Q3 2025 Marex Group PLC Earnings Call

<unk> would like to ask a question. Please raise your hand, if you have dialed into todays call. Please press stop nine to raise your hands and star six to amuse I will now hand, the conference over to Adam to trucking head of Investor Relations America. Please go ahead.

Good morning, everyone and thanks for joining us today for <unk> third quarter 2025 earnings conference call speaking today are <unk>.

<unk> group, CEO and rather than group CFO after Ian and Ralph have made their formal remarks, we will open the call for questions Paolo to new Shea Chief strategy, <unk> and CEO of capital markets will join us as usual for Q&A.

Before we begin I would like to remind everyone that certain matters discussed in today's conference call are forward looking statements related to future events management's plans and objectives for the business and the future financial performance of the company that are subject to risks and uncertainties actual results could differ materially from those anticipated in these forward looking.

The risk factors that may affect results are referred to <unk> press release issued today. The forward looking statements made today are as of the date of this call and <unk> does not undertake any obligation to update their forward looking statements.

Finally, the speakers may refer to certain adjusted or non <unk> financial measures on this call a reconciliation schedule of the non <unk> financial measures to the most directly comparable <unk> measures is also available in <unk> earnings release issued today, a copy of todays release and Investor presentation may be obtained by visiting the investor.

<unk> page of the website at <unk> Dot Com I will now turn the call over to Ian Good morning, and welcome to our third quarter 2025 earnings call I'm pleased to announce another very strong quarter with our performance at the top end of the preliminary range, we published on October eight.

As you will see we have continued to outperform and in today's remarks, I will look to explain how we have evolved the firm to generate this growth and how we've increased our earnings resilience.

In the first nine months of the year, we generated an adjusted profit before tax of $303 million up 26% compared to the same period last year. This included $101 million in the third quarter up 25% year on year, we have maintained our momentum from the first after the year.

Despite the more challenging operating environment for some of our businesses.

Given the slowdown in exchange volumes since April some typical summer seasonality as well as the distraction and disruption caused by the Salt report. We are extremely pleased to have delivered such a strong quarter, our second highest on record.

We are grateful for the engagement, we've had with our clients and investors and for their support during what has been a challenging period.

And we are pleased to have put behind us as reflected in our performance.

Our clearing segment continued to perform very strongly.

Average clearing client balances have increased every quarter since Q1, 2024 and grew again this quarter up 4% from Q2, notwithstanding some modest impact from the short report, which has since normalized we.

We experienced one of our highest ever client onboarding quarters, converting several new large clients during the summer from the strong pipeline, we previously highlighted.

Ian Lowitt: Host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. I will now hand the conference over to Adam Strachan, Head of Investor Relations at Marex. Please go ahead.

This reflected in increased commissions and higher clearing net interest income as growth in client balances offset the impact of lower rates.

<unk> will of course fluctuate to some extent with asset prices and exchange margin rates, but we aim to deliver continued growth in balances to offset further anticipated rate cuts.

Rob Irvin: Good morning, everyone, and thanks for joining us today for Marex's third quarter 2025 earnings conference call. Speaking today are Ian Lowitt, Group CEO, and Rob Irvin, Group CFO. After Ian and Rob have made their formal remarks, we will open the call for questions. Paolo Tannucci, Chief Strategist and CEO of Capital Markets, will join us as usual for Q&A. Before we begin, I would like to remind everyone that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans and objectives for the business, and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in Marex's press release issued today.

Our prime services business continued to be a standout success and a driver of growth and margin improvement for our agency execution segment.

As a reminder, this is a business that had $85 million of revenue when we bought it from TD Cowen in December 'twenty to 'twenty three on the Marin platform. It has generated $171 million of revenue in the first nine months of the year as the prime business grows across each of its three components outsource trading.

Average clearing client balances, have increased every quarter since q1 2024 and grew again. This quarter up 4% from Q2 notwithstanding some modest impact from the short report which has sent normalized.

We experienced 1 of our highest ever client. Onboarding quarters converting several new large clients during the summer from the strong pipeline. We previously highlighted.

Prime or prime and on balance sheet Prime we remain attentive to the associated risks. The primary risk is client leverage which he managed carefully and keep at a relatively low level.

This reflected increased commissions and higher clearing net interest income as growth in inclined balances offset the impact of lower rates.

The on balance sheet business is very diverse both by client and the portfolio of positions are.

Rob Irvin: The forward-looking statements made today are as of the date of this call, and Marex does not undertake any obligation to update their forward-looking statements. Finally, the speakers may refer to certain adjusted or non-IFRS financial measures on this call. A reconciliation schedule of the non-IFRS financial measures to the most directly comparable IFRS measures is also available in Marex's earnings release issued today. A copy of today's release and investor presentation may be obtained by visiting the investor relations page of the website at marex.com. I will now turn the call over to Ian.

Our balances will of course fluctuate to some extent with asset prices and exchange margin rates but we aim to deliver continued growth in balances to offset further anticipated rate cuts.

Our hedging and investment solutions business delivered a strong performance as market conditions became more supportive after a challenging Q2.

We also continued to expand our product capabilities and geographic reach to access more clients.

Our Prime Services business continued to be a standout success and a driver of growth and margin Improvement for our agency and execution segments.

All of this more than offset a weaker quarter for market, making and what was a challenging market environment. We continue to see opportunities for growth through disciplined M&A and have an attractive M&A pipeline for the remainder of the year and into 2026, we recently announced the acquisition of Winterflood, which we expect we.

Ian Lowitt: Good morning and welcome to our third quarter 2025 earnings call. I am pleased to announce another very strong quarter, with our performance at the top end of the preliminary range we published on 8 October 2025. As you will see, we have continued to outperform, and in today's remarks, I will look to explain how we have evolved the firm to generate this growth and how we've increased our earnings resilience. In the first nine months of the year, we generated an adjusted profit before tax of $303 million, up 26% compared to the same period last year. This included $101 million in the third quarter, up 25% year on year. We have maintained our momentum from the first half of the year, despite the more challenging operating environment for some of our businesses.

Provide us with an opportunity to transform our existing U K equity market, making business.

The R&R and Hamilton quote acquisitions are performing well, while Agra invest is providing opportunities to expand our business more broadly in Brazil.

As a reminder, this is a business that had 85 million of Revenue. When we bought it from TD Cowen in December 2023 on the Marx platform, it has generated 171 million of Revenue in the first 9 months of the year as the prime business grows across each of its 3 components. Outsourced trading Prime of prime and on-balance Sheet. Prime, we remain attentive to the associated risks. The primary risk is client leverage, which we managed carefully and keep it a relatively low level.

The on-balance sheet business is very diverse both by client and the portfolio of positions.

These M&A opportunities along with our organic initiatives are contributing to our geographic diversification as our international investments are starting to bear fruit, particularly in the middle East APAC and Brazil.

Our hedging and investment Solutions business delivered, a strong performance as market conditions became more supportive after a challenging Q2.

We also continue to expand our product capabilities and Geographic reach to access more clients.

Rob will provide more details on our segmental number shortly we believe this quarter's strong results validate our strategy.

On slide five we have laid out some of the key metrics that we use to assess outperformance.

Ian Lowitt: Given the slowdown in exchange volume since April, some typical summer seasonality, as well as the distraction and disruption caused by the SWOT report, we are extremely pleased to have delivered such a strong quarter, our second highest on record. We are grateful for the engagement we've had with our clients and investors, and for their support during what has been a challenging period, one we are pleased to have put behind us, as reflected in our performance. Our clearing segment continued to perform very strongly. Average clearing client balances have increased every quarter since Q1 2024 and grew again this quarter, up 4% from Q2, notwithstanding some modest impact from the short report, which has since normalized. We experienced one of our highest ever client onboarding quarters, converting several new large clients during the summer from the strong pipeline we previously highlighted.

All of this more than offset, a weaker quarter for Market, making in what was a challenging Market environment. We continue to see opportunities for growth through disciplined m&a and have an attractive m&a pipeline for the remainder of the year and into 2026.

Third quarter revenues grew 24% to $485 million delivering an adjusted PBT of $101 million up 25% year on year revenues in the first nine months of the year grew by 23% to $1 45 billion, while margins expanded to 29%.

We recently announced the acquisition of winter flood, which we expect will provide us with an opportunity to transform our existing UK Equity Market making business. The honor and Hamilton Court Acquisitions. Are performing well, while Agra invest is providing opportunities to expand our business more broadly in Brazil.

These m&a opportunities.

Revenue per front office FTE increased to $131 million on an annualized basis. Our growth is driven by the addition of new producers as well as our improvements in producer productivity for the first nine months of 2025 productivity improvements accounted for around half of our growth.

Along with our organic initiatives are contributing to our Geographic diversification, as our International Investments are starting to bear fruit particularly in the Middle East, APAC and Brazil.

Looking now at the operating environment in more detail on slide six.

Rob will provide more details on our segmental numbers shortly. We believe this quote is strong results. Validate our strategy,

As I mentioned earlier, we are pleased that we've been able to maintain our momentum from the first half of the year, even in a more challenging market environment in Q3 and.

On slide 5, we have laid out some of the key metrics that we use to assess our performance.

Ian Lowitt: This reflected in increased commissions and higher clearing net interest income as growth in client balances offset the impact of lower rates. Our balances will, of course, fluctuate to some extent with asset prices and exchange margin rates, but we aim to deliver continued growth in balances to offset further anticipated rate cuts. Our prime services business continued to be a standout success and a driver of growth and margin improvement for our agency and execution segment. As a reminder, this is a business that had $85 million of revenue when we bought it from TD Cowen in December 2023. On the Marex platform, it has generated $171 million of revenue in the first nine months of the year. As the prime business grows across each of its three components: outsource trading, prime of prime, and on balance sheet prime, we remain attentive to the associated risks.

In Q3 exchange volumes were down 8% year on year, and 14% lower than in the second quarter, while volatility also declined to its lowest level in the past year on the positive side equity valuations were buoyant with markets at all time highs, which is supportive of our prime business and to a lesser extent our solution.

Third quarter, revenues grew 24% to 485 million, delivering, an adjusted PBT of 101 million up 25% year on year.

Revenues in the first 9 months of the year grew by 23% to 1.45 billion while margins expanded to 20.9%.

<unk> business with this backdrop, our third quarter profits were up 25% year on year and down just 5% compared to our record second quarter, which included record volumes in April.

We aim to set the firm to deliver growth through a variety of market environments and our third quarter performance is evidence of our success. This is partly due to the evolution of our business mix as I'll describe on the next slide.

Revenue per front office, FTE, increased to 1.31 million on an annualized basis. Our growth is driven by the addition of new producers as well as our improvements in producer productivity for the first 9 months of 2025, productivity, improvements accounted for around half of our growth.

Looking now at the operating environment in more detail on slide 6.

Over the past two years, we have look to strengthen our earnings resilience through product and geographic expansion.

as I mentioned earlier, we are pleased that we've been able to maintain our momentum from the first half of the Year even in a more challenging Market environment in Q3

Our evolving business mix is now more diverse than it was at the time of our IPO in 2023 around 70% of our profitability came from clearing and agency and execution energy both of which are strongly correlated with exchange volumes and an additional 10% came from agency and execution.

Ian Lowitt: The primary risk is client leverage, which we manage carefully and keep at a relatively low level. The on balance sheet business is very diverse, both by client and the portfolio of positions. Our hedging and investment solutions business delivered a strong performance as market conditions became more supportive after a challenging Q2. We also continue to expand our product capabilities and geographic reach to access more clients. All of this more than offset a weaker quarter for market making in what was a challenging market environment. We continue to see opportunities for growth through disciplined M&A, and have an attractive M&A pipeline for the remainder of the year and into 2026. We recently announced the acquisition of Winterflood, which we expect will provide us with an opportunity to transform our existing UK equity market making business.

In Q3, exchange volumes were down 8% year-on-year and 14% lower than in Q2. Meanwhile, volatility also declined to its lowest level in the past year.

In Securities, which was also somewhat correlated with exchange volumes while.

While every area of the firm has grown since then the share of profit that is strongly linked to exchange volumes is now around 54% today.

On the positive side, Equity valuations were bought with markets at all-time highs which is support of our Prime business and to a lesser extent of solutions business with this backdrop. Our third quarter, profits were up 25% year-on-year and down just 5% compared to our record second quarter, which included record volumes in April.

As we've described in previous quarters. The most significant incremental contribution has come from Prime services, which now accounts for nearly a quarter of our total profits.

Through a variety of market environments, our third quarter performance is evidence of our success. This is partly due to the evolution of our business mix, as I'll describe on the next slide.

Profits are like clearing recurring and dependable and based on client balances. They are high quality durable earnings that generate high returns.

Over the past 2 years, we have looked to strengthen our earnings resilience through products and Geographic expansion.

With an agency in execution and securities we have grown businesses, such as FX, which provide trading revenues that are not captured in exchange volume metrics.

Ian Lowitt: The Arno and Hamilton Court acquisitions are performing well, while Agri Invest is providing opportunities to expand our business more broadly in Brazil. These M&A opportunities, along with our organic initiatives, are contributing to our geographic diversification, as our international investments are starting to bear fruit, particularly in the Middle East, APAC, and Brazil. Rob will provide more details on our segmental numbers shortly. We believe this quarter's strong results validate our strategy. On slide five, we have laid out some of the key metrics that we use to assess our performance. Third quarter revenues grew 24% to $485 million, delivering an adjusted PBT of $101 million, up 25% year on year. Revenues in the first nine months of the year grew by 23% to $1.45 billion, while margins expanded to 20.9%. Revenue per front office FTE increased to $1.31 million on an annualized basis.

These efforts to diversify our firm are not accidental, but rather a deliberate strategy to grow in a way that enhances our earnings resilience.

It is also worth noting as Rob will discuss in more detail that within clearing.

Our evolving business mix is now more diverse than it was at the time of our IPO. In 2023, around 70% of our profitability came from clearing and agency and execution in energy, both of which are strongly correlated with exchange volumes. An additional 10% came from agency and execution in securities, which was also somewhat correlated with exchange volumes.

NII has remained essentially flat in the $50 million to $60 million range, despite rates being down 100 basis points from the peak in Q3 2024.

Our ability to grow balances offset those rate reductions and commissions have increased with client balances. This.

While every area of the firm has grown. Since then, the share of profit that is strongly linked to exchange volumes is now around 54% today. As we've described in previous quarters, the most significant incremental contribution has come from Prime Services which now accounts for nearly a quarter of our total profits.

This helps explain our strong performance in Q3, and how we've been able to outperform during a period of somewhat lower exchange volumes with that I'll hand, it over to Rob who will take you through the financials in more detail.

Prime profits are recurring and dependable, based on client balances. There are high-quality, durable earnings that generate high returns.

Thanks, Ian and good morning, everyone.

With an agency and execution in Securities, we have grown businesses such as FX which provide trading revenues that are not captured in exchange volume metrics.

We are very pleased with the strength of our performance. This year, we generated $1 $45 billion of revenue and $303 million of adjusted profit before tax in the first nine months of the year.

