forward looking statements.

Ashley Neil Serrao: Actual results may differ materially from these forward looking statements information concerning factors that could cause actual results to differ from forward. Looking statements is contained in our earnings release presentation and periodic reports filed with the SEC.

Unknown Executive: In addition, on today's call, we will reference certain non-GAAP measures, as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures, is in our earnings release and presentation. Information regarding market and industry data, including sources, is in our earnings presentation. Now, I will turn the call over to Billy. Thanks.

Ashley Neil Serrao: In addition on today's call, we will reference certain non-GAAP measures as well as certain market and industry data.

Ashley Neil Serrao: Information regarding these non-GAAP measures, including reconciliations to GAAP measures is in our earnings release and presentation.

Ashley Neil Serrao: Information regarding market and industry data, including sources is that our earnings presentation now, let me turn the call over to Billy.

William E. Hult: Thanks, Ashley. Good morning, everyone.

William E. Hult: Thanks, Ashley good morning, everyone and thank you for joining our first quarter earnings call.

William E. Hult: And thank you for joining our first quarter earnings call. This was another record quarter as our strategy and focus on building deeper relationships with our clients through our one-stop shop offering continues to pay off. I believe it's a great time to be in the fixed income trading business. Macro debate is flourishing, and electronification continues to take hold, leaving me optimistic about our future. Even as there is consensus around rate cuts in the U.S., questions remain on the number of cuts this year, the ultimate level of rates, and the shape of the yield curve.

William E. Hult: This was another record quarter as our strategy and focus on building deeper relationships with our clients through our one stop shop offering continues to pay off I believe it's a great time to be in the fixed income trading business macro debate is flourishing and electronic vacation continues to take hold leaving me optimistic about our future.

William E. Hult: <unk>.

William E. Hult: Even though there is consensus around rate cuts in the U S questions remain on the number of cuts this year ultimate level of rates and the shape of the yield curve in fact, Jamie Diamond and its most recent annual letter highlighted the potential for U S rates to range from as low as 2% to as high as 8% traders can make a lot of money.

William E. Hult: In fact, Jamie Dimon, in his most recent annual letter, highlighted the potential for U.S. rates to range from as low as 2% to as high as 8%. Traders can make a lot of money with that sort of spread. Meanwhile, capitalizing on the array of organic growth opportunities in front of us remains our focus. We also continue to selectively use M&A to complement our offerings with the goal of creating better outcomes for our clients.

William E. Hult: With that sort of spread.

William E. Hult: While capitalizing on the array of organic growth opportunities in front of US remains our focus. We also continue to selectively use M&A to complement our offerings with the goal to create better outcomes for our clients.

William E. Hult: This year, we have deepened our penetration into the U.S. Treasury market and added new futures and algorithmic functionality with RateFin and are adding corporates as a fourth client channel with our pending ICD acquisition. Diving into the first quarter, the momentum we saw in January persisted into February and March, as we eclipsed $400 million in quarterly revenues for the first time. Specifically, strong client activity, share gains, and improved risk appetite drove 24.1% year-over-year revenue growth on a reported basis. We continue to balance investing for growth and profitability, as adjusted EBITDA margins expanded by 141 basis points relative to the first quarter of 2023.

William E. Hult: This year, we have deepened our penetration into the U S Treasury market and added new futures and algorithmic functionality with rate fan and are adding corporates as a fourth client channel with our pending ICD acquisition.

William E. Hult: Diving into the first quarter the momentum we saw in January persisted into February and March as we eclipsed 400 million in quarterly revenues for the first time.

William E. Hult: Specifically strong client activity share gains and improved the risk appetite drove 24, 1% year over year revenue growth on a reported basis, we continue to balance investing for growth and profitability as adjusted EBITDA margins expanded by 141 basis points rare.

William E. Hult: Turning to slide 5, rates and credit led the way, accounting for 55% and 34% of our revenue growth, respectively. Record revenues across rates were primarily driven by organic growth across global government bonds and swaps and were also supplemented by the addition of rate fin and yield broker. Similarly, record revenues across credit were led by strong U.S. and European corporate credit, with record quarterly market share and electronic U.S. investment grade being a highlight.

William E. Hult: To the first quarter of 2023.

William E. Hult: Turning to slide five rates and credit led the way accounting for 55% and 34% of our revenue growth respectively.

William E. Hult: Record revenues across rates were primarily driven by organic growth across global government bonds and swaps and we're also supplemented by the addition of race fan and yield broker. Similarly record revenues across credit were led by strong U S and European corporate credit with record quarterly market share in electronic U S investments.

William E. Hult: Money Markets also hit a record, fueled by continued growth in institutional repo, and Equities also hit a record despite challenging industry volumes in our core ETF business. Finally, market data revenues were driven by growth in our LSAG market data contract and proprietary data product. Turning to slide six, I will provide a brief update on two of our focus areas, U.S. Treasuries and ETFs, and then turn it over to Tom, who will dig deeper into U.S. credit and global interest rate swaps.

William E. Hult: Grade being a highlight.

William E. Hult: Money markets also hit a record fueled by continued growth in institutional repos equities also hit a record despite challenging industry volumes in our core ETF business. Finally market data revenues were driven by growth in our <unk> market data contract and proprietary data products.

William E. Hult: Turning to slide six I will provide a brief update on two of our focus areas U S treasuries and Etfs and then turn it over to Tom who will dig deeper into U S credit and global interest rate swaps.

William E. Hult: Starting with U.S. Treasuries, record first-quarter revenues increased by 22% year-over-year, led by records across our institutional and wholesale businesses. Our institutional business saw growing adoption of our streaming and RFQ Plus offerings. The leading indicators of the institutional business remain strong. We gained share and achieved a record quarterly market share of U.S. Treasuries versus Bloomberg. Client engagement was healthy, with institutional average daily trades up 40% year over year. Automation continues to be an important theme, with institutional U.S. Treasury AIX average daily trades increasing by more than 80% year over year and over 50% of our institutional tickets utilizing our AIX functionality.

William E. Hult: Starting with U S treasuries record first quarter revenues increased by 22% year over year led by records across our institutional and wholesale businesses.

William E. Hult: Our institutional business saw a growing adoption of our streaming and RF Q plus offering.

William E. Hult: The leading indicators of the institutional business remains strong we gained share and achieved record quarterly market share of U S treasuries versus Bloomberg client engagement was healthy with institutional average daily trades up 40% year over year automation continues to be an important theme with institutional U S. Treasury.

William E. Hult: Average daily trades, increasing by more than 80% year over year.

William E. Hult: Over 50% of our institutional tickets utilizing our AI ex functionality.

William E. Hult: Our wholesale business featured record volumes across our streaming and session protocols. Our recent acquisition of RateFin is off to a strong start, contributing approximately 1.5% to our overall U.S. Treasury market share, complementing our CLOB and streaming protocol. While the Central Limit Order book continued to face tougher market conditions, the team remains focused on onboarding more liquidity providers over the coming quarters as they deliver on a holistic strategy across our wholesale protocol.

William E. Hult: Our wholesale business featured record volumes across our streaming insertion protocols. Our recent acquisition of <unk> is off to a strong start contributing approximately one 5% to our overall U S treasury market share complementing our club and streaming protocols, while the central limit order book continued to face tougher market conditions.

William E. Hult: The team remains focused on on boarding more liquidity providers over the coming quarters as they deliver on a holistic strategy across our wholesale protocols.

William E. Hult: Within equities, our ETF business achieved the second highest quarterly revenues, which were up 1% year over year, despite challenging industry volume. Other initiatives to expand our equity brand beyond our flagship ETF franchise continue to bear fruit. First quarter equity derivatives revenues were up 10% year over year driven by strong equity futures growth. Looking ahead, the client pipeline remains strong as the benefits of our electronic solutions continue to resonate. We believe we are well positioned to capitalize on the long-term secular ETF growth story, not just in equities but across our fixed income business. With that, I will turn it over to

William E. Hult: Within equities, our ETF business saw its second highest quarterly revenues, which were up 1% year over year, despite challenging industry volumes.

William E. Hult: Other initiatives to expand our equity brand beyond our flagship ETF franchise continued to bear fruit.

William E. Hult: First quarter equity derivatives revenues were up 10% year over year, driven by strong equity futures growth.

William E. Hult: Looking ahead, the client pipeline remains strong as the benefits of our electronic solutions continue to resonate. We believe we are well positioned to capitalize on the long term secular ETF growth story, not just in equities, but across our fixed income business with that I will turn it over to Tom.

Tom: Thanks Billy.

Thomas Pluta: Turning to slide 7 for a closer look at another record-breaking quarter for credit. Strong double-digit revenue growth was driven by 37 percent and 46 percent year-over-year revenue growth across U.S. and European credit, respectively. Munis produced mid-single-digit growth, while credit derivatives revenues were more muted given softer industry volume.

Tom: Turning to slide seven for a closer look at another record breaking quarter for credit.

Tom: Strong double digit revenue growth was driven by 37% and 46% year over year revenue growth across U S and European credit respectively.

Tom: Muni is produced mid single digit growth, while credit derivatives revenues were more muted given softer industry volumes.

Thomas Pluta: Automation continued to surge with global credit AIX average daily trades increasing by about 70% year over year. We set another fully electronic quarterly market share record in US IG, helped by record IG block market share. Our institutional business continues to scale to new highs as clients engage with our diverse set of protocols to optimize execution across a variety of market environments. Our primary focus on growing institutional RFQ continues to pay off, with ADV growing 29% year over year with strong double-digit growth across both IG and high yield.

Tom: Automation continued to surge with global credit AI ex average daily trades, increasing by about 70% year over year.

Tom: We set another fully electronic quarterly market share record in U S. I G helped by record I G block market share.

Tom: Our institutional business continues to scale to new highs as clients engage with our diverse set of protocols to optimize execution across a variety of market environments.

Tom: Our primary focus on growing institutional RF Q continues to pay off with a D V growing 29% year over year with strong double digit growth across both I G in high yield.

