TW - Earnings call transcript Q4 2021

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Operator

Good morning and welcome to the Tradeweb's Fourth Quarter 2021 Earnings Conference Call.

As a reminder, today's conference call is being recorded and will be available for playback. To begin, I'll turn the call over to Head of Treasury FP&A and Investor Relations.

Ashley Serrao, please go ahead.

Ashley Serrao

Thank you. morning. good And

for who today and is CEO, our business Joining review the the Olesky, will quarter highlights Lee update. me call for provided the

future some Private dive among our filed like guidance, events statements differ Our who and the Furber, website Securities our intend little who our forward-looking as may Billy Litigation We statements information constitute actual obligations review are and forward-looking A to cause will results. use President Reform deeper is to other under results the CFO, things, Information statements. Hult, statements. XXXX. will FD. into from release to forward-looking and I'd growth earnings that financial and and Sara of to, the as Actual contained in a & disclosure Act such, materially initiatives concerning SCC our related a forward-looking the could certain that presentation of factors within reports the differ with disclosing to meaning with and material, may statements you complying of during non-public Q expectations, in SCC. from this results remind Regulation relate these Statements periodic means

today's the of $X.XX, per this To information diluted expense, excluding see the for per of earnings share measures additional we results. regarding are assuming presentation. adjusted our our reported presentation items, income of In regarding $X.XX. an historical with to D&A, addition, and in information SEC of measures, and related Refinitiv XX%, and diluted on non costs, transaction FX certain release XX-K filed net and reconciliations effective reported we stock-based rate measures, certain recap GAAP to the be certain we Form call, Please earnings the tax GAAP compensation these will share GAAP - GAAP reference acquisition-related including non - morning, posted non-cash earnings release acquisition

Now, turn the over to call Lee. let me

Lee Olesky

Fourth-quarter Thanks, everyone. with I Ashley. that morning, remember sitting Good pandemic. And a our on one we of were ago corner you here growing sense optimism, for earnings call. joining the returning this thank year

And of environment. get continued As with thrown create hard Uncertainty workers way. change work things the life, extremely our healthcare frontline appreciative in by curveballs and your to and adapt continue that I'm changing the all most opportunity. and to scientists,

clients, volume us months daily an which to but surpassed muted testament policy 'XX, and activity demonstrate seven importance As acceleration reflection volatility that across as life to deliberate made the cycle. innovation investments I in we evident their strategy day. clients years, important help time, actually critical overall be structure advance not despite is relentless March,XXXX, skyrocketed. every at we when we year highlighted a asset market it's we It last still trading March build clients and trade volatility could Electronic to is And reliant connected and our record leaders shift XXXX, with class, engage average tape XX classes. an the also to as an XXX or Today, trade of to evolution, electronic on mutually been our Fast-forward not only to electronification, trillion how will leverages are This beneficial. our see of reflection be clients we've over Tradeweb's record-breaking dynamically our increasingly to $X we our to helped and plus street solutions time. the were where this business clients a client a continue given protocols workflows opportunity This diversified marketplace seamlessly we extraordinary is its technologists a amazing trading virtual help an of a investments Ecosystem. believe and to in we've one was the who that differentiator early the the business during our monetary also geography. asset navigate made continue crafted Trading the asset environment and across we DOD the strategy classes, our as global over

of to share display in new just products. reported, I and Slide a fourth Turning on volume hitting we strongest quarter X, records was market history, the described strategy our as across the number

the the into Specifically, and were in basis, year-on-year a quarter year-on-year. The a 'XX scale currency revenue on XX.X% revenues basis. during of profitability nearly reported translated improved fourth constant $XXX up and resulting million growth XX.X% on

As points fourth-quarter basis adjusted XX.X%. EBITDA margin XXX to expanded by a

to this asset performance classes five, accounting with our XX% of across was revenue Slide respectively. our by and credit and strong XX% many quarter growth rates of Turning for marked

Money the strong by to growth driven in another mortgage of credit fuel performance addition the driven revenues U.S. continued overcame institutional rates, produced and government driven while another growth strong our was and partially cash revenue to and declined posted trading rates U.S. growth institutional quarterly strong slightly. efforts with was Specifically, retail repo market healthy organic continues another strong Equities were posted which growth bond in by NFI. quarter issuance, revenue grow headwinds by quarter, and sector. by diversify ETFs share that trading. across Credit corporate fueled revenues other In by equity rate swaps. a healthy bank treasuries and record Swaps our European central market products. helped

across proprietary our Finally, growth market products. saw data data APA a and

X, most a respectively. on translated Slide to and growth constant year XX.X% capital fourth-quarter Turning revenue XX.X% and currency volumes across basis, classes reported for record Record into strong our in asset XXXX.

