Q2 2025 BGC Group Inc Earnings Call

Speaker 1: Ladies and gentlemen, please stand by. Our conference will begin momentarily. Ladies and gentlemen, please stand by. Our conference will begin momentarily.

Ladies and Gentlemen, please stand by our conference. Will begin momentarily, ladies and Gentlemen, please stand by our conference will begin momentarily.

Speaker 5: Greetings and welcome to the BGC Group Incorporated second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jason Chryssicas, head of investor relations. Thank you. You may be.

Greetings and welcome to the BGC Group Incorporated, second quarter 2025 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone to require operator assistance, during the conference, please press star zero on your telephone keypad. As a reminder, this cost is being recorded. It is not my pleasure to introduce your host, Jason cuss head of investor relations. Thank you. You may be

Jason Chryssicas: Thank you and hello, everyone. This morning, we issued BGC's second quarter 2025 financial results, which can be found at ir.bgcg.com. Any historical results provided on today's call compare only the second quarter of 2025 with the prior year period unless otherwise specified. All references on today's call to historic and record results are to BGC standalone financial results, excluding new mark prior to the spin-off in November of 2018. We will be referring to our results on a non-GAAP basis, which include the terms adjusted earnings and adjusted EBITDA. Please refer to today's investment materials on our website for additional details on our painted results and for complete and updated definitions of any non-GAAP terms, reconciliations of these items to the corresponding GAAP results, and how, when, and why management uses them. The outlook discussed today assumes no material acquisitions or dispositions.

Thank you, and hello everyone. This morning, we should be used to second quarter 2025 Financial results, which can be found at BGC cam.

Any historic results provided on today's call, compare only the second quarter of 2025 with the prior year period unless otherwise specified.

All references on today's call to Historic and record results are to BGC Standalone. Financial results, excluding Newark prior to the spin-off in November 2018, will be referring to our results on a non-gaap basis, which include the terms, adjusted earnings and adjusted IBA.

Jason Chryssicas: Our expectations are subject to change based on various macroeconomic, social, political, and/or other factors. Information on this call contains forward-looking statements, including without limitations statements about our economic outlook and business. These statements are subject to risks and uncertainties which could cause our actual results to differ from expectations. And except as required by law, we undertake no obligation to update any forward-looking statements. For information on factors that could cause actual results to differ from forward-looking statements and a complete discussion of the risks and other factors that may impact these forward-looking statements, see our SEC filings, including but not limited to the risk factors and disclosures within these SEC documents. And with that, I'm now happy to turn the call over to Sean Windeatt, co-Chief Executive Officer of BGC Group.

Please refer to today's investment materials on our website for additional details on our financial results and for complete and updated definitions of any non-gaap terms, reconciliations of these items in the corresponding Gap results. And how when and why management uses them? The Outlook discussed today assumes no material Acquisitions or dispositions. Our expectations are subject to change based on various macroeconomic social political Andor other factors.

This call contains forward-looking statements, including, without limitation, statements about our economic outlook and business.

These statements are subject to risks and uncertainties which could cause our actual results to differ from expectations.

Sean Windeatt: Thank you, Jason. Good morning and welcome to our second quarter 2025 conference call. With me today are my fellow co-Chief Executive Officers, John Abularrage and J.P. O'Bann, along with our Chief Financial Officer, Jason Hauf. We delivered historic results, generating record revenues of $784 million, a 42% increase versus last year. Excluding OTC, revenues grew by 21%, surpassing last quarter's record revenues. We continued to gain market share in the ECS and financial markets, with strong growth across all asset classes and geographies. BGC is now the world's largest ECS broker. FMX had its best ever quarter, with record volumes and market share across both FMX UST and FX platforms. Total Fenix revenues grew by 19%, with Fenix Growth Platforms increasing by 30%, driven by strong double-digit growth from FMX, PortfolioMatch, and Lucera.

And except as required by law, we undertake no obligation to update, any forward-looking statements for information on factors that could cause actual results to differ from forward-looking statements and to complete discussion of the risks and other factors that may impact these forward-looking statements. See our SEC filings including, but not limited to the risk factors and disclosures Within These SEC documents, and with that, I'm now happy to turn the call over to Sean. Wendy at co-chief executive officer of BTC group. Thank you. Jason, good morning and Welcome to our second.

Quarter, 2025 conference call.