Thomas Pluta: Moreover, portfolio trading ADV rose over 70% year over year with IG portfolio trading reaching a record level. Our clients continue to get more sophisticated in their usage of PT, with 65% of our PT volume done in income. These income volumes grew 85% year over year. Retail credit revenues were up almost 40% year over year, as financial advisors have started to turn their focus towards credit in recent months to complement their buying of U.S. treasuries.

Tom: Moreover, portfolio trading Adv rose over 70% year over year with Iga portfolio trading reaching record levels.

Tom: Our clients continue to get more sophisticated in their usage of P. T with 65% of our P. T volume done in comp.

Tom: These income volumes grew 85% year over year.

Tom: Retail credit revenues were up almost 40% year over year as financial advisors have started to turn their focus towards credit in recent months to complement their buying of U S. Treasuries.

Thomas Pluta: All Trade produced a record quarter with over $200 billion in volume. Specifically, our all-to-all volumes grew over 15% year-over-year, and our dealer RFQ offering grew almost 40% year-over-year. The team continues to be focused on broadening out our network and increasing the number of responses on the AllTrade platform. In the first quarter, the average number of responses per all-to-all inquiry rose by over 45% year

Tom: All trade produced a record quarter with over $200 billion in volume spin.

Tom: Specifically, our all to all volumes grew over 15% year over year, and our dealer RF SKU offering grew almost 40% year over year.

Tom: The team continues to be focused on broadening out our network and increasing the number of responses on the old trade platform.

Tom: In the first quarter the average number of responses per ultra all inquiry rose by over 45% year over year.

Thomas Pluta: We also continue to increase our engagement and wallet share with ETF market makers. Finally, our Sessions ADV grew over 65% year-over-year and saw another record revenue quarter. Looking ahead, U.S. credit remains our biggest focus area, and we like the way we are positioned across our three client channels.

Tom: We also continued to increase our engagement and wallet share with ETF market makers.

Tom: Finally, our sessions Adv grew over 65% year over year and saw another record revenue quarter.

Speaker Change: Looking ahead.

Speaker Change: Credit remains our biggest focus area and we like the way we are positioned across our three client channels.

Thomas Pluta: We believe we have a long runway for growth with ample opportunity to innovate alongside our clients. Our strategy is focused on expanding our network, increasing our wallet share, enhancing our pre and post trade analytics, and continuously improving our protocols and client experience. In the first quarter, we continued to strategically expand our sales force to broaden our coverage and attract clients we have historically not had a presence with. With respect to high yield, we continue to chip away, and believe we should be able to replicate the success we have seen in IG as we leverage our Aladdin collaboration to grow our all-to-all network later this year, enhance functionality, and increase our presence with ETF market makers. Beyond U.S. credit, our EM expansion efforts continue to progress with the opening of new offices in Miami and Dubai and a steady increase in engagement with local clients.

Speaker Change: We believe we have a long runway for growth with ample opportunity to innovate alongside our clients.

Speaker Change: Our strategy is focused on expanding our network, increasing our wallet share enhancing our pre and post trade analytics and continuously improving our protocols and client experience.

Speaker Change: In the first quarter, we continued to strategically expand our sales force to broaden our coverage and attract clients. We have historically not had a presence with.

Speaker Change: With respect to high yield we continue to chip away and believe we should be able to replicate the success. We've seen in I G. As we leverage our Aladdin collaboration to grow our all to all network later this year enhanced functionality and increase our presence with ETF market makers.

Speaker Change: Beyond U S credit.

Speaker Change: E M expansion efforts continue to progress with the opening of new offices in Miami in Dubai, and a steady increase in engagement with local clients.

Thomas Pluta: On the product side, we are focused on enhancing our integration with FX All and continuing to build out functionality for multi-asset package trading. Moving to slide eight, global swaps produced record revenues driven by a combination of strong client engagement in response to the macro environment and continued market share gains. However, strength here was partially offset by an 8% reduction in duration and elevated quarterly compression activity.

Speaker Change: On the product side, we are focused on enhancing our integration with epic saw and continuing to build out functionality for multi asset package trading.

Speaker Change: Moving to slide eight global swaps produced record revenues driven by a combination of strong client engagement in response to the macro environment and continued market share gains.

Speaker Change: Strength here was partially offset by an 8% reduction in duration and elevated quarterly compression activity.

Thomas Pluta: All in, global swaps revenues grew 35% year over year, and market share rose to 22%, with record share across other G11 and EM-denominated currencies. Finally, we continue to make progress across emerging market swaps in a rapidly growing RFM protocol. Our first quarter EM swaps revenues more than doubled year over year, and we believe there is still significant room to grow given the low levels of electronification. Our RFM protocol saw average daily volume rise over 130% year over year, with adoption picking up, especially across our European swaps business.

Speaker Change: All in global swaps revenues grew 35% year over year and market share rose to 22% with record share across other G 11, and E M denominated currencies.

Speaker Change: Finally, we continue to make progress across emerging markets swaps and a rapidly growing RF M protocol.

Speaker Change: Our first quarter E M swaps revenues more than doubled year over year, and we believe there is still significant room to grow given the low levels of electrification.

Speaker Change: Our RF M protocol saw average daily volume rise over 130% year over year with adoption picking up especially across our European swaps business.

Thomas Pluta: Looking ahead, we believe the long-term swaps revenue growth potential is meaningful. With the market still about 30% electronified, we believe there remains a lot we can do to help digitize our clients' manual workflows while the global fixed income markets and the broader swaps market grow. And with that, I will turn it over to Sara to discuss our financials in more detail.

Speaker Change: Looking ahead, we believe the long term swaps revenue growth potential is meaningful but the market is still about 30% electronic side. We believe there remains a lot. We can do to help digitize our clients manual workflows, while the global fixed income markets and broader swaps market grow.

Speaker Change: And with that let me turn it over to Sarah to discuss our financials in more detail.

Sara Hassan Furber: Thanks, Tom, and good morning. As I go through the numbers, all comparisons will be to the prior year period unless otherwise noted. Slide 9 provides a summary of our quarterly earnings performance. As Billy recapped earlier, this quarter we saw record revenues of $409 million that were up 24.1% year-over-year on a reported basis and 23.8% on a constant currency basis. Stepping back, looking at revenue this quarter, we generated similar average daily revenue growth with March being the strongest across all three months. We derived approximately 38% of our first quarter revenues from international customers and recall that approximately 30% of our revenue base is denominated in currencies other than dollars, predominantly in euros.

Sara Hassan Furber: Thanks, Tom and good morning, as I go through the numbers all comparisons will be to the prior year period, unless otherwise noted.

Sara Hassan Furber: Slide nine provides a summary of our quarterly earnings performance.

Sara Hassan Furber: As Billy Recapped earlier this quarter, we saw record revenues of 409 million that were up 24, 1% year over year on a reported basis and 23, 8% on a constant currency basis.

Sara Hassan Furber: Stepping back looking at revenue this quarter, we generated similar average daily revenue growth with March being the strongest across all three months.

Sara Hassan Furber: We derived approximately 38% of our first quarter revenues from international customers and recall that approximately 30% of our revenue base is denominated in currencies other than dollars predominantly in euros.

Sara Hassan Furber: Our variable revenues increased by 30% and total trading revenues increased by 24%.

Sara Hassan Furber: Total fixed revenues related to our four major asset classes were up seven 3% on a reported and six 9% on a constant currency basis.

Sara Hassan Furber: Our variable revenues increased by 30% and total trading revenues increased by 24%; total fixed revenues related to our four major asset classes were up 7.3% on a reported basis and 6.9% on a constant currency basis. The fixed subscription fee increase was primarily driven by the addition of new dealers and customers to the rates platform, as well as pricing increases on some of our rates subscription services. Credit fixed revenue growth was driven by the previously disclosed dealer fee increases, which we instituted at the start of the third quarter of 2023, and other trading revenues were down 5%. As a reminder, this line fluctuates as it reflects revenues tied to periodic technology enhancements performed for our retail clients.

Sara Hassan Furber: The fixed subscription fee increase was primarily driven by the addition of new dealers and customers to the rates platform as well as pricing increases on some of our rates subscription services.

Sara Hassan Furber: Credit fixed revenue growth was driven by the previously disclosed dealer fee increases, which we instituted at the start of the third quarter of 2023.

Sara Hassan Furber: And other trading revenues were down 5% as a reminder, this line fluctuate as it reflects revenues tied to periodic technology enhancements performed for our retail clients.

Sara Hassan Furber: This quarter's adjusted EBITDA margin of 53, 7% increased by 128 basis points on a reported basis when compared to the 2023 full year margins.

Sara Hassan Furber: Moving onto fees per million on slide 10, and highlight the key trends for the quarter you can see slide 16 of the earnings presentation for additional detail regarding our feet per million performance this quarter.

Sara Hassan Furber: This quarter's adjusted EBITDA margin of 53.7% increased by 128 basis points on a reported basis when compared to the 2023 full year margins. Moving on to fees per million on slide 10, and a highlight of the key trends for the quarter. You can see slide 16 of the earnings presentation for additional detail regarding our fee per million performance this quarter. For cash rates products, fees per million were up 1%, primarily due to an increase in European government bond fees per million.

Sara Hassan Furber: For cash rates products fees per million were up 1%, primarily due to an increase in the European government bond fees per million.

Sara Hassan Furber: Our long tenor swaps fees per million were down 18%, primarily due to an increase in compression as well as an 8% decline in duration.

Sara Hassan Furber: For cash credit average fees per million decreased 4% due to a mix shift away from high yield and munis.

Sara Hassan Furber: For cash equities average fees per million decreased by 15% due to a reduction in U S. E. T S fee per million given an increase in notional per share traded.

Sara Hassan Furber: For long tenor swaps, fees per million were down 18%, primarily due to an increase in compression, as well as an 8% decline in duration. For cash credit, average fees per million decreased 4% due to a mixed shift away from high yield and munis. For cash equities, average fees per million decreased by 15% due to a reduction in US ETF fees per million, given an increase in notional per share traded. Recall that in the US, we charge per share and not for notional value traded. Finally, within money markets, average fees per million decreased 6%, driven by a mixed shift away from higher fees per million, U.S. CDs, and towards our growing institutional repo business.