consistent year. milestone strong we breaking U.S.. tradition consecutive focused we a investment. earnings revenues, free the through Nasdaq's generated of $X result as EBITDA revenue recorded margin basis of by fixed closed expansion,XX% a XXnd busy of billion for record the our growth growth, income. our time. XXX acquisition XXXX XX% scale our growth. top-line a organic we our approximately of and and flow The scale, drove first treasuries, year to As results In was continue adjusted points maintained cash our And initiatives very

to onboard offering. offering client enhanced credit drive product streaming Continued expanded all base to as global and four IRS, rolled our currencies, out our In clients we in and continue our we new we net in portfolio and innovation enhance with APAC EM offering trade functionality. our trading and spotting multi-client new

new make help another partnership 'XX We us the future, enhanced only with expanded well also for Tradeweb. repo types our money positioned believe trading, China have and southbound year CFETS We added our collateral not we tri bonds offering. banner for markets, -party investments in repo our to but also with

We will to grow diversity story actually further our was Slide position seeing growth anchored in we other streak expand in Today, accelerating revenues European XX% grown our average by we international X, at business of the a growth our we have years. rates, the display. component have have continue become highlight, on strong to continued our XX% our We come EM our over to also the substantial our EM strategy on hard Regionally, of playing foundation in XXX% our for strong a years business. international volumes business, next XXXX, IRS of of continue DS. bigger in in growth see we revenue been We for and was of speaking, which to businesses. have were Credit network Moving from another has has international presence growth currently strengths. we're our to of procs. and XXXX up believe over growth double-digit emerging since XXXX broadly growth accounting believe but few of room our Asia the cross-sell to are in EMC our we that revenue majority CDS, launch our a Broadly still And our markets with early, majority the believe to and XXXX. more EMIRS growth, centered revenues multiple to XX% 'XX. an comes worked and while EMCDS. and in now. The revenue from that IRS leveraged deliver our

We're in We has first, success. as things critical our million in margins help which been leveraged have electronic innovation markets. we'll over an Throughout requires being investment. nicely. and average update to the XXXX. and constant expanded our have of we EM, portfolio future fruit, invested technology journey into China In have early our EBITDA this cash history, trading the $XXX to Relentless six of progress. you since years, priced still investments also leading And last to investments bear credit. those position we've expand at as our in XX% shape Growing

we expect 'XX be ahead, year. another Looking investment to

the across the pipeline and and rates that be about remain share our our continues optimistic credit, business, market growth north of spirit company. we investments in of the are given for star While durability the gains, heavily collaborative innovations, to our concentrated

a eight, slide areas. four let update main focus our onto Moving provide me on brief

continues Our Longer by credit, as with quarter it to remain to solutions story. our business swaps pay high our a especially Client term efforts continuation a the is fourth success of off. With businesses we these their innovative and respect businesses. growth encouraging interest Both to the spread both multiyear saw share rate potential record credit excited in yield. for growth to now increase. engagement to saw see

momentarily. more and Billy the the As color provide turns. and quarter scale, strategy, increases electronification our growth initiatives rate cycle our on will

treasuries, channel. treasury pickup aided and to institutional the issuance by channel Turning that the share to The NFI with on rates aided the up the rose both volumes institutional market. wholesale led another backdrop product volatility, business well wholesale by and U.S. our U.S. to of year perform to healthy Market acquisition. the in continues continues of year, support XX.X% XX% and

by business inroads the existing have doing share T-bill making more Our further market. into driven gains been clients and

progress for currently invest integration going ahead, migrating back The functions and adoption office protocols consolidation. in plus. We've the middle related the wholesale early-stage Tradeweb streaming we broker and to plan. NFI we're continue several like according Looking to institutional to billing trade on preparing dealer made of and driving is

XX% helped wins daily healthy quarter. new the drive Finally, produced growth industry client equities, institutional year-on-year ETFs within from healthy a volumes volumes and with as the quarter average up

equity fixed the XX% our comprised with of ETFs During quarter, global contributing income volume XX%.

year-on-year. flagship to ETF franchise fruit expand beyond also momentum Revenues equity with derivatives. initiatives other in our double-digit bearing are continuing were up Our

continued of the remain our positioned as trading Looking from believe growth powering intact. the well initiatives benefit in forward, to we we growth And globally. trends the ETFs secular scale. believe electronic We remained growth

footprint pools. liquidity Billy. With classes different clients in year, to that, in of great 'XX, this As are we our we markets. financial month the the return believe we exited position a also saw We of as in first together stitch given and turn help and higher environment asset to over debate our and ability global I'll navigate to volatility a our they it different

Billy Hult

Thanks Lee.

a business. prices evolution way they about innovative challenge richer can relationship constant think important puzzle. build we we the stakes have Most pieces technology to clients has complement the pieces, how that so of allowed our Ultimately, creating conversations create trading of engage technologist important collaborate an the interesting best clients markets the solutions. and has to and to key. us our As compete. to experience in relationships, tables of candid deliver Relationships at with always a and Tradeweb, we been been trading the about deeply Empowering win-win from has with experienced been their the recognizing lead and and that business have to leaders income, fixed discover all product or

to swaps strategy is record working engagement and at Tradeweb. highs by Our responded have to clients pushing and volumes our credit

record market X for solve client a records And innovations new very for growing at credit strong produced we market pain-points. IG testament share, with for network credit, we building. to closer we're to another the share to high-yield to year the bring and another capping look Slide gains both a are to continue off hitting Turning quarter the to

