Q3 2025 Tradeweb Markets Inc Earnings Call
Good morning and welcome to trade. Webs third quarter 2025 earnings conference call.
As a reminder, today's call is being recorded and will be available for playback.
To begin our, turn the call over to head of Treasury fpna and investor relations Ashley Sao. Please go ahead.
Thank you and good morning.
Joining me today, for the call are our CEO Billy halt who will review our business results and key 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 non-public information and complying with our disclosure obligations under regulation FD.
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 earnings presentation, and periodic reports filed with the SEC.
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 earnings presentation.
Information regarding market and Industry data. Including sources is in our earnings presentation.
References to year-to-date results on today's call mean results for the 9 months. Ended, September 30th 2025. Now let me turn the call over to Billy.
Thanks, Ashley. Good morning, everyone and thank you for joining our third quarter earnings call.
Strong quarter surpassing 500 million in quarterly revenues for the third consecutive quarter.
Year date revenues. As of the third quarter are up 21% or 17% organically putting us on track for another year of double-digit Revenue growth.
We Believe change is constant. The current macro environment is defined by historically, low interest, rate volatility, tight credit, spreads and muted Equity volatility.
at the same time, geopolitical uncertainty and the rapid rise of artificial intelligence, continue to reshape how we work and live,
We've consistently thrived amid change and we believe we're well positioned to keep doing. So from the emergence of decentralized Finance to shifting regulatory Frameworks, we believe our Global fixed income platform and network, put us in the cap. Bird seat, helping our clients solve their real world and tangible challenges.
While the pendulum may be swinging away from globalization fixed income and ETF markets are becoming increasingly interconnected clients and major dealers are thinking globally and non-bank liquidity providers are expanding their Global presence, bringing new technology and data capabilities to the ecosystem.
With clients, seek more time and cost-efficient ways to interact across markets, we remain focused on delivering Innovative collaborative solutions, that enhance liquidity and efficiency across the global fixed income ecosystem.
The diving into the third quarter despite muted volatility strong client activity. Drove 13% year-over-year. Revenue growth on a reported basis. We produce strong third quarter Revenue growth, despite facing increasingly tougher, year-over-year comparisons, especially in August, which last year defied, the typical seasonal slowdown and was exceptionally active. As macro growth, fears grip, the market and the Yen. Carry trade collapsed
Our international revenues continue to scale higher, delivering 25% year-over-year growth as our strategic initiatives in EM and APAC continue to pay off.
We continue to balance investing for growth and profitability as adjusted IBA. Margins expanded by 54 basis points relative to the third quarter of 2024.
Turning this slide 5 Reitz produced, its second highest revenue quarter driven by continued, organic growth across swaps and Global government bonds. While mortgages produced record revenues, credit growth was led by strength across munis, European credit, and Emerging Market credit.
Money, markets. Revenue growth was led by the addition of ICD and aided by record quarterly revenues across Global repos. ICD continues to build back balances post. The April volatility that led to some large clients drawing down their money market fund, balances to tactically, buy back shares in the market and increase spending ahead of potential tariffs ICD revenues were up 7% relative to the second quarter 2025. Equities posted. Another strong growth quarter with revenues up 7%. Year-over-year led by growth and Global ETFs and Equity derivatives.
Other revenues grew over 50% as we see growing contributions from our emerging digital asset initiatives.
Finally Market data. Revenues were driven by growth in our proprietary data products.
We have reached an agreement in principle to renew the LSEG Market Data Agreement, which is up for renewal at the end of October for an additional three years. This agreement strikes the right balance between maintaining the integrity of our platform and commercializing our rich data sets. We expect this agreement will not only generate significant, more revenue for Tradeweb, which Sara will touch on later, but it also maintains flexibility to grow our proprietary data business.
We also see additional upside as we build more products to enhance the trading experience of our clients.
Turning to slide 6.
This quarter saw a significant drop in intraday volatility from the off-the-chart levels seen in prior periods. Specifically, it was down 19% year-over-year and 30% quarter-over-quarter. All-in U.S. Treasury revenues decreased slightly by 2% year-over-year, which is positive. Revenue growth across our institutional channel was more than offset by weaker wholesale trends, a business that tends to thrive when there is heightened volatility.
1 of the trends that is attracted, a lot of attention. This year is the rise of voice activity in tandem with and not at the expense of electronic Trading.
A 10% increase year-over-year. We also saw a 26% increase in industry voice average daily volume. This distinction is very important. Electronic trading remains robust and should continue to rise, but we are operating within a continued paradigm of extreme market conditions, this time marked by unusually low volatility. This is driving more complex voice-centric package trades in the market. A mix shift that weighed on our U.S. Treasury market share, which stood at 22% in the third quarter. However, our share is rebounding and increased quarter over quarter, with September reaching the highest levels since March of this year.
In addition this week, we did our first package trade with a bespoke swap versus a US Treasury. This is an entry point into a world of more complex package trades. Across the Deep liquidity. We have in us, treasuries, and swaps
our competitive position remains strong on a relative basis. We exceeded 50% for the 6 consecutive quarter in institutional US, treasuries versus our main electronic competitor.
During the quarter, we expanded our dealer algorithmic execution capabilities. We expect additional Global dealer algo to be on boarded in the coming months, further enhancing our unified multi- dealer and multi-asset platform.
Finally attacking voice package trades, remains a main focus for the team and we believe we have all the Solutions in house especially with our rate fin asset.
Turning to wholesale us, treasuries revenues, were down 6%. Mainly driven by lower volumes across our Central limit order book partially offset by growth across our wholesale streaming protocol. Wholesale continues to be a strategic priority as we focus on expanding our network of liquidity providers, and strengthening our liquidity pools in alignment with our multi-protocol platform strategy.
In equities ETFs posted, strong double-digit, Revenue growth, as we continue to deepen integration with our clients. A key differentiator, with our ETF clients has been our AIX automation solution with average daily trades, increasing over 90% year-over-year.
Well, AIX is deeply penetrated across European ETFs. We are now seeing strong adoption across us ETFs with AIX average, daily trades up 70% quarter over quarter.
Our efforts to broaden our equity presence beyond our flagship ETF franchise continued to pay off, with institutional equity derivative revenues up 16% year-over-year.
As the benefits of our electronic solutions continue to resonate with our clients.