These efforts to diversify, our firm are not accidental but rather deliberate strategy to grow in a way that enhances our earnings resilience.

Ian Lowitt: Our growth is driven by the addition of new producers, as well as our improvements in producer productivity. For the first nine months of 2025, productivity improvements accounted for around half of our growth. Looking now at the operating environment in more detail on slide six. As I mentioned earlier, we are pleased that we've been able to maintain our momentum from the first half of the year, even in a more challenging market environment in Q3. In Q3, exchange volumes were down 8% year on year and 14% lower than in the second quarter, while volatility also declined to its lowest level in the past year. On the positive side, equity valuations were buoyant, with markets at all-time highs, which is supportive of our prime business and, to a lesser extent, our solutions business.

<unk> mentioned, we achieved this performance despite operating in a less supportive environment that some parts of our business in Q3, we delivered both revenue and adjusted PBT at the top end of our previously announced preliminary range.

It is also worth noting as Rob will discuss in more detail that within clearing

Knee has remained essentially flat in the 50 to 60 million range, despite rates being down 100 basis points from the peak in Q3 2024.

Q3 revenues of $485 million was up 24% versus last year. We saw continued strong growth in clearing and agency and execution as well as a strong performance in hedging and investment solutions together these more than offset a softer performance in market.

Our ability to grow balances is offset those rate reductions and commissions of increased with client balances.

This helps explain how strong performance in Q3 and how we've been able to outperform during a period of somewhat lower exchange volumes with that. I'll hand it over to Rob who will take you through the financials in more detail.

Thanks Ian and good morning, everyone.

Making demonstrating the value of our diversified model.

Total reported costs grew 24% in line with revenues front office costs were up 23%, reflecting strong revenue performance and continued investments in future growth control and support costs were up 26%, primarily driven by higher compensation costs tied to strong performance.

Ian Lowitt: With this backdrop, our third quarter profits were up 25% year on year and down just 5% compared to our record second quarter, which included record volumes in April. We aim to set up the firm to deliver growth through a variety of market environments, and our third quarter performance is evidence of our success. This is partly due to the evolution of our business mix, as I'll describe on the next slide. Over the past two years, we have looked to strengthen our earnings resilience through product and geographic expansion. Our evolving business mix is now more diverse than it was at the time of our IPO. In 2023, around 70% of our profitability came from clearing and agency and execution energy, both of which are strongly correlated with exchange volumes. An additional 10% came from agency and execution in securities, which was also somewhat correlated with exchange volumes.

And investments in our support functions, which include investments relating to recent acquisitions and our compliance with Sarbanes Oxley.

We are very pleased with the strength of our performance. This year. We generated 1.45 billion dollars of Revenue and 303 million of adjusted profit before tax in the first 9 months of the year. As Ian mentioned, we achieved this performance despite operating in a less supportive environment, for some parts of our business in Q3 we delivered both revenue and adjusted PBT at the top end of our previously announced preliminary range.

Margins were broadly stable versus the third quarter of last year at 27% delivering adjusted PBT of $101 million up 25% year on year.

Q3 revenues of 485 million was up 24% versus last year.

Our adjusted return on equity remained very strong at 27, 6%.

All of which meant we delivered an adjusted basic EPS of $1 <unk> per share up 23% year on year.

We saw continued strong growth in clearing and agency and execution as well as a strong performance in hedging and investment Solutions. Together these more than offset a softer performance in Market, making demonstrating the value of our Diversified model.

total reported costs grew 24% in line with revenues

Focusing now on our segmental performance, we're sharing performance over the last five quarters to give you a clearer sense of the trends within each business.

front office costs were up, 23% reflecting, strong Revenue, performance and continued investments in future growth,

Ian Lowitt: While every area of the firm has grown since then, the share of profit that is strongly linked to exchange volumes is now around 54% today. As we've described in previous quarters, the most significant incremental contribution has come from prime services, which now accounts for nearly a quarter of our total profits. Prime profits are like clearing: recurring, dependable, and based on client balances. They are high-quality, durable earnings that generate high returns. Within agency and execution in securities, we have grown businesses such as FX, which provide trading revenues that are not captured in exchange volume metrics. These efforts to diversify our firm are not accidental, but rather a deliberate strategy to grow in a way that enhances our earnings resilience. It is also worth noting, as Rob will discuss in more detail, that within clearing.

Starting with clearing which grew 14% versus the prior year driven by growth across all revenue lines record client balances and higher volumes I would highlight the stability and clearing net interest income. Despite the continued downward trajectory in interest rate as we have grown client balances to more than.

Offset this and on new client pipeline for the remainder of the year remains strong.

Control and support costs were up 26%, primarily driven by higher compensation costs, tied to strong performance and investments in our support functions, which include Investments relating to recent acquisitions and our compliance with sarbane Oxley. Margins were broadly stable versus the third quarter of last year at 20.7% delivering adjusted PBT of 101 million up 25% year on year.

Adjusted profit before tax margins declined slightly to 50% due to continued investments in regional expansion, including APAC, South America and Continental Europe.

Our adjusted return on Equity remained, very strong at 27.6%.

You can see in execution continued to deliver strong growth with revenue up 52%, reflecting the breadth of our client franchise and strong client engagement securities was the largest overall driver of growth in this segment with revenue up 82% driven primarily by crime services as prime.

All of which meant we delivered an adjusted basic EPS of $1.11 per share up 23% year on year.

Focusing. Now on our segmental performance, we're showing performance over the last 5. Quarters to give you a clearer sense of the trends within each business.

Ian Lowitt: NII has remained essentially flat in the $50 to $60 million range, despite rates being down 100 basis points from the peak in Q3 2024. Our ability to grow balances has offset those rate reductions, and commissions have increased with client balances. This helps explain our strong performance in Q3 and how we've been able to outperform during a period of somewhat lower exchange volumes. With that, I'll hand it over to Rob, who will take you through the financials in more detail.

It's become a more meaningful contributor were provided a quarterly revenue breakout in the third quarter Prime revenues rose to $57 million, reflecting continued client growth and momentum securities ex Prime also delivered strong growth, notably in equities rates credit and FX the acquisition of <unk>.

Starting with clearing, which grew 14% versus the prior year driven by growth, across all revenue lines record, client, balances, and higher volumes.

Hamilton Court, which completed on the first of July contributed $20 million in revenue this quarter in line with our expectations.

Rob Irvin: Thanks, Ian, and good morning, everyone. We are very pleased with the strength of our performance this year. We generated $1.45 billion of revenue and $303 million of adjusted profit before tax in the first nine months of the year. As Ian mentioned, we achieved this performance despite operating in a less supportive environment for some parts of our business. In Q3, we delivered both revenue and adjusted PBT at the top end of our previously announced preliminary range. Q3 revenue of $485 million was up 24% versus last year. We saw continued strong growth in clearing, agency and execution, as well as a strong performance in hedging and investment solutions. Together, these more than offset a softer performance in market making, demonstrating the value of our diversified model. Total reported costs grew 24%, in line with revenues.

I'd highlight the stability and clearing net interest income, despite the continued downward trajectory in interest rates, as we have grown client, balances, to more than offset this and our new client pipeline. For the remainder of the Year, remains strong adjusted profit before tax margins decline, slightly to 50% due to continued investments in Regional expansion including APAC, South America, and Continental Europe.

Energy grew 7% driven by continued growth across our large oil energy and environmental desks.

Versus the prior quarter energy decline as activity in the third quarter moderated following record volumes in the first and second quarter adjusted profit before tax margins improved from 15% to 26% driven by growth in higher margin activities, particularly prime services I'm proud.

The revenue up 52%, reflecting the breadth of our client franchise and strong client engagement.

Activity gains from restructuring.

Turning to market, making where revenue declined by 16%, reflecting challenging market conditions across different asset classes.

Robust performances in securities and energy were offset by weaker results in metals and agriculture.

Security saw growth from equities credit and FX. This is also why youll begin to see contributions from Winterflood once the transaction closes.

Securities was the largest overall driver of growth in this segment, with revenue up 82%, driven primarily by Prime Services, as Prime has become a more meaningful contributor. We provided a quarterly revenue breakout in the third quarter. Prime revenues rose to $57 million, reflecting continued client growth and momentum. Securities x Prime also delivered strong growth and moved to be in equities, rates, credit, and FX. The acquisition of Hamilton Court, which completed on the 1st of July, contributed $20 million in revenue this quarter, in line with our expectations.

Rob Irvin: Front office costs were up 23%, reflecting strong revenue performance and continued investments in future growth. Control and support costs were up 26%, primarily driven by higher compensation costs tied to strong performance, and investments in our support functions, which include investments relating to recent acquisitions and our compliance with Sarbanes-Oxley. Margins were broadly stable versus the third quarter of last year at 20.7%, delivering adjusted PBT of $101 million, up 25% year on year. Our adjusted return on equity remained very strong at 27.6%, all of which meant we delivered an adjusted basic EPS of $1.01 per share, up 23% year on year. Focusing now on our segmental performance, we're showing performance over the last five quarters to give you a clearer sense of the trends within each business.

Energy performed strongly benefiting from higher client hedging activity versus the prior year met.

Energy grew 7% driven by continued growth. Across our large oil energy and environmental desks

Metals declined in the third quarter amid ongoing uncertainty surrounding global tariffs as well as a tough comparison base.

Versus the prior quarter energy decline as activity in the third quarter moderated, following record volumes in the first and second quarter.

Base metals, where we have significant footprint was soft due to reduced client activity and lower volatility will precious metals, where we currently have a lower exposure performed well supported by price strength in silver and gold.

Adjusted profit before. Tax margins improved from 15% to 26% driven by growth in higher margin activities, particularly Prime services and productivity gains from restructuring.

Agriculture remains under pressure as ongoing tariff related uncertainty and elevated commodity prices, particularly in cocoa and coffee, which reduced liquidity and open interest our performance was broadly in line with the second quarter adjusted profit before tax margins reduced to 16%.

Turning to Market making where Revenue declined by 16% reflecting challenging market conditions across different asset classes.

Robust performances, insecurities and energy were offset by weaker results. In metals, and agriculture.

Security saw growth from equities credit and FX. This is also where you'll begin to see contributions from Winter flood once the transaction closes.

Reflecting lower revenues.

Solutions revenues grew 36% delivering its strongest quarter on record with gross growth across financial products and hedging solutions.

Energy performs strongly benefiting from higher client hedging activity versus the prior year.

Hedging solutions grew 20% driven by robust client demand and continued momentum in FX.

Rob Irvin: Starting with clearing, which grew 14% versus the prior year, driven by growth across all revenue lines, record client balances, and higher volumes. I'd highlight the stability in clearing net interest income, despite the continued downward trajectory in interest rates, as we have grown client balances to more than offset this, and our new client pipeline for the remainder of the year remains strong. Adjusted profit before tax margins declined slightly to 50% due to continued investments in regional expansion, including APAC, South America, and Continental Europe. Agency and execution continue to deliver strong growth, with revenue up 52%, reflecting the breadth of our client franchise, and strong client engagement. Securities was the largest overall driver of growth in this segment, with revenue up 82%, driven primarily by prime services. As prime has become a more meaningful contributor, we've provided a quarterly revenue breakout.

Metals declined in the third quarter amid ongoing uncertainty surrounding Global tariffs, as well as a tough comparison.

<unk> products grew 54%, reflecting strong performance in equity linked structured notes.

Margin rose to 25%, reflecting the strong revenue growth. Despite this margin improvement we continue to incur elevated costs associated with the platform and investment in new hires to support future growth now looking at the first nine months of the year clearing grew 15% on last year with growth across all revenue lines.

Base Metals where we have significant footprint was stopped due to reduced clients activity and lower volatility will precious metals where we currently have a lower exposure perform well supported by Price strength in silver and gold.

The addition of new clients has led to higher volumes and client balances margins remained strong at 50%.

Agriculture remains under pressure as ongoing tariff related uncertainty and elevated commodity prices, particularly in cocoa and coffee which reduced liquidity and open interest. Our performance is Broad in line with the second quarter, adjusted profit before tax margins reduced to 16%.

Reflecting lower revenues.

Agency and execution was the strongest performer with a 51% increase in revenues and strong profit growth as margins expanded to 25%. This was driven by growth in both securities and energy. We saw strong performance in all asset classes within securities and strong demand in energy reflecting record volumes.

Solutions, revenues, grew 36% delivering its strongest quarter on record with gross growth across Financial products and hedging Solutions.

Hedging Solutions, grew 20% driven by robust client demand and continued momentum in FX.

First half of the year market, making revenues decreased by 6% as lower revenue and metals and agriculture were partly offset by growth in energy and securities.

Rob Irvin: In the third quarter, prime revenues rose to $57 million, reflecting continued client growth and momentum. Securities X Prime also delivered strong growth, notably in equities, rates, credit, and FX. The acquisition of Hamilton Court, which completed on 1 July 2024, contributed $20 million in revenue this quarter, in line with our expectations. Energy grew 7%, driven by continued growth across our large oil, energy, and environmental desks. Versus the prior quarter, energy declined as activity in the third quarter moderated following record volumes in the first and second quarter. Adjusted profit before tax margins improved from 15% to 26%, driven by growth in higher margin activities, particularly prime services, and productivity gains from restructuring. Turning to market making, where revenue declined by 16%, reflecting challenging market conditions across different asset classes. Robust performances in securities and energy were offset by weaker results in metals and agriculture.

Finally solutions revenue increased 10%, mainly due to growth in financial products, where margins were lower from the ongoing investment in our new technology platform.

Previously our presented our volume data at this point however, given the evolution in the mix of our business that Ian spoke about we plan to update this as part of our year end process, you will still find the exchange volume data slide in the appendix, who consistency turning now to net interest income NII for Q3 was 38.

Financial products, grew 54% reflecting a strong performance in equity link, structured notes, margins. Rose to 25% reflecting the strong Revenue growth. Despite this margin Improvement, we continue to incur elevated, costs associated with the platform and investment and new hards to support future growth. Now, looking at the first 9 months of the year clearing growth 15% on last year with growth across all revenue lines. The addition of new clients has led to higher volumes and client, balances margins, remain strong at 50%.

$6 million down $25 million compared to Q3 2024 interest income was up modestly at $194 million driven by total average balances growth of four 8 billion.

Which broadly offset 100 basis point decline in the average fed fund rate.

Agency and execution was the strongest performer with a 51%, increase in revenues and strong profit growth as margins expanded to 25%. This was driven by growth in both Securities and energy. We saw strong performance in all asset classes within Securities and strong demand in energy reflecting record volumes in the first half of the Year Market making revenues decreased by 6% as lower Revenue in metals, and agriculture were partly offset by growth in energies and securities.

Interest expense increased to $155 million as we had an additional $1 7 billion of average structured note balances and two senior debt issuance. We continue to hold significant levels of liquidity as we went through the third quarter, allowing us to position the firm strongly support our clients and going well.

Finally Solutions, Revenue increased 10%. Mainly due to growth in financial products while margins were lower from the ongoing investment in our new technology platform.