As portfolio XXXX roll with further different enhancements multi-client and no spotting to was of trading mentioned, and Lee out the offerings. our net Alltrade

our time to and and our clients formula innovate help save money. remains forward, Collaborate the same. Looking

a healthy The with clients trading institutional business, to year-over-year. the quarter. to quarter protocol our fourth biggest AllTrade across was adoption with had daily contributor average brand of our revenue back institutional to quarter, XX% our portfolio which respond Turning wholesale another fast-growing and healthy RFQ, supported net produced growth strong spotting. innovation by record volume continue and up

trading clients to to provides years improve, over risk of strongly of trades. rates off a capped While the pleased an competition, better A retail trading increase volumes portfolio in for facilitated to our result, putting in rates for hit year. execute portfolio than are portfolio we potential that of to The increase. where portfolio do size shine the the a year our believe of $XX relatively increasingly quality record trading from doing in in for growth, primarily diversity construct trades the providers. with liquidity billion in volume matched trading record volume are trading managers quarter back, of in-comp as year-on-year. November which of bright, asset liquidity similar record solution increase we around platform year-over-year. testament Clients one our start with and $XX portfolio interest was ecosystem, utility were our focus considerable we of XXXX, key billion reaching percentage to portfolio become trading Today handful fourth continues in the reached advantage factor XXXX, on One of volatility A are even block portfolio buy-side. comprising the of portfolio XX% have the as of growth AllTrade, also where few conditions on has our industry billion hit helped quarter in fourth and increased. with as Portfolio rates nearly hit $XXX of This fourth of high saw Tradeweb tend dealers an of piece a trades in their trading illiquid in XX% the anonymous aim quarter a liquidity as execution bonds. was more record is strength rates. extremely ETF Tradeweb trading a XX% market. large improving with by up the XX% the Clients levels portfolios the last in rapid XX

all-to-all by and our RQ, We continue responder functionality. integrating in AIX, dealer invest network enhancing to improving

executing continues tool to their will proven liquidity great manage session risk, scale. portfolio our newer dealers rematch a to our We to after trade, has pool, continue to which a and which be trading develop for especially protocol,

volumes offering, which deep U.S.. our liquidity billion treasury though over net Finally, down year-over-year. with pool, X% were solid $XX spotting advanced another saw leverages volume our quarter in

More volumes driven net yield trade The lower tends larger flatter to up and importantly, activity, need to by lower the utilizing electronically XX% which the that number users curve were was processed actively spotting hedge. have year-over-year. of sizes reduced a

over geography, strategy double-digit institutional also saw of the entire Turning this to of each diversity while revenues our XX% our CDS European some, year-over-year, client growth. across and rest union credit provides type attacking In room our for our business, growth. revenues succeeding. us market grew the with healthy product, And year-over-year credit and that protocol, a is we believe tremendous

ahead, innovation excited we the markets. map are to drive by look our credit we As across road

continues swaps, story in both to on record volatility quarter were higher volumes, record credit, 'XX multiyear like XX%. as still a year-over-year just registered industry The full-year a swaps down increase growth environment year. Moving the quarter volumes XX% drove and a fourth

quarter, protocols. driven growing primarily market the get in revenue and of for continues our with We swaps over full swaps and the record brand climbing adoption to by a to share fourth XX.X% stronger. newer XX% variable Our believe grew year,

continue we our We a And solve marketplace are this for control. puzzle. and to very thing more businesses. Integration can things focusing pieces is to of around obviously all been with we've collaborate on big a across the leader the we the

a innovating by our across area market geographies growth focus. products, We with share higher are big and international swaps, driving being protocols, of

wanted LIBOR LIBOR all of you for and major Swiss a little the discontinued. transition fourth update momentum on across the the time With start continues Yen markets currencies. During record has franc to currencies spend broad Sterling, and give gains in saw the an the Japanese our been across we quarter, with products year to I share our

benchmarks. done most and Around Tradeweb liquidity our access LIBOR have no of now While the SOFR key the portfolios trade. active in this risk U.S. seamlessly a X/X of the published using played new software-based all XXXX, by ensuring dollar globe just occurs can rate clients under be XXXX, transition be will June until helping their a clients and role in added new in are around move XX% has clients

structural continue market, making and Beyond respond cleared rate to EM adoption the in the early multi-asset transition, trading. in advances changes risk-free we to but swaps, RFM swaps strong protocol

fourth saw revenue EM than quarterly of the our doubled quarter, and activity run we we During from record more a beginning the year. have rate the