Sara Hassan Furber: We're calling the U S. We charged per share and not for notional value traded.

Sara Hassan Furber: Finally within money markets average fees per million decreased 6% driven by a mix shift away from higher fee per million U S C DS and towards our growing institutional repo business.

Sara Hassan Furber: Slide 11 details our adjusted expenses at a high level, the scalability and variable nature of our expense base allows us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here.

Sara Hassan Furber: Adjusted expenses for the first quarter increased 19, 5% on a reported basis and 18, 3% on a constant currency basis.

Sara Hassan Furber: Slide 11 details our adjusted expenses. At a high level, the scalability and variable nature of our expense base allows us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here.

Sara Hassan Furber: Compensation costs increased 24, 7% due to increases in performance related compensation and head count.

Sara Hassan Furber: Technology and communication costs increased 21, 3%, primarily due to our previously communicated investments in data strategy and infrastructure.

Sara Hassan Furber: Adjusted expenses for the first quarter increased 19.5% on a reported basis and 18.3% on a constant currency basis. Compensation costs increased 24.7% due to increases in performance-related compensation and headcount. Technology and communication costs increased 21.3% primarily due to our previously communicated investments in data strategy and infrastructure. Professional fees decreased 17.6%, mainly due to a decrease in periodic regulatory and compliance requests relative to the first quarter of 2012.

Sara Hassan Furber: Okay.

Sara Hassan Furber: Professional fees decreased 17, 6%, mainly due to a decrease in periodic regulatory and compliance requests relative to the first quarter of 'twenty three.

Sara Hassan Furber: We expect professional fees to rebound over the course of the year and grow over time as we spend more on technology consulting to support our organic growth.

Sara Hassan Furber: General and administrative costs increased due to a pickup in marketing as well as a decline in FX gains year on year.

Sara Hassan Furber: Movements in FX resulted in a $900000 gain in the first quarter of 'twenty four versus a $1 $3 million gain in the first quarter of 'twenty three.

Sara Hassan Furber: Slide 12 details capital management, and our guidance on our cash position and capital return policy. We ended the first quarter in a strong position with 1.54 billion in cash and cash equivalents and free cash flow reached approximately 651 million for the trailing 12 months.

Sara Hassan Furber: We expect professional fees to rebound over the course of the year and grow over time as we spend more on technology consulting to support our organic growth. General and administrative costs increased due to a pickup in marketing as well as a decline in FX gains year on year. Movements in FX resulted in a $900,000 gain in the first quarter of 24 versus a $1.3 million gain in the first quarter of 23.

Sara Hassan Furber: Recall, we recently entered into a definitive agreement to acquire ICD for 785 million subject to customary adjustments pending customary closing conditions and regulatory reviews.

Sara Hassan Furber: Our net interest income of $19 3 million increase due to a combination of higher cash balances and interest yields.

Sara Hassan Furber: Slide 12 details capital management and our guidance on our cash position and capital return policy. We ended the first quarter in a strong position with $1.54 billion in cash and cash equivalents, and free cash flow reached approximately $651 million for the trailing 12 months. Recall, we recently entered into a definitive agreement to acquire ICD for $785 million, subject to customary adjustments, pending customary closing conditions, and regulatory reviews. Our net interest income of $19.3 million increased due to a combination of higher cash balances and interest yields. This was primarily driven by the higher interest rate environment and more efficient management of our cash. With this quarter's earnings, the board declared a quarterly dividend of 10 cents per Class A and Class B share.

Sara Hassan Furber: This was primarily driven by the higher interest rate environment and more efficient management of our cash.

Sara Hassan Furber: With this quarter's earnings the board declared a quarterly dividend of 10 cents per class, a and class B shares.

Sara Hassan Furber: And turning to guidance for 2024, given the strong start to the year. We now expect adjusted expenses to 10 close to the top end of our previously communicated $755 million to $805 million range for 2024.

Sara Hassan Furber: We continue to believe we can drive margin expansion compared to 2023, although it will be more modest compared to last year. Since we expect to capitalize on the anticipated healthy revenue environment by accelerating investments to support our current and future organic growth.

Sara Hassan Furber: We expect our capex spend to increase as the year progresses into our previously communicated range now.

Sara Hassan Furber: Now I'll turn it back to Billy for concluding remarks.

William E. Hult: Thanks, Sarah we have always recognized that we occupy a very important piece of desktop real estate connecting liquidity providers to their most important clients the markets, we live and breathe and remain dynamic and we continue to work very hard alongside our clients to innovate and push the boundaries of what can be traded electronically.

Sara Hassan Furber: And turning to guidance for 2024, given the strong start to the year, we now expect adjusted expenses to tend close to the top end of our previously communicated $755 to $805 million range for 2024. We continue to believe we can drive margin expansion compared to 2023, although it will be more modest compared to last year, since we expect to capitalize on the anticipated healthy revenue environment by accelerating investments to support our current and future organic growth. We expect our CapEx spend to increase as the year progresses into our previously communicated range. Now I'll turn it back to Billy for his concluding remarks.

Sara Hassan Furber: Chronically are sales and tech teams remain busy and strategically I feel good about the road ahead and durability of our one stop shop value proposition.

Sara Hassan Furber: With a couple of important month and trading days left in April which tend to be our strongest revenue days overall revenue growth is trending in excess of 40% relative to April 2023, driven in part by favorable year over year comparison due to a temporary risk off environment fueled by the regional banking crisis and the <unk>.

Sara Hassan Furber: Prior year period.

William E. Hult: We have always recognized that we occupy a very important piece of desktop real estate connecting liquidity providers to their most important clients. The markets we live and breathe in remain dynamic, and we continue to work very hard alongside our clients to innovate and push the boundaries of what can be traded electronically. Our sales and tech teams remain busy.

Sara Hassan Furber: Revenue growth. This month is also being helped by a few more trading days.

Sara Hassan Furber: Focusing on average daily revenue, we are trending close to the first quarter as momentum in the business continues the diversity of our growth remains a theme, we're seeing strong volume growth across global government bonds mortgages interest rate swaps corporate credit and repos are IGN high yield share are both higher than <unk>.

Sara Hassan Furber: <unk> levels with I G. Currently at record levels.

William E. Hult: And strategically, I feel good about the road ahead and the durability of our one-stop shop value proposition. With a couple of important month-end trading days left in April, which tend to be our strongest revenue days, overall revenue growth is trending in excess of 40% relative to April 2023, driven in part by a favorable year-over-year comparison due to a temporary risk-off environment fueled by the regional banking crisis in the prior year period. Focusing on average daily revenue, we are trending close to the first quarter as momentum in the business continues.

Sara Hassan Furber: As we focus on our future. We recently expanded our executive leadership team, adding Ashley Serrao, who you all know well and Michael Cohen, our global head of marketing and communications. Both of these leaders have made a significant impact on our company and we look forward to their future contributions.

Sara Hassan Furber: I would also like to welcome Lisa a poker to our board of Directors, who joined our board as of March 7th.

Sara Hassan Furber: It brings nearly 30 years of finance it and legal experience to the board, while also increasing our board's independence and diversity, we look forward to benefiting from her valuable insight and industry experience.

Sara Hassan Furber: Finally, I would like to conclude my remarks by thanking our clients for their business and partnership in the quarter and I want to thank my colleagues for their efforts that contributed to our record quarterly revenues at trade web.

William E. Hult: The diversity of our growth remains a theme. We are seeing strong volume growth across global government bonds, mortgages, interest rate swaps, corporate credit, and repos. Our IG and high yield share are both higher than March levels, with IG currently at record levels.

Sara Hassan Furber: With that I will turn it back to Ashley for your questions.

Ashley Neil Serrao: Thanks, Billy as a reminder, please limit yourself to one question only feel free to hop back into queue and ask additional questions at the end Q&A will end at 10 30, a M. Eastern time, operator, you can now take our first question.

William E. Hult: As we focus on our future, we recently expanded our executive leadership team, adding Ashley Serrao, who you all know well, and Michael Cohen, our global head of marketing and communications. Both these leaders have made a significant impact on our company, and we look forward to their future contributions. I would also like to welcome Lisa Opoku to our board of directors, who joined our board as of March 7. Lisa brings nearly 30 years of finance and legal experience to the board, while also increasing our board's independence and diversity.

Speaker Change: Thank you.

Sara Hassan Furber: Okay.

Speaker Change: One moment for your first question. Please.

Speaker Change: Our first question comes from the line of Alexander <unk> with Goldman Sachs. Your line is now open.

Alexander: Hey, good morning, Bill good morning, everybody.

Alexander: Great great to see diversity in the business and the growth, but I wanted to zone in on the interest rate swap business, which continues to be obviously quite active here and I guess you know the growth is not all sort of coming from compression trading as maybe we've seen over the last couple of quarter. So help us maybe unpack a little bit the key drivers of recent growth and how you.

William E. Hult: We look forward to benefiting from our valuable insight and industry experience. Finally, I would like to conclude my remarks by thanking our clients for their business and partnership in the quarter, and I want to thank my colleagues for their efforts that contributed to our record quarterly revenues at Tradeweb. With that, I will turn it back to Ashley for your question.

Alexander: Thinking about this business for the rest of the year from here.

Alexander: Sure.

Speaker Change: Hey, Alex how are you happy spring and.

Speaker Change: Thanks for the question.

Speaker Change: Alex if we were going to I like to always start with a little bit of a half a step back as you know if you were going to sort of paint a picture on from our perspective, not just on how to really build the business, but really grow it and become.

Ashley Neil Serrao: Thanks, Billy. As a reminder, please limit yourself to one question only. Feel free to hop back into queue and ask additional questions at the end. Q&A will end at 10:30 a.m. Eastern Time. Operator, you can now take our first question. Thank you.

Alexander: The leader in addition is.

Alexander: From our perspective, I really feel like the swaps business would paint a pretty good picture for us it would be.

Alexander: Plant a flag early and a large.

Operator: One moment for our first question, please. Our first question comes from the line of Alexander Blostein with Goldman Sachs. Your line is now open.

Alexander: Non transparent market.