With me today and my fellow co-chief executive officers, John, Abdul, Raj, and jpo ban along with our Chief Financial Officer. Jason Hof

We delivered historic results, generating record revenues of 784 million a 42% increase versus last year.

excluding OTC revenues grew by 21%, to surpassing last quarters, record Revenue

We continue to gain market, share in the ECS and financial markets with strong growth, across all asset classes and geographies.

BGC is now the world's largest ECS broker.

Fmx had its best ever quarter with record volumes and market, share across both fmx us and FX platforms.

Total Fenix revenues through by 19%.

With Fenix growth platforms, increasing by 30%, driven by strong double-digit growth from fmx portfolio, match and lacera.

Sean Windeatt: Following our most recent acquisition, we launched a cost reduction program, which we expect will be completed by year-end and deliver at least $25 million in annualized savings through expense synergies. These savings will enhance our profitability, drive margins higher, and we expect them to deliver long-term shareholder value. These savings will close the gap between OTC's current low teens margin and BGC's current margin. And with that, I'd like to turn the call over to John to go over the quarterly results of the business in more detail.

Following our most recent acquisition, we launched the cost Reduction Program, which we expect will be completed by year end and deliver at least 25 million in annualized savings through expense synergies.

These savings will enhance our profitability Drive margins, higher, and we expect them to deliver long-term shareholder value.

John Abularrage: Thank you. As Sean mentioned, we registered record quarterly results reflecting significant growth across every region and all asset classes. ECS revenues grew by 122.2% to a record $261.6 million, driven by OTC and strong organic growth across the energy complex. Excluding OTC, ECS revenues grew by 27% versus last year. Our rates revenues increased by 20.8% to $200.6 million, reflecting higher volumes across all major interest rate products. Foreign exchange revenues were up 21.9% to $108.5 million due to strong growth in FX options and emerging market currencies. Credit revenues increased by 8.5% to $75.3 million, driven by higher US and emerging market credit volumes. Our equities revenues grew by 43.8% to $73.9 million, driven by all major equities products, with particular strength across EMEA and Americas due to higher volatility and market share gains. Data network and post-trade revenues increased by 15.1% to $35.5 million.

These savings will close. The gap between otc's current low, teens margin and bgc's, current margin. And with that, I'd like to turn the call over to John to go over the quarterly results of the business in more detail.

Thank you.

As Sean mentioned, we registered record quarterly results, reflecting significant growth of every region and all asset classes.

2% to a record 261.6 million driven by OTC and strong organic growth across the energy complex.

Excluding OTC and ECS revenues, grew by 27% versus last year.

Our rates revenues increased by 20.8% to 200.6 million reflecting higher volumes across all major interest rate products,

Foreign exchange revenues were up 21.9% to 108.5 million, due to strong growth and FX options and Emerging Market currencies.

Credit revenues increased by 8.5%.

To 75.3 million driven by higher us and Emerging Market credit volumes.

Our equities revenues grew by 43.8% to 73.9 million.

Driven by all, major equities products with particular strengths across emia and Americas due to higher volatility and market share gains.

John Abularrage: This growth was primarily driven by Lucera and FedEx market data, partly offset by lower post-trade revenues due to the sale of our Capital Lab business in the fourth quarter. Excluding Capital Labs, revenues grew by more than 20%. Now turning to FedEx. In the second quarter, FedEx revenues improved by 18.6% to $162.9 million. FedEx markets reported revenues of $134.1 million, an increase of 16.5%. This growth was primarily driven by higher electronic trading volumes and FedEx market data. FedEx Growth Platforms generated revenues of $28.7 million, a 29.6% increase, primarily driven by FMX, PortfolioMatch, and Lucera. Excluding Capital Labs, FedEx Growth Platforms grew by approximately 38%. FMX UST generated record average daily volume of $68 billion in the second quarter, a 45% increase compared to last year.

Data Network and post-trade revenues, increased by 15.1% to 35.5 million.

This growth was primarily driven by lacera and FedEx Market data.

Partly offset by lower post-trade revenues due to the sale of our Capital add business in the fourth quarter.

Excluding Capital ads revenues grew, by more than 20%.

Now, turning to FedEx.

In the second quarter FedEx revenues, improved by 18.6%.

To 162.9 million.

FedEx, markets, reported revenues of 134.1 million. An increase of 16.5%,

This growth was primarily driven by higher electronic trading, volumes and FedEx Market data.