We also activity as deepen onboard record pool. our RFM we to liquidity saw continue dealers and

revenue believe potential ahead, growth long-term Looking swaps meaningful. we the is

we puzzle, only collaborate global clients markets cycle an hike fixed the we believe In broader swaps business. backdrop the also still electronified, with rate of presents income our the attractive can XX% believe to actively the grow. digitization near-term, more markets market solve looming we while the pieces and the With for

invest grew in continue Finally, we leading quarter. in the of to AiEX The trades trading AiEX. number by capability, XX% fourth our year-over-year automated

Our most asset stake classes. sophisticated clients solution are cable increasingly adopting this globally across

daily while growing trades XXXX, for the deploying still we we AiEX the up fact, our yet rollout, are a In adoption. larger anniversary client in in were marks volume XXXX trade XX% comfort by is AiEX of XX% in sign believe of early which increased average client overall sizes. XX-year

eventually, the past, the You've from the talk trading the in solutions. heard about and phone to optimal the more us to automated from mouse, then mouse move

swaps get seeing business new we enter more that happen participants and are new trading strategies. electronic, utilize with clients that markets in As actively systematic our automated

invest features to ahead, we more and will Looking functionalities. to provide continue

Sara financials me possible detail. it As give let trading turn over more to we the And strive experience. to our to with in our best that, clients discuss

Sara Furber

Thanks, Billy.

all through will to period, noted. go otherwise year prior I unless numbers, the be the As comparisons

on recorded The our XX% trillion revenue when we swaps. daily increasing from and growth higher base Let of XXXX XX a than depreciation swaps, is XX% global of year-over-year, currency was the of basis. highest We customers growth that government by reported Euro our XX% bonds, short-tenor me X.X on of performance. begin U.S. predominantly denominated notable average and derived of approximately given our our of excluding up Slide corporate include a quarterly in recall with volumes credit up Constant other and XX.X% revenues of the Areas volumes ETFs. reported institutional below translated a revenues currency international fourth-quarter rates. an constant summary dollars in Euros. provides our into XX.X% on volume fourth-quarter XX, and currencies Slide than average overview XX% earnings the

constant our trading revenues increased our Total revenue increased to XX.X%. currency were basis. fixed while driven variable revenues acquisition, X.X% NFI by by and growth the the asset on was XX.X% major total down Our of by credit grow, continued XX.X% revenue primarily by four credit. Rates driven up revenues Other fixed and X%. revenue a fixed growth related trading to addition was classes European

margin fourth to reminder, APA at this continue we due X.X% by by and of adjusted nicely by benefit retail for increased it's as to in basis enhancements a 'XX XX.X% technology data scale. quarter does As tied relative per expanded growth as periodic to and Adjusted $X.XX. All income fluctuate, net products. in performed share data item line from XXX proprietary revenues points came EBITDA to diluted our clients. we affected Market in reported

mostly swaps I'm four sum, fees million per per per million fees one-year asset were fee our the within our Slide short-tenor by blended swaps, primarily higher in XX%. driven per growth lower million lower to increased excluding offset a million million mix up per describe our stronger by are futures, growth trend classes. of In of on in million result blended and strong various credit, X% as fee about a products Moving under year-over-year, fees fee the to per XX, on

per X%. starting rates. the underlying class asset Let's down million per trends with Average review rates fees were by

products, For per primarily fee cash X%, growth treasuries. were million fees per U.S. due up rates to million higher in

fees than products. in lower For fees average higher in high-grade In million per increased credit, to for RFM due lower long-tenor per was drilling high-yield, XX% fees on which swaps derivatives, credit to Continuing down due duration. which OIS stronger and million, per a growth swaps, which million million and fee fees per to includes to rates carries average a from due offset primarily U.S. carry EM swaps, fee other decreased fairly were short-tenor that and a credit, per the overall reduction in cash average per fees million per features, increased million credit. rates, by flat, XX% million growth cash XX%

Our high-yield a fourth in were volumes quarter. record the

per processed was Looking driven at million. and credit X%, the million by U.S. fees per in Continuing growth flat. fees derivatives category, for million with per electronically average increased equities, cash fee equities CDS credit

we driven Recall notional equities, U.S.. due which a the per and average U.S. X% per per increased than fees carry million ETF in EU cash fees average. decrease XX% within in U.S.. per traded. average in to the an share per volume derivatives, to For in and million decreased derivatives, per was growth Equity value lower derivatives fee charged million for fees by share million due not increase a equity ETF. per million U.S.. traded. by fee

on a business Finally, XX markets, fee There and been and currency per for level, no was change continue to expenses XXXX reduction operating we costs were as and Xth Fourth-quarter due by the environment. is and basis Slide markets and XX.X% of favorable performance-related our offset This dollars lower due fees technology money by remained the higher reported Compensation in to CD per expense philosophy as were more FX. our and an growth. million. movements increased NFI. primarily increased U.S. retail per professional compensation. within fourth XX% in compared million X% constant million higher Recall in compensation, The details rate XX.X% our interest increase communication, of fees on higher adjusted Adjusted technology Adjusted and non-comp per quarter XXXX, our approximately a well expenses and here. employee to fees low expense respectively. driven by the in communications a currency growth, which to as pressured repo expense basis reported other XX% offset expenses. G&A, as a high retail currencies Euro million, X%. base the than noncomp inclusion a predominantly fees headcount partially on than for our increased At sterling. Adjusted quarter support increased in constant basis higher X%. our higher decreased denominated has to money G&A invest increased