Turning to slide 7, Global rates, continue to deliver Diversified Revenue. Growth across an expanding range of products, and geographies rates have been a core growth engine for us with year-to-date revenues up 23% year-over-year and averaging 16% annual growth. Since 2019 with International being a highlight,
Even with our scale, the majority of global rates products still trade over the phone or chat. That's a significant opportunity. We are leaning into it by building more innovative electronic solutions that make markets more efficient, transparent, and connected across swaps, government bonds, and mortgages. We are pushing into new voice-centric markets, like bilateral and multi-asset package swaps, specified pool trading, and mortgages, and packaged trading across global government bonds altogether.
We estimate these initiatives to open up a revenue. Tam of nearly 500 million annually.
By capturing share from traditional voice trading and continuing to innovate with clients. We continue to strengthen our competitive position in global rates.
Moving to slide 8, we have spent years building our strong global interest rate swaps foundation, and it's paying off.
Clients continue to shift more of their workflow from voice to electronic and more right at the center of that change. What started as a regulatory push has evolved into a structural movement clients and dealers have never been so invested in building out more efficient workflow options for their voice flow.
From 2019 through 2024 swaps revenues have grown at more than 20% on average. And year-to-date, we have accelerated to 40% year-over-year.
The growth has been diverse over 30%, year-to-date Revenue, growth in European and dollar swaps over 70% across APAC and our Emerging Market initiatives. Alone added over 500 basis points to our total swaps, year-to-date Revenue growth.
We are seeing a client base that's deeply engaged.
Active cross-currency and increasingly electronic.
And while compression can sometimes mask the strength of the business, the underlying trend is clear. We continue to grow. Our overall risk market share, even with all that progress. The majority of swaps trading is still Voice driven which means there's plenty of room ahead for continued. Electronic vacation.
Our team continues to innovate around that opportunity. We're expanding our presence in Emerging Market swaps building, multi-asset package swaps capabilities across our clear developed Market currencies and making early Headway in the bilateral swap space. Each of these initiatives opens new ways for clients to connect trade and unlock efficiency on tradeweb.
Focusing on the third quarter, Global swaps delivered record revenues driven by a combination of strong client engagement a dynamic, macro backdrop. A favorable mix shift towards risk trading and a 7% year-over-year increase in weighted. Average duration, altogether Global swaps revenues grew over.
30% year-over-year core risk market share, which excludes compression trading, hit a record rising over. 130 basis points year-over-year. Total market share, declined from 22.4% in third, quarter 24 to 21.2% in third quarter 2025 largely due to a significant reduction in European client related compression volumes which carry much lower fee rates.
The third quarter, highlighted the continued Global expansion of our swaps franchise. We achieved record revenues across em and institutional dollar swaps revenues, while European swaps revenues Rose, nearly 30% year-over-year.
Performance was supported by an 8% year-over-year, increase in global active users. We continue to make progress across Emerging Market swaps and our rapidly growing requests for Market protocol. Our third quarter, em swaps revenues produced another strong quarter. While our rfm protocol also saw average daily volume more than double year-over-year with adoption picking up.
You can see slide 17 of the earnings presentation for our usual. Global swaps disclosure.
Looking ahead, we continue to believe the long-term growth potential for swaps remains significant with just 30% of the cleared swaps Market. Currently electronic there is substantial Runway to digitize workflows alongside our clients. Our clients have stayed very engaged given the fluid Global macroeconomic backdrop and we continue to partner with them, to create better workflow Solutions across a growing part of the cleared markets and make inroads into the unclear slopes Market.
This month, we launched the first fully electronic swap package trading protocol on the market. A major step forward in bringing transparency efficiency and 2-way pricing to a product that is historically traded almost entirely by voice.
Shifting to Global Credit on slide 9, low single-digit revenue growth for Global Credit was driven by strong double-digit revenue growth in both European credit and municipal bonds, which more than offset weakness in U.S. credit, where revenues fell year-over-year. This was mainly due to retail corporate credit revenues that were down nearly 30% year-over-year, primarily reflecting the better relative yields our clients were getting across money markets and munis.
Automation continues to resonate with Global Credit AIX average daily trades, increasing 5% year-over-year.
As credit remains a key growth initiative, we are focused on maintaining our leadership position and our pioneering portfolio and session trading protocols, and increasing our block market share. Perhaps most importantly, we are continuing to increase our RFQ share, which we expect to be the number one driver of revenue growth in U.S. credit going forward.
Our deepening liquidity pool and continuously improving client experience is resonating as we attract more clients and experienced Talent across the board.
% our volume growth was driven by continued. Adoption of our portfolio trading RFQ and sessions, protocols institutional RFQ average, daily volume grew. 13% year-over-year with double-digit growth in both IG and high. Yield, our efforts to expand into RFQ are seeing continued signs of success, with our RFQ, share of overall, Trace up over 60 basis points year-over-year,
average daily volume also increased over 10% year-over-year with over 30% growth across International portfolio Trading
During the quarter, we saw our largest line item portfolio trade at over 4,000 lines. Additionally, we saw our largest ever international portfolio trade at nearly $1.4 billion. We saw double-digit active user growth across the US and international PT. We continue to expect adoption of the portfolio trading solution to expand. All Trade had a strong quarter with over $200 billion in volume, with average daily volume up almost 10% year-over-year. Our all-to-all average daily volume grew over 35% year-over-year, while sessions average daily volume rose by nearly 10% year-over-year. The team remains focused on expanding our network and increasing the number of responders on the All Trade platform.
Record responder rates across IG and we also saw strong ETF Market maker participation across institutional credit with volume showing strong year-over-year gains.
Moving to slide 10 1 aspect of the trade web story that often doesn't get enough attention is How Far We've Come internationally over the past few years. We built tremendous momentum outside. The US with International revenues growing at a 19% compound, annual growth rate from 2019 through 2024. And so far this year, they're up more than 30% year-over-year.
Over half of our overall Revenue. Growth is coming from outside the United States and about a fifth of that is from regions Beyond Europe and the UK mainly Asia.
Regions that were once viewed as future opportunities have now become meaningful contributors to our business. This success
stems from the strength of our Global presence and the Deep relationships we've built with our International clients. Importantly, these clients aren't just engaging with trade web for international fixed income products, to increasingly turning to the platform for our home court US products as well.
underscoring, the global reach and versatility of our offering,
Building on the success of our International expansion. We've also seen strong early results from our Emerging Markets initiative. Much like our broader International strategy. We've been leveraging our established developed Market presence to drive growth in these regions and we believe it is working traders in Emerging Markets are deeply engaged with trade web increasingly drawn to our multi-asset class model trading. An average of more than 5 products on our platform. We're now pacing at over 100 million in annual revenue, from Emerging Markets, nearly triple what we achieved in 2023.
Yet. Even with this progress, we're only beginning to tap into a total addressable Market exceeding 1.5 billion.