Rob Irvin: Securities saw growth from equities, credit, and FX. This is also where you'll begin to see contributions from Winterflood once the transaction closes. Energy performed strongly, benefiting from higher client hedging activity versus the prior year. Metals declined in the third quarter amid ongoing uncertainty surrounding global tariffs, as well as a tough comparison. Base metals, where we have significant footprint, were soft due to reduced client activity and lower volatility, while precious metals, where we currently have lower exposure, performed well, supported by price strength in silver and gold. Agriculture remained under pressure as ongoing tariff-related uncertainty and elevated commodity prices, particularly in cocoa and coffee, reduced liquidity and open interest. Our performance was broadly in line with the second quarter. Adjusted profit before tax margins reduced to 16%, reflecting lower revenues.

Panic language, which creates a headwind until NII compared to the second quarter.

<unk> was up $4 million driven by growth in average clearing client balances.

Claiming balances increased to $13 3 billion as we continued to add new clients, resulting in stable clearing NII as this growth is more than offset the reduction in average fed fund rates looking now to our balance sheet. As a reminder, on this slide you can see that 80% of our balance sheet support client activity.

Previously, I've presented our volume data at this point, however, given the evolution and the mix of our business that Ian spoke about, we plan to update this as part of our year-end process, you will still find the exchange volume data slide in the appendix for consistency turning. Now to net interest income nii for Q3 was 38.6, Million down 25 million compared to Q3 2024. Interesting income was up modestly at 194 million driven by total average balances, growth of 4.8 billion, which broadly offset a 100 basis. Point decline in the average fed fund rate

These are high quality liquid asset once we net off assets and liabilities by client activity. We're left with the corporate balance sheet that carries corporate cash and other assets against great liabilities, including our structured notes portfolio and senior note issuance total assets increased to 33 billion.

Or 1.7 billion of average, structured note, balances and 2 senior debt issuance.

At the end of September driven by growth in client balances in clearing and growth in securities which includes prime.

We continue to hold significant levels of liquidity. As we went through the third quarter allowing us to position. The firm's strongest support our clients and grow organically which which creates a headwind to knee.

Rob Irvin: Solutions revenues grew 36%, delivering a strongest quarter on record, with growth across financial products and hedging solutions. Hedging solutions grew 20%, driven by robust client demand and continued momentum in FX. Financial products grew 54%, reflecting strong performance in equity-linked structured notes. Margins rose to 25%, reflecting the strong revenue growth. Despite this margin improvement, we continue to incur elevated costs associated with platform investment and new hires to support future growth. Now looking at the first nine months of the year, clearing grew 15% on last year, with growth across all revenue lines. The addition of new clients has led to higher volumes and client balances. Margins remained strong at 50%. Agency and execution was the strongest performer, with a 51% increase in revenues and strong profit growth as margins expanded to 25%. This was driven by growth in both securities and energy.

We continue to manage our capital and liquidity risk prudently maintaining significant headroom above minimum requirements to ensure we are well positioned in periods of market stress.

Compared to the second quarter, nii was up 4 million driven by growth in average clearing client, balances.

At the end of the third quarter total corporate funding was five 8 billion up from $3 8 billion at year end with $1 5 billion of surplus liquidity above our regulatory requirements.

Clearing balance is increased to 30.3 billion as we continue to add new clients, resulting in stable, clearing knee. As this growth has, more than offset, the reduction in an average fed fund rates. Looking now, at our balance sheet, as a reminder on this slide, you can see that 80% of our balance sheet supports client activity. These are high-quality liquid assets,

Also supports our investment grade credit ratings from both S&P and Fitch in September S&P reaffirmed our rating, reflecting our robust performance and strong balance sheet. Finally, we announced again a quarterly dividend of <unk> 15 per share for the third quarter of 2025 to be paid to shareholders on December.

Third we are proactive and involve risk management approach it merits in market, making we are a client driven business and do not take a directional view on prices. However, we do carry a small level of inventory to source client demands and capture the trading spreads.

Once we net off assets, and liabilities by client activity, we are left with a corporate balance sheet that carries corporate cash and other assets against group, liabilities, including our structured notes portfolio and Senior notes issuance total assets, increase to 33 billion, at the end of September driven by growth in client, balances, and clearing, and growth in Securities, which includes Prime.

Rob Irvin: We saw strong performance in all asset classes within securities, and strong demand in energy, reflecting record volumes in the first half of the year. Market making revenues decreased by 6%, as lower revenue in metals and agriculture were partly offset by growth in energies and securities. Finally, solutions revenue increased 10%, mainly due to growth in financial products, while margins were lower from the ongoing investment in our new technology platform. Previously, I've presented our volume data at this point. However, given the evolution and the mix of our business that Ian spoke about, we plan to update this as part of our year-end process. You will still find the exchange volume data slide in the appendix for consistency. Turning now to net interest income, NII for Q3 was $38.6 million, down $25 million compared to Q3 2024.

We continue to manage our capital and liquidity risk, prudently maintaining significant Headroom above minimum requirements. To ensure we are well positioned in periods of Market stress.

Average daily bar was $3 $9 million in the first nine months of 2025 and remains at a very low level relative to the growth in the overall business in.

At the end of the third quarter total, corporate funding was 5.8 billion up through 3.8 billion at year end. With 1.5 billion of surplus, liquidity above our regulatory requirements,

In terms of credit risk, we had a realized credit loss of $800000 representing just no.

1% of revenues and reflecting our proactive and disciplined approach to credit risk management now I'll hand back to Ian for concluding remarks.

Thanks, Rob So in conclusion at our Investor Day in April we outlined our expectation of delivering sustainable profit growth in the 10% to 20% range around 10% of this is expected to be organic with the remainder, which we estimated to be around 40% of our total growth coming from inorganic opportunities we have.

Our strong track record on that front and remain confident that we can continue delivering given the pipeline of opportunities ahead.

Rob Irvin: Interest income was up modestly at $194 million, driven by total average balances growth of $4.8 billion, which broadly offset a 100 basis point decline in the average Fed fund rate. Interest expense increased to $155 million, as we had an additional $1.7 billion of average structured note balances and two senior debt issuance. We continue to hold significant levels of liquidity as we went through the third quarter, allowing us to position the firm strongly to support our clients and grow organically, which creates a headwind to NII. Compared to the second quarter, NII was up $4 million, driven by growth in average clearing client balances. Clearing balances increased to $13.3 billion as we continue to add new clients, resulting in stable clearing NII, as this growth has more than offset the reduction in average Fed fund rates.

Since going public we have consistently outperformed market expectations and we're particularly pleased to have maintained this outperformance during the current quarter. Despite is less supportive market environment.

This also supports our investment grade credit ratings from both S&P and Fitch. In September S&P reaffirmed, our rating reflecting our robust performance and strong balance sheet. Finally, we announced again a quarterly dividend of 15 cents per share for the third quarter of 2025 to be paid to shareholders on December 3rd. We are a proactive and involved risk management Approach at Marx in Market making. We are a client flow, driven business, and do not take a directional view on prices. However, we do carry a small level of inventory to Source client demand and capture the trading spreads average daily bar was 3.9 million, and the first 9 months of 2025 and remains at a very low level relative to the growth in the overall business.

in terms of credit risk, we had a realized credit loss of dollars representing just

Our success is due to the diversification of our franchise.

Of course, we remain mindful of headwinds, including rate reductions and lower exchange volumes as we have seen this quarter.

0.1% of revenues and reflecting our proactive and disciplined approach to credit risk management. Now, I'll hand back to Ian for concluding marks.

Thanks Rob. So in conclusion.

As you've heard on this call with delivering consistent clearing NII.

Despite rate cuts as our growth in client balances has absorbed this and.

Our diversified business has continued to perform strongly despite weaker exchange volumes as we've continued to add new clients and capabilities. Together. This demonstrates how we've positioned <unk> to outperform this quarter and how we've set up the firm to continue to grow to a range of market environments.

At our investor day. In April, we outlined our expectation of delivering sustainable profit growth in the 10 to 20% range, around 10% of this, is expected to be organic with the remainder, which we estimated to be around 40% of our total growth coming from inorganic opportunities. We have a strong track record on that front and remain confident, that we can continue, delivering given the pipeline of opportunities ahead.

Rob Irvin: Looking now at our balance sheet, as a reminder, on this slide, you can see that 80% of our balance sheet supports client activity. These are high-quality liquid assets. Once we net off assets and liabilities by client activity, we're left with a corporate balance sheet that carries corporate cash and other assets against group liabilities, including our structured notes portfolio and senior note issuance. Total assets increased to $33 billion at the end of September, driven by growth in client balances and clearing, and growth in securities, which includes prime. We continue to manage our capital and liquidity risk prudently, maintaining significant headroom above minimum requirements to ensure we are well positioned in periods of market stress. At the end of the third quarter, total corporate funding was $5.8 billion, up from $3.8 billion at year-end, with $1.5 billion of surplus liquidity above our regulatory requirements.

I'm pleased to report that the fourth quarter has started very strongly and we remain optimistic about the remainder of 2025 and the year ahead. We're.

We're in the middle of our 2026 budget process and it's exciting to see all the opportunities before us as our markets develop.

Since going public, we have consistently outperformed Market expectations and we particularly pleased to have maintained this outperformance during the current quarter despite a less supportive Market environment.

Settlements and stable coins event contracts crypto prime brokerage, they're just so many opportunities for us in addition to all the other organic opportunities we've discussed with you before.

This success is due to the diversification of our franchise. Of course, we remain mindful of headwinds including rate, reductions and lower exchange volumes. As we have seen this quarter,

As you've heard on this call, we're delivering consistent clearing, NII.

With that I'll hand, it back to the operator to open the line for questions.

We will now begin the question and answer session. Please limit yourself to one question and one follow up if you'd like to ask a question. Please raise your hand now if you have dialed into todays call. Please press star nine to raise your hands and star six to amuse. Please stand by while we compile the Q&A roster.

Despite rate Cuts as our growth inclined balances, has absorbed this. And our Diversified business has continued to perform strongly despite weaker exchange volumes as we have continued to add new clients and capabilities together. This demonstrates, how we position Marx to outperform this quarter, and how we've set up the firm to continue to grow through a range of Market environments.

Your first question comes from the line of Chris Allen with Citi. Your line is now open. Please go ahead.

I'm pleased to report that the fourth quarter has started very strongly and we remain optimistic about the remainder of 2025, and the year ahead

Rob Irvin: This also supports our investment-grade credit ratings from both S&P and Fitch. In September, S&P reaffirmed our rating, reflecting our robust performance and strong balance sheet. Finally, we announced a gain in a quarterly dividend of $0.15 per share for the third quarter of 2025 to be paid to shareholders on 3 December 2025. We are a proactive and involved risk management approach at Marex. In market making, we are a client-flow-driven business and do not take a directional view on prices. However, we do carry a small level of inventory to source client demands and capture the trading spreads. Average daily VAR was $3.9 million in the first nine months of 2025 and remains at a very low level relative to the growth in the overall business. In terms of credit risk, we had a realized credit loss of $800,000.

Yeah.

We're in the middle of our 2026 budget process, and it's exciting to see all the opportunities before us as our markets, develop.

Good morning, everyone and thanks for taking the question.

So just wanted to start off on the fourth order commentary noted it all.

After a strong start maybe just if you could provide some color just in terms of where youre seeing improvement as it were an environmental perspective client additions were just.

Settlements in stable coins, event contracts, crypto Prime brokerage there are just so many opportunities for us in addition to all the other organic opportunities we've discussed with you before.

With that I'll hand it back to the operator, to open the line for questions.

Some of the new acquisitions coming up to speed.

Hi, Chris.

We will now begin the question and answer session. Please limit yourself to 1 question and 1 follow-up.

Yeah look I think we're seeing sort of strength across our.

Interestingly all of our businesses. So we're actually seeing strength in clearing we're seeing strength in prime we're seeing strength in.

Dialed in to this call. Please press star 9 to raise your hands and star 6 to unmute please stand by while we compare the Q&A roster.

Our agency execution, we're seeing strength in elements of our market, making and we're seeing actually record levels in.

Rob Irvin: Representing just 0.1% of revenues and reflecting our proactive and disciplined approach to credit risk management. Now, I'll hand back to Ian for concluding marks.

Your first question comes from the line of Chris Allen with City. Your line is now open. Please go ahead.

And so in our solutions franchise. So it really does have the feel of.

All of the parts of the firm are sort of performing well I mean, I think when you look at exchange volumes that are up marginally on sort of the prior months.

Paolo Tannucci: Thanks, Rob. In conclusion, at our investor day in April, we outlined our expectation of delivering sustainable profit growth in the 10% to 20% range. Around 10% of this is expected to be organic, with the remainder, which we estimated to be around 40% of our total growth, coming from inorganic opportunities. We have a strong track record on that front, and remain confident that we can continue delivering given the pipeline of opportunities ahead. Since going public, we have consistently outperformed market expectations, and we are particularly pleased to have maintained this outperformance during the current quarter, despite a less supportive market environment. This success is due to the diversification of our franchise. Of course, we remain mindful of headwinds, including rate reductions and lower exchange volumes, as we have seen this quarter. As you've heard on this call, we're delivering consistent clearing NII.

So really it just feels like the momentum that we had as we came out of Q3 has continued into Q4.

Morning everyone, and thanks for taking the question. Um, I guess I just wanted to start off on, on the fourth quarter commentary, um, noted off to a strong, uh, start maybe just if you could provide some color, just in terms of where you're seeing, uh, Improvement is it from an environmental perspective client additions uh or just a some of the the new acquisitions coming up to speed.

You know October was a record month for us and I think you know on the basis of what we saw in October and what's continued, albeit it's only two days into November I think we would be.

Um, hi Chris. Um,

yeah, look, I think we're seeing um, sort of strength across uh

Certainly expecting notwithstanding the fact that we don't know what will happen in the last two months, we would certainly expect on the basis of October to have a record.

In the fourth quarter.

Thanks for that and then just for a follow up question obviously.

Youre seeing.

Interestingly, all of our businesses. So we're actually seeing strength and clearing, we're seeing strength in uh, Prime we're seeing strength in. So our agency and execution, uh, we're seeing strength, uh, in elements of our Market making, and we're seeing, uh, actually record levels in um, in in in our Solutions franchise. So it really does have the feel of, um,

Good client additions and a couple of different businesses, maybe you could talk to the pipeline for clients specifically in clearing and prime in the months ahead.

Joe Let me take the question on clearing and then Paolo is here and he can sort of talk to the opportunities in prime on the client side I mean, what we're seeing is really just a continuation of what we've been describing.

Paolo Tannucci: Despite rate cuts, as our growth in client balances has absorbed this, and our diversified business has continued to perform strongly despite weaker exchange volumes, we have continued to add new clients and capabilities. Together, this demonstrates how we position Marex to outperform this quarter, and how we have set up the firm to continue to grow through a range of market environments. I'm pleased to report that the fourth quarter has started very strongly, and we remain optimistic about the remainder of 2025 and the year ahead. We're in the middle of our 2026 budget process, and it's exciting to see all the opportunities before us as our markets develop. Settlements in stablecoins, event contracts, crypto prime brokerage—there are just so many opportunities for us, in addition to all the other organic opportunities we've discussed with you before.