Specifically, streaming due communication primarily clearing volumes as of costs data U.S. growing and a volumes. in technology and to increased treasury credit and higher AllTrade fees result

guidance. In data $X.X in fourth previously partially decreased and in fees quarter this million lower versus increased management Professional's $XXX,XXX in to addition, Favorable also our movements in capital and communicated 'XX offset costs we Adjusted the administrative continued FX by due saw an recover details infrastructure our data realized X.X% gain and fourth the entertainment investments XX investment and Slide continued resulted our legal due general quarter primarily realized in loss impact from of to infrastructure. pandemic. travel an and in technology. strategy increase cost in gradually consulting quarter 'XX. strategy as

a cash in our $XXX trailing position $XXX cash on capital flow XX and for in and months. cash strong return quarter holding million First We reached fourth nearly ended the million policy. equivalents free cash position and

'XX. was undrawn per year-over-year, end. increase during the to of of offsetting dilution million line $X.XX Class $XXX for in We We million B have software a equity dividend of with million, XX% CapEx year remains development the quarter's declared our capitalized that quarterly A expectations. and and an Class With spent a as this access share. $XXX revolver $XX earnings, quarter Board

Specifically, the buyback the we quarter. $XX spent regular for leaving program, our end share of million deployment $XX million at under future

exercise cover million tax of shares withheld In obligations payroll addition, in options. we upon to stock the $XX

to we from our share equity reminder, dilution ongoing compensation. to a use plan authorization offset repurchase mostly As

this Turning and range approximate of to can XX% EBITDA XX%. increase, to a in continue expecting operating adjusted of margin we and from million. expense compared we to XXXX $XXX line guidance to from either end expenses would our range are of $XXX for an We at will with The in range. believe million represent XXXX, is invest to this expansion growth adjusted XXXX XXXX average drive which midpoint

rates [Indiscernible] key for to and described, focus continue invest a we areas long for runway As being with credit we growth. future the with

products, new investing are adoption, introducing reach. our new and geographic We in and protocol expanding driving launching

Some have to that of investments scale, we continue to a these pipeline grow. will prize and to but some take technology time innovation continues

expenses G&A and course 'XX through expect marketing fourth-quarter T&E from we client to levels the increased to the of as year ramp spend drive We engagement.

technology grow communication fourth strategy driven expect 'XX We infrastructure. and levels, from quarter to investments and expenses data in additional by

Additionally, of U.S credit and streaming treasury our platform. we growth expect continued Alltrade,

rate we non-GAAP to for purposes, use forecasting assumed continue For an tax of XX% year. the

which our to expect opportunistic CapEx midpoint development XX% due to XX% We million infrastructure growth million. our development on estimate We enhancements. be spent CapEx, The than to$XX higher support historical related of CapEx XX% to and CapEx. and be guidance to growth capitalized growth, software about software approximately be $XX XX% implies that will would be be maintenance will initiatives, year-over-year related to our average will

which X%. expected growth to due accounting Acquisition midpoint be $XXX would D&A, this, down Excluding is associated million. to increase the we transaction-related and push adjust out with be Refinitiv

XX, our calibrate have you count your quarterly XX for on we models share for sensitivity updated share Finally, Slide to our a help price. fluctuations first-quarter in

Now I will Lee. turn back it to

For concluding remarks.

Lee Olesky

opportunity. Thanks, not navigate us have at that over is of where helped of helped foot we embrace the our pandemic, balls. only electronic providers, at we and We've curve say us I all years proud especially be are recently, move SEF's creating evolving of with network not team. discussions adapted third-party Clients At on electronification Tradeweb we Part having that better the to a released have solutions, days, strong This market see potential early firm. now, January these and suite MiFID regulation the Nearly volumes. dealing has transition. two the structure and trends, the only collaboration XX I'm contributions connectivity. would into the getting change liquidity we're is change, were and most Sara. last this of on than company our front record U.S. another year alongside to invest the towards products. average Dodd by Change company. pieces our as is new market the them. the in we -Frank are this of already for started the but the was the or clients, trillion volumes potential The milestones continue regulation. we years facilitated as the but end It's changes. innovation We The to focus this normal, excelled creates immensely it and we've it.XXXX excelled on again all regulatory of the of yet showcased in historically of marked day, positioned morning still ethos to also Treasury in to XXXX regarding record more Be another II, the LIBOR the momentum, that place. in numerous excited has ongoing technology, clients and but and as to built protocols, opportunity also the hoping network in making daily powering secular with X capitalizing a in positive track the get we

asset broad credit, we're and in across than more over January four versus a U.S. few come record best and new year-on-year new to share January high Electronic bonds yet years. XX.X%. year-on-year X.X% the and innovation the to X% U.S. about hit by businesses, of XXX our We government is we credit. next U.S. up share market our our for growth basis volumes bring volume the January were grew can classes our points double-digit yield all high-yield excited to market with believe and increased Specifically, over Electronic high-grade the European 'XX. also revenues record In U.S. we across of

it of my on to We the long-term margin Tradeweb. between I for thank that, ahead opportunities quarter colleagues are Ashley fourth clients in the And by right various balance us With over and quarter. our driving to I'd efforts our create contributed have for like the capitalizing shareholders. on year remarks questions. focused to for turn extremely for value for growth strongest conclude history our investing to thanking partnership to their that future continuing and your strike and business in for expansion the a and to want I my will record their