FedEx, growth platforms generated revenues of 28.7 million. A 29.6% increase primarily driven by fmx.

Portfolio match and lacera.

Excluding Capital lab FedEx, growth platforms. Grew by approximately 38%.

John Abularrage: FMX continues to see strong support from its equity partners, who have helped drive market share to more than 35% for the second quarter, up from 33% last quarter and 30% a year ago. FMX FX nearly doubled its ADV to a record $15.6 billion in the second quarter, driven by support from FMX's equity partners, as well as the addition of new products and participants. FMX Futures Exchange successfully launched US Treasury futures in May 2025 and continued to scale its SOFR futures ADV and open interest to record levels during the quarter. SOFR average daily open interest increased sequentially by 73% in the second quarter, and July's open interest has more than doubled from those levels. PortfolioMatch ADV nearly doubled, reflecting market share gains across the US and EMEA credit markets. PortfolioMatch's strong growth was driven by new clients, increased distribution, and deepening connectivity with large systematic traders.

Fmx generated record, average daily volume of 68 billion dollars in the second quarter of 45% increase compared to last year.

FMX continues to see strong support from its Equity Partners, who have helped drive market share to more than 35% for the second quarter, up from 33% last quarter and 30% a year ago.

Fmx FX. Nearly doubled. Its ADV to a record. 15.6 billion in the second quarter.

driven by support from fmx Equity Partners, as well as the addition of new products and participants

Fmx. Futures exchange successfully launched US Treasury Futures in May 2025 and continued to scale. Its sofa, Futures ADV and open interest to record levels during the quarter.

So for average daily open interest, increased sequentially by 73% in the second quarter and July is open. Interest is more than doubled from those levels.

For folio, match ABV, nearly doubled.

Reflecting market share greens across the US and emia credit markets.

John Abularrage: Lucera revenues grew by more than 40%, driven by new clients and product launches. And with that, I'd now like to turn the call over to Jason. Thank you, John, and hello, everyone. BGC generated second quarter revenues of $784 million, reflecting growth across all of our geographies. EMEA revenues increased by 50.3%, America's revenues increased by 40.3%, and Asia-Pacific revenues increased by 17.4%. Turning to expenses, compensation and employee benefits under GAAP and for adjusted earnings increased by 53.1% and 51.4%, respectively, due to the acquisition of OTC and higher commissionable revenues during the period. Non-compensation expenses under GAAP and adjusted earnings increased by 30.5% and 29%, respectively, also driven by the acquisition of OTC. Moving on to earnings, our pre-tax adjusted earnings grew by 38% to a record $173.6 million. Post-tax adjusted earnings increased by 34% to a record $153.7 million.

Portfolio matches. Strong growth was driven by new clients increased distribution and deepening connectivity with large, systematic Traders.

Lucero revenues grew by more than 40% driven by new clients and product launches.

And with that, I'd now like to turn the call over to Jason.

Thank you, John. And hello everyone.

BGC generated second quarter, revenues of 784 million reflecting growth across all of our geographies.

Amia revenues increased by 50.3% America's revenues increased by 40.3% and asia-pacific revenues increased by 17.4%.

Turning to expenses.

Compensation and employee benefits under gaap and for adjusted earnings increased by 53.1% and 51.4% respectively, due to the acquisition of OTC and higher commissionable revenues During the period.

Non-compensation expenses under gaap and adjusted earnings increased by 30.5% and 29% respectively. Also driven by the acquisition of OTC.

Moving on to earnings.

Our pre-tax, adjusted earnings grew by 38% to a record $173.6 million.

John Abularrage: Post-tax adjusted earnings per share improved by 34.8% to an all-time high of 31 cents per share, and our adjusted EBITDA increased by 31.4% to $213.3 million. Turning to share count, BGC's fully diluted weighted average share count for adjusted earnings was 500.1 million shares during the period, a 0.3% decrease compared to the first quarter of 2025 and a 0.7% increase compared to a year ago. During the quarter, we repurchased more than 16 million shares, of which 8 million are reflected in our weighted average share count this quarter. The full impact of these share repurchases will be captured in the third quarter. We expect our share count to be lower in the third quarter and at year-end, assuming no extraordinary transactions or events. As of June 30th, our liquidity was $965.9 million compared with $897.8 million at year-end 2024.