Alexander: When regulation starts moving in that direction there'll be a bystander really work with the regulators and shape that regulation in a way that works for their most important clients.

Alexander Blostein: Hey, good morning, Bill. Good morning, everybody.

William E. Hult: Great to see diversity in the business and the growth, but I wanted to zone in on the interest rate swap business, which continues to be, obviously, quite active here. And I guess, you know, the growth is not all sort of coming from compression trading, as maybe we've seen over the last couple of quarters. So help us maybe unpack a little bit the key drivers of recent growth and how you think about this business for the rest of the year from here. Alex, how are you? Happy spring!

Alexander: And then leverage the network and I kind of.

Alexander: You'll see that very strongly leverage the network and so the advantage for us as you know in swaps as always been.

Alexander: This giant network of <unk>.

Alexander: Mortgage customers, who are huge consumers of swaps that we have.

Alexander: Very strong network of U S government and European government clients, particularly on the hedge fund side were very active in the swaps market is to leverage that network and then continue.

Alexander: Continue to invest in.

William E. Hult: And thanks for the question. Uh, Alex, I like to always start with a little bit of a half a step back, as you know, if we were going to sort of paint a picture of, you know, from our perspective, not just how to really build a business but really grow it and become, you know, the leader in a business. You know, from our perspective, I really feel like the swap systems would paint a pretty good picture for us; it would be, you know, plant the flag early in a large, opaque, non-transparent market.

Alexander: And innovate.

Alexander: Invest in regions. So so a lot of the investments that we have put into place around E. M is paid off for us Alex.

Alexander: And then you know.

Alexander: Work with clients and innovate on what we describe as micro micro trading protocols. So from our perspective. The protocol request for market has been a market share driver and a big driver.

Alexander: Revenue so so those two factors alone.

Alexander: Our responsible for 50% of our revenue growth over the past two years, we've gone from basically making.

Alexander: $220 million and our global swaps business in 'twenty, one to 300 million.

William E. Hult: When regulation starts moving in that direction, don't be a bystander, you know; really work with the regulators and shape that regulation in a way that works for the most important clients, and then leverage the network.

Alexander: In 2003.

Alexander: <unk> really good where the trajectory of that business is going in 'twenty four.

Alexander: So a lot of enthusiasm for us we see a lot of potential we quote the big stat that 70% of the swaps business has still done via voice markets, we see that as large sized trades. We see that is partly the wholesale market, where we still have a big area of focus there.

William E. Hult: And I kind of, you know, say that very strongly: leverage the network. And so the advantage for us, as you know, in swaps has always been this giant network of mortgage customers who are huge consumers of swaps that we have, you know, a very strong network of US government and European government clients, particularly on the hedge fund side, we're very active in the swaps market. So leverage that network, and then, you know, continue to invest and innovate, and invest in regions.

Alexander: And we're still early in the penetration of electronic solutions across <unk>.

Alexander: I think inflation swaps swaption and then how we describe multi multi asset packages.

Alexander: So we're going to keep our focus it's been a big business for us over the past few years and it's a story that we're going to continue to tell very strongly because I think it page.

William E. Hult: So, a lot of the investments that we have put into place around EM have paid off for us, Alex. And then, you know, work with clients and innovate on what we describe as micro, micro trading protocols. So, you know, from our perspective, the protocols request for market has been a market share driver and a big driver of revenue. So, those two factors alone are responsible for, you know, 50% of our revenue growth over the past two years. We've gone from basically making, you know, $220 million in our global swaps business in 21 to, you know, $300 million in 23, and feeling really good about where the trajectory of that business is going in 24.

Alexander: Very strong picture about how we arrived at a leadership position in that space.

Speaker Change: And thanks for the thanks for the question Alex.

Speaker Change: Thank you.

Alexander: Next question comes from the line of Patrick <unk> with Piper Sandler Your line is now open.

Patrick: Good morning, Thanks for taking my question.

Patrick: So you've made a number of value add bolt on acquisitions in recent years ICD, maybe a little larger than the others, but was just hoping to get your updated thoughts on how we should think about the M&A strategy going forward and then if I could just add a second piece to that.

Patrick: Obviously adds an entirely new client segment in corporates. So could you just talk about how that might impact your approach to evaluating potential targets in the future.

William E. Hult: So a lot of enthusiasm for us, we see a lot of potential, you know, we quote the big stat that 70% of the swaps business is still done via voice markets. We see that as, you know, large-scale trades, we see that as partly, you know, the wholesale market where we still have a big area of focus there. And we're still early in the penetration of, you know, electronic solutions across EM. I think inflation swaps, swaptions, and then how we describe multi-, you know, multi asset packages.

Speaker Change: Sure Yes.

Speaker Change: How are you thanks for the question.

Speaker Change: I don't want to say, we have our hands full right now that's maybe not quite the perfect way to describe it but we're focused.

Alexander: With the capital S focused.

Alexander: Really on.

Alexander: Two things it's maximizing.

Alexander: Our organic growth potential first and foremost.

Alexander: Then the value of our recent acquisitions and I think you've framed it really well this is <unk>.

Alexander: Out of three deals in the past year.

Alexander: The good news from our perspective is our growth is really kind of firing on all cylinders.

Alexander: And both rates been in yield broker are from our perspective.

William E. Hult: So we're going to keep our focus. It's been a big business for us, you know, over the past few years. And it's a story that we're going to continue to tell very strongly because I think it pays. A very strong picture about how we've arrived in a leadership position in that space. And thanks for the question, Alex. Thank you. Our next question comes from the line of Patrick Moley with Piper Sandler. Your line is now open. Good morning. Thanks for taking the question. So you've made a number of value-add bolt-on acquisitions in recent years.

Alexander: Progressing very very well.

Alexander: And I say this in a strong way very much looking forward to ICD being part of the trade what family feeling very very good about the strategy, there and our ability to integrate going forward.

Alexander: Longer term view it.

Alexander: It's always important for the company to continue to place these bets on the table.

Alexander: Moving to client experience, increasing our earnings power of these are kind of blueprint for us.

Alexander: And so with respect to future deals.

Patrick Malcolm Moley: Thank you. Our next question comes from the line of Patrick Moley with Piper Sandler. Your line is now open.

Alexander: We're going to continue to evaluate expansion areas for growth across geographies clients and products and that's become our playbook I am going to kick it to Sarah for some important details and we lead with.

William E. Hult: Thanks. Sure. Hey, Patrick, how are you?

William E. Hult: Thanks for the question. Um, I don't want to say we have, you know, our hands full right now, it's maybe not quite the perfect way to describe it, but we're focused, you know, with a capital F focused, you know, really on, you know, two things, it's, it's maximizing, you know, our, our organic growth potential, first and foremost, and then, you know, the value of our recent acquisitions, and I think you framed it really well, this is, you know, you know, we announced three deals, you know, in the past year, you know, the good news from our perspective is our growth is really kind of firing on all cylinders.

Sara Hassan Furber: With the concept of.

Sara Hassan Furber: How important it is for for the culture.

Sara Hassan Furber: Fifth off.

Sara Hassan Furber: And that is one of the reasons why we feel good about the acquisitions over the past year and particularly.

Sara Hassan Furber: Around our recent one we feel there is a very very strong cultural fit here, which matters to us a lot great I think.

Alexander: Really well I would say emphasizing what Billy said the framework doesn't change.

Alexander: Looking at strategic fit and discipline financial discipline, and then also it can be measured in terms of operationally, making sure that we have the bandwidth.

Alexander: King.

William E. Hult: And both rate thin and yield broker are, from our perspective, progressing, you know, very, very well. Um, you know, and I say this in a strong way, very much looking forward to ICD being part of the Tradeweb family, feeling very, very good about the strategy there and our ability to integrate going forward. Longer term view It's always important for the company to continue to place, you know, these bets on the table, improving the client experience, increasing our earnings power. These are kind of blueprints for us.

Alexander: ICD once it closes does open a new client channel for us and obviously, we're focused on that integration.

Alexander: We think we're going to use all our tools in the toolkit ultimately grow our overall platform and that will be organic and inorganic and we do think overall corporate treasurers is an underserved market. So we like the long term ability to layer on different pieces of the puzzle there.

Alexander: I would say just one other thing we've talked a lot about acquisitions I would say when we think about inorganic we do you think about the range of tools in the toolkit.

Alexander: If you look at partnerships.

Alexander: Sure.

Alexander: One area that doesn't actually.

Alexander: But in terms of integration and operational bandwidth, we are spending more time, just researching emerging technologies.

William E. Hult: And so with respect to future deals, we're going to continue to evaluate expansion areas for growth across, you know, geographies, clients, and products. And that's become, you know, our playbook. I'm going to kick it to Sara for, you know, some important details. And we always lead with the concept of, you know, how important it is for the culture to fit in. And that is one of the reasons why, you know, we feel good about the acquisitions over the past year, and particularly, you know, around our recent one, we feel there's a very, very strong cultural fit there, which matters to us a lot, right?

Alexander: Much smaller financial commitments in that space that we wanted to look at to make sure that we're building out a platform Ross.

Alexander: We're the market.

Speaker Change: Thanks for the question.

Alexander: Okay.

Speaker Change: Thank you one moment for our next question. Please.

Alexander: Our next question comes from the line of Andrew Bond with Rosenblatt Securities. Your line is now open.

Andrew Bond: Hey, Thanks, good morning, so on the last call you talked a bit about the pace of margin expansion moderating from here.

Andrew Bond: You talked a little bit about that in your prepared remarks today. So can you frame what kind of margin expansion opportunity you still see for the company over time, given your current growth rate and maybe what do you see as trade was steady state.

Andrew Bond: For EBITDA margin.

Sara Hassan Furber: Great. I mean, I think you covered it really well.

Speaker Change: Great Hi, Andrew Nice to hear from you.

Sara Hassan Furber: I would say, emphasizing what Billy said, the framework doesn't change. Obviously, looking at strategic fit and discipline, financial fit and discipline, and then also going to be measured in terms of operationally making sure that we have the bandwidth in our digestion. That said, ICD, once it closes, does open a new client channel for us.