Ashley Serrao

Lee. Thanks,

please Time. only, end at queue to additional ask feel Q&A AM, the take question. first into can questions Operator, one back question As limit now you reminder, XX:XX end. free a yourself our and Eastern to will hop at

Operator

you. Thank

comes Our Jefferies. from first question Dan Fannon with

now line is Your open.

Daniel Fannon

Thanks. for sits the Good rate and the prospects frame and think maybe outlook markets the as higher between morning. as Lee. well talk as the was it cash you the rates we about franchise this a that with today the in of upside could you the about maybe start bit swaps as opportunity business year distinguish I backdrop. hoping markets with

Lee Olesky

during and roughly about growth. had revenue of from activity in you and period strong we business, all XX.X% And Thank rate can terms I for like real and I it's comments very in period, broad specific. really that hikes CBS on client tapering central when And it volatility as (ph). cycles right? unfold more rates fundamental I've recently, for our something but these already phot have cycle back some CAGR make Dean XXXX business. speculation if combination the really for today typical begun. to the good base, is years that views, about of more Managing question. that about when rate. with a that on -- this a our it. bank Hi seen activity expressing and this, you XXXX go risk, -- Not a to U.K. recipe Hey and as typically We thing you positives in too our be can't you the we it's heard for are had have a talking

across to a believe this a So going terrific is we be will continue real impactful. very and we very, us for derivatives our positive The that think and swaps has to been be both business for us, do cash business business.

think as innovation, that challenging even very good our levels. and as rates past we You all the Jan 'XX see you will well, move that the doing We're that things don't connection focus for to about we ray But we've been are with market the in changes, be these And the that that it rise, as to Mortgages we the bit network. things expect the we've because things And decades. spur will volatility. a couple business. seen continue When for more that's control. on know. which don't last to going And typically can we our like forecast the of we all macro

So respond to question. we move to needs the continue really digitize the want for clients’ are. Thanks. our to and markets forward to what Thanks things

Daniel Fannon

you. Thank

Operator

with comes from Stanley. question Cyprys Morgan Michael next Our

Your line open. is

Michael Cyprys

morning. Sara Billy, Hey,

driven do to that Blaze? putting extent from is And about competitive on about sort the hoping by more is, here? question the role was key little is platforms a see playing color driven that ask also are to business. market just Or guess drivers. it capabilities you of bit And you these I from wanted it solely platform or being credit any clients extension really use for switching up. by share gains here what I guys is pricing conversion the being other then just Just

Billy Hult

appreciate for -- way. we you question it's Michael, I positive of we a thanks Hey think in that Billy, framing question. are the way the kind

And yield in gains fact think four numbers, share great of [Indiscernible] our It's off so charts kind that or journey in -- IG, doing right? years less now share than strong about we've market the basically the that X% the ago clearly having. about credit, really XX% really these to market market five posting high were numbers been in interesting share gone January. To to XX% were been from that there's we've talking

consistently. Lee it's an timely business, So think credit our said and question. and we this, very interesting about When

an to the really have business, always The institutional is It's the have competition. we this competition think way wholesale our with desire think there. spur innovation. interesting about, charts team to team. communication, and market's And our I to the starting not great thing this competition really talked off in It's is space. about team quality in just then competition you The business good first

listened answer, so share phone, fact of digitization. of a market like the much science exact very doing To in doing that also polite hedging. coming like would kind trades. think question benefit XX% kind there is the we getting perfect and to and then answer. the good which competitor look think is and and all kind your in professional of exists. of our that spotting from that that to ways We've back from, know there's kind And we biggest And from at question. do about we forth way, still can It's credit, of of portfolio Lee way, as from and spoke when a you when think But that the manual other specifically in net still never a competitive if who myself and are were of the about the trading like talked of we've trading, a it's is always obviously The take it's obviously we I you where Sara, and there's confidence electronification question of is? lot well, earnings fashion it's something, a still the innovation, we ask of portfolio about kind around phone. So are about we us things calls spoken around about that really that good way kind all-to-all chance I business portfolio advantages share and gets for trading. done to net and volume happening manual and trading old example, continue gives

kind well phone. fastly We're clients. would So doing and significant share taking quickly from staying is say market the and to The add and in still these ways is what phone that innovations with I advantages in moving credit. really of all you keep credit we're to

phone continue the feel strides We're also going we margins. the on so volume. competitive, making on we're way, big business to, our like and traditional to moving are edges electronic We obviously around as we're

innovation, So then bit don't a to. about we we've lead pricing, consistently, think you. And of like really it is need package to combo be pricing, honest think said little we we with very like don't like with a we really the we marketplace when we this service, expects we really confident us offering than priced, more quite expects our bluntly. marketplace about like have Well, pricing. great feel delivering the where feel just results. and feel But We from

of that's there down kind that feel for path. thank we're go-to we and question. like So the to going And you our continue

Michael Cyprys

Great. Thanks so much.