All of the parts of the firm are sort of Performing. Well I mean I think you know when you look at exchange volumes, there are marginally on sort of the prior month. Uh so really, it just feels like the momentum that we had as we came out of uh sort of Q3 has continued into Q4.

Two years for <unk>.

Quite an extended period. So what we're seeing is a combination of the normal addition of smaller and medium sized clients.

You know, uh, you know, October was a record month for us and I think, you know, on the basis of, you know, what we saw in October. And what's continued, albeit, it's only 2 days into November. I think we would be

They're all looking for essentially single clearer and then we're seeing.

You know, certainly expecting notwithstanding the fact that we don't know what will happen in the last 2 months. Um, you know, we would certainly expect on the basis of October to have a record a quarter in the fourth quarter.

Our ability to bring on board some of the largest most sophisticated players and those had very.

Long.

Sort of lead times to them. So you know just in the last couple of weeks, we brought on onboard.

One client that I think we've probably been talking to for almost a year.

Thanks for that. And then, uh, just for a follow-up question. Um, obviously, um, you're seeing, uh, good good uh, client additions in a couple of different businesses. If you could talk to the, uh, pipeline, uh, for clients, uh, specifically in clearing in Prime, uh, in the months ahead.

Very large clients and they're just coming on now so the good side of this is you have a very accurate sense of the pipeline.

Paolo Tannucci: With that, I'll hand it back to the operator to open the line for questions.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star nine to raise your hand and star six to unmute. Please stand by while we compile the Q&A roster. Your first question comes from the line of Chris Allen with Citi. Your line is now open. Please go ahead.

And you know it.

It just feels like the same things that we've been seeing before are playing out which is there are a bunch of large players that are looking to diversify their flaring theyre looking for a firm with a skill set that merits has its orientation around client service.

Joe let me uh take the question on clearing and then pose here in uh he can sort of talk to the opportunities in Prime on the client side. I mean what we're seeing is really just a continuation of what we've been describing, you know to you for

Yeah, quite an extended period. So what we're seeing is you know a combination of the normal edition of small and medium-sized clients, um you know that are looking for you know, essentially single clearers and then we're seeing um

And they find our offering sort of intriguing and we're just having more and more great conversations with clients.

Chris Allen: Morning, everyone, and thanks for taking the question. I guess I just wanted to start off on the fourth quarter commentary. I've noted it off to a strong start. Maybe just if you could provide some color, just in terms of where you're seeing improvement. Is it from an environmental perspective, client additions, or just some of the new acquisitions coming up to speed?

You know, our ability to bring on board, you know, some of the sort of largest most sophisticated uh sort of players. And those have, you know, very long. Um,

And as we grow up globally and as we add more products, we can solve more of their problems and we're winning more mandates what would you add.

And just in terms of the you know the prime business similar to clearing.

Very strong pipeline, probably our strongest we've ever seen.

And the mix of those clients is also I would say sort of improved so more interest from.

Ian Lowitt: Hi, Chris. Yeah, look, I think we're seeing sort of strength across, interestingly, all of our businesses. We're actually seeing strength in clearing, we're seeing strength in prime, we're seeing strength in sort of our agency and execution, we're seeing strength in elements of our market making, and we're seeing actually record levels in our solutions franchise. It really does have the feel of all of the parts of the firm are sort of performing well. I mean, I think when you look at exchange volumes, they're up marginally on sort of the prior month. Really, it just feels like the momentum that we had as we came out of sort of Q3 has continued into Q4. October was a record month for us.

From the sort of larger and more active.

Participants in the market I mean, certainly going back to your earlier point about what's driven what.

It's driven performance was likely trunk performance certainly the fact that the equity markets have been sort of buoyant as has helped but I suspect that now actually most of the <unk>.

Vast majority of our improvement has been driven by the incremental.

Clients that we brought on.

Thanks, guys. Thanks.

Thanks, Chris.

You know, sort of lead times to them. So, you know, just in the last couple of weeks we've brought on on board, you know, 1 client that I think we've probably been talking to, for almost a year. Um, you know, very large clients and, you know, they're just coming on now. So, you know, the good side of this is you have a very accurate sense of the pipeline. Um, and you know, it's it's just feels like the same things that we've been seeing before, are playing out, which is, you know, there are a bunch of large players that are looking to diversify their clearing, they're looking for, you know, a firm with a skill set that Nar has. It's, uh, it's orientation around client service. Um, and they find, you know, our offering sort of intriguing and we're just having, you know, more and more great conversations with clients. Um, and, you know, as we grow out globally and as we add more products, we can solve more of their problems and, uh, you know, we're winning more mandates. What would you add?

Your next question comes from the line of bamboo dish with Barclays. Your line is now open. Please go ahead.

Hi can you guys hear me okay.

Ben how are you okay, great great Ian how are you.

Ian Lowitt: I think on the basis of what we saw in October and what's continued, albeit it's only two days into November, I think we would be certainly expecting, notwithstanding the fact that we don't know what will happen in the last two months, we would certainly expect on the basis of October to have a record quarter in the fourth quarter.

Yeah.

Maybe my first question it sounded like at the end of your prepared remarks, you mentioned crypto as an emerging opportunity. In addition to the prime and other sort of sources of organic growth. Just curious I think you do a small bit of that currently could you maybe just give us a little color on what your exposure is today and how you think about that opportunity set.

Paolo Tannucci: Thanks for that. Just for a follow-up question, obviously, you're seeing good client additions in a couple of different businesses. If you could talk to the pipeline for clients specifically in clearing and prime in the months ahead.

Over the next few years as the regulatory environment is clearly changing in a more constructive way yeah.

And just in terms of the, you know, the prime business similar to clearing, um, you know, very strong pipeline, probably as strong as we've, uh, we've ever seen. Um, and it and it and the mix of those clients has also, I would say sort of improved. So, you know, more interest from, uh, from the sort of larger and more active, um, participants in, uh, in in the market. I mean, certainly, you know, going back to your earlier point about, you know what's Driven, uh, what's Driven performance, what's likely to drive performance? And certainly the fact that the equity markets have been so buoyant as uh has helped. But I suspect that, you know, actually most of the uh, you know, the vast majority of our Improvement has been driven by the incremental um clients that we've brought on

Thanks guys.

I mean, I think we're actually.

Thanks Chris.

<unk> built a lot of the building blocks that we need to be able to offer clients a pretty comprehensive.

Set of services in this space.

Ian Lowitt: Joe, let me take the question on clearing, and then Paolo's here, and he can sort of talk to the opportunities in prime on the client side. I mean, what we're seeing is really just a continuation of what we've been describing to you for quite an extended period. What we're seeing is a combination of the normal addition of small and medium-sized clients that are looking for essentially single clearing, and then we're seeing our ability to bring on board some of the sort of largest, most sophisticated sort of players. Those have very long sort of lead times to them. Just in the last couple of weeks, we've brought on board one client that I think we've probably been talking to for almost a year. Very large clients, and they're just coming on now.

Line is now open. Please go ahead.

The focus of our efforts today has been around sort of clearing.

Crypto futures on exchange and supporting our clients with regard to that and we've also provided our clients with a series of services.

Hi. Can you guys hear me okay? We can been, how are you? Hey, great, great Ian. Uh how are you good.

Around certain sort of settlement capabilities, they've been looking for with regard to Etfs that they have launched and that's been sort of another area, where we've participated.

We're in a position, where we can sort of cross margin clients.

And.

With that sort of their crypto.

Margin pulsating together, we're sort of in the other products.

Um, can you maybe my first question? It sounded like, at the end of your prepared remarks, you mentioned, uh, crypto as an emerging opportunity, in addition to to Prime and other sort of sources of organic growth, just curious. I I think you do a small bit of that currently, could you maybe just give us a little color on what your exposure is today? And how you think about that opportunity said, um, maybe over the next few years just the, you know, regulatory environment just clearly changing in a more constructive way. Yeah, I mean look I think we're actually

And then within our solutions business, although it's not as sort of a big part of what we do we've needed to build out capabilities.

And so as to sort of custody assets impart because while it's not a big part of what we do in structured notes some of the structured notes issuance that we do.

Ian Lowitt: The good side of this is you have a very accurate sense of the pipeline. It just feels like the same things that we've been seeing before are playing out, which is there are a bunch of large players that are looking to diversify their clearing. They're looking for a firm with the skill set that Marex has, its orientation around client service, and they find our offering sort of intriguing. We're just having more and more great conversations with clients. As we grow out globally and as we add more products, we can solve more of their problems, and we're winning more mandates. What would you add to that?

Have built a lot of the building blocks that we need to be able to offer clients are pretty comprehensive, uh, set of services in the space. So you know, the focus of our efforts today has been around sort of clearing. Um,

Is that it.

Has returns that are linked to crypto and so the opportunity that we really see for ourselves is essentially fleshing out the range of services that might literally be term.

Sort of prime brokerage for crypto, which are probably not very different to that set of services that clients look for when I look for sort of FX prime brokerage. So they're looking for you to be able to.

Crypto Futures on Exchange and supporting our clients with regard to that and we've also provided our clients with a series of services um, around certain sort of settlements capabilities. They've been looking for with regard to ETFs that they have launched. And that's been sort of another area where we've participated, um, you know, we're in a position where we can sort of cross margin clients. Um,

By yourself.

Are they looking for you to be able to.

Take on stable clients, they're looking for you to be able to take it.

Stable coins or crypto as as collateral, they're looking for you to be able to settle across multiple exchanges.

Paolo Tannucci: In terms of the prime business, similar to clearing, very strong pipeline, probably as strong as we've ever seen. The mix of those clients is also, I would say, sort of improved. More interest from the sort of larger and more active participants in the market. I mean, certainly, going back to your earlier point about what's driven performance, what's likely to drive performance, and certainly the fact that equity markets have been so buoyant has helped. I suspect that actually the vast majority of our improvement has been driven by the incremental clients that we've brought on.

On their behalf just as you would as a prime broker they are looking for you to.

Potentially be able to provide them with limited amounts of leverage and I think that we're in the process of sort of building all of that out and it's a very exciting opportunity. The market is changing the world feels like it's moving too.

At 24, seven trading including sort of token versions of Treasury all equity.

And it feels like a set of opportunities that on the back of our client relationships and the capabilities. We have at our sort of scale as an organization that will be able to take advantage of.

With the sort of the crypto margin posting together with sort of, you know, other products. Um, and then within our Solutions business, although it's not, it's sort of a big part of what we do. You know, we've needed to build out capabilities. Um, so as to, you know, sort of custody assets, you know, in part because while it's not a big part of what we do in structured notes, some of the structured notes issuance that we do is uh, you know, is has returned sort of that that are linked to crypto. So the opportunities that we really see for ourselves is, you know, essentially fleshing out the range of services that, you know, might Loosely be termed, you know, sort of prime brokerage for crypto, which are probably, you know, not very different to the set of services that clients look for when they look for sort of FX Prime brokerage. So you know they're looking for you to be able to um, you know, buy or sell uh sort of crypto. They're looking for you to be able to, you know, take on stable coins. They're looking for you to be able to take uh state

Rob Irvin: Thanks, Chris.

Ian Lowitt: Thanks, Chris.

coins or crypto as, uh, as collateral they looking for you to be able to

Alright very helpful.

Maybe just one follow up just coming back to the prime side and all the extra disclosures and commentary quite helpful. Can you just maybe talk a little bit about where the customers have been coming from I think it's a lot of U S business, but have they been sort of cross sells against the existing customer base as it has been the result of May.

Operator: Your next question comes from the line of Ben Budish with Barclays. Your line is now open. Please go ahead.

Ben Budish: Hi, can you guys hear me okay?

Ian Lowitt: We can, Ben. How are you?

Ben Budish: Okay, great. Great, Ian. How are you?

Maybe a business that needed some investment, which you've been done since you acquired that business a few years ago.

Ian Lowitt: Good.

Settle across multiple exchanges, um, you know, on their behalf just as you would as a prime broker. They're looking for you to, you know, potentially be able to provide them with, you know, limited amounts of leverage. I think that we're in the process of sort of building all of that out, and it's a very exciting opportunity. You know, the market is changing.

Ben Budish: Curious, maybe my first question, it sounded like at the end of your prepared remarks, you mentioned crypto as an emerging opportunity in addition to prime and other sort of sources of organic growth. Just curious, I think you do a small bit of that currently. Could you maybe just give us a little color on what your exposure is today, and how you think about that opportunity set maybe over the next few years as the regulatory environment is clearly changing in a more constructive way?

And then going forward. Similarly, do you see this as a cross sell opportunity that organic net new.

How do you think about those bits and pieces in terms of go to market.

Yeah. Yeah. Thanks. Thanks, then I mean in terms of in terms of the geographic split the majority of the growth has been in the U S families, where we have a more.

The world feels like it's moving to, you know, 24/7 trading including, you know, sort of tokenized versions of Treasury or equity. And, you know, it feels like a set of opportunities that on the back of our client relationships and the capabilities we have,

More mature.

Ian Lowitt: Yeah, I mean, look, I think we actually have built a lot of the building blocks that we need to be able to offer clients a pretty comprehensive set of services in this space. The focus of our efforts to date has been around sort of clearing crypto futures on exchange and supporting our clients with regard to that. We've also provided our clients with a series of services around certain sort of settlement capabilities they've been looking for with regard to ETFs that they have launched. That's been sort of another area where we've participated. We're in a position where we can sort of cross-margin clients with sort of their crypto margin posting together with sort of other products. Within our solutions business, although it's not sort of a big part of what we do, we've needed to build out capabilities.

And our sort of skill as an organization that will be able to take advantage of.

Offering.

And.

Where we we probably have the majority of ourselves seems it's not to say that.

There's no growth in other areas.

The proportion of growth has been in in the U S. In terms of the mix of some new clients versus existing clients that are being.

They're being offered this service has actually been a pretty.

Pretty even split a lot of.

Our clearing a lot of the relationships have been introduced by clearing that clearing relationships that have been servicing businesses that have needs for a broader sort of prime offering so I would think half over half of our.

All right, very helpful. Um maybe just 1 follow up, just coming back to the prime side. Um all the extra disclosures and commentary quite helpful. Can you just maybe talk a little bit about where the customers have been coming from? I think it's a lot of, you know, us business, but have they been sort of, you know, cross sells against the existing customer base? Has this been the result of, you know, uh, maybe a business that needed some investment which you've then done since you acquired that business a few years ago. Um, and and going forward. Similarly, you know, do you see this as a, you know, cross sell opportunity, is it organic net new. Um, you know how how do you think about, uh, those bits and pieces in terms of, you know, go to market?

New clients who've come from from that source.

Other half sort of a mix.

Of your opportunities and relationships.

Being worked on for some time.

And for a variety of reasons, we weren't able to offer the full set of services.

Ian Lowitt: As to sort of custody assets, in part because while it's not a big part of what we do in structured notes, some of the structured notes issuance that we do has returns that are linked to crypto. The opportunity that we really see for ourselves is essentially fleshing out the range of services that might loosely be termed sort of prime brokerage for crypto, which are probably not very different to the set of services that clients look for when they look for sort of FX prime brokerage. They're looking for you to be able to buy or sell sort of crypto. They're looking for you to be able to take on stablecoins. They're looking for you to be able to take stablecoins or crypto as collateral. They're looking for you to be able to.