Across Emerging Market swaps, in particular, long-standing challenges such as Geographic dispersion pricing opacity and operational. Inefficiencies, have traditionally made voice trading the default
That Dynamic is changing. Trade web is helping to lead the shift towards electronic application by providing clients with more discreet. Transparent and efficient execution Innovations. Like our rfm protocol and AIX are playing a key role in that evolution.
Beyond swaps were seeing encouraging momentum and Emerging Markets. Cash credit where revenues are up more than 40% year-over-year. Last week, we announced the successful launch of the first electronic Bond alternative trading system in Saudi Arabia.
The foundational moment for a fixed income market structure in the kingdom and a testament to our growing geographic footprint. The opportunity ahead remains significant not only within global fixed income and ETF markets, but also as we continue to build brand recognition and expand our footprint across more countries.
And with that, let me turn it over to Sarah to discuss our financials in more detail.
Thanks Billy and good morning.
comparisons will be to the prior year period unless otherwise noted
Slide 11 provides a summary of our quarterly earnings performance. As Billy recapped earlier this quarter, we saw revenues of $509 million that were up 13% year-over-year on a reported basis and 11% on a constant currency basis, given the weakening dollar.
We derived approximately 42% of our third quarter revenues from International clients and recall that approximately 30% of our Revenue base is denominated in currencies other than dollars predominantly in euros.
our variable revenues increased by 11% and total trading revenues increased by 13%,
Total fixed revenues related to our 4. Major asset classes were up 28% on a reported basis and 26% on a constant currency basis.
Rate, fixed Revenue growth was primarily driven by an increase in minimum fee, floors for certain dealers and by the addition of dealers to our mortgage and US Government Bond platforms.
Credit fixed Revenue growth was primarily driven by the previously disclosed introduction of minimum fee, floors. And the migration of certain dealers to subscription fees,
Other revenues increased 52%, primarily driven by our digital initiatives. Specifically, we earned 2.3 million from our work with the Canton Network where we are compensated in Canton coins.
This item will be variable quarter to quarter reflecting fluctuations in the number of Canton coins. Earned Canton coin prices and periodic Tech enhancements for retail clients.
Year to date. Adjusted ebit down margin of 54.2% increased by 90 basis points, on a reported basis when compared to our 2024 full year. Margins.
Lastly, this quarter's GAAP results include a $15 million realized gain from the sale of Canton coins.
For the first nine months of 2025, we also recorded unrealized gains of $50.6 million.
As a reminder, realized and unrealized gains are included in GAAP EPS and excluded from non-GAAP adjusted diluted EPS.
As of the end of the third quarter, we held approximately 1.7 billion Canton coins, with a fair value of approximately $56 million, which is recorded on our balance sheet under other assets.
Moving on to fees per million on slide 12 and a highlight of the key trends for the quarter.
You can see slide 19 of the earnings presentation for additional detail regarding our fee per million performance. This quarter.
For cash rates products average fees per million were down 7% primarily due to a mixed shift away from US government bonds, which carry a comparatively higher fee per million and a shift towards mortgages, which carry a lower fee per million.
For longer swaps average fees per million were up, 21% primarily due to a decline in compression activity.
For cash credit average fees per million decreased 15%, due to the migration of certain dealers from fully variable plans to fixed plans, across institutional and wholesale Us. Credit and a mixed shift away from retail within us credit which carries a higher fee per million
For cash, equities average, fees per million increased 1% due to higher fee per million in EU ETFs.
And finally within money markets. Average fees per million decreased 4%, primarily due to a mixed shift away from retail CDs which carry a comparatively higher fee per million.
Slide 13, details are adjusted expenses at a high level, the scalability and variable nature of our expense base, allow us to continue to invest for growth and grow. Margins, we have maintained a consistent philosophy here.
Adjusted expenses for the third quarter, increased 12%. On a reported basis and 11 currency basis.
During the third quarter, we continued investments in Tech and Communications digital assets, consulting, and client relationship development.
Adjusted compensation costs grew 6% driven by a 12% year-over-year increase in headcount and higher salaries, partially offset by lower approvals for performance related variable compensation.
Technology and communication costs increased 39%, primarily due to our continued investments in data strategy and infrastructure.
Adjusted professional fees grew 6%. Mainly due to an increase in tech consultants as we augment our offshore technology operations and build incremental scalability.
This was partially offset by lower legal fees.
Increased 23%, primarily from increased rent due to the move of our new New York City headquarters, including duplicate rent of $241,000 in the quarter.
Excluding duplicate rent occupancy. Expense grew 18%.
Adjusted General and administrative costs increased 30%, primarily due to a pickup and travel and entertainment and unfavorable movements in FX.
Unfavorable movements in FX resulted in a 1 million dollar loss on the third quarter of 2015 versus a proximately, a 400,000 gain in the third quarter of 24.
Excluding FX adjusted General and administrative costs grew. 19%.
Slide 14 details, Capital Management and our guidance.
On our cash position and capital return policy. We ended the third quarter in a strong position with 1.9 billion in cash and cash equivalents and free cash flow reached approximately 987 million for the trailing 12 months.
Our net interest income of 19.8 million increased due to higher cash, balances, despite lower interest yields, and included a 1-time payment of 2.4 million related to interest income from a tax. Refund,
with this quarter's earnings, the board declared a quarterly dividend of 12 cents per class A and Class B, shares up, 20% year-over-year
To guidance for 2025.
We are tightening our adjusted expense guidance to 1 billion to 1.025 billion.
In the fourth quarter, we expect a similar sequential dollar increase in technology and communication expenses. As we are seeing this quarter driven by continued investment in platform, infrastructure, Ai and data.
We expect to see continued double digit growth in technology and Communications through 2026 based off the fourth quarter run rate.
We expect fourth quarter, professional fees to see a seasonal pickup similar to the fourth quarter of 2024.
We expect adjusted GNA to rise. Sequentially primarily due to an expected $4 million in FX losses based on where current FX rates are coupled with the usual seasonal rise in tiny marketing and charity.
Lastly, we estimate fourth, quarter occupancy, expenses to increase by 1.5 million over the third quarter, primarily due to the move, to our New York City headquarters in September along with higher data center costs.
All in with these investments in FX related impacts, we continue to expect our 2025 adjusted ebita margins to exceed 2024 levels. Although expansion will be more modest than last year as we support our current and future organic growth.
Mentioned we reach an agreement in principle to renew our Market data contract with Elsa for a duration of 3 years that will see the contract increase in value by 9% annually effective as of November 1st.