Billy Hult

Yes.

Operator

comes question UBS. from next you. Alex with Kramm Thank

Your is open. line

Alexander Kramm

one is outlier. an up terms very rate proxies trend, daily little going looking quarter, Lee, in all good. down this earlier of October, January compared quite of volume. I business markets, the far This understand start that which you trying to a comments made average such morning ended I I what know comment fourth volume frankly, doesn't of what seems Hey. a so to we everyone. sorry in so come interest you was or differently. again, seeing is November, the so particularly want that we're XX% just on one month on -- tough back to make for it's bit off Good that in made where little other it bit I to comp, to making in a and and year, a fourth a but rate the considering swaps but volatility be being quarter, a January focused If near-term, happened to think good maybe or for the

and So you talk maybe can any any offsets would be color that helpful. about Thanks.

Lee Olesky

for Sure. question. Hey, Thanks Alex.

it's the First I'd volumes up year-on-year. say said having still in early quarter. swaps in But are both revenues and are off, double-digit January that,

So confident there. going that's on we feel about the reason what's

quarter, the third that we got Our have It's also swaps strongest every month January the that obviously. and markets. evidence be are our keep of the there rate tends quarter, we're to swaps also is our higher set mind the in March, month seasonal for that's factors further role period up of that's so you and strength that's daily to in institutional revenue run seeing than running fourth another

characteristics we -- -- offering doing. term the supposed to we're up not also focused year-end. into really Expanding more a have processes pleased I our of balance read on what even sheets month very pick or think a managing with a think is of not markets investing long it of their wouldn't heading I that focus offer look particular a you're here. the number the particular But But quarter functionality -- focused We're business. You in occur. month. into the to We're software to on too much strong more that January. to was We're on actively with dealers January,

market, As market. and phone Billy was swaps saying, if the this at of the you that still largest that look the phone XX% market case is the share, is

of the we the we've digitization focus market confidence in have to which a in look, That market where going last for is activity does in, in of that's been which Adding wave, So a functionality, the In of and for do monthly, by the have on that do is conditions, how my clients, quarterly month the lot on. we and January secular the we years. to after way what kind lot strong measure. January. we're you're adding going last was a depends doing kind best opinion how trend this January

strong think very another very we had fact the So year, we that is it's -- this January positive.

Alexander Kramm

sense. Makes

a As I said, month one year. make doesn't

Just curious again. [Indiscernible] Thanks

Lee Olesky

Thank you.

Operator

you. Thank

Repetto Piper comes Our Sandler. next from with question Richard

open. is line Your

Richard Repetto

XXXX. Lee on morning, and a Farah Good congrats Yeah. great

it like well-positioned. into to My get hit in Looks going rate highlighted as high Billy, going even portfolio rates trading. it talked you and stuff the as well-positioned a XXXX has really is well. liquid been be well. bit, about to question are you're trying on higher guys hit You

what's So going outlook market forward? share [Indiscernible]. trading for portfolio your I guess

Billy Hult

offering And like Rich. bit trading, While now little too? sure now like think have have we portfolio has is is we this being and the of in trading, trading about clearly, portfolio low Billy. really way I'll that as question. has work become same way trading -- well a know of for this quickly that changes, a the execution, will volatility describe around confidence being the this levels, very still what digested we say around market around question it changed the Thanks Look, It's it market sort premises really in Hi, market the getting real portfolio talked changes. strong risk now all from much around work so the transferred as this of extremely works markets. will portfolio lot as certainty that for and of would it the We makes all-in the a we will. way around the

bluntly their The sell-side started investments kind on is of happening very mention strong, you, specifically around trading the really APIs is rich, other change. just would they technical to amount the really has are that that portfolio integrating trading to around I thing way just right? are portfolio The of stuff,

the give we an the widely better now, question. to So and interacts I'm where around or light-bulbs It the for go. hedge light. need think with specific I'm and going community. strategy embraced of you that portfolio something But the about And gotten a that of And portfolio forward. to anyone going I'm to buy-side it's type being the these fund us the to know, stronger understand not that shining definitely. getting right for and trading way to necessarily not sort sure that that's going number is the of a functionality will I'm signs going you from portion say going absolutely about give for to kind is and anything market like asset significant a is thanks around are mainstream manager trading you in significant

Richard Repetto

it. Got Billy. Thanks,

Billy Hult

Yeah.

Operator

you. Thank

next Our Sachs. question Goldman Blostein with comes from Alex

is now Your line open.