Post tax adjusted earnings increased by 34% to a record 153.7 million, post tax, adjusted earnings per share, improved by 34.8% to an all-time high of 31 cents per share.

With the increased by 31.4% to 213.3 million.

Turning to share count.

Bgc's fully diluted weighted. Average share count for adjusted earnings was 500.1 Million shares During the period. A 0.3 Cent decrease compared to the first quarter of 2025 and a 0.7% increase compared to a year ago.

During the quarter, we repurchased more than 16 million shares of which 8 million are reflected. In our weighted. Average, share count this quarter. The full impact of these share purchases will be captured in the third quarter.

We expect our share count to be lower in the third quarter and at year end assuming no extraordinary transactions or events.

John Abularrage: With that, I'd like to turn the call back to Sean to go over our third quarter outlook.

as of June 30th, our liquidity was 965.9 Million compared with 8977.8 million a year, end 2024

Sean Windeatt: Thank you, Jason. Please provide the following guidance for the third quarter 2025. We expect to generate total revenues of between $715 and $765 million as compared to $561.1 million in the third quarter of 2024, which at the midpoint of our guidance would represent approximately 32% revenue growth. Excluding OTC, we expect third quarter revenues to grow around 12% at the midpoint. We anticipate pre-tax adjusted earnings to be in the range of $150 to $165 million versus $126.7 million last year, which at the midpoint of guidance would represent an approximately 24% earnings growth. And we expect our adjusted earnings tax rate to be between 10% and 12% for the full year 2025. And just before I hand over operators for questions, I'd like to pass back over to John for a few comments.

With that, I'd like to turn the call back to Sean to go over our third quarter Outlook.

Thank you Jason. Um, please provide the following guidance for the third quarter of 2025

We expect to generate total revenues of between 715 and 765 million as compared to 5, 6 1. 1, 3 4.

Which of the, midpoint of our guidance would represent approximately 32% Revenue growth.

Excluding OTC. We expect third quarter revenues to grow around 12% at the midpoint.

We anticipate pre-tax adjusted earnings to be in the range of 150 to 165 million versus 126.7 Million last year, which at the midpoint of guidance would represent an approximately 24% earnings growth.

And we expect our adjusted earnings tax rate to be between 10% and 12% for the full year 2025.

John Abularrage: Thanks, Sean. Before we begin the Q&A, we just want to take a moment to acknowledge the tragic shooting that occurred in Midtown Manhattan on Monday night, just a few blocks from one of our offices. On behalf of my co-CEOs and our entire BGC family, and as a native New Yorker myself, I want to express our deepest sympathies to the victims' families and all those affected by this senseless act of violence. We also want to thank the NYPD, the first responders, and the building security and staff who work hard every day to keep us all safe. Thank you.

Just before I hand over operator for questions I'd like to pass back over to John for a few comments. Thanks Sean.

Uh, before we begin the Q&A, we just want to take a moment to acknowledge the tragic shooting that occurred in Midtown, Manhattan, on Monday night, uh, just a few blocks from 1 of our offices.

On behalf of my co-ceos and our entire BGC family. And as a native New Yorker myself, I want to express our deepest sympathies to the victims, families and all those affected by the census act of violence.

Sean Windeatt: Thanks, John. And operator, with that, we'd like to open the call for questions.

We also want to thank the NYPD, the First Responders and the building security and staff who work hard every day to keep us all safe. Thank you.

Thanks Joe, and the operator with that, we'd like to open the call for questions.

Speaker 9: Thank you. We will now conduct a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in a question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that's star one at this time. One moment while we pull for our first question. Our first question comes from Patrick Moley with Piper Sander. Please proceed.

Thank you. We will now conduct a question answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is any question Q.

You may press star 2 to remove yourself from the key.

For participants using Speak recruitment, it may be necessary to pick up your handset before pressing the star keys. Once again, at Star 1 at this time, one moment while we post our first question.

Our first question comes from Patrick moly with Piper sander, please proceed.

Patrick Moley: Yes. Good morning. Thanks for taking the question and congrats on a strong quarter. So revenue growth, pretty impressive, over 21% year-over-year organic. You're integrated this acquisition. Maybe just, you know, thinking about the whole business and where things shake out, how do you view the growth algorithm from here? You said that the third quarter revenues are expected to grow 12% organic. You're putting in this expense reduction program that's going to finish up in the back half of the year. How should we think about the growth algorithm of the company and the margin trajectory from here? Thanks.