We are still in the process of formalizing, the contract and finalizing the Cadence of Revenue recognition and will provide an update on our fourth quarter. Earnings call
In the interim for modeling purposes, you can use 22 million in revenue from the LSC Market data agreement. For the fourth quarter which is derived using the current monthly implied rate for the third quarter for October and growing that by 9% for November and December.
Now I'll turn it back to Billy for concluding remarks.
Thanks Sarah.
2025 is shaping up to be another banner year for trade web even as the markets present their share of challenges. We have a data driven fed that reacts to each new data point and that in turn is influencing how our clients think about risk and express it through our platform across our client base. A clear theme is emerging what I'd like to call mechanized flow. Put simply our clients are becoming increasingly, systematic and data driven in how they trade and that Evolution aligns per
Perfectly with how our Global platform is built.
That said we're in a period where the market feels somewhat on autopilot with the lack of fresh data that makes it difficult for our clients to war game in position effectively.
Low volatility and limited data are near-term. Headwinds, not just for us, but for the broader Market,
Still, we believe the setup heading into 2026. Is constructive volatility, will normalize data will return and when it does, our clients will, once again need to hedge and reposition, their Global books of risk. An importantly, the firm is not standing still. We are focused on what we can control. Building innovative solutions across our clients execution, workflows to win market, share from The Voice markets. I remain incredibly proud of what we've achieved this year, and
As we continue to partner with our clients to help redefine, how the World Trade fixed income.
Overall Revenue growth is trending approximately 9% higher relative to October 2024 which was exceptionally strong, given the election volatility.
While overall Revenue growth is lower than we expected this growth is happening in an environment of low volatility fewer data points and without the benefit of an election year. Our international business continued to strong Revenue performance, with October growth of nearly 20% year-over-year,
Growth remains a theme as we are seeing double-digit volume growth across Global swaps, European government bonds us high yield European credit munis China bonds, Global ETFs and Global repo.
Our IG share is tracking below September levels while our high yield share is tracking above September levels.
Finally, I would like to thank our clients for their business and partnership in the quarter and recognize my colleagues for their efforts that contributed to the strong quarterly, revenues and volumes of trade web.
With that, I will turn it back to Ashley for your questions.
Thanks Billy. As a reminder, please limit yourself to 1 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 so much. As, as a reminder just press star 1 1 to get in the queue and wait for your name to be announced to remove yourself press star 1 1 again.
Our first question comes from the line of Chris Allen with City, please proceed.
Good morning, everyone. Uh, thanks for taking the question. I wanted to get a little bit more on the rate environment. Um, bill as you noted volatility and activity levels have been low. Uh, sounds like clients are sitting on their hands to an extent. Just wondering, uh, from your perspective, what potential catalysts or head that could spark volatility and improve activity, also, you know, to the lack of data impacting activity. Is there any way to gauge the impact of the government shutdown and the lack of releases uh, on activity levels?
Yeah. Chris, how are you?
Um, thanks. Thanks for the question. Um, speaking of volatility, wanted to congratulate you on Surviving your golf round with Samir, um, much. Thanks.
October. I think was like the lowest uh, rates volatility since 2021. So your questions kind of interesting.
And I think timely, um, and Chris, obviously, when we kind of think about it to make an obvious Point, our clients, you know, rely on data to make, you know, to make forward decisions. Um, you know, starting with where to deploy Capital, how do you position risk? When are you kind of leaning in? When are you risk on? And when are you kind of risk off? So your your question is a good 1 um and I said this in my closing remarks, a little bit, so let me get to it. Like I think for sure from our perspective, you know, part of the muted activity, and I think muted is the right word. Um, part of the muted activity, I think we've seen recently is tied to the lack of data points. That's obviously directly correlated to the, you know, to the government shutdown. Um,
You know, many of our clients. As you know, now are kind of more systematic. Um, and they rely on this kind of like, um, they rely on, uh, as they wore game and shape, the forward strategy like real precise data, um, you know, market makers and hedge funds have become very important to the financial ecosystem and I do think we've done a really good job of being like, very front footed on that Trend. And so data is their fuel and there's no other way for me to describe that. Um, so I think, you know, without overdoing it, I think they have been a little bit in this kind of, like, you know, way,
You know, pretty strongly, as a positive for our business.
And I think, you know, the surprisingly raised questions, you know, about the pace of future cuts um which leads to this kind of activity, you know, around you know, around repositioning. So you know new data always Sparks volatility.
And I would say, you know, looking ahead, we have, you know, growing I think dissent within the Fed, so read expectations and yield curve, keeps changing. Um, you know, reminder, um, as we look to the forwards, you know, midterms, you know, Believe It or Not times going so fast. Midterms are looming. Um,
I'll I'll I'll make this point, um, very specifically specifically, um, you know, we know that this is a regime.
That by no means kind of flies below the radar, um, and the geopolitical landscape continues to remain, you know, very uncertain. Um, and so these are from our perspective, all potential catalysts for volatility and activity. Um,
and so, as I say all that, what I would say also, you know, as you know, very well, we operate a global business and it's a business, um, and it's business, I would say, as usual, you know, for our International clients, they are not being weighed down by data, drought at all. So as we kind of reflect a little bit on the third quarter, even with volatility roughly, you know, I think it's roughly 20% below long-term averages.
you know, from my perspective, we still delivered, you know, positive Revenue, growth and institutional treasuries double-digit growth
Across mortgages. I think that's an important comment. Um European governments Global swaps have done well um big picture trends of higher Global debt.
Push for greater efficiency, leveraging, electronic trading continue. That's a really important kind of comment for me and I think you know, the recent move lower in rates.
Has without question re reinvigorated. You know, our leading Mortgage business where we have, you know, significant market share and has been a flagship franchise for us for a long time. Uh, it delivered record revenues, um, looking ahead and I say this like very kind of clearly. I think it's a great time, you know, to be in the macro markets um Global backdrop, you have moderate growth, easing inflation, but also this kind of thing I said before Chris which is continued uncertainty and some structural challenges. Um, tariffs on tariffs off. We've been we've been through this movie a little bit,
I always say this very loud and clear control, what you can control um you know, that we are not a company that remotely stands still. So the focus is always going to be on expanding the electronic Pi, building new Solutions, continuing to compete with the voice markets grow our, our overall Revenue wallet, you know, very proud that we um, launched. We had a
Our first uh electronic swaps and trade. Uh, this this month, uh, first US multi-asset package trade, um continuing to innovate um and be front footed, so good questions Chris and uh appreciate it always
Thanks guys.