Alexander Blostein

comes wanted to rate XX% question it respect the dissect the evolve? is swaps Can the opportunity more as for to looks non-U.S.? to help when profitability market like catch zone rating, Thanks. It to on likely implications business have Hey, bit for the specifically. non-U.S. the the in us good you the everybody. a any capture share the are non-U.S. and And U.S that meaningful swap, guys little Thanks with business up how revenue there broadly. morning, to well. I could from versus if U.S. you market piece, about

Lee Olesky

good is for you. this Thanks a Lee. that's question. Yes, Thank question,

to things and by be was years. which That of what regulatory tend -Frank So this on is seen slightly something over like out of Dodd and the there broadly the swaps, Europe sync regions the a in typical certain kind the little sync U.K we've so change being bit of front. more the the digitization U.S. occurred of before driven with came in so behind changes in Europe the which a are on and out

later. of market that share whole just So electronic kicked what's in

what like We've You've you the it's rates, opportunities trade you through customers in. the a years is both cycles were stuff similar. though, couple step myth, are regulation This that And the in swaps, over electronification very same of back, think I very, to see different as a -- on the acquired U.S would of Tradeweb. up a kicked categories interest take a gone Europe acceleration entities Pricing occurring marketplace, through the different when step room big are Europe on the overall got the U.S.. take Europe. the always to behind of when in say, the bit back, catch slightly big I is a depending in the right? an and the obviously for electronification both offering. of lot you products, last

for those in each have growth teams trade coordinated it's both was of of of takes on our both they've in you lot clients. actively, The to a we good time locations, though, regions, of really time great lot leadership lot That made has are very think in positive a different broadly But those get of U.S. but Europe. London the dollar I get depending I would we're about in But with imagine, within and team the that. we a Europe. and network units spent expanding currencies been in last progress the base adding to very they're overlap whether particularly two up in teams sales out customer a numbers. the as the for customers, show Europe, year and week there's different business setup ultimately Yeah, revenue clients. in more over just in

is ultimately a and electronification by. out really my I years terms kicked and swaps, market mind, by we you to regulatory difference a little living The as of first 'XX, the so when actually swaps London. of Quite the up thing something when the you number that bit thin. at time while a maybe the the -- off those Europe was yeah. last will months, took markets, see started U.S. we So do But in think changes months. 'XX, the two between of sync which in in that's six in look in in though, price, to closer I ago actually goes in markets. had Interestingly, as show a few was we fundamental swaps

in the started in first, side, changes of kind it on is of there actually up. accelerated but then terms So occurred bit a U.S. the regulatory behind really electronification, the catching and but now things Europe

Alexander Blostein

Super helpful. Thanks.

Operator

you. Thank

As gentlemen, instructions]. a [Operator and reminder, that ladies

comes with Deutsche Brian question from next Bedell Bank. Our

Your line now is open.

Brian Bedell

Great, thanks. folks. morning Good

XXXX in versus Billy, appreciate we're to there credit U.S. on revenue trading good -- third than side. the in Let’s has little portfolio [Indiscernible] quarter different. come quarter XXXX and other things in the contributed. shifted in do credit portfolio in is, on lot drop guess like U.S. 'XX. on I on was about comments, It more trading, a portfolio two-part trading. a One you driving more U.S. I 'XX lot secondly, gains a think know in terms share [Indiscernible] But just o non-U.S. of that a other credit. your the maybe international are your tradings trading that and it you factors And quarter. in gains XX% trading I share in in obviously looks back in all I fully in you story X% maybe guys. as see then dynamics of so a portfolio like growth then going what think what's [Indiscernible] just on the the a fourth

Billy Hult

protocols a market. is fundamentally And think that clients, important that part it different around for a the we presenting the first market bunch second. functionality that than obviously, I'll sort see I value answer anything, driving wouldn't we right. We like of all-to-all see the as Brian the how to more second all-to-all getting to for of and our RFQ say trading. these market portfolio absolutely

much trading, clients a we credit. prevent frankly, then and all-in they anything up to around so deciding putting look into way. interesting we as wind in and are portfolio we else are energy our then of And into that offering to certain investment all time And this and or quite as

I great that So around in to get then market mix interesting right, we feel bunch going we're offering concept to can we in of clients, different if clients very that in with our specifically trading would a to important. environments be to confidence them. shape working come get being as like back right portfolio this

you definitely would to I repeat for first highlight little you. maybe, just a what said that. The a so So quick that of was static very part second,

Brian Bedell

Are you sure yet?

Billy Hult

Yeah.

Brian Bedell

U.S. The reflect what you're, U.S. ADV. grew Slide for think the portfolio was as I we're internet the versus and international quarter and wondering trading in drops linked-quarter international the going X on

Billy Hult

to light equally is regions. bulb portfolio tends same trading fundamentally way trouble Europe The that myself the real appreciated strong it quick, in of very is goes in Rich, very that and not way get value sort the will resonates in and the only the off U.S. say equally to both