Andrew Bond: Obviously like I talked about this.

Speaker Change: Like our business is still growing.

Speaker Change: Perform is still growing and we are confident we can grow margins from here.

Speaker Change: Given that many of our businesses are still scaling where are we.

Speaker Change: We are on that spectrum I think it's too early to really determine.

Speaker Change: Determine what the steady state margin opportunities are.

Speaker Change: Focus right now, particularly in the environment that we're in is around entering new markets expanding the platform and investing in new opportunities and I think the great News is we see a lot of interesting opportunities to accelerate our investment, which we talked about and really drive durable profitable revenue growth over the long term so.

Sara Hassan Furber: And obviously, we're focused on that integration. But we think, you know, we're going to use all our tools in the toolkit to ultimately grow our overall platform, and that will be organic and inorganic.

Sara Hassan Furber: And we do think, overall, corporate treasurers are an underserved market. So we like the long-term ability to layer on different pieces of the puzzle there. I would say just one other thing, you know, we've talked a lot about acquisitions. I would say, when we think about inorganic, we do think about the range of tools in the toolkit. And so we do look at partnerships, we do look at smaller investments. And, you know, one area that doesn't actually conflict in terms of integration and operational bandwidth, we are spending more time just researching emerging technologies, you know, much smaller financial commitments in that space that we want to look at, to make sure that we're building out a platform across the full suite of things in terms of where the market is. So thanks for the question. It's good to hear from you.

Speaker Change: You've seen us and we've talked about investing in areas like moron.

Speaker Change: More on credit sales as we have momentum there automation, although there's a lot of organic opportunities, but <unk> also seen us deploy capital for acquisitions, and we're going to continue to put investment dollars.

Speaker Change: Those whether it be yield Burger, ultimately ICD or rate and which we think we can leverage that technology in other markets. So I think I know everyone's like a very specific number but I just think it's the good news is it's.

Speaker Change: Too early I think our business really is on that growth horizon for several years to come.

Speaker Change: What I can be clear about it and I think you've seen US do you have a good track record here is while we're focused on all of these areas.

Unknown Executive: Great. Hi Andrew.

Speaker Change: We care about profitability and so you should expect us to grow our margin slowly and steadily and hasnt trend higher, particularly as we look around making decisions. These are decisions that we all think add to the margin expectation over time.

Unknown Executive: Nice to hear from you. You know, obviously, and I've talked about this, we feel like our business is still growing, and our platform is still growing. And we are confident we can grow margins from here. Given that many of our businesses are still scaling, you know, where we are on that spectrum, I think it's too early to really, you know, quote or determine what the steady-state margin opportunity is. Our focus right now, particularly in the environment that we're in, is around entering new markets, expanding the platform, and investing in new opportunities.

Speaker Change: And then lastly, I've talked about this even in environments that can be more volatile and we have a lot of control over.

Speaker Change: So a fair bit of discretionary and variable expenses.

Speaker Change: That allows us to kind of have that extra bit of confidence around delivering for our shareholders.

Unknown Executive: And I think the great news is, we see a lot of interesting opportunities to accelerate our investment, which we talked about, and really drive durable, profitable revenue growth over the long term. So you know, you've seen us and we've talked about investing in areas like EM, more on credit sales, as we have momentum there, automation, algo, there's a lot of organic.

Speaker Change: Thank you.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Chris Allen with Citi. Your line is now open.

Chris Allen: Hey, good morning, everyone and thanks for taking my question I wanted to circle back on interest rate swaps and <unk>.

Chris Allen: Question activity, specifically, maybe if you could just provide some color on what kind of customers are coming in for compression trading customers.

Chris Allen: One moment for our next question. Our next question comes from the line of Chris Allen with Citi. Your line is now open.

Chris Allen: Customers that are just coming in for depression trading are you, making any progress on broadening out the wallet of those customers to capture risk risk trades kind of where are you with that progress.

Thomas Pluta: Hi Chris. Good morning. Good to hear from you, Tom.

Speaker Change: Hi, Chris Good morning, good to hear from you.

Thomas Pluta: So yeah, compression trading ebbs and flows during the normal course of business. Clients put risk on, and then they manage out old risk through compressions, and both clients and dealers find it a very efficient tool to reduce derivative notional balances. The biggest players are macro hedge funds, and they can drive large amounts of volume. So they continue to be big drivers. Participants in the Compression Protocols. So it's all been a very positive story.

Speaker Change: Tom.

Speaker Change: Yes compression trading.

Speaker Change: Ebbs and flows during the normal course of business.

Speaker Change: Put risk on and then they manage that old risk through compressions in both clients and dealers find it a very efficient tool to reduce <unk>.

Speaker Change: A bit of notional balances.

Speaker Change: The biggest players.

Speaker Change: Are the macro hedge funds and they can drive large amounts of the volume.

Speaker Change: So they continue to be big drivers, we have been broadening out.

Speaker Change: And increasing the number of.

Speaker Change: Participants in the compression protocols.

Thomas Pluta: Now to your question about how that relates to risk trading, what we've learned is that our most active compression clients become very sticky to the platform, and they've also been significantly growing their volumes of risk rates with us, which are, as you know, more profitable. Last quarter, we did have some charts in the investor presentation that highlighted this powerful correlation as well. And the key takeaways from that are that, as shown in the charts last time, our top five to 10 compression clients have not only had very significant growth in compression volumes but also very large growth in their risk trading volumes as well.

Speaker Change: So it's all been a very positive story now to your question about.

Speaker Change: How that relates to risk trading what we've learned is that our most active compression clients become very sticky to the platform.

Speaker Change: And they've also been significantly growing their volumes at risk rates with us which are more profitable.

Speaker Change: Last quarter, we did have some charts in the investor presentation that highlighted this powerful correlation as well and the key takeaways from that.

Speaker Change: Or that are.

Speaker Change: And the chart last time, our top five to 10 compressing clients.

Speaker Change: Have not only had very significant growth in compression volumes is also very large growth in their risk trading volumes as well. So those clients moved up very significantly in the rankings with us than risk trading so we think that.

Thomas Pluta: So those clients moved up very significantly in the rankings with us in risk trading. So we think that, you know, compression continues to be a very useful tool and a very complementary and additive protocol to our overall swaps business.

Speaker Change: <unk> continues to be a very useful tool and very complementary and additive protocol to our overall swaps business.

Kyle Kenneth Voigt: Question. Thank you. One moment for our next question. Our next question comes from the line of Kyle Voigt with KVW. Your line is now open.

Speaker Change: Thanks for the question. Thank you one moment for our next question.

Speaker Change: Our next question comes from the line of Kyle Voigt with K B W. Your line is now open.

William E. Hult: Hi, good morning. So you called out the adoption of RFQ trading as being a key driver of credit volume growth in the quarter and in March specifically. And I think in your prepared remarks, you noted success on both the institutional RFQ and dealer RFQ sides. Just more broadly speaking, I was wondering if you could talk about why you're having success with that RFQ protocol right now. What is responding with these end clients across both the institutional and dealer segments? Is it price, capabilities, or something else driving the outsized growth on the platform?

Kyle Kenneth Voigt: Hi, good morning.

Kyle Kenneth Voigt: So you called out adoption of RF <unk> trading as being a key driver of credit volume growth in the quarter and in March specifically.

Kyle Kenneth Voigt: And I think in the prepared remarks, you noted success on both the institutional RF <unk> and dealer RFG side, just more broadly speaking just wondering if you could talk about why youre, having success with that RF SKU protocol right now what is resonating with these end clients across both the institutional and dealer segments is it price capabilities or something else driving the outside.

Kyle Kenneth Voigt: As growth on them on the platform.

Kyle Kenneth Voigt: Hey, Kyle it's Billy it's a good question.

William E. Hult: As you know.

William E. Hult: Yeah, hey, Kyle, it's Billy. It's a good question. Because, you know, As you know really well, it sometimes feels like when you talk about credit, the world gets divided between, you know, portfolio trading and all-to-all trading, and those kind of pick up the kind of big headlines. But those are kind of, you know, just the headlines sometimes. And, you know, we feel like RFQ trading is really, in a pretty straightforward way, our biggest tangible opportunity in credit, right?

William E. Hult: As you know really well it sometimes feels like when you talk about credit it's like the world gets divided between portfolio trading and all to all trading in those kind of pick up the kind of big headlines, but those are kind of headlines sometimes and we feel like RFG trading is really.

William E. Hult: And a pretty straightforward way, our biggest tangible opportunity in credit right now.

William E. Hult: Right.

William E. Hult: It is a foundational.

William E. Hult: Protocol.

William E. Hult: That you have to get really right to be in the flow of things. So that's a huge huge area.

William E. Hult: <unk> for us and so.

William E. Hult: When we think about that RFP world, we think about first and foremost.

William E. Hult: It's a foundational, you know, protocol that you have to get really right to be in the flow of things. So that's like a huge, huge area of focus for us. And so, you know, when we think about that RFQ world, we think about, first and foremost, the institutional side, where we've been kind of growing our volumes there for years, as our network expands, and our efforts to kind of cross sell pay off. I say this in a pretty simple way: we're building deeper and stronger relationships with our clients. And part of that has been, you know, from our perspective, getting things right.

William E. Hult: Institutional side, where we've been kind of growing our volumes, they're really now for years.

William E. Hult: As our network expands and our efforts to kind of cross sell pay off.

William E. Hult: I'd say this is a pretty simple way, we are building deeper and stronger relationships with our clients and part of that has been.

William E. Hult: From our perspective.

William E. Hult: Getting things right.

William E. Hult: Adding value around.

William E. Hult: Portfolio trading adding value around the all to all network and then sometimes what happens.

William E. Hult: At a very straightforward ways, then you wind up getting that.

William E. Hult: <unk> Q volume, it's like you've kind of earned that type of business and that's been a big kind of growth.

William E. Hult: , you know, adding value around, you know, portfolio trading, adding value around the all-to-all network. And then sometimes, in very straightforward ways, then you wind up getting that, you know, that RFQ volume; it's like you've kind of earned that type of business. And that's been a big kind of growth area for us. Dealer RFQ, which, you know, is a sort of change in market structure, is a more recent initiative for us.