Yes, good morning. Um, thanks for taking the question and congrats on on a strong quarter. Uh, so Revenue growth.

Pretty impressive over, 21%, year-over-year organic, uh, your you know your integrated this acquisition, maybe just, you know, thinking about the whole business and where things shake out. How do you view the growth algorithm from here? Uh you said that the third quarter revenues are expected to grow. 12% organic you're you're putting in this expense Reduction Program that's going to finish up in the back, half of the year. How should we think about the growth algorithm of the company and the margin?

Trajectory from here, thanks.

Sean Windeatt: Yeah. Morning, Patrick. So I think the easiest way to describe it is, so we acquired OTC. We've owned it now for three months, or just over three months now. But we said that it had margins in the low teens. So if you actually take out the OTC acquisition, nothing changed. Great gearing, revenue growth of 21%, and pre-tax AE at 26, 27%. So nothing has changed there. But only three, three and a half months into the transaction, what we said we would do last quarter is we said we will shrink that margin, we'll shrink the gap, should I say, between BGC's margin and OTC's margin. And we've embarked on our cost reduction program, $25 million cost reduction program, which we'll have completed by the end of the year. So you'll see that benefit in 2026. So that's just nine months after acquisition.

Sean Windeatt: And if you think about it, Patrick, you took six and a quarter million, one quarter of that 25 million. You would bridge the gap in earnings from the group's earnings to that of OTC from 13 all the way up to 19 and close to 20, right? So it is simply the fact that we bought the second largest acquisition this company has ever done. And we're three and a half months into it. We'll integrate it within those nine months and generate those synergies.

Is we said we will will shrink that margin will will shrink the Gap? Should I say between bgc's margin and otc's margin. And uh We've we've embarked on our cost Reduction Program, 25 million cost Reduction Program which, which will have completed by the end of the year. So you'll see that benefit in 2026 so that's just 9 months after acquisition. And if you think about it, Patrick if you took 6 and a quarter million 1 quarter of that, 25 million you would bridge the gap in, in earnings from the groups earnings. So that of OTC from 13, all the way up to 19 and close to 20, right? So it is simply the fact that, uh, that, you know, we bought the second, largest acquisition of this company has ever done and, uh, and we're 3 and a half months into, it will integrate it within those in those 9 months and generate those synergies.

Patrick Moley: All right. Thanks for that color. And then just as a follow-up, you spoke in your prepared remarks about the strength that you're seeing across FMX. Maybe on the futures side of it in particular, could you just elaborate on how you're feeling about that business, the traction you're seeing there, and where you're at in terms of some of the FCM and partner onboards that you're still waiting for? Thanks.

All right, thanks for that color and then just as a follow-up. You spoke in your prepared remarks about the strength that you're seeing uh across fmx, maybe on the Futures side of it in particular, could you just elaborate on how you're feeling about that business? Attraction? You're seeing there and where you're at in terms of some of the fcm uh and partner on boards that you're still waiting for? Thanks.

Sean Windeatt: Hey, Patrick. JP here. We are very, very happy where we are today. As John mentioned earlier, we have record volume on SOFR and increasing open interest, ahead with our expectation. Also, along with growing SOFR product, volumes, and open interest, we work every day with our clients. It's our main priority. We're now at the end of the connectivity process with our equity partners, which will allow them to engage with the platform in a meaningful way, successfully. I would like to come back on two footprints we have on futures volumes. Our UST market share is now 35%, from 33% and 30% two quarters ago. Success number one. Our SOFR volume and open interest, I just talked about it, are up. Success number two. So as UST and SOFR volume and open interest continue to scale, we do expect attention to shift to UST futures.

Hey, Patrick, JP here. Um, we are very, very happy where we are today.

As John mentioned earlier, we have record volume and software and increasing open interest ahead with our expectations.

Also, along with growing software, product volumes, and and open interest. We work every day with our clients.

It's remain on Main. It's, it's our main priority. We now in the end of the connectivity process with our Equity Partners, which will allow them to engage with the platform in a meaningful way, successfully,

um,

I would like to come back on 2 foot points. We have an

uh, on Futures volumes.

Our US market share is not 35% from 33 and 30% to quarters ago. Success number 1.

Our software volume and open interest. I just talked about it up to success number 2.

So as us and software, volume and open interest continued to scale, we do expect attention to shift.