Thank you. Our next question comes from the line of Jeff Smith with William Blair please proceed
Hi, good morning. Um, electronic market share for treasuries, has been down in recent months, I think, under 60% or even 55% of Industry volumes. Um, you know what's driving that greater mix of voice trades. I think you've you've point out package trades in the past. Is that is that still the case and you see this as a structural issue or could it be more temporary? Yeah. It's a really good question and I don't see the structural but let me get into it and I think your frame is a good 1 and we say this all the time and I've been really clear about this. Like our biggest competition is the phone.
You know, it's the 1996 way of still doing business, not the 2026 way that the market will do business. And so, when I think about sort of the Holy Grail of it all, it continues to be going after these kinds of larger, complex trades.
That continue to be transacted on the phone. Um you know voice Trading.
Want this on this cuz it sort of does tie together, you know, with lower volatility and and that little bit of, you know, and little conviction on rate Direction. I think the Instinct that we have
is that clients tend to focus on, you know, sort of more Arbitrage opportunities within treasuries, um, you know, or between something like, treasuries, and Futures and swaps. And so, you know, I think the instinct is these. These tend to be, you know, large notional package trades, that remain, you know, predominantly voiced driven, you know, for now. And I think we make a very strong point about saying for now, because that's where a lot of the focus of that rates business is,
Um and so yeah, to your point that has led to sort of, you know, parts of that market where voice volumes, you know, have been growing at a faster Pace than the kind of straightforward, kind of electronic flow that we live and breathe in. Um,
You know, I think what I would say is from a good news perspective and again this kind of speaks a little bit to the focus that we have, you know, I think the share around what you described kind of bottomed in in kind of April and May. And I would say that we've been seeing I think a real kind of re acceleration of our share through September uh, and into October. And I would say we expect that to um, you know, continue and then I kind of always kind of say like what's the big picture here? So kind of stepping back. I think the, the very strong instinct is
Always the Advent of, you know, new investment and and and new technology. Um, you know, is a trend that has been unfolding for years and it's like, I always say, it's like hard to call the kind of top around this continued expansion of electronic vacation. We see it very much as this kind of 1-way train with a lot of room to run. We're going to continue to apply kind of AI around the AIX pricing. Um we think the move into the kind of how we to think about the defi ecosystem with stable coin and tokenization are very good trends for us.
Um, and, you know, a CrossFit fixed income electronic trading continues to grow because it, it, it electronic trading continues to grow because it delivers this efficiency competition, transparency, all of the processing and to make an obvious point. And it's really important that you hear me say this. These benefits are hard, if not impossible.
To replicate in the, in the voice Market, which gives us that kind of optimism as we continue to, um, finetune and go after more of the complexity, um, in the market. And so, I say this all the time like I I can get like a bit intense. Um, you know, but broad adoption, you know, does take time it requires this thing that we know about really well, which is, you know, Behavior change, you know, Behavior change from clients. But I think from our
Perspective on a trade webinar, and I talk about this all the time. You know, we're not complacent, but we're confident. I think that the direction of travel around the ongoing electronic vacation is pretty clear. Um, so thanks very much for the question. Good to hear your voice. Really, maybe just amplifying one of the points that you made earlier. You know? Um, in the earlier part of this call,
When we talk about the percent of electrification us. Treasuries, and Billy said this.
It sometimes gets lost the actual electronic ATV in this treasury market is up double digits year to date, right? So Billy's talking about this episodic, increased voice flow, that we have an opportunity to help electroni around package trades, but not to lose sight of the underlying business. The underlying industry trend is actually up 10% year-over-year. So, um, both things are are healthy opportunities for us. Yeah, very good point, sir. Thank you.
Great. Thank you.
Thank you. Our next question comes from the line of Dan Fannon with good morning and welcome to, we are head. Thanks, so sorry for the background noise here, but just, there's a general narrative around.
Lower rates. And what that means for is bad for trading volumes for for, uh,
And so I was curious about how the outlook for rates, you know, given where the FED funds, you know, curve is say what you think about the outlook for the next year.
Yeah, good question. Maybe I'll take like a little bit of this and say are you coming with me on this as well and good morning to whoever said that on the on the call as well, you know, so you know, you you and I know each other down. So I've been at the company now. It's amazing. Like I think it's like 25 plus years. Um,
You know, getting older by the day. Um, we've grown, you know, we've grown revenues.
The rate environment. Um, you know, this is now I'm going to say this like pretty clearly 9 straight, you know, 9 straight quarters of double, uh, double digit, Revenue growth. Um, that we've kind of managed to do that as, you know, very well, through a bunch of different kind of Market environments. Um, because the focus is, is obviously always on building more innovative solutions to attack. You know, this thing I was saying before around, you know, more parts of the voice market. So I want to make sure I'm really clear about that because that ethos has not changed, um, you know, over the over the past 25 years. Um, and so maybe for a second, just like, specifically around your question. Um, your question is not oversimplified, but I think, in some ways, the view around that as you know, I think is, is a little bit oversimplified. Um, you know, this environment from our perspective, I think is is constructive for us, right? So we think about, you know, real yields of, you know, 2 to 3
40% on the short end which we think makes fixed income, you know, quite an attractive income generating tool. We think about the concept of kind of sustained upward, sloping yield curve which we think incentivizes something very, very important which is duration extension. Um, we think benefiting our higher duration products. I think that's like a really important thing for you to for you to hear from me. Um, continued issuance would support and should
Support velocity. Um and future secondary Supply. Um and so with respect to rates we think it's very very important to draw what I would say is a very clear and sharp distinction between you know, lower rates and zero rates. These are very different environments. I think history shows
That trading volumes kind of ebb and flow in ways that you know very well Dan uh with volatility and policy expectations.
It's not just absolute level of rates. Um, and so as rates Trend lower, you know, we expect, you know, private intermediation, which is something I've talked about a lot, it's back in Vogue, you know, the banks are, you know, capitalized and stronger than ever, um, client driven activity is going to continue to remain active and we think and we're starting to hear this that, you know, obviously, the central banks will remain a smaller part of the market, uh, than they were a few years ago. And so we think that's a very good. Um,
You know, environment for us and and Sarah. If you want to add. Yeah, I I think um
In addition to what Billy's talking about around what's really driving business volumes. I think it's it's also important to remember that lower interest rates actually impacts on a positive way 2 of our biggest businesses you know around swaps and cash credit fee per million. So if you think about it and I know we've talked a little bit about this before but if you were just to take rates and drop them by 100 basis points across the curve swaps feet per million would increase by 4 or 5% cash credit fee per million by 2%. And as a reminder it's because both of those businesses and fee structures operate on pv1 or dv1. So on the risk notional that's being traded. Um, and then I know earlier, we talked about the shape of the curve. You know, that also has a positive impact in terms of duration, being extended in our products. And so, as you think about the impact of that on fee per million and a 1-year increase in duration. So if you take it, 10 years, going to a 11,
Years in a business like swaps the per million can go up 7 to 8 percent and credit a little bit less but around 2%. So obviously like when we think about our business, the way, the business mix changes is the biggest driver of Revenue. But structurally, when rates go down, there is this positive impact on fee per million, you know, holding all else constant? Which I think is, you know, something sometimes people forget, it's amazing sir. If you look back at that, kind of last period, um, Dan of
More challenging environments. And I think it's a good question, Dan. So we appreciate you always.