William E. Hult: The area of growth for us.

William E. Hult: Jeweler, RFG U which.

William E. Hult: Is that sort of change in market structure.

William E. Hult: <unk> is a more recent initiative for us so it's still in early stages of building that protocol, but we feel given the relationships we have with the dealers with the banks that the momentum there.

William E. Hult: As quite promising so.

William E. Hult: Answer your question for a second on some numbers are a few activity increased.

William E. Hult: Most 30% for us dealer RFU.

William E. Hult: So still in the early stages of building that protocol, but we feel given the relationships we have with the dealers and the banks, that the momentum there, you know, is quite promising. So answer your questions for a second on some numbers. RFQ activity increased almost 30% for us. Dealer RFQ activity increased almost 40% in the first quarter.

William E. Hult: Most 40% in the first quarter, so we're getting really into.

William E. Hult: Some big numbers.

William E. Hult: On the little bit technically on the RFP side.

William E. Hult: We continue to sort of make the investments and the enhancements that you would expect us to make some of those quite bespoke for specific clients. It continues to kind of resonate with a broader market. It's a big area of investment for us huge growth potential and I kind of emphasize at this point to you.

William E. Hult: So we're getting really into some big numbers. And a little bit technically on the RFQ side, we continue to sort of make the investments and the enhancements that you would expect us to make some of those quite bespoke for specific clients. It continues to kind of resonate with the broader market. It's a big area of investment for us, with huge growth potential.

William E. Hult: You start to get some of that after you've added some of these efficiencies that we've talked a lot about in terms of portfolio trading and rounding out our liquidity and all to all trading that all of a sudden you start to get some real momentum in terms of the client activity. So thanks very much for your question I appreciate it.

William E. Hult: And I kind of emphasize this point to you, you start to get some of that after you've added some of these efficiencies that we've talked a lot about, in terms of portfolio trading and rounding out our liquidity and all-to-all trading, then all of a sudden, you start to get some real kind of momentum in terms of client activity. So thanks very much Kyle for your question. I appreciate it. Thank you. Our next question comes from the line of Benjamin Budish with Barclays. Your line is now open. Hi, good morning. And thanks for taking the time to answer the question. Maybe I think circling back, I think was,

Speaker Change: Thank you.

William E. Hult: Our next question comes from the line of Benjamin <unk> with Barclays. Your line is now open.

Benjamin: Hi, good morning, and thanks for taking the question, maybe I think certainly get back I think it was Patrick's question on M&A. Just can you maybe give an update on <unk> you've owned the asset for about a quarter now any updated thoughts on what trade web can do to sort of accelerate that business, what sort of the potential upside from now having access to that futures trading workflow, having had a little bit more time.

Speaker Change: Asset thank you.

Speaker Change: Hi, Ben Good morning, Yes.

Speaker Change: Billing as Sarah mentioned, we remain very excited about this asset and the opportunity.

Benjamin Elliot Budish: Our next question comes from the line of Benjamin Budish with Barclays. Your line is now open. Hi, good morning, and thanks

Speaker Change: For growth, which nicely complements our existing businesses.

Speaker Change: As mentioned in the prepared remarks, the acquisition is off to a very strong start and already contributing.

Unknown Executive: Hi Ben, good morning.

Unknown Executive: Yeah, so as Billy and Sara mentioned, we remain very excited about this asset and the opportunity for growth, which nicely complements our existing businesses. You know, as mentioned in the prepared remarks, the acquisition is off to a very strong start and already contributing about one and a half percentage points to our U.S. Treasury market share. So that's very significant volumes starting day one.

Speaker Change: One five percentage points to our U S treasury market share so thats very significant volumes.

Speaker Change: Starting day, one over the last quarter, we spent.

Speaker Change: A lot of time engaging with the right thin client base working on full integration into the trade web infrastructure and our focus to head. Our focus ahead will be on onboarding or tradeoff clients to rates then.

Speaker Change: Which will add to an already very rapid pace of client growth that existed before we got involved so theres a lot of momentum on the client side and the feedback that we're getting from existing clients and prospective clients is extremely positive.

Unknown Executive: Over the last quarter, we spent a lot of time engaging with the RatesIn client base, working on full integration into the Tradeweb infrastructure. And our focus ahead will be on onboarding more Tradeweb clients to RatesIn, which will add to an already very rapid pace of client growth that existed before we got involved. So there's a lot of momentum on the client side, and the feedback that we're getting from existing clients and prospective clients is extremely positive.

Speaker Change: We now have a market leading technology offering that's allowing us to capitalize on growing demand for intelligent execution of multi legged orders across cash treasuries and treasury futures.

Speaker Change: This access to U S bond futures as a nice complement to the rest of our rate products I think.

Speaker Change: Heard us talking about.

Speaker Change: Finding ways to get involved in that space and now we are.

Speaker Change: As far as what had to your question there.

Unknown Executive: You know, we now have a market-leading technology offering that's allowing us to capitalize on growing demand for intelligent execution of multi-legged orders across cash treasuries and treasury futures. You know, this access to US bond futures is a nice compliment to the rest of our rate products. You heard us talking about finding ways to get involved in that space, and now we are. As far as what's ahead, to your question there, looking forward, there is a lot of excitement outside of the U.S. about this acquisition as well, and our plans include expanding into new markets, with European cash and futures, and potentially swaps likely next on the agenda.

Speaker Change: Looking forward there is a lot of excitement outside of the U S. On this acquisition as well in our plans.

Speaker Change: Include expanding into new markets.

Speaker Change: With European cash and futures.

Speaker Change: And potentially swaps likely next on the agenda. So we can see growth in the U S with the existing products and international expansion.

Speaker Change: Coming in the relatively near future.

Speaker Change: Thanks for the question.

Speaker Change: Thank you.

Speaker Change: Question comes from the line of Michael Cyprus with Morgan Stanley. Your line is now open.

Michael J. Cyprys: Oh, Hey, good morning, Thanks for taking the question just wanted to circle back on the <unk> integration for the credit business I was hoping you can update us on the progress there maybe just remind us what exactly is going to be changing in terms of what customers will have access to that they didn't have access to previously and how do you think about the opportunity set and if there's any sort of lessons learned.

Unknown Executive: So we see growth in the U.S. with existing products and international expansion coming in the relatively near future. Thanks for the question. Thank you. Our next question comes from the line of Michael Cyprys with Morgan Stanley. Your line is now open. Oh, hey, good morning. Thanks for taking the question. I just wanted to

Speaker Change: From the integration on the rate side that occurred years ago, if I'm not mistaken.

Speaker Change: Sure I'll take that one as well so.

Michael J. Cyprys: Thank you. Our next question comes from the line of Michael Cyprys with Morgan Stanley. Your line is now open.

Speaker Change: Aladdin partnership remains an important component of our growth strategy in credit and.

Unknown Executive: Sure, I'll take that one as well. So the Aladdin partnership remains an important component of our growth strategy and credit and a significant part of our plan for expanding our network, particularly in high yields. We've made great progress and have been working through the three phases of this integration. So, phase one, we completed that in the second half of last year, and that was focused on getting dealer access and inventory data into Aladdin.

Speaker Change: A significant part of our plan of expanding our network, particularly in high yield.

Speaker Change: Made great progress and have been working through the three phases of this integration. So in phase one we completed that in the second half of last year and that was focused on getting dealer axes and inventory data into Aladdin.

Speaker Change: Two we recently completed and that allows aladdin clients to respond to inquiries right from their Aladdin dashboard and in phase III clients will be able to initiate an RF Q on trade web from within.

Unknown Executive: Phase two has recently been completed, and that allows Aladdin clients to respond to all inquiries right from their Aladdin dashboard. And in phase three, clients will be able to initiate an RFQ on Tradeweb from within Aladdin, and then also use our automation. So we expect, you know, we're progressing, we expect all phases of this to be complete over the next 12 months.

Speaker Change: Aladdin and then also use our automation tools. So we expect.

Speaker Change: We are progressing we expect all phase of this to be complete over the next 12 months.

Speaker Change: And as far as the results for us in volumes revenue and market share. We expect this to be a steady progression as we move forward with more clients within Aladdin using trade web.

Unknown Executive: And as far as the results for us on volumes, revenue, and market share, we expect this to be a steady progression as we move forward with more clients within Aladdin using Tradeweb functionality. So, your question on lessons learned. Yes, we integrated with Aladdin in rates a number of years ago, and the main lesson there is really that Aladdin is a very important tool for many asset managers, and being partnered with them and providing easier access for those clients to Tradeweb is beneficial to us, as is growing our volume. So we learned that in rates. That's what we're expecting, learning, and seeing in credit as well.

Speaker Change: Functionality so.

Speaker Change: Your question on lessons learned yes, we integrated with Aladdin and rates a number of years ago and the main lesson. There is really that Aladdin is a very important tool for many asset managers and being partnered with them and providing easier access for those clients to trade web.

Speaker Change: It's beneficial to us in growing our volumes. So we learned that our rates, that's what we're expecting and learning and seeing in credit as well.

Speaker Change: Thanks for the questions.

Speaker Change: You.

Speaker Change: Our next question comes from the line of Dan Fannon with Jefferies. Your line is now open.

Daniel Thomas Fannon: Thanks, Good morning.

Daniel Thomas Fannon: Sticking with you Tom you had mentioned in your prepared remarks about looking to replicate the success and invest in high grade and high yield and I think.

Unknown Executive: Thanks for the question. Thank you. Our next question comes from the line of Dan Fannon with Jeffries. The line is now open. Thanks. Good morning. I guess sticking with you, Tom, you had mentioned...

Daniel Thomas Fannon: And to your previous response as part of that but maybe you could elaborate on what you expect or other things youre doing it and really kind of a time period do you think to gauge the success.

Daniel Thomas Fannon: Our next question comes from the line of Dan Fannon with Jeffries. Your line is now open.

Daniel Thomas Fannon: The potential share gains.