To USD futures.

John Abularrage: Hey, Patrick. It's John. Just real quickly on the FCM. So we're at the 9 that we had mentioned before. And I think I'm pretty comfortable staying at 12 for the year. By year-end, we'll have 12 on, which will give us the vast majority of customer assets once that's done. It's just a timing issue. And again, we'll have the 12 by the end of the year, which will give us the vast majority of the market. So completely comfortable with where we are with the FCMs as well.

Hey Patrick. It's John uh just real quickly on the fcms so we're at the 9 that we had mentioned uh before and I think you know I'm pretty comfortable staying at 12 for the year by year end we'll have 12 on which will give us you know the vast majority of customer assets uh you know once that's done it's just a timing issue. Um

You know, and again, we'll have the 12 by the end of the year, which will give us the vast majority of the market. So, completely comfortable, with where we are with the fcm as well.

Patrick Moley: Okay. Thanks for that. That's it for me. Congrats on the quarter again.

Okay, thanks for that. That's uh that's it for me and congrats on the quarter again.

Sean Windeatt: Thank you. Thank you.

Speaker 9: Once again, to ask a question, and star one on your telephone keypad. The next question comes from Eli Avon with Bank of America. Please proceed.

Thank you. Thank you. Thank you.

Once again to ask a question, press Star 1 on your telephone keypad. The next question comes from Eli, with Bank of America. Please proceed.

Eli Abboud: Good morning. Thanks for taking the question. So it seems like the ramp of the two and five-year Treasury futures has been tracking a little bit slower than the ramp for SOFR back in September. So I was wondering if there are any additional complexities or challenges with Treasury futures that you did not have to grapple with with SOFR that are worth highlighting.

John Abularrage: Hey, Eli. It's John. No, is the answer. You know, I think SOFR launched first. SOFR got up and running to where it is now with nearly 40,000 open interests a day. We're happy with that. We're happy with how the interest in UST futures is going. We obviously get the benefit from seeing the work that's going on in the background. There's no additional impediments or speed bumps. And I think you'll see US Treasury futures follow the success of SOFR, which followed the success of the cash platform. So very comfortable with where we are.

Good morning. Thanks for taking the question. So it it seems like the ramp of the 2 and 5 year. Treasury Futures has been tracking a little bit slower than than the ramp for so far back in September. Um so I was wondering if if there are any additional complexities or or challenges with treasury, Futures that you did not have to Grapple with was so far that that are worth highlighting.

Hey, Eli. It's John. Uh, no is the answer. Um, you know I think

So, for launched first, so forgot, uh, up and running to where, you know, it is now with nearly 40,000 open interest a day, we're happy with that, we're happy with how, you know, the interest in US. Futures is going we obviously get the benefit from seeing the work that's going on uh in the background. There's no additional impediments or speed bumps and I think you know you'll see US Treasury Futures, you know follow the success of so far which file the success of the cash platform. So you know uh,

Very, very comfortable with Where We Are.

Eli Abboud: Got it. And I think you just mentioned that there are nine FCMs connected to FMX today. Can you give us any insight into how many have open interest on the platform? And for those that are connected but not actively trading, what's the cause of the holdup?

Got it and I think you just mentioned that there are 9 F CMS connected to fmx today. Um, can you give us any insight into how many have open interest on the platform and and for those that are connected but not actively trading. Um, what's the cost of a hold though?

John Abularrage: Right. So I can't break them out for obvious reasons, but I guess what I would say to that is that you can assume that all or nearly all are there and have open interest on the platform, and there is no holdup. It's just a matter of growing it as we go forward.

uh,

That you know all or nearly all, uh, you know, are there and have.

Uh, open interest on the platform and there is no hold up. It's just a matter of, you know, growing it, you know, as we go forward.

Eli Abboud: Got it. And your FX business has been a success story from the first half of the year. Obviously, there's been some strong cyclical tailwinds there related to the global trade disputes. So I was wondering if you could peel back some of those temporary tailwinds and give us any color onto what degree you're seeing structural growth in that complex.

Got it. Um, and your FX business has been a success story from the first half of the year. Um, obviously there's there's been some strong cyclical Tailwind their related to the global trade disputes. I was wondering if you could peel back some of those temporary tailwind and, and give us any color on to what degree you're seeing. Structural growth in that complex.