Some of those.

Geoff manages ETF managers have become.

Uh yeah, yeah, thanks. Thanks Ben. I mean in terms of, in terms of the geographic split, you know, the majority of the growth has been in the US. I mean, it's where we have a more, um, a more mature offering. Um, and, um, where we, uh, you know, we we we probably have the majority of our sales teams. It's not to say that, you know, there's, there's no growth in other areas. But, but, but I mean, the proportionate growth has been in, uh, in the US, um, in terms of the, the

Sort of interesting.

An interesting sort of sub sector.

But the sort of traditional prime clients to represent the majority of assets under management and that's just the sort of typical range of hedge funds.

And family offices.

Some some trading groups.

That we can now offer them a much more comprehensive set of products. I think is the sort of main driver and then the stability of Oh.

Our offering versus what types of experienced in the last couple of years I think has been very helpful.

Okay. Thank you very much.

Thanks Ben.

Your next question comes from the line of Alex Blaustein with Goldman Sachs. Your line is now open. Please go ahead.

Ian Lowitt: Settle across multiple exchanges on their behalf, just as you would as a prime broker. They're looking for you to potentially be able to provide them with limited amounts of leverage. I think that we're in the process of sort of building all of that out, and it's a very exciting opportunity. The market is changing. The world feels like it's moving to 24/7 trading, including sort of tokenized versions of treasury or equities. It feels like a set of opportunities that, on the back of our client relationships, the capabilities we have, and our sort of skill as an organization, we'll be able to take advantage of.

Hi, good morning, Thank you for the questions.

I was hoping to expand a little bit on the earlier discussion around crypto coins prediction contract, but maybe as it relates to retail investors in particular, I guess what role do you guys see marriage, playing in that ecosystem. How are you thinking about connecting to some of the retail brokerage platforms, where a lot of that activity.

Mostly originates so maybe help us kind of think about what you see the addressable market really here for for your business and which part you are looking to participate in.

Of sort of a mix of um of you know, opportunities and relationships that have have sort of been worked on for some time. Um, and you know, for a variety of reasons, we weren't able to offer the full, you know, set of services. Um, some of those are, you know, ETF managers ETF managers have become, you know, a sort of interesting. Um, an interesting sort of sub sector, um, but the sort of traditional Prime, you know, clients still represent the majority of assets under management. Um, and that's just, you know, the the sort of typical range of hedge funds, um, and, uh, family offices, um, some some trading groups. Um, but that we can now offer them a much more comprehensive set of products. I think is the sort of main driver. And then, you know, the stability of, uh, of, you know, our our offering versus what what they've sort of experienced in the last couple of years, I think has been very helpful,

Yeah well.

I mean, I suspect that the opportunities are little different in the different parts of that ecosystem. So if you're just talking about it for example, when contract.

Okay, thank you very much.

Thanks Ben.

Ben Budish: All right. Very helpful. Maybe just one follow-up. Just coming back to the prime side, all the extra disclosures and commentary are quite helpful. Can you just maybe talk a little bit about where the customers have been coming from? I think it's a lot of US business, but have they been sort of cross-sellers against the existing customer base? Has this been the result of maybe a business that needed some investment, which you've then done since you acquired that business a few years ago? Going forward, similarly, do you see this as a cross-sell opportunity? Is it organic, net new? How do you think about those bits and pieces in terms of go-to-market?

You know I think that this is a yes, it's an area that is generating quite a lot of interest and excitement they have some.

Your next question comes from the line of Alex glow glowing with Goldman Sachs, your line is now open. Please go ahead.

There's a lot of work that's going on.

With regard to potentially having some of those contracts.

On the actual exchanges in which gray.

Sort of a requirement for an exchange a clearer.

So we are in discussions with some of our clients who are aggregators of retail flow, particularly the ones outside the U S who are interested in being able to.

Hey, good morning. Thank you for the questions. I was hoping to expand a little bit on the earlier discussion around crypto coins prediction contracts, but maybe as it relates to retail investors in particular. I guess what role do you guys see Marex playing in that ecosystem?

Paolo Tannucci: Yeah. Yeah. Thanks. Thanks, Ben. I mean, in terms of the geographic split, the majority of the growth has been in the US. I mean, it's where we have a more mature offering, and where we probably have the majority of our sales teams. It's not to say that there's no growth in other areas, but I mean, the proportionate growth has been in the US. In terms of the mix of sort of new clients versus existing clients that are being offered this service, there's actually been a pretty even split. A lot of our clearing, a lot of the relationships have been introduced by clearing. They're clearing relationships that have been servicing businesses that have needs for a broader sort of prime offering. I would think half of our new clients have come from that source. The other half are sort of a mix of.

To offer those types of products to their clients.

Contracts.

How are you thinking about connecting to some of the retail brokerage platforms, where a lot of the activity, obviously, originates? So, maybe help us kind of think about what you see the addressable market really here for your business and which part you're looking to participate in.

Either for financial instruments, or if it evolves into.

A series of contracts that are broader than just financial instruments, and they would want to be able to offer those to their clients and that's the way in which we've chosen to participate with retail flow. So we are the clear for a lot of the retail flow aggregators outside the U S.

Yeah, well um I mean I suspect that the opportunities are a little different in the different parts of that ecosystem. So if you're just talking about you know for example, you know, event contracts. Um you know I think that this is a

Yeah, it's an area that is generating, you know, quite a lot of interest and excitement. There's some there's a lot of work that's going on.

That's a way for us to participate in that.

In terms of for example stable coins as payment.

I mean, they may be at retail angle to that it's not one that we're exploring at all but we.

Engage with many of our clients who have shared with us what appear to be some genuinely interesting use cases with regard to payment and stable client and are engaging with us in helping them to provide those services.

So yes.

Right.

Paolo Tannucci: Opportunities and relationships that have sort of been worked on for some time. For a variety of reasons, we weren't able to offer the full set of services. Some of those are ETF managers. ETF managers have become a sort of interesting, sort of subsector. The sort of traditional prime clients still represent the majority of assets under management. That's just the sort of typical range of hedge funds, family offices, and some trading groups. We can now offer them a much more comprehensive set of products, I think, is the sort of main driver. The stability of our offering versus what they've sort of experienced in the last couple of years, I think, has been very helpful.

I believe quite strongly that that will sort of take off over the.

The near term and that will represent an opportunity for us I mean, obviously coming or stable coin.

Method of payment will be a view that people want to have stable coins available as a source of collateral that creates sort of a set of opportunities which is how do you convert a stable call it into something that generates interest if it's going to be utilized.

With regard to, you know, potentially having some of those contracts and listed on the actual exchanges, in which case, you know, there's sort of a requirement for an exchange uh clearer. Um you know, so we're in discussions with uh some of our clients who are aggregators of retail flow, particularly the ones outside, the US who are interested in being able to, you know, to offer those types of products to their clients. So you know, just event contracts. Um you know either for financial instruments or if it evolves into um you know a series of contracts that are broader than just financial instruments. Um they would want to be able to offer those uh you know, to their clients and that's the way in which we've chosen to participate, you know, with retail flow. So we are you know the clearer for a lot of the uh retail flow aggregators outside the US. And that's the that's a way for us. Uh

Participate in that.

Utilized for the purpose of collateral that if you're dealing with that there are a whole slew of additional prime opportunities that I think sort of arise with that but that is that at least for us at the moment is much more of a sort of a sophisticated financial player opportunity. So the retail staff feels like it's around a very contract and we will.

I mean in terms of, you know, for example, stable coins, as payment um you know that I mean there may be a retail angle to that. It's not 1 that we're exploring at all but we

engage, with many of our clients who have

Shared with us what appear to be. Some genuinely, interesting use cases with regard to payment in stable coins and are engaging with us in helping them to provide those Services. Um, so I, you know, um,

Quite.

I'll be working with people who clear through.

Through <unk> to get access to Sage and these other opportunities we're likely to pursue with some of our more sophisticated so the financial.

Ben Budish: Okay, thank you very much.

Ian Lowitt: Thanks, Ben.

Operator: Your next question comes from the line of Alex Blosting with Goldman Sachs. Your line is now open. Please go ahead.

You know, I believe quite strongly that that will sort of take off over the, you know, the the near-term and the, you know, that will represent an opportunity for us. I mean obviously, you know, coming off, stable coin.

<unk> counterparts.

Did that answer your various scenarios.

No that makes a lot of sense that thank you for all that color.

Alex Blosting: Hi, good morning. Thank you for the questions. I was hoping to expand a little bit on the earlier discussion around crypto, coins, prediction contracts, but maybe as it relates to retail investors in particular. I guess, what role do you guys see Marex playing in that ecosystem? How are you thinking about connecting to some of the retail brokerage platforms where a lot of the activity obviously originates? Maybe help us kind of think about what you see the addressable market really here for your business, and which part you're looking to participate in.

Second question I wanted to just follow up on.

The point made earlier around liquidity buildup and you guys, obviously issued a little bit of that early in the year.

You continue to utilize the structured notes.

Part of part of the funding as well.

Where are you sort of in building some of that may be excess capacity I don't know if that's a good way to frame it but as you think about sort of excess capital that may be exists within the ecosystem today, that's kind of truly deployable, what's that amount today, what is the ROE you're targeting for that.

Ian Lowitt: Yeah. Well, I mean, I suspect that the opportunities are a little different in the different parts of that ecosystem. If you're just talking about, for example, event contracts, I think that this is an area that is generating quite a lot of interest and excitement. There's a lot of work that's going on with regard to potentially having some of those contracts listed on the actual exchanges, in which case there's sort of a requirement for an exchange clearer. We're in discussions with some of our clients who are aggregators of retail flow, particularly the ones outside the US, who are interested in being able to offer those types of products to their clients, so just event contracts, either for financial instruments or if it evolves into a series of contracts that are broader than just financial instruments.

And is that sort of enough to support the business over the next call. It six to 12 months or do you see yourself sort of coming back to market seeking incremental liquidity I don't know if that makes sense, but that's the nature of the question yes.

As a method of payment will be, you know, a view that people want to have stable coins available as a source of collateral. You know, that create sort of a set of opportunities, which is how do you convert a stable coin into something that generates interest if it's going to be, you know, utilized for the purpose of collateral, then if you're, you know, dealing with that, there are a whole slew of additional Prime opportunities that I think sort of arise with that. But that is that at least for us at the moment is much more of a sort of sophisticated Financial player or opportunity. So the retail stuff feels like it's around event contracts and we will be working with people who clear through um you know, through marriage to get, you know, access to exchange and these other opportunities. You know, we're likely to pursue where

Some of our more sophisticated sort of financial, uh, counterparts.

I mean, I'm very sensitive to the differentiation between sort of liquidity and capital I think of capital as equity. So there's sort of a question about equity and then I think there's a question about liquidity, so I think that.

Where I think we are with regard to liquidity is.

Is the following we want to establish ourselves as a regular issuer in sort of the U S. So that this.

So sort of a broad sort of understanding of our credits and broad acceptance of our name. So that we are able to tap into that market. If we ever wanted to sell even if it was a big acquisition or whatever that sort of tapping into a large.

Ian Lowitt: They would want to be able to offer those to their clients. That's the way in which we've chosen to participate with retail flow. We are the clearer for a lot of the retail flow aggregators outside the US, and that's a way for us to participate in that. I mean, in terms of, for example, stablecoins as payment, there may be a retail angle to that. It's not one that we're exploring at all. We engage with many of our clients who have shared with us what appear to be some genuinely interesting use cases with regard to payment in stablecoins and are engaging with us in helping them to provide those services. I believe quite strongly that that will sort of take off over the near term, and that will represent an opportunity for us.

Investment grade.

Who is available to us and that's our strategic objective that we have and so this year we issued.

Part of part of the funding as well. Uh, where are you sort of in building some of the maybe assess capacity? I don't know if that's a good way to frame it, but if you think about sort of excess Capital that maybe exists within the ecosystem today, that's kind of truly Deployable. What's that amount today? What is the, are we your targeting for that? Um, and is that sort of enough to support the business, over the next call, at 6 to 12 months, or do you see yourself sort of coming back to Market seeking incremental liquidity? I don't know if that makes sense. But that's the like, the nature of the question. Yeah, I mean, I

Into the U S. Even though we didn't have a specific need for the cash we felt that that was something that we wanted to.

Almost certain that we would look to sort of continue that into next year, so establishing a.

I mean, I I I'm very sensitive to the differentiation between sort of liquidity and capital, I think of capital as Equity. So there's sort of a question about equity and then I think there's a question about liquidity. So I think that um,

That program in the U S very important to us and.

If you're not issuing $500 million slug that you really don't have the kind of size, it's interesting to investors and so that's what I think you should anticipate not.

Where I think we are with regard to liquidity is where is the following? Um, you know, we want to establish ourselves as a regular issuer in uh sort of the us so that

For any reason other than you need to be a frequent issuer in order to establish yourself.

You got a sense of how fast the firm is growing so even in a year like this it looks like we have been growing at a sort of 25% and hopefully you have a sense from sort of the commentary that we're.

It's just sort of a broad sort of understanding of our credit and Broad acceptance of our name, so that we are able to, you know, tap into that market if we ever want to. So, you know, if there was a big acquisition or whatever, you know, that sort of tapping into, you know, a large, um, investment grade

Ian Lowitt: I mean, obviously, coming off stablecoin as a method of payment will be a view that people want to have stablecoins available as a source of collateral. That creates sort of a set of opportunities, which is how do you convert a stablecoin into something that generates interest if it's going to be utilized for the purpose of collateral. If you're dealing with that, there are a whole slew of additional prime opportunities that I think sort of arise with that. At least for us at the moment, it is much more of a sort of sophisticated financial player opportunity. The retail stuff feels like it's around event contracts, and we will be working with people who clear through Marex to get access to exchange. These other opportunities, we're likely to pursue with some of our more sophisticated sort of financial counterparts.

Pretty excited about some of the prospects we have next year and we recognize that as we grow we want to maintain the permit is sort of super say from a liquidity perspective. So I think you should expect that we will come to market for that notwithstanding the fact that we already have sizeable surpluses, mostly because we're comfortable.

Pool is available to us and that's the Strategic objective that we have. And so, you know, this year we, you know, sort of issued, uh, you know, into the US even though we didn't have a specific need for the cache. We felt that that was something that we wanted to do and I'm almost certain that we would look to sort of continue that into next year. So establishing a

Those surpluses, and we want to sort of be in the market or no frequent issuer with regard to equity.

We do recognize that as sort of the constraint that has to be one of them in it.

Uh, you know, a debt program, you know, in the U.S. is very important to us. And, you know, if you're not issuing sort of $500 million slugs, are you ready? Don't have the kind of sizes interesting to investors. And so, you know, that's what I think you should anticipate, not.

Its equity.

So we have to be very mindful of how we deploy it.

We're running quite a bit above sort of the 10% strongly capitalized level on the rack ratio and that represents.