Unknown Executive: Sure. In high yield, the goal is to continue to build out the client network. And we have been doing that. As Billy mentioned, we're hiring salespeople to help build out that client footprint. And we have been making notable progress. We're also building up a dealer network, and you've seen the stats on the increase in the number of responses. Clients will come on the system, and ultimately, they want liquidity, and they want a lot of responses, and they're getting that.

Tom: Sure so.

Tom: High yield the goal is to.

Daniel Thomas Fannon: You need to build out the client network and we have been doing that.

Speaker Change: Billy mentioned, we're hiring salespeople.

Speaker Change: I'll build out that client footprint and we have been making notable progress. We're also building out the dealer network and you've seen the stats on the increase in the number of responses clients will come on the system that ultimately they want liquidity and they want a lot of responses and they are getting that.

Speaker Change: As Aladdin functionality rolls out as I mentioned over the course of the year. This will continue to boost.

Unknown Executive: As Aladdin functionality rolls out, as I mentioned, over the course of the year, this will continue to boost IEO volume. So there's no time frame as far as when we're there and when we're done, but it's more of a continuum.

Speaker Change: Volumes. So there's no is there a timeframe as far as when we're there and when we're done but it's more a continuum and we do expect to continue to.

Speaker Change: Grow our share over time and this is a very sustained effort is blocking and tackling it's getting clients to come over to trade web for the first time.

Unknown Executive: And we do expect to continue to grow our share over time. And this is a very sustained effort. It's blocking and tackling. It's getting clients to come over to Tradeweb for the first time. And we are getting there. So that's what we're going to continue to do.

Speaker Change: We are getting there so that's what we're going to continue to do.

Speaker Change: Thanks for the question.

Speaker Change: One moment for our next question.

Speaker Change: And our next question comes from the line of Craig Siegenthaler with Bank of America. Your line is now open.

Operator: OPERATOR Thank you. One moment for our next question, and our next question comes from the line of Craig Siegenthaler with Bank of America. Your line is now open.

Craig William Siegenthaler: Good morning, everyone. Our question is on pricing and credit so as.

Craig William Siegenthaler: As competition here in credit continues to intensify how are you thinking about pricing over the long term and in your discussions with buy side clients is this becoming a more relevant topics. Thank you.

Craig William Siegenthaler: Hey, Craig. It's Billy. Thanks. Thanks very much.

William E. Hult: We'd be crazy to say that pricing isn't part of the conversation with our clients. And if I didn't say that the right way, it would be when this call was over. Right. It's, it's, you know, it's, it's a big part of, you know, the reality. That being said, we say this in a very kind of, you know, blunt way.

Craig William Siegenthaler: Hey, Craig it's Billy Thanks, Thanks very much.

William E. Hult: We'd be crazy to say that pricing isn't part of the conversation with our clients.

William E. Hult: If I didn't say that the right way it would be one this call is over.

William E. Hult: Alright.

William E. Hult: Sure.

William E. Hult: It's a big part of.

William E. Hult: The reality that being said, we see this as a very kind of blunt way, it's not the main focus right clients are focused on.

William E. Hult: It's not the main focus; right clients are focused on, you know, being able to do their job more efficiently and more intelligently. And it's important for us to always appreciate that when clients think about the value that we provide, it goes just a lot past that sort of execution fee; it starts with liquidity and functionality. But it stretches to, you know, pre-trade analytics, and really how we describe this flow of information, and Tom was talking about Aladdin, but this flow of information to OMSs.

William E. Hult: Being able to do their job more efficiently and more intelligently and it's important for us.

Speaker Change: Always appreciate.

William E. Hult: That one clients think about value.

William E. Hult: That we provide it goes just a lot past that sort of execution fee. It starts with liquidity and functionality, but it stretches to pretreat analytics and really how we describe this like flow of information and Tom was talking about.

William E. Hult: Aladdin, but the flow of information to our message and so the convenience of trading.

William E. Hult: And so the convenience of trading, you know, multiple products from a single platform is a big deal, that one-stop shop, sort of emphasis that we continue to kind of make. I say this again, in sort of a little bit of my own language, if pricing was the main focus. You know, our largest competitor in the institutional rates market would have, you know, all that business. And if it was the main focus, you know, we'd be the full leader in the credit market, right? So these are kind of complex dynamics. Sometimes with a complex, you know, dynamic, you simplify, right?

William E. Hult: Multiple products from a single platform, that's a big deal that one stop shop sort of emphasis that we continue to kind of make.

William E. Hult: I say this again in my sort of a little bit of my own language.

William E. Hult: If pricing was the main focus.

William E. Hult: Our largest competitor in institutional rates market would have have all of that business.

William E. Hult: And if it was the main focus.

William E. Hult: We'd be the.

William E. Hult: Full leader in the credit market right. So these are kind of complex dynamics, sometimes with a complex dynamic.

William E. Hult: Dynamic you simplify right simple strategy continue to provide our clients with more innovation more bang for the Buck.

William E. Hult: Simple strategy. Continue to provide our clients with more innovation, more bang for the buck, and the pricing conversations will always take care of themselves. And I don't say that flippantly; I say that with a lot of rigor in terms of the analysis.

William E. Hult: And pricing conversations always take care of themselves and I don't say that Flippantly I say that with a lot of rigor in terms of the analysis.

William E. Hult: So we're going to continue to innovate with protocols, connecting our markets. We believe we provide a lot of value to our clients, and we have that loyalty and support, and we feel quite good about where our pricing model is today. Good question, Craig, and thank you. Thank you. Our next question comes from the line of Ken Worthington with J.P. Morgan. Your line is now open. Hi, good morning, everybody. Congratulations, Ashley. On high yield.

William E. Hult: So we're going to continue to innovate with protocols connecting our markets. We believe we provide a lot of value to our clients and we have that loyalty and support and we feel quite good about where our pricing model is today. It's a good question Craig and thank you.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Ken Worthington with Jpmorgan. Your line is now open.

Kenneth Brooks Worthington: Hi, good morning, everybody Congrats Ashley.

Kenneth Brooks Worthington: Our next question comes from the line of Ken Worthington with J.P. Morgan. Your line is now open.

Kenneth Brooks Worthington: On high yield connection with ETF managers seems like a no brainer to me for trade web and high yield how big a part of the high yield trading ecosystem our Etfs.

Unknown Executive: Hey, Ken. Good morning.

Unknown Executive: Yeah, high yields, or should I say ETF, market makers, and ETF volumes coming into the cash markets continue to be a significant part of what we're seeing and a significant part of our growth strategy. We've also seen ETF market makers using portfolio trading to replicate some of those baskets. So I think us having the full range of protocols. A thorough ETF market offering, strength in portfolio trading, and RFQ in cash bonds all complement one another.

Kenneth Brooks Worthington: How is rebalancing and high yield Etfs done currently and what needs to happen for trade web to win more business in that part of the market.

Speaker Change: Hey, Ken good morning.

Kenneth Brooks Worthington: Yes high yields.

Kenneth Brooks Worthington: I should say ETF.

Ken: Market makers in ETF volumes are coming into the cash markets continue to be a significant part of what we're seeing in a significant part of our growth strategy.

Speaker Change: We've also seen.

Speaker Change: ETF market makers using portfolio trading to replicate some of those baskets. So I think us having the full range of protocols.

Speaker Change: Thorough ETF market offering strengthening portfolio trading RF queuing the cash bonds all complement one another so as far as what has to continue to happen as we continue to work on all of these protocols building out the network building out the responses building out the volumes and what we've seen increasingly is.

Unknown Executive: So as far as what has to continue to happen, we continue to work on all of these protocols: building out the network, building out the responses, building out the volumes. And what we've seen increasingly is these players interacting across the various protocols, and we're working on ways to try to make it easier for clients to access those protocols within within within Tradeweb in terms of doing more than one trade or doing a package of trades at one time. So we're focused on all those things. The results have been quite promising, and that's a big part of the focus going forward.

Speaker Change: These players interacting across the various protocols and we're working on ways to try to make it easier for clients to access those protocols within with.

Ken: Trade web in terms of.

Ken: Doing more than one trade or doing a package of trades.

Ken: At one time, so we're focused on all of those things the results have been quite promising and it's a big part of the focus going forward.

Speaker Change: Thanks for the question.

Speaker Change: Thank you one moment our next question please.

Ken: Our next question will come from the line of Brian Bedell with Deutsche Bank. Your line is now open.

Brian Bertram Bedell: Great. Thanks, Good morning, and thanks for taking my question most of have been asked and answered, but maybe just one on <unk>.

Brian Bertram Bedell: On your views on the.

Brian Bertram Bedell: Potential clearing.

Brian Bertram Bedell: Of treasuries, new regulations coming around that realize it so.

Brian Bertram Bedell: OPERATOR Thank you. One moment for our next question, please. Our next question will come from the line of Brian Bedell with Deutsche Bank. Your line is now open.

Brian Bertram Bedell: Essentially a couple of years out, but how do you see that changing the.

Brian Bertram Bedell: The landscape for trade web in any major way and are there opportunities.

Unknown Executive: Sure, Brian. So just to recap, the SEC did announce the final clearing rules in December and set the deadlines for the end of 25 cash treasuries and mid 26 for treasury repo. In cash treasuries, essentially, the rule will scope in more dealers, essentially the PTFs to clear their trades, but this rule fell short of scoping in an even wider variety of market participants than some expected, so it's not as dramatic in cash treasuries.

Brian Bertram Bedell: For you to expand your business with that new paradigm.

Speaker Change: Sure Brian So just to recap the SEC did announced the final clearing rules in December and set the deadlines for.

Speaker Change: At the end of 'twenty five cash treasuries in mid 'twenty six for Treasury repo.

Speaker Change: And cash Treasury, essentially the rule will scope and more dealers essentially the etfs to clear their trades.

Speaker Change: But this rule fell short of scoping and even wider variety of market participants with some expected. So it is not as dramatic and cash treasuries treasury repo that is the bigger change so substantially all of the market will be required to clear repo going forward essentially cleared repo going forward. There is a few weeks.