Thanks, Dan.
Thank you. Our next question comes from the line of Alex blastin with Goldman Sachs please proceed. Hey Billy hey Sarah. Good morning everybody. Um so wanted to spend a minute on the topic of tokenized assets, obviously quite an evolving landscape there. What are the opportunities I guess in risk that you see for trade web um on both of those fronts. Thanks.
Great. I used to hear from you, Alex. Maybe I'll start and, and Billy feel free to chime in. I think look, it's a great question and we are definitely spending a lot of time on tokenization and digital assets, more, broadly. So maybe let me cover a little bit about what we mean, when we're talking about digital assets, because I think everybody talks about different components about it.
um, for trade web, when we're talking about tokenization, stable coins in digital assets, we're really talking about
further modernizing the way Financial assets trade. And so, if you think about that, it's a natural extension of what we've done and what Billy and the team have done for 25 years in terms of electronic voice markets, it's what we feel we do best, it's more efficiently enabling the transfer of risk.
And so our goal just like in you know, when we talk about electronic markets is we want to be a market leader. We want to allow our try our clients to trade tokenized assets on blockchains. It's programmable, it's interoperable. It provides huge client benefits from our standpoint faster settlement things like 24/7, trading data synchronization. I mean I would love less reconciliation personally um and capital efficiency, which is probably 1 of the biggest drivers. So from our seat there's a lot of opportunity here when there's so much opportunity for our clients and we have a right to win which is sort of the first part of what I was getting at and we've been at it for a while. Um, we've been at it for over 3 years, given the regulatory Tailwinds, that appear to be lining up. We think this is a real significant opportunity for us.
And, you know, I think I say this with some appropriate, humility, I think we feel we're well ahead of our peers in being able to provide both traditional and digital rails side by side for our clients at scale. So all of those components I think matter as we think about the forwards, we've made a number of targeted Investments. I think Alex, you've seen, you know, us do that in an effort to provide this end-to-end service like connecting issuance trading and settlement you know, being able to handle the cash leg and the asset leg as you think about tokenized assets. And so I don't need to read the laundry list but
But digital asset Holdings finality, securitize and of course, you know, our work with Canton Network.
The thing that's exciting, I think especially from my seat as a CFO, is.
We're really generating revenue. This is having a real impact, and so, obviously, we're in the early innings. But this year, we've already generated dollars year-to-date from our work as a validator and super validator on the Canton Network.
That's in addition to having 1.7 billion coins, on our balance sheet, with our, which are worth approximately 55 million. So I think there's real Financial benefits. The digital business for us is something that we continue to invest in.
We intend to expand our work, the Canton Network. We obviously want to be part of growing that and building trading applications on it. We think this is the beginning of our digital business. Um, I think it's really.
You know, it's important to recognize that because we've been in this for a long time. It's not just financial investments; it's inorganic and organic, like people at Tradeweb embedding these technologies in mortgages and repos, and all of our traditional businesses. So, I think, obviously, you can tell we're excited about it. You know? We're always trying to be balanced when we talk about the risks.
You know, I think complacency is probably the biggest risk that Billy and I spend a lot of time talking about, we don't take our position in the ecosystem lightly. We don't ever expect to be the only solution or only platform out there, but we do think given how long we've been at it and some of the things that we can do uniquely and maybe more importantly and really like I know you feel strongly about this.
Who we've partnered with very strategically. We think we're in a good position to evolve with a market that is going to keep changing. There's always like a good question we still like Alex. Um it's always a good, always a good question from Alex. I think it's impossible to look at
kind of 2025.
And so when we kind of, when I say that Alex about kind of crypto, I mean, I think it's fair to say that, you know, ultimately, we see institutional grade crypto, as part of the kind of broader macro toolkit and we plan to play a role there. Um, and part of the kind of Partnerships Sarah that you were alluding to. And I think it's very specifically around kind of the Canton Network partnership that we have.
Is very, very important to us, you know, because we see kind of best-in-class there and we see you know, real potential partners with us in the kind of go forward Evolution potentially around, you know, that that Marketplace becoming more institutional. And so, as everybody here knows the roots around that market are always by definition, going to be kind of 24/7 stuff. And so as this kind of ties in the general feeling is as fixed income products kind of Follow that route. You know, around tokenization and 24/7 liquidity. We're going to play a leadership role with the, with the potential. Alex ability to Pivot as a leader around, uh, institutional crypto trading. So this is all kind of very, very important and interesting stuff that I think is going to Define really the next couple years of electronic marketplaces.
Um, and so thanks. Thanks Alex.
Thank you. Our next question comes from the line of Simon clinch.
I'm sorry.
Yep. Simon clinch with Ross child and Company. Please go ahead.
Hi uh hi. Thanks for taking my question. Um, I was wondering uh, if you could talk um,
Or maybe give us a sense of how to think about the next stage of electronic application in Us. Credit particular and how trade web is positioned to both drive and benefit from this trend specifically uh, you know, in terms of like the Technologies you have in the pipeline to accelerate, this opportunity to help Propel your trading, fits into the frame, particularly in the case of blocks. And uh and ultimately how we should think about the remedy benefits that a crew from from this opportunity like
Sure.
Um, thanks very much Simon. You know, I said it before about kind of to be kind of super focused, but also with an understanding that human behavior change takes takes a little bit of time. So I'll make the most obvious point on this entire earnings call.
Electronic application and credit has never been and will never be kind of straight lines stuff. And so what we've seen is.