Sort of excess that we are carrying but we're still generating 27% Roe and ever on average.

For for any reason, other than you need to be a frequent issue in order to establish yourself. I mean, you've got a sense of, you know, how fast the firm is growing, so, you know, even in a year like this, it looks like, you know, we've been growing, you know, sort of 25%. And hopefully you have a sense from sort of the commentary that, you know, we're

And as we look to deploy in our equity we really don't want to be dilutive. So you know we're looking for plus 20% returns when we're talking about acquisitions or internal deployment of that capital and as we look in our budget process and we look at.

Ian Lowitt: Does that answer your question, Alex?

Alex Blosting: Yeah, no, that makes a lot of sense. Thank you for all that color. Second question, I wanted to just follow up on the point made earlier around liquidity buildup. You guys obviously issued a little bit of debt early in the year. You continue to utilize the structured notes as part of the funding as well. Where are you sort of in building some of the maybe excess capacity? I don't know if that's a good way to frame it. As you think about sort of excess capital that maybe exists within the ecosystem today that's kind of truly deployable, what's that amount today? What are we targeting for that? Is that sort of enough to support the business over the next, call it, six to 12 months, or do you see yourself sort of coming back to market seeking incremental liquidity?

Our opportunities next year, they certainly over sort of six months or longer. We are confident that we can continue to support that growth as it with the internal capital generation that comes with the level of earnings that were also deliver.

Pretty. Um, excited about sort of the prospects we have next year and we recognize that as we grow. We want to maintain the firm as sort of super safe from a liquidity perspective. So I think you should expect that we will come to Market with for that. Notwithstanding the fact that we already have sizable, surpluses mostly because we're comfortable carrying those surpluses. And we want to sort of be, you know, in the market in a frequent issuer, you know, with regard to equity.

Awesome, Great. That's very helpful. Thanks, guys.

Your next question comes from the line of Dan Fannon with Jefferies. Your line is now open. Please go ahead.

Thanks, Good morning wanted to follow up just on the competitive environment you guys have obviously been having success in adding clients and clearing balances just curious if you've seen any change in dealer behaviour, given the regulatory changes that are softening up for them or.

Alex Blosting: I don't know if that makes sense, but that's the nature of the question.

Ian Lowitt: Yeah, I mean, I'm very sensitive to the differentiation between sort of liquidity and capital. I think of capital as equity, so there's sort of a question about equity, and then I think there's a question about liquidity. Where I think we are with regard to liquidity is the following. We want to establish ourselves as a regular issuer in sort of the US so that there's just sort of a broad understanding of our credit, and broad acceptance of our name, so that we are able to tap into that market if we ever want to. If there was a big acquisition or whatever, that sort of tapping into a large investment-grade pool is available to us. That's the strategic objective that we have.

Any shift in the competitive backdrop as you'd think about the prospects of additional market share gains going forward.

I mean, it's sort of interesting.

I mean this is one of my perspective on it and then interested in.

Uh, you know, we do recognize that sort of the constraint there has to be 1 on the firm. And, you know, it's it's it's Equity. Uh, so we have to be very mindful of how we deploy it. Um, you know, we're running quite a bit above sort of the 10% strongly capitalized level on the rack ratio and that represents um, sort of excess that we are carrying. But we're still generating 27% Roi in a on average, um, and as we look to deploy in our Equity, we really don't want to be dilutive. So, you know, we're looking for plus 20% returns when we're talking about Acquisitions or internal deployment of that capital. And as we look, you know, in our budget process and we look at, you know, our uh, our opportunities next year. There's certainly over, you know, sort of 6 months or longer. We are confident that we can continue to support that growth as a with the uh internal Capital generation that comes with the level of earnings. That we're also delivering

And pallets perspective, as well I mean, what we see from the banks is much more active involvement in trading.

Awesome. Great. That's very helpful. Thanks guys.

And these are looking.

Your next question comes from the line of 10 Fannon with Jeffries. Your line is now open. Please go ahead.

For us to help them access market liquidity, which is completely noncompetitive activity and actually help support our business.

Ian Lowitt: This year, we sort of issued into the US, even though we did not have a specific need for the cash. We felt that that was something that we want to do. I am almost certain that we would look to sort of continue that into next year. Establishing a debt program in the US is very important to us. If you are not issuing sort of $500 million slugs, you really do not have the kind of size that is interesting to investors. That is what I think you should anticipate, not for any reason other than you need to be a frequent issuer in order to establish yourself. I mean, you have got a sense of how fast the firm is growing. Even in a year like this, it looks like we have been growing sort of 25%.

What we are not seeing is a.

Sort of a different level of competition for sort of clearing which again as we said on some of these calls its not a surprise to us because of the very long lead time associated with clearing mandate as well as the fact that you know you need to make a lot of investments as well as the fact that you know you need to invest in organization and sort of.

Thanks, uh, good morning. I wanted to follow up, just on the competitive environment. You guys have obviously been having success and adding clients and clearing balances, just curious. If you've seen any change in dealer Behavior, given the regulatory changes that are softening up for them or any shift in the competitive backdrop. As you think about the prospects of additional market, share gains going forward.

I mean, it's sort of interesting. Um,

So we're not seeing a change with regard to that.

And we're not really seeing a change with regard to.

So the pricing on the structured notes or any of these other products. So at the moment.

I mean, this is 1 of my perspective on it and then interested in, uh, you know, in in, in Pilot's perspective as well. I mean, what, what we see from the banks is much more active involvement in trading, um, and, you know, looking

It does not feel as though.

Yeah.

Ian Lowitt: Hopefully, you have a sense from sort of the commentary that we're pretty excited about sort of the prospects we have next year. We recognize that as we grow, we want to maintain the firm as sort of super safe from a liquidity perspective. I think you should expect that we will come to market for debt, notwithstanding the fact that we already have sizable surpluses, mostly because we're comfortable carrying those surpluses, and we want to sort of be in the market and a frequent issuer. With regard to equity, we do recognize that as sort of the constraint. There has to be one on the firm, and it's equity. We have to be very mindful of how we deploy it. We're running quite a bit above sort of the 10% strongly capitalized level on the REC ratio, and that represents.

Allow us sort of capital requirements that are sort of being imposed on banks by the current administration's regulators.

For us to help them assess Market liquidity, which is completely non-competitive activity. And actually, you know, helps support our business

Um, you know what? We are not seeing is a

Is affecting our prospects I don't know what your yes, I'd agree with that.

We've seen one or two spots, where theres been a little bit of incremental competition.

On the stock lending side, we've seen a couple of new entrants to some more aggressive with pricing, but it doesn't really too.

There's not really disrupted.

Our progress with acquiring prime clients a minute it hasn't sort of been a very marginal effect.

Level of competition for sort of clearing which again as we've shared on some of these calls is not a surprise to us because of sort of the very long lead time associated with clearing, uh mandates as well as the fact that, you know, you need to make a lot of Investments as well as the fact that, you know, you need to invest in organization and, uh, and sort of capability. So we're not seeing a change with regard to that, um,

and we're not really seeing a change with regard to

You can see a little bit of that in the third quarter versus the second quarter weather was a bit of there was a picture of sort of rate compression.

get sort of price on structured notes or any of these other products. So at the moment, you know, it does not feel as though

But very much at the margin.

the uh,

I think the sort of.

Ian Lowitt: Sort of excess that we are carrying, but we're still generating 27% ROE on average. As we look to deploy our equity, we really don't want to be dilutive. We're looking for plus 20% returns when we're talking about acquisitions or internal deployment of that capital. As we look in our budget process and we look at our opportunities next year, then certainly over sort of six months or longer, we are confident that we can continue to support that growth with the internal capital generation that comes with the level of earnings that we're also delivering.

The.

The combination of expertise and make sure the quality of the offerings that remains.

A really important differentiator.

We typically are seeing whether its sort of clearing or prime pretty consistent.

Competition. It is competitive it is not it's not that we have a completely free free.

Free failed.

But no one sort of competing really on pricing.

Other than as I say, a little bit of sort of compression on some of the stock lending.

Great. That's helpful and then just as a follow up.

Talked about an active potential M&A pipeline.

We'd like to get a little more context around that versus prior periods and as you think to 2026.

Alex Blosting: Awesome. Great. That's very helpful. Thanks, guys.

Operator: Your next question comes from the line of Dan Fannin with Jefferies. Your line is now open. Please go ahead.

Do you anticipate that being a more active year than what you guys have done so far or will do in 2025.

the lower sort of capital requirements that are sort of being imposed on banks by, you know, this current administration's Regulators um is affecting our prospects, I don't know what you're yeah. No, I I'd agree with that. Um I think you know, we've seen 1 or 2 spots where there's been in a little bit of uh, incremental, uh, competition. Um, you know, on the stock lending sites, you know, we've seen a couple of new entrance, you know, somewhat aggressive with pricing but I it doesn't really just doesn't, it's not really disrupted. Um, our progress with you know, acquiring crime clients. I mean, it it it has a sort of, you know, very marginal effect for you can see a little bit of that in the third quarter versus the second quarter, whether it's a bit of there was a bit of, uh, of sort of rate compression. Um, but but, but, you know, very much at the margin, um, you know, beyond

Yes, I think it's all lining up to be a very active 26, I think there's still there's still a couple of months left in 'twenty five.

Dan Fannin: Thanks. Good morning. I wanted to follow up just on the competitive environment. You guys have obviously been having success in adding clients and clearing balances. Just curious if you've seen any change in dealer behavior given the regulatory changes that are softening up for them, or any shift in the competitive backdrop as you think about the prospects of additional market share gains going forward.

Hoping to to sign at least at least.

Couple of Oxford of agreements, but 26 is really.

A silver lining up very well I think the continue the continued sort of interest in from companies in joining the sort of merricks.

That I think the, the sort of the, the, the, um, the combination of sort, of expertise, and the sort of quality of the offering sort of remains, um, you know, a really important differentiator and we and we typically are seeing whether it's sort of clearing or prime, you know, pretty consistent. Um, competition it, it is competitive. It's not, it's not that we have a completely free, you know, free field. Um, but but, but no, 1 sort of competing really on pricing. Um, other than as I say, a little bit of sort of compression on some of the stock Lending.

Ian Lowitt: I mean, it's sort of interesting. I mean, this is sort of my perspective on it, and then interested in Paolo's perspective as well. I mean, what we see from the banks is much more active involvement in trading, and looking for us to help them access market liquidity, which is completely non-competitive activity and actually helps support our business. What we are not seeing is a sort of different level of competition for sort of clearing, which, again, as we've shared on some of these calls, is not a surprise to us because of sort of the very long lead time associated with clearing mandates, as well as the fact that you need to make a lot of investments, as well as the fact that you need to invest in organization and sort of capability. We're not seeing a change with regard to that.

Asian, and being sort of part of our platform really has driven a lot of of that sort of reverse inquiries. So we're benefiting now from.

Many companies wanting to be part of marriage, and so they're coming to us and even in the competitive processes and you will be aware of.

Great, that's helpful. And then just as a follow-up, um, you talked about an active potential M&A pipeline. Just get would like to get a little more context around that versus, you know, prior periods. And as you think, will 2026 be anticipated to be a more active year than what you guys have done, you know, so far or will do in 2025?

So you know even the competitive process as you know we often.

Not a very good position because because of the sort of track record of successful M&A. So I think 26 will be will be a strong year.

Great. Thanks for taking my questions. Thanks, Dan.

Your next question comes from the line of Bill Katz with TD Cowen. Your line is now open. Please go ahead.

Okay. Good morning, everybody. Good afternoon. Thank you so much for taking the question. Ian just may have a qualifying question first you mentioned that obviously, we still have another two months to go but it could be a record quarter is that revenue volume.

Um, yeah, I think I, you know, it's all lining up to be a very active 26. I think, you know, there's there's still, there's still a couple of months left in 25. So, so, you know, hoping to, uh, to sign, you know, at least, um, at least, you know, a couple of, uh, of sort of agreements. But 26 is really, you know, is is sort of lining up. Um, you know, very well, I think, you know, the continued, the continued sort of interest in from companies in, you know, joining the sort of Marx, um, organization and being sort of part of our platform. Really, really has driven a lot of

Ian Lowitt: We're not really seeing a change with regard to pricing on structured notes or any of these other products. At the moment, it does not feel as though the lower sort of capital requirements that are being imposed on banks by this current administration's regulators is affecting our prospects. I don't know what you're saying.

Our earnings all the Bob just sort of curious of where you are just want make sure I understand where the deeper momentum might ship and there are a bunch of follow ups. Thank you.

Yeah, I mean, I mean, just when I say record I actually just shy of a profit. So I think it's a when I say a record quarter, it's a record profit quarter.

Of of that sort of reverse inquiry. So you know, we're benefiting now from you know, many companies wanting you know to to be part of Marx and sort of coming to us and even in the competitive processes and you know, you you you will be, you know, aware of of of some of those, you know, even the competitive processes, you know, we often, you know, start um, you know, in a very good position because because of the sort of track record of successful m&a. So I think 26 will be uh, you know, will be a strong yet.

Paolo Tannucci: Yeah, no, I'd agree with that. I think we've seen one or two spots where there's been a little bit of incremental competition. On the stock lending side, we've seen a couple of new entrants, somewhat aggressive repricing, but it doesn't really disrupt our progress with acquiring prime clients. I mean, it has a sort of very marginal effect. You can see a little bit of that in the third quarter versus the second quarter, where there was a bit of sort of rate compression, but very much at the margin. Beyond that, I think the sort of combination of sort of expertise and the sort of quality of the offering sort of remains a really important differentiator. We typically are seeing, whether it's sort of clearing or prime, pretty consistent competition. It is competitive. It's not that we have a completely free.

Said I mean, I think it will be on track for a record revenue quarter as well so it'll be a combination, but really when I say record by.

Great. Thanks for taking my question. Thanks, Dan.

My focus is on profit.

Your next question comes from the line of Bill cats with TD Carwin your line is now open. Please go ahead.

Okay. Thank you.

Maybe a broader question for you a lot of my other questions were answered asked already.

As we think through <unk> and blockchain technology.

Talk a little bit about maybe the pros that you could see for the business. This is unlike any efficiencies for you that could also potentially accelerate the M&A pipeline for you and then Conversely is there any risk to any of the businesses as things move from sort of the <unk> into the <unk> platform. Thank you.

Okay, good morning everybody, good afternoon. Uh, thank you so much for taking the question. Uh, Ian just to uh give me a qualifying question. First you mentioned that uh obviously we still have another 2 months to go but you could be a record quarter is that Revenue volume earnings, all the above just sort of curious of where you just want to make sure I understand where the the deeper momentum might sit and I have a bunch of follow-ups. Thank you.

Yeah, I mean, I mean, he is sort of what we see at the moment so.

Around token endesa and the Big Bang.

<unk>.

Is.

These markets couldn't sort of operate 24, seven and so in one form or another.

Yeah, I mean I mean just when I say records I I actually just care about profit, so I think it's it's uh, when when I say a record quarter, it's a record profit quarter and that said, I mean, I think we'll be on track for a record Revenue quarter as well. Um, so it'll be a combination. Um, but really, when I say record I I

Thanks, Ed.