Unknown Executive: In treasury repo, that is the bigger change, so substantially all of the market will be required to clear repo going forward or essentially clear repo going forward. and then Is there enough capacity for bank dealers who are sponsoring a large number of clients into the clearinghouses, and how will those margin costs be shared? These are the types of things that are being discussed in the market, being discussed in the panels, and then how might that impact liquidity? These details are still being worked out, but ultimately, your question is, what's the impact on Tradeweb?

Speaker Change: <unk> out there, but it is most of the market I guess, what I would highlight is that there is still a number of open questions that the industry is wrestling with such as well there'll be other clearinghouses other than FY <unk> entering this space as competitors and one or more have suggested that they that they will enter and then what are the specifics of the protocols that are introduced by the clearinghouse.

Speaker Change: With respect to cross margining, and netting and things like that and then is there enough capacity for bank dealers, who are sponsoring a large number of clients into the clearing houses and how will those margin cost be shared. So these are the types of things that are being discussed in the market being discussed in the panel.

Unknown Executive: Generally speaking, more central clearing is positive for a business. It does go hand-in-hand with electronification, and as we are a large player and critical infrastructure provider in the treasury and repo markets, we're already fully connected to FICC. We already manage our clear treasury business today through DealerWeb, so we're very familiar with how all that works. And as these deadlines approach, we're going to work closely with our clients and help them navigate the rule changes, as we've done in the interest rate swap. So, you know, mild positive, not a dramatic change, but this direction of travel in the regulation continues to be supportive of Tradeweb. And, you know, our ability to have a voice around.

Speaker Change: And then how might that impact liquidity. So these details are still being worked out but ultimately your question is what's the impact of trade web generally speaking more central clearing as positive for our business. It does go hand in hand with electronic location and as we are a large player in critical infrastructure provider in.

Speaker Change: The Treasury repo markets were already fully connected to FCC, we already mass.

Speaker Change: Managed clear Treasury business today through dealer web, we're very familiar with how that works and as these deadlines approach, we're going to work closely with our clients and help them navigate the rule changes as we've done in interest rate swaps. So.

Speaker Change: <unk> positive not a dramatic change, but this direction of travel in the regulation.

Speaker Change: Muse to be supportive for trade growth and our ability to have a voice around how this regulation ultimately get implemented in the market from my perspective, Theres. Some theres some pretty good feelings about that because it mimics a little bit the way that we were able to kind of get in there around as you guys all know.

William E. Hult: our ability to have a voice around how this regulation ultimately gets implemented in the market. From my perspective, there are some pretty good feelings about that because, as you guys all know very well, the derivatives regulation, and how sets were formed, and very important decisions that were made around really how clearing would work and the market structure of that market.

Speaker Change: Well, the derivatives regulation, and how SaaS, where form and very important decisions that were made around really how clearing would work in the market structure of that market that gives us now again, a bunch of years later confidence, but also the credibility to be in there with the right people and really shape.

William E. Hult: That gives us now, again, a bunch of years later, confidence, but also the credibility to be in there with the right people and really shape how that regulation winds up really affecting the markets that we live and breathe in. So that's a big part of this. And Tom answered that perfectly.

Speaker Change: How that regulation winds up really affecting the markets that we live and breathe and so that's a big part of this.

Speaker Change: And Tom answered that perfectly.

Speaker Change: Yes.

Speaker Change: Thank you.

Operator: One moment for our next question. Our next question comes from the line of Alex Kramm with UBS. Your line is now open.

Speaker Change: One moment for our next question.

Speaker Change: Our next question comes from the line of Alex Kramm with UBS. Your line is now open.

Alexander Kramm: Yes, hey, everyone. I just wanted to come back to the discussion we had earlier about RFQ. Sounds like you're being successful there. But, you know, I know there are limited disclosures. But when I look at some of the foundational RFQ numbers that you give every quarter, I think over the last 10 quarters, you're kind of stuck in that low to high 4% market share of trades. Now that's combined high yields and IG.

Alexander Kramm: Yes, Hello, everyone I just wanted to come back on the discussion we had earlier about our SKU.

Alexander Kramm: Sounds like Youre being successful they are but.

Alexander Kramm: I know, there's limited disclosures, but when I look at some of the foundational RF SKU numbers that you gave every quarter I think over the last 10 quarters youre kind of stuck in that law.

Alexander Kramm: Load them to high 4% market share of trades now Thats combined high yields in Iga. So I don't know if thats a fair way to look at it but it doesn't seem like you've been really able to break out and I think <unk> was actually down a little bit over the from the last few quarters. So just wondering if we're looking at this right is theres still a lot to do and what there is to do because.

Alexander Kramm: So I don't know if that's a fair way to look at it, but it doesn't seem like you've been really able to break out. And I think 1Q was actually down a little bit from the last few quarters. So just wondering if we're looking at this right, if there's still a lot to do, and what there is to do, because it seems like you've been stuck a little bit. So just maybe rectify that a little bit. Thanks.

Alexander Kramm: It seems like you've been stuck a little bit so just maybe maybe rectify that Louis thanks, Yes.

William E. Hult: Yeah, Alex, how are you? I made this sort of analogy about the painting, you know, to the first question that Alex from Goldman asked me. I'm not saying you're going to smudge our Picasso. But I kind of hear where you're coming from. I think at the end of the day, as we talk about sort of where we're headed with RFQ trading and the real significant progress that we've made around that, and the emphasis around that, at the end of the day, the success around that has been, I think, higher around IG. And, you know, we're pretty blunt here. I think we do a lot of things very, very well.

Louis: Yeah, Alex how are you made this sort of analogy about the painting.

Louis: So the first question that Alex from Goldman asked me I'm, not saying you're going to like Smudge ARPA caso.

Louis: But I kind of hear where you're coming from I think at the end of the Jay as we talk about sort of where we're headed with RFG trading and the real significant progress that we've made around that and the emphasis around that at the end of the day. The success around that has been I think higher around kind of IAG and.

Louis: We're pretty blunt here I think we do a lot of things very very well, we still have more work to do on high yield and some of that work is around.

William E. Hult: We still have more, you know, work to do on high yield, and some of that work is around, you know, the penetration of RFQ trading into high yield. But from our perspective, also, it's about the adoption of, you know, portfolio trading into the less liquid areas of the market. And it's also about, you know, and Tom describes this work that we're doing with Aladdin in terms of, you know, increasing the responder network in high yield, that's going to be a big piece of it as well.

Louis: The penetration.

Louis: Our Q trading into high yield, but from our perspective also it's about the adoption of <unk>.

Louis: Portfolio trading into the less liquid areas of the market and it's also about and Tom described.

Louis: This work that we're doing with Aladdin in terms of increasing the responder network in high yield that's going to be a big piece of it as well. So if we felt like just everything we do on our few trading with perfectly apply from IAG to high yield.

William E. Hult: So if we felt like just everything we do in RFQ trading would perfectly apply from IG to high yield, not so fast. It's, again, this collaborative effect of really impacting the client's workflow. And the focus on high yield has to be three-pronged. It has to be around, yes, our queue, but also the continued confidence around portfolio trading plus rounding out this network of responders through integrations like Aladdin. So it's always this sort of, you know, pure focus that we have. It's a good question, and thanks a lot.

Louis: Not so fast it's again, it's collaborative effect of really impacting the clients workflow and the focus on high yield has to be three pronged. It has to be around yes, our Q, but also the continued confidence around portfolio trading plus rounding out this net.

Louis: Work.

Louis: Responders through integrations like Aladdin.

Louis: So it's always a sort of.

Speaker Change: Sure focus that we have it's a good question and thanks a lot.

Speaker Change: Thank you one moment for our next question.

Operator: OPERATOR Thank you. One moment for our next question. Our next question comes from the line of Craig Siegenthaler with Bank of America. Your line is now open. Hi, good morning. It's Eli.

Speaker Change: Our next question comes from the line of Greg <unk> with Bank of America. Your line is now open.

Speaker Change: Hi, Good morning, it's <unk> liabilities Greg's team. Thanks for taking the question you mentioned earlier that you've completed phase two of the Aladdin integration, which was for all to all trading I was wondering if you could quantify is it inflection you've seen an institutional alcohol volume since that integration was completed.

Unknown Executive: Yeah, so we've definitely made significant progress there. But we don't actually break out and disclose that.

Speaker Change: So maybe we can get a peek into what the results from phase III could look like down the road.

Speaker Change: Yeah.

Unknown Executive: But I think it's safe to say that we are making progress. We will see more. It's a little bit too soon, too soon, I'd say, to see the full effect because these are still coming online. And I think we'll see more of the impact later this year and into next year. But it has been a steady growth. And what's been contributing to the overall market share gains that you have? that we have been experiencing over the last year.

Speaker Change: So we've definitely made significant progress there, we don't actually break out and disclose that but I think it's safe to say.

Speaker Change: So we are making progress with some more it's a little bit too too soon I would say to see the full effect. Because these are still coming online and I think we'll see more of the impact later this year and into next year, but it has been a steady.

Speaker Change: It has been a steady growth in what's been contributing to the overall.

Speaker Change: Market share gains that you have.

Speaker Change: That we have been experiencing over the last over the <unk>.

Speaker Change: Last year on year and half.

Speaker Change: Thanks for the question.

William E. Hult: And that concludes our Q&A portion. I'll now turn the call back over to Mr. Billy Hult for closing remarks.

Speaker Change: Thank you.

Speaker Change: And this concludes our Q&A portion I will now turn the call back over to Mr. Billy Holt for closing remarks.

William E. Hult: Thank you all very much for joining us this morning. Any follow-up questions, obviously, always feel free to reach out to Ashley and the team. We also want to end with a little congratulations to one of our teammates, Samir, who had a baby boy who we know is listening at home. Congratulations, Samir. And everyone, have a great day. Thank you.

Speaker Change: Yeah.

William E. Hult: Thank you all very much for joining us. This morning, any follow up questions, obviously always feel free to reach out to Ashley and the team. We also want to end with a little congratulation schuh one of our teammates Samir who had a baby boy, who we know is listening at home congratulations Samir.

William E. Hult: And everyone have a great day. Thank you. Thank you.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone have a wonderful day.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect everyone have a wonderful day.

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