Sean Windeatt: Yeah. I think, thanks, Eli. I think really it's part of the market healing. It started with rates, and then it goes to FX. And now, for the first time this quarter, you've seen growth in all of our asset classes. Remember, our FX business historically is an option business. And options were lower. The FX option volumes were lower in the early 2020s. Actually, they've now come back to normalized levels, I would say. Yes, you had a spike in volatility in April, but there's been nothing special about the other months of this year. So it's our strong multi-brand platform starting in Asia, going into the UK, and then into the US. And maybe in addition, we've obviously seen volumes in our FMX FX platform grow, and they've grown four to five times the growth of our peer platforms.

Yeah, look I I think thank you. I I think really it's it's part of the uh the market healing. You know, it started with rates and then it goes to FX. And now for the first time this quarter you've seen growth in in all of our asset classes. Remember our, our FX business. Um, it historically, it is an option business, um, and options, uh, were lower. You know, the FX option volumes were lower in the, uh, in the early, uh, 2020s, actually, they just they, they've now come back to normalize levels. I would say, uh, yes, you had a, you had a spike in volatility in April, but there's been nothing. Nothing special about the other months of this year. So, it's our, it's our strong, multi-brand platform, uh, starting in Asia.

Sean Windeatt: We probably don't call that out enough, but incredibly happy with both the voice hybrid and the FMX piece of the FX business.

Going into the into, uh, uh, into the UK and then, and then into the US. And maybe in addition, in addition we've obviously seen, uh, you know, volumes in our fmx FX, uh, platform grow and they've grown, you know, 4 to 5 times the growth of our peer platforms. Um, we we probably don't call that out enough, uh, but uh, but incredibly happy with both the voice hybrid and the fmx piece of the FX business.

Eli Abboud: Got it. And then the last one for me, sticking on your FX business, it looks like there's been several quarters here where the voice portion of that business has outperformed your electronic franchise. I know the long-term vision for all of your businesses is for them to consist of a higher proportion of electronic revenues over time. So can you help us make sense of some of those recent trends?

Sean Windeatt: Definitely. So remember, outside of equities and ETFs, in terms of rate, credit, and foreign exchange, our clients have the choice to trade either voice or electronic. And we have the platforms that they can do, if they wanted to, virtually all of their business electronically. But the key is it's their choice. And I think, as I just mentioned, for example, in the options space, as we've been returning to what I would call normal levels of volatility, clients have opted during this significant growth period again, back to normality, to execute more voice than electronic. My or our gut feeling is we're happy for our clients to trade in whichever method they choose. I would expect that trend to go slightly more electronic again over time now that the market has stabilized.

Got it. And and then the last 1 for me is sticking on your FX business. Um, it looks like there's been several records here where the voice portion of that business has outperformed your electronic franchise. I know the long-term vision for all of your businesses is is for them to consist of a higher proportion of electronic revenues over time. So so can you help us make sense of some of those recent trends?

Definitely so. So remember yeah. Outside outside of uh of equities and ECS uh in terms of rate credit and foreign exchange. Uh, our clients have the choice to trade either Voice or electronic and and we have the platforms that they can do, if they wanted to virtually all of their business electronically, but the key is, is their choice. And I think, as I just mentioned, for example, in the options in the options space, uh, as we've been returning to, to what I would call normal level

Of volatility, you know, clients have clients have have opted uh, during this significant growth period. Again, back to normality to execute more voice, uh, than electronic. You know, my or our gut feeling is, you know, we're happy for our clients to trade in, whichever whichever method they choose. Uh, I would expect I would expect that Trend to go slightly more electronic again over time. Now that the market has stabilized

Eli Abboud: Got it. Thanks for taking the questions.

Got it. Thanks for taking the question.

Speaker 9: Thank you. At this time, I would like to turn the call back to Mr. Windeatt for closing remarks.

Thank you at this time. I would like to turn the call back to Mr. Windeatt, after closing remarks.

Sean Windeatt: I just want to say thanks, everybody, for taking part in our conference call. And have a great summer and speak to you all again very soon. Thank you.

Uh, I just had to say, thanks everybody for taking part in our conference call and, uh, have a great summer. I look forward to speaking to you all again very soon. Thank you.

Speaker 9: This does conclude today's teleconference. We may disconnect your lines at this time. Thank you for your participation and have a great day.

This death concludes today's teleconference, you may disconnect your lines at this time. Thank you for your participation and have a great day.