Paolo Tannucci: Field, no one's sort of competing really on pricing. Other than, as I say, a little bit of sort of compression on some of the stock lending.

Focuses on profit.

The way that is likely to play out is.

People will be able to transact not just sort of crypto 24, seven but there'll be talking hides versions of treasuries.

Dan Fannin: Great, that's helpful. Just as a follow-up, you talked about an active potential M&A pipeline. Would like to get a little more context around that versus prior periods. As you think to 2026, do you anticipate that being a more active year than what you guys have done so far or will do in 2025?

Treasuries in equities and in a range of other assets and it's sort of hard for me to see how you do that away from sort of token hydration. So I think that thats clearly going to be an opportunity and to the extent that there.

More activity in the world because people are trading more days and more hours I think that's good for our business.

As things move from sort of the trap by into the DeFi platform. Thank you.

I think that.

Paolo Tannucci: Yeah, I think it's all lining up to be a very active 2026. I think there's still a couple of months left in 2025. We're still hoping to sign at least a couple of sort of agreements. 2026 is really sort of lining up very well. I think the continued sort of interest from companies in joining the sort of Marex organization and being sort of part of our platform really has driven a lot of that sort of reverse inquiry. We're benefiting now from many companies wanting to be part of Marex and sort of coming to us. Even in the competitive processes, and you will be aware of some of those, even the competitive processes, we often start in a very good position because of the sort of track record of successful M&A. I think 2026 will be a strong year.

yeah, I mean, I mean, here's sort of what what we see at the moment, so,

There's also a sort of a token isation opportunity around sort of stable coins and.

Again, the fact that as sort of 24, seven and it means that people can make payments.

I mean, Iran, tokenization, the, the big benefit is, um, you know, that these markets can sort of operate 24/7.

The weekends, they can make payments at night all of those kinds of things I think will also add to the activity and out of payment and stable coin will come a whole sort of flu.

and so in 1 form or another, you know, we think that you know, the way that is likely to play out is

Other services that people will look for with regard to sort of stable coin and again I think that's additive to our business.

In terms of.

Yeah, the concern that somehow we moved to.

that people will be able to transact not just sort of crypto 24/7 but they'll be tokenized versions of you know, treasuries and equities and you know, and the range of other assets and it's sort of hard for me to see how you do that away from sort of tokenization. So I think that that's clearly going to be an opportunity and to the extent that

<unk> for everything and that potentially disrupt sort of clearing and the clearing ecosystem.

There's sort of more activity in the world because people are trading, you know, more days and more hours. I think that's good for our business.

I think that, um,

And expressed some level of skepticism around that I do think that the activity is going to sort of continue or a lot of that is going to continue to be cleared on X-ray.

there's also sort of a tokenization opportunity around, you know, sort of stable coins and

Again, the fact that it's sort of 24/7 and it means that people can make payments.

Dan Fannin: Great, thanks for taking my questions.

If we get sort of a cash sooner rather than later, that's a good thing rather than a bad thing.

Ian Lowitt: Thanks, Dan.

Operator: Your next question comes from the line of Bill Couch with TD Cowen. Your line is now open. Please go ahead.

And I.

I've never understood how.

For very very large sets of data like a clearinghouse you sort of have benefit of being.

Alex Blosting: Okay. Good morning, everybody. Good afternoon. Thank you so much for taking the question. Ian, just for me to have a qualifying question first. You mentioned that obviously we still have another two months to go, but it could be a record quarter. Is that revenue, volume, earnings, all of the above? I'm just sort of curious of where you—I just want to make sure I understand where the deeper momentum might sit. I have a bunch of follow-ups. Thank you.

In token is where what you've got to do is you've got to sort of keep track of more and more knowledge and at some level that feels like that.

Uh, you know, the weekends, they can make payments at night. Uh, all of those kinds of things. I think we'll also add to the activity and out of, you know, payment in stable coin, will come a whole sort of slew of, you know, other services that people will look for with regard to sort of stable coin. And again, I think that that's additive uh, to our business

um, you know, in terms of

That should not give your economies of scale, but at some level of this economies of scale. So yes.

It is conceivable that there are changes to the exchanges and the exchange ecosystem, but we cant anticipate what those are but we don't see those as sort of being real what we do see though is a series of opportunities.

Ian Lowitt: Yeah, I mean, just when I say records, I actually just care about profit. I think when I say record quarter, it's a record profit quarter. That said, I mean, I think we'll be on track for a record revenue quarter as well. It'll be a combination, but really, when I say record, my focus is on profit.

And we believe that we're setting ourselves up to capture those and we think we have so the organizational nimbleness to position ourselves well and.

You know, the the concern that somehow we move to, you know, sort of tokenization for everything and that that you know, potentially disrupts, sort of clearing and the clearing ecosystem. I might I might Express, you know, some level of sort of skepticism around that I do think that, you know, the activity is going to sort of continue or or a lot of that is going to continue to be cleared on Exchange. Um you know if we get

Sort of our cash sooner rather than later, then a good thing rather than a bad thing.

and I,

Critically important.

We have relationships with a series of the.

Alex Blosting: Thank you. Maybe a broader question for you. A lot of my other questions were answered already. Just as we think through tokenization and blockchain technology, could you talk a little bit about maybe the pros that you could see for the business? Does it unlock any efficiencies for you that could also potentially accelerate the M&A pipeline for you? Conversely, is there any risk to any of the businesses as things move from sort of the TradFi into the DeFi platform? Thank you.

Most sophisticated players in the space and we're working together with them and that's an absolutely massive competitive advantage for us as we go.

You know, I've never understood how well very, very large sets of data, like a clearing house, you sort of have the benefit of being, you know,

One of them and how these things are likely to play out because you're not sort of building things with a view that at some point in the future somebody might find it useful or interesting you're engaging in things that sophisticated clients.

Being tokenized. Where what you've got to do is you got to sort of keep track of more and more nodes. And at some level that feels like,

that should not give you economies of scale but at some level of this economies of scale, so

Talking to you about today that would be very helpful. In that they are willing to engage in ensign.

Ian Lowitt: Yeah, I mean, here's sort of what we see at the moment. I mean, around tokenization, the big benefit is that these markets can sort of operate 24/7. In one form or another, we think that the way that is likely to play out is that people will be able to transact not just sort of crypto 24/7, but there'll be tokenized versions of treasuries, equities, and a range of other assets. It's sort of hard for me to see how you do that away from sort of tokenization. I think that that's clearly going to be an opportunity. To the extent that there's sort of more activity in the world because people are trading more days and more hours, I think that's good for our business. I think that there's also sort of a tokenization opportunity around sort of stablecoins.

You know, it's conceivable that you know there are changes to the exchanges and the exchange ecosystem, but we can't anticipate what those are, or we don't see those as sort of being real.

Okay, if I could maybe squeeze a third one and I apologize for maybe Overstaying My welcome but.

Another Big picture question for you as you sort of think through 2026 and very encouraged by the momentum of the business in the pipeline. So maybe a two parter can you give us an update on just how things are progressing with Winterflood Val court.

What we do see though, you know, is a series of opportunities. Um, and we believe that, you know, we're setting ourselves up to capture those and we think we have sort of the organizational neimus to position ourselves as well.

Just in terms of initial.

Initial expectation that you've had a little bit more time to work with those platforms a little bit and then the broader question is as you look to next year, how do you sort of see the interplay between revenue growth and margin opportunity I. Appreciate that somebody has just come on at suboptimal margins takes some time to get you there, but how do you sort of see the interplay driving it Bob.

Profit before tax.

Yes. Thank you.

Yeah. Thanks, Thanks, Lou in terms of the in terms of the.

And critically important. Um, you know, we have relationships with a series of, uh, most sophisticated players in the space and we're working together with them. And that's a absolutely massive competitive Advantage for us, as we determine how these things are likely to play out because you're not sort of building things, with a view that at some point in the future, somebody might find it useful or interesting. You're engaging in things that sophisticated clients are talking to about today. That would be very helpful and that they're willing to engage in inside.

Progress that we have made with all of the acquisitions, including those close.

Ana which was the Abu Dhabi acquisitions now married Sanford tab, that's sort of on.

Ian Lowitt: Again, the fact that it's sort of 24/7 means that people can make payments. The weekends, they can make payments at night, all of those kinds of things, I think, will also add to the activity. Out of payments in stablecoin will come a whole sort of slew of other services that people will look for with regard to sort of stablecoin. I think that that's additive to our business. In terms of the concern that somehow we move to sort of tokenization for everything and that that potentially disrupts sort of clearing and the clearing ecosystem, I must express some level of sort of skepticism around that. I do think that the activity is going to sort of continue, or a lot of that is going to continue to be cleared on exchange.

It's on track it's in line with expectations I think the Hamilton Cool acquisition has outperformed expectations and they had they've had also a record month in October.

Okay, if I can, maybe squeeze the third 1 in. I apologize. For maybe over staying my welcome, but, um, just another big picture question for you, as you sort of think through 2026 and very encouraged by the momentum of the business and the pipeline.

And I think we're starting to see some of the benefits of linking that into a wider client base.

And the margins that you can see that will improve margins.

Where ever in this sort of high twenties, low thirties, I think that that will sort of improve with revenue growth.

As they settle into the big.

So part of the bigger platform win two floods I expect we will show a similar pattern.

From what we can see although we don't have all of the details it looks like they've had a very strong last quarter.

Certainly it looks like it's the from a revenue perspective, one of the best quarters, they've had in the last three years.

So we're quite optimistic that that business is actually building up some more.

Ian Lowitt: If we get sort of our cash sooner rather than later, that's a good thing rather than a bad thing. I've never understood how, for very, very large sets of data, like a clearing house, you sort of have benefit of being tokenized, where what you've got to do is you've got to sort of keep track of more and more nodes. At some level, that feels like that should not give you economies of scale, but at some level, just economies of scale. It's conceivable that there are changes to the exchanges and the exchange ecosystem, but we can't anticipate what those are, or we don't see those as sort of being real. What we do see, though, is a series of opportunities, and we believe that we're setting ourselves up to capture those.

<unk>.

And we will accelerate that but it will start at a relatively low margin, it's not going to we're not going to be getting a 30%.

It's maybe a 2-party. Can you give us an update on just how how things are progressing with winter? Flood Valcourt? Uh, just in terms of uh, initial expectation that I've had a little bit more time to uh, work with those platforms a little bit. And then the broader question is, as you look to next year. Um, how do you sort of see the interplay between revenue growth and margin opportunity? I appreciate that. Some of these deals come on at suboptimal margins, take some time to get you there. But how do you sort of see the interplay driving uh uh, profit before tax, um, growth year? Thank you. Yeah, thanks. Thanks Bill. Um, in terms of the, in terms of the, the, um, progress that we have made with all of the Acquisitions. Um, I mean, including those that are closed, um, you know, our our know, which was the Abu Dhabi Acquisitions. Now, um, Marx Abu Dhabi that sort of on, um, it's it's on track. It's, you know, in line with expectations, I think the Hamilton Court acquisition, um, has outperformed their expectations and they had they've had also a record month in October.

Hi, 20% PBT margin I think from an ROE perspective, it will probably be quite accretive.

So I'm optimistic about that VAALCO is a small business, but where there is more value in the accounts that are opened up and we're seeing that coming through but that will move the needle.

It's that we're moving the needle in terms of in terms of profit or margin, but generally I think the year.

The trend that we're seeing has been an improvement in margins.

The improvement in margins as being sort of very broad.

Broad based but obviously the area, where we still have the lowest margins.

Ian Lowitt: We think we have sort of the organizational nimbleness to position ourselves well. Critically important, we have relationships with a series of the most sophisticated players in the space, and we're working together with them. That's an absolutely massive competitive advantage for us as we determine how these things are likely to play out. You're not sort of building things with a view that at some point in the future, somebody might find it useful or interesting. You're engaging in things that sophisticated clients are talking to you about today that would be very helpful and that they're willing to engage in inside.

Agency execution ex prime.

And that I think benefits from.

Some of the some of the new desk settling in and maturing and we have had a large number of new tests.

As you've seen we've had we've become much more active in credit much more active in FX. So I think you can expect some margin improvement I think.

Um, so the and the margins there, you can see that will improve margins, uh, somewhere in the sort of high 20s low 30s. I think that that will sort of improve, you know, with Revenue growth, um, as they settle into the, uh, the being to a part of the bigger platform. Winter floods, I expect will show a similar pattern. It's that from what we can see, uh, although, you know we don't have all of the details that looks like they've had a very strong last quarter. Um, certainly looks like it's the from a revenue perspective, 1 of the best courses they've had in the last 3 years. Um so you know, we're we're quite optimistic that that business is actually building up some momentum um and we'll accelerate that but it will start a relatively low margin. It's not going to we're not going to be getting a 30% um 20 or a high 20% um, PPT margin. I think from an Roe perspective, it will probably be quite a creative though. Um so but optimistic about that. Valor is a small business but more where there's more.

From the sort of low to mid teens up into this with higher teens.

That will drive the anthro group's margin improvement because it's quite large.

Large revenue streams.

Just sort of a clarity we havent close winterflood, yet so we're waiting on.

Alex Blosting: Okay. If I can maybe squeeze a third one in, I apologize for maybe overstaying my welcome. Just another big picture question for you as you sort of think through 2026 and very encouraged by the momentum of the business and the pipeline. It's maybe a two-part. Can you give us an update on just how things are progressing with Winterflood, Valcourt, just in terms of initial expectation? I've had a little bit more time to work with those platforms a little bit. The broader question is, as you look to next year, how do you sort of see the interplay between revenue growth and margin opportunity? I appreciate that some of these deals come on at suboptimal margins, take some time to get you there. How do you sort of see the interplay driving profit before tax growth year-end? Thank you.

The approval from the regulators, but obviously to your to the point of your question you know we are engaged with.

Some of the folks there and so we are learning more about their business, but obviously that hasn't closed yet.

More value in the, um, accounts that are opened up and we're seeing that coming through, but that won't move the needle. Um, it's, uh, that's why I'm moving the needle in terms of uh, in terms of profits or or margin. I mean generally I think the um the the trend that we're seeing, you know, has been an improvement in margins. Um, the Improvement in margins has been sort of very, very broad base but you know, obviously the area where we still have the lowest margins uh, that you

Um, agency and execution X Prime.

Hope to close this year, but if that doesn't happen we would expect it to close early next year.

I think sort of where the sort of general point with regard to 2026 I think that.

As we've indicated.

We expect that.

Margaret we were hoping that margins will improve but we really are not looking to improve margins dramatically because we continue to invest in.

And Ah.

Paolo Tannucci: Yeah. Thanks, Bill. I mean, in terms of the progress that we have made with all of the acquisitions, including those that are closed, Arno, which was the Abu Dhabi acquisition, is now Marex Abu Dhabi. That's sort of on track. It's in line with expectations. I think the Hamilton Court acquisition has outperformed expectations, and they've had also a record month in October. I think we're starting to see some of the benefits of linking that into our wider client base. The margins there, you can see that will improve. Margins are somewhere in the high 20s, low 30s. I think that will sort of improve with revenue growth as they settle into being part of the bigger platform. Winterflood, I expect, will show a similar pattern.