You know, periods of gradual Pro progress, you know, gradual progression, you know, followed from our perspective by kind of sharp accelerations, when what we would say, very key ingredients come together, better technology, improved data, shifts, and trading behavior, and more efficient, uh, post-trade process. These are the kind of pieces of the, of the ingredients ingredients that need to come together. Um, and I'll say it this way for a second, that's at the same time. I think it's important to recognize and understand something that's embedded in your question, which is, you know, the credit Market is, you know, structurally different, uh, you know, from other asset classes and I'll say it this way. I think, you know, from our perspective I think liquidity in that Marketplace can be, you know, a little bit fragile. Um it's a it's a fragmented markets with, you know, thousands of individual bonds, you know, sometimes limited depth. Um, that can change very quickly when conditions move um and
And so the market itself, I would say this like in my entire career, it's a challenge. Um and I say that optimistically because I think you know challenges plays to kind of trade web strengths. Um so you know, in a complex Market I think there's a real difference between just what we would say is like adding technology.
For Technologies sake and building you know balanced real solutions and collaborations with our partners. I mean I think that is you know, front and center, you know, a fundamental ethos to how we partner with with the buy side and with the dealers, um, we still feel exceptionally strong
Market is going to be defined as uh you know as innovations that ultimately land. Again this concept of the Holy Grail around risk traits.
and so,
you know, we have our best and brightest in in the credit business. Working on this all the time. I feel very very strong and and proud around how we've, you know, how we've landed in credit and the company is extremely focused into 2020 uh, 6 and continuing to make progress there. So appreciate it. Simon, thank you.
Thanks very much.
Thank you. Our next question comes from the line of Craig s with the Bank of America, please proceed.
Good morning. This is Elia beaudin for Craig. Thanks for taking the question. You launched treasury trading on ICD last quarter. Can you update us on? What adoption has looked like do you have any plans to launch more products in ICD and then bigger picture you're still sitting on a lot of cash is is there more opportunities um, for m&a and the corporate Channel going forward?
Hey Eli. It's Sarah. Um I'll take that uh it's nice to hear from you. I think we are really excited. We've seen early interest from our TBO launch on ICD which we did at the end of the second quarter and we've already had a few clients execute their first trades this month. So good momentum in progress. There. What's been encouraging? Even beyond that is some of the largest
Largest potential clients. We have in our pipeline, those who've previously passed on ICD are now more uh focused on re-engaging because of this added ability to bring trade webs products onto the platform, the ICD portal. So I think holistically we continue to see momentum around that strategy. Obviously, it takes time and their long sales Cycles.
Um, you know, beyond that we're very focused on making the whole experience when we've brought trade web and ICD together to be more seamless. So, there's work that we're doing integrate straight through processing between our organizations and platforms and obviously um a couple aspects on the custody relationship. So more to come on that, but I think good progress and and Beyond ICD. You know, the second part of your question, just in terms of bigger picture sitting on cash and m&a.
Look, I think Billy's been really clear. We we are an ambitious company and we continue to consistently evaluate 5 versus Bills Investments outright m&a. Um, just because we have the cash does not mean that we're going to be lacking in discipline. So the bar is high and we have a number of strategic and financial objectives that anything that we deploy Capital against has to meet. But I think you've heard us talk about some of the areas that we're most excited about on this call, whether it be digital an area that we're evaluating continued Investments, both in organically and organically, Billy's talked about institutional crypto as that world evolves. I think there are things
That we can do to accelerate our technology built there and areas that are adjacent to some of our markets like private credit. So in particular, we're focused on where the biggest opportunities are for growth in the marketplace that are adjacent to what we do where we think we have a right to win. Um, and so I think that inorganic question is is much more than just m&a from from our seed. It's, you know, a combination of Partnerships Investments, as well as looking at Acquisitions. So I hope that helps
Yeah, thank you.
Thank you. Our next question comes from the line of Ken Warrington with JP Morgan. Please proceed.
Hi, uh uh, good morning and thanks for taking the question. Maybe following up here. Um, Sarah, you highlighted in, in that 25 would be an investment year. Remain open to evaluating m&a opportunities like if and where appropriate
When you're looking at the the the product Suite as it stands today, are there particular protocols Technologies geographies?
That you think could better amplify trade, webs value proposition. And to Alex's question, earlier, you sent a lot of time on digital and the Canton Network. Are there pieces, particularly on the digital side that would be helpful to to fill in here?
Yeah, and obviously Billy feel free to jump in, I think.
I'd say, I talked to, we don't see any major gaps across our asset classes. Protocols, you know, geography set we think we're highly Global really Diversified across client channels, as well as asset classes.
Class. And in some ways, um, an extension of clients, write more crypto-native firms. So that would be an area that I'd highlight.
It's interesting when you take a different lens around digital, and you ask a little bit about life cycle. I think that's like a really, a really good added Dimension to look at. You know, sometimes people think trade web is only focused on what I would call the match. Like the execution, the reality is, our offering goes from pre-trade analytics to execution to post trade and a lot of different scenarios. I think what's really interesting about some of the work we're we're doing in the digital space is it can make our participation across the full trading life cycle, even more efficient. Both from providing a service from 2 clients but also from a capital perspective. So I would say if anything, as the world evolves and we don't think it'll be binary. I think our role and opportunity across the trading life cycle, um, that opportunity kind of grows in multiple domest, Dimensions Beyond, just purely a trade execution,
Great. Thank you.
Thank you so much.
Our next question is from the line of Benjamin bodish with Barclays. Please proceed.
Hi, good morning, and thanks for taking my question. Um, you know, Billy and you're prepared remarks, you talked a lot about, you know, very low levels of Market volatility, and, and what that's doing to electronic share. I'm just curious, you know, I think, I think earlier in the Q&A, you talked about, your outlook for E, share, maybe just on Market volumes, in general, both trace, and US Treasury. What are your thoughts on, you know, why is that the case? Um, you know, it feels like uncertainty remains, you know, quite High. Um, you know, the the comps are fairly tough. But like, what do you think are the, the reasons that, you know, Market volumes have been a little bit lower and how do you think about how that unfolds over the next? You know, 6, 12 months.
It's a little bit of what I was saying before, and it's a really good question. There's been a little bit of the kind of
You know, fed on autopilot um, you know, lack of lack of data.
Um, you know, your questions in a a really interesting 1 and as I'm kind of thinking about it, you think about 26 you know that you know factors around kind of timing of rate Cuts is going to be very very important like continued kind of fiscal developments. Um there's going to be macro data surprises. Um we know that um
You know, credit risks.
You know, are coming to light, that's a big deal. So, we we feel kind of like volatility and client activity is, you know, is is big-time coming back into the marketplace.
Um, you know that we're going to kind of win in the storm.
Right, we've shown our ability to win in the storm consistently whether or not that storm was you know way back when kind of Co um or the Regional Crisis that that storm that took place um you know or then just very very recently obviously around kind of Liberation um you know moments within within the marketplace we're going to win in the storm.
Feel very strongly that we're also going to win in the Comm.
And we have been winning in the cam.
And so, that's where we kind of talked about this kind of concept of, you know, mechanized flow.
Um you know and back to the basics around RFQ technology. I think these environments play very very well for us.
In part because our ability to kind of engage been with clients and to put Innovations, you know, into the marketplace at periods of calm. I think please extremely well to our strengths, you know, down the road. So, you know, I kind of say this with a little bit of a, of a wink, you know, nobody knows anything. The very
Very strong instinct is you know, Comm markets lead to something very different.
Um, and we've seen little even pieces of that.
Um, as of yesterday afternoon, when the market just saw something different than it expected to see an activity kind of surged very quickly in volatility surged. As a consequence of that, it's going to be a very, very interesting. I think Market Dynamic into into 2026 and I think our general feeling his here is and kind of Sarah said it you know with humbleness but with a a tremendous amount of confidence. I think we sit you know, extremely well positioned to be that you know that partner to the industry. So as always been very good question and appreciated, thank you.
had you know, a market environment that was extremely volatile in the beginning, half of the year and last year,
And as you think about one of the things that we do as an organization, as a management team, we've accelerated a lot of investments to invest through the cycle and particularly been able to deploy a lot of capital in those environments for things that are new initiatives, which I know Ashley and Sameer have highlighted some of the new slides that we put out. But new initiatives, like inspect pools in bilateral swaps and obviously in government bonds, and being able to do those through the cycle, regardless of if it's highly volatile or not as volatile, I think really sets that groundwork for us to perform in all different environments. So that ability to have sustained investment through the cycle, I think there's a complement, a different way of looking at, you know, kind of why I think Billy's point around we can win in either environment is really backed up. Yeah, great point, sir. Thank you, Ben. Thanks very much.
Thank you. Our next question comes from the line of Alex. Cramp with UBS, please proceed.
Yeah yeah yeah. Hello everyone. Um late here but uh look there's been a lot of questions today. I feel like on electronic modification of various markets both both longer term. Um the 1 that hasn't come up is is actually a larger business which is interest rate swaps, and I think Billy you mentioned earlier and your prepared remarks, you know, only 30% of the market is
IRS marketing today. So, this may be a little bit nitpicky, but I feel like I've heard that number for multiple years, maybe even back to the IPO. So, just wondering, is it just a very rounded number? Is it just not good data out there, or have the market actually not electronically? It more in the last few years it's just all been market growth that you've been participating in.
You have a good memory Alex and it's such a good memory and it's such a good question and I'm definitely going to have to have Sarah answer it. But but I'll first buy uh acknowledging thought I had a good memory until I got to know you but it's a good. It's a very good question. Hi Alex. Um, I actually it's a great question because it does give us an opportunity to unpack something, which is true across a bunch of different aspects around the our business, because it is so nuanced, and there's so many layers in it. So swaps, thank you. Yes. Is 1 of our biggest businesses, most important and growing most quickly that 30% number? Like, a lot of things is this monolithic, large pi and can mask a lot of the underlying trends that are really important. So swaps, and that 30% number as an example include compression, right? And as we've talked about every quarter compression volumes can be really large, obviously, don't come with the same amount of Revenue and can distort what's going on. So if I take out
Compression trades really focus on what we call risk-based swaps, uh, share for electronic, or some people would call it like DV01-based swaps in that market. You can really see that electronic trend much more clearly. So in terms of that piece, that risk base which really drives revenue, in 2020, the total electronic was 10%, and if we compare that to where we are now, that number is 19%. So that's 150 basis points per hour over that 5-year period. And I think it really gets to what you're saying, which is like, oh, okay, there is some real movement and actually that movement is what moves revenue. So when you know our revenues have moved in excess of double digits, you kind of have that clearer picture. It's not the only way to look at it. I'd say the other big driver we spend a lot of time talking about, um, but gets buried in that 30%, is Emerging Markets.
So emerging markets in 2020 was like 1% I don't know if you can even measure 1% but 1% electronic site, it really wasn't electronic at all. And now if we fast forward to where the market is in 2025 and and we obviously view ourselves as a leader in that market, it's at 18%. So that Market's going 300 basis, points year-over-year in terms of electronic. So you know, to your point sometimes when you're trying to cover a broad Universe with a single stat, it can not do justice to some of the underlying trends that are really important. Especially
Especially when you think about what drives our revenue opportunity going forward and our investment dollars. So, thanks for the question.
I don't know if you want to add anything else. That's perfect. Okay.
Thank you so much in our last question comes from the line of Kyle void with KBW. Please proceed.
Of that uh, pullback in the share price. And then um if you address some of the, the inorganic investment Outlook in a prior question, but also, maybe you could address the priorities for organic investments from an asset class or product perspective. As we're looking out over the next year,
Awesome. Great question. Okay. So
there's a near-term view and a longterm View and I don't want to conflate those long term, there's really no change in our Capital Management philosophy. But I think to the point, you know, and sort of the temperature around that question given, where the share price is we do have a fundamental value on what, uh, the companies worth and, and don't really feel the valuation, fully reflects all the opportunities we have in front of us. So we're definitely actively looking at Sherry purchases and being opportunistic in the market. Obviously, we have to wait till the window opens up again into your point a little bit about why we weren't active in the earlier. Part of the market. There are times when the window is open and isn't and we have an active, uh, set of m&a targets and pipeline activities, that we look at. So, I think don't take that as we think this is where the stock should trade. I do think as we think longer term,
The waterfall isn't really any different than it's been over the last 5 years. At least since I've been here. First and foremost organic, then m&a, then Sherry purchases. And then dividends, which we like to grow in line with earnings.
On the organic front. And I think we've talked a lot about the inorganic front on this call and Billy feel free to chime in. I think some of the areas where we continue to invest. Obviously em has been a big Focus for us.
Swaps and credit clearly a consistent Focus for us and then increasingly things like AI our data and infrastructure strategy. Um and digital our areas that we're spending a lot of time, all organically, even if they're complemented by inorganic strategies.
So, those are all things that we see large Tams for, um, and our ability to leverage what we do. Well to drive long-term growth,
Perfectly said, I would only mess it up by adding something in.
But there's always great question. Thank you. Thanks Kyle.
Thank you and this will conclude our Q&A session. I will pass it back to Billy hold for his final comments.
Thank you all very much for joining us this morning. As always, if you have any follow-up questions, please feel free to reach out to Ashley Samir and the team have a great day, everybody. And thank you.
And with that we conclude our conference. Thank you for participating. You may all disconnect