And we think that that's the right.

<unk> to make to position the firm for long term success.

And that I think benefits from um some of the some of the new desks settling in and maturing and we have had a large number of new desks. And we've we've we've as you as you've seen we've we've had we've become much more active in credit, much more active in FX so I think you can expect some margin Improvement. I think, you know, from the sort of low to mid teens up into the sort of higher teams, um, and that will drive, you know, the overall groups margin Improvement because it's quite large, they're quite large revenue streams. I mean, just sort of for clarity and we haven't closed winter floods yet. Um, so we're waiting on, uh, uh,

And so while we hope that margins improve and they will and they showed it as a result of some of the things that Paolo was describing and the other things that we have going on inside the firm.

We don't see ourselves dramatically changing margin impart because the business mix doesn't change that quickly and also we want to continue to invest and support and control we want to continue to invest in opportunities that are likely to.

You know, approval from The Regulators. Um, but obviously, you know, to your, to the point of your question, you know, we are engaged with, uh, some of the folks there. And so, you know, we are learning, you know, more about their business. But obviously, that hasn't closed yet, we hope to close, you know, this year. But if, if that doesn't happen, you know, we could expect you to close, you know, early next year. Um, you know, I think sort of, with a sort of General point with regard to 2026, I think that

um, you know, as we've indicated

Generate returns for us.

In the future and where we're confident that that's the right way to sort of operate so 26, we'd expect margins to get better but not dramatically better.

we expect that uh you know margin we're hoping the margins will improve but we really are not looking to improve margins dramatically because we continue to invest

and uh,

Thank you for taking all the questions. This morning.

and we think that that's right.

Thanks Dale.

Paolo Tannucci: From what we can see, although we don't have all of the details, it looks like they've had a very strong last quarter. Certainly, it looks like it's, from a revenue perspective, one of the best quarters they've had in the last three years. We're quite optimistic that that business is actually building up some momentum, and we'll accelerate that. It will start on relatively low margin. We're not going to be getting a 30% or high 20% PBT margin. I think from an ROE perspective, it will probably be quite accretive, though, so I'm optimistic about that. Valcourt is a small business, but where there's more value in the accounts that are opened up, and we're seeing that coming through. That won't move the needle in terms of profit or margin. I mean, generally, I think the.

Your next question comes from the line of bamboo dish with Barclays. Your line is now open. Please go ahead.

Decision to make to position the firm for, you know, long-term success. Um and so you know while we hope that margins improve you know and will and they they should you know as a result of some of the things that Poe was describing and other things that we have going on inside the firm.

Okay.

Okay.

Confirming that the line of Ben Booties from Barclays is now open. Please go ahead.

It seems like Bambach bamboo dish has disconnected we'll go to the next question coming from the line of Carlos Gomez Lopez with HSBC. Your line is now.

You know, we we don't see ourselves dramatically changing margin in part because the business mix doesn't change that quickly. And also we want to continue to invest in support and control. We want to continue to invest in opportunities that are likely to, you know, generate returns for us. Um, you know, in the future and we're, you know, we're, we're a confident that that's the right way to, uh, to sort of operate. So 26, would expect margins to get better.

But not dramatically better.

Thank you for taking all the questions this morning.

Thanks Bill.

Go ahead.

Good morning.

Paolo Tannucci: Trend that we're seeing has been an improvement in margins. The improvement in margins has been sort of very broad-based. Obviously, the area where we still have the lowest margins are the agency and execution X prime. That, I think, benefits from some of the new desks settling in and maturing. We have had a large number of new desks. As you've seen, we've become much more active in credit, much more active in FX. I think you can expect some margin improvement, I think, from the sort of low to mid-teens up into the sort of higher teens. That will drive the overall group's margin improvement because it's quite large. They're quite large revenue streams.

Okay.

The first one is about the.

Your next question comes from the line of bamboo dish with Barclays. Your, your line is now open. Please go ahead.

The fact that you are a frequent.

Frequent issuer.

That market have you considered to recap the 81 market that will mango do you think of pricing in that.

Then.

The space.

<unk>.

Second in terms of.

The long term area of the business. When you. When you went public I think we will compete with something like a 20% you are now comfortably around 7% I know that youre more focused on margin then early but where do you think you will stabilize in the long run.

Confirming that the line of spam is now open from Ballast. Please then go ahead.

So with regard to 81, I mean, I think we remain.

Yeah sort of interested in 81.

It seems like Ben, Ben, Buddhist has disconnected. We'll go to the next question. Coming from the line of Carlos, Gomez Lopez with HSBC. Your line is now open. Please go ahead.

Point it will.

And it sort of come back onto the menu of things that we might do.

Dan Fannin: I mean, just sort of for clarity, we haven't closed Winterflood yet. We are waiting on approval from the regulators. Obviously, to the point of your question, we are engaged with some of the folks there, and we are learning more about their business. Obviously, that hasn't closed yet. We hope to close this year. If that doesn't happen, we would expect it to close early next year. I think, sort of with a general point with regard to 2026, as we've indicated, we expect that. We're hoping the margins will improve, but we really are not looking to improve margins dramatically because we continue to invest. We think that that's the right decision to make to position the firm for long-term success.

I don't have a sort of current price of where we think we would be able to bring a 81 I didnt Paolo if you have a weird, but we sort of cadence we stay close to all of them or all of these issuances.

Prices.

Prices are interesting.

To recap the 81 Market as well. Uh, what do you think of pricing in that space? Um,

We don't need to issue at the moment and we have you know we have a maturity in 2027. So we have a little bit of time before we have to make that decision, but they suddenly we certainly close to the two.

To that market.

And then with regard to ROE.

Second, in terms of, you know, the long-term Roi of the business when when, when you went public, I think we were completely until I get 20%, you are now comfortably around the 27%. I, I know that you're more focused on margin than Roe, but where do you think you will stabilize in the long run?

I believe that we can continue to operate in and around the current levels of Croatia somewhere between 25 and 30.

um, so with regard to at1, I mean, I think we remain um,

I mean as you say, we're not we don't manage to it so I'm comfortable for example that we're carrying.

you know, sort of interested in 81, and at some point, it will

Some amount of excess equity which is.

Dan Fannin: While we hope that margins improve, and they should, it's a result of some of the things that Paolo was describing and other things that we have going on inside the firm. We don't see ourselves dramatically changing margin, in part because the business mix doesn't change that quickly. Also, we want to continue to invest in support and control. We want to continue to invest in opportunities that are likely to generate returns for us in the future. We're confident that that's the right way to sort of operate. For 2026, we'd expect margins to get better, but not dramatically better.

I think desirable and creates optionality for us I mean, we could be driving up our ROE if we.

It reduced the level of equity, but I think that.

<unk> represents it sort of critical to sort of support the growth of the firm and so I think we're sort of happy to do that but given the mix of what we do.

Which is essentially supporting flow rather than holding any positions that.

It's an inherently high Roe activity.

You know, sort of come back, you know, onto the menu of things that we might do. Um, I don't have a sort of current price of where, we think we would be able to bring a at1. I don't know if you have. Oh, yeah. But we, we sort of, we stay close to all all, um, all of these issues and and I, I, you know, prices are prices prices are interesting, so we don't need to issue at the moment. So and we have, you know, we have a maturity in 2027. So we have a little bit of time before we have to make that decision. But there's certainly, um, we're certainly close to the, um, to that market. Yeah. And then, you know, with regard to Roe,

And.

My hope and expectation is that we'll continue to operate in that 25% to 30% range.

That's very clear.

Alex Blosting: Thank you for taking all the questions this morning.

Pick up a little up and I'm sorry to ask this but can you give us an update on that.

Ian Lowitt: Thanks, Bill.

Operator: Your next question comes from the line of Ben Budish with Barclays. Your line is now open. Please go ahead.

Oh, the litigation that you as a public company now you have to face and you know how much that is.

Cost and all of you the management DNA in terms of time and effort.

You know, I I, I believe that we can continue to operate, you know, in and around sort of the current levels of Roe. So somewhere between 25 and 30. Um, I mean, as you say we're not, we don't manage to it. So, you know, I'm comfortable. For example, that, you know, we're carrying, you know, you know, some amount of excess equity which is um, I think desirable uh, and creates optionality for us. I mean, we could be driving up our Roe. If we

And I think I'm sorry.

That definitely would need to be uptick thank you.

Ian Lowitt: Ben?

Yes, I mean I think that.

One of the things that sort of happens where the short seller report is there are these class action lawsuits that sort of follow inevitably with those.

Operator: Confirming that the line of Ben Budish from Barclays is now open. Please, Ben, go ahead. It seems like Ben Budish has disconnected. We'll go to the next question coming from the line of Carlos Gomez Lopez with HSBC. Your line is now open. Please go ahead.

Our.

Our lawyers in New York are extremely confident third.

They will be able to get that dismissed because it's sorta groundless.

Uh, you know, reduce the level of equity, but I think that, you know, Equity represents an it's sort of critical to sort of support the growth of the firm. And so I think we're sort of happy to do that but, you know, given the mix of what we do, uh, which is essentially supporting flow rather than holding any positions, you know, that's an inherently High, Roe activity. And, um,

The costs associated with it are not significant.

My hope and expectation is that we'll continue to operate in that 25% to 30% range.

And so it feels at least at this point more of a sort of distraction and.

That's very clear.

Sort of a nuisance more than anything else.

Carlos Gomez Lopez: Good morning. The first one is about the fact that you are a frequent issuer in the debt market. Have you considered to retap the AT1 market as well? What do you think of pricing in that space? Second, in terms of the long-term ROE of the business, when you went public, I think we were completely at 20%. You are now comfortably around 27%. I know that you are more focused on margin than ROE, but where do you think you will stabilize in the long run?

And so I wouldn't draw much from it it's just.

And if I can follow up and actually to ask this, but can you give us an update on? You know, the the all the litigation that you as a public company? Now you have to face in. You know how much that is?

Natural consequence, the same law firm sort of follows all of these sort of short reports and it sort of falls this is.

Costing all of you the management in terms of, of the time and effort. Um, and and again, sorry I guess that's something. We. We need to be updated. Thank you.

He is a class action lawsuits, obviously, we don't know exactly how that plays out but at least based on the advice that we've received so far it doesn't feel like it's sort of consequential.

Very clear. Thank you so much alright, thanks, a lot alright, well thanks, everybody. Thanks for joining us thanks for all the questions.

We look forward to continuing the conversation with you know with the analysts and with investors over the next period, where really as you've hopefully got a sense of from a.

yeah, I mean look, I think that uh I mean 1 of the things that sort of happens with a short seller report is there are you know, these class action lawsuits that sort of follow inevitably, you know, with those um, you know, our, you know, our our lawyers in New York are extremely confident that um you know that they will be able to get that dismissed because it's sort of groundless um, you know, the costs associated with it are not

Dan Fannin: With regard to 81, I mean, I think we remain sort of interested in 81. At some point, it will sort of come back onto the menu of things that we might do. I don't have a sort of current price of where we think we would be able to bring a 81. I don't know, Paolo, if you have.

Significant. Um,

The answer to the questions that are sort of excited about our prospects both in terms of sort of newer opportunities as our markets evolve as well as the sort of standard opportunities that come from sort of share gains in our products and <unk>.

and so, it feels at least at this point, more of a sort of distraction and, uh,

you know, sort of a nuisance more than anything else. Um,

Paolo Tannucci: Well, yeah. We sort of stay close to all of these issuances, and prices are interesting. We don't need to issue at the moment. We have a maturity in 2027, so we have a little bit of time before we have to make that decision. We're certainly close to that market.

So we're excited about and enthusiastic about where we think we'll end the year and then in our opportunity set in 2006. So thanks for joining us and we look forward to continuing the conversation with you all.

And so I, you know, I I wouldn't draw much from it, it's just a natural Consequence. The same Law Firm, sort of follows, all of these sort of short reports and, you know, sort of files these

Okay.

these class action lawsuits. Obviously, you know, we don't know exactly how that plays out, but at least based on the advice that we received so far, you know, it doesn't feel like it's a sort of consequential.

This concludes today's call. Thank you for attending you may now disconnect.

Dan Fannin: Yeah. With regard to ROE, I believe that we can continue to operate in and around the current levels of ROE, so somewhere between 25% and 30%. I mean, as you say, we don't manage to it. I'm comfortable, for example, that we're carrying some amount of excess equity, which is, I think, desirable and creates optionality for us. I mean, we could be driving up our ROE if we reduce the level of equity. I think that equity represents, and it's sort of critical to support the growth of the firm, so I think we're happy to do that. Given the mix of what we do, which is essentially supporting flow rather than holding any positions, that's an inherently high ROE activity.

Thank you so much. All right. Thanks a lot. All right. Well, thanks everybody. Um, thanks for joining us. Thanks for all the questions. Um,

You know, we're uh, you know, we look forward to, you know, continuing the conversation with uh, you know, with the analysts and with investors over the next period. We're really, as you hopefully got a sense of from, uh,

You know, from the answers to the questions, you know, sort of excited about our prospects. Both in terms of sort of newer opportunities as our markets evolve, as well as the, uh, sort of standard opportunities to come from, sort of share gains in our products. And uh, so we're excited about and enthusiastic about where we think we'll end the year and then you know, our opportunity said in 26. So thanks for joining us and we look forward to, you know, continuing the conversation with you all.

This concludes today's call, thank you for attending. You may now disconnect

Dan Fannin: My hope and expectation is that we'll continue to operate in that 25% to 30% range.

Carlos Gomez Lopez: That's very clear. If I can follow up, I'm sorry to ask this, but can you give us an update on all the litigation that you, as a public company, now have to face and how much that is costing all of you, the management team, in terms of time and effort? Again, sorry, I guess that's something we need to be updated on. Thank you.

Dan Fannin: Yeah. I mean, look, I think that, I mean, one of the things that sort of happens with a short seller report is there are these class action lawsuits that sort of follow inevitably with those. Our lawyers in New York are extremely confident that they will be able to get that dismissed because it's sort of groundless. The costs associated with it are not significant, and so it feels, at least at this point, more of a sort of distraction and sort of a nuisance more than anything else. I wouldn't draw much from it. It's just a natural consequence. The same law firm sort of follows all of these sort of short reports and sort of files these class action lawsuits. Obviously, we don't know exactly how that plays out.

Dan Fannin: At least based on the advice that we've received so far, it doesn't feel like it's sort of consequential.

Carlos Gomez Lopez: Very clear. Thank you so much.

Dan Fannin: All right. Thanks a lot. All right. Well, thanks, everybody. Thanks for joining us. Thanks for all the questions. We look forward to continuing the conversation with the analysts, and with investors, over the next period. We're really, as you've hopefully got a sense of from the answers to the questions, sort of excited about our prospects, both in terms of sort of newer opportunities as our markets evolve, as well as the sort of standard opportunities that come from sort of share gains in our products. We're excited about and enthusiastic about where we think we'll end the year, and then our opportunity set in 2026. Thanks for joining us, and we look forward to continuing the conversation with you all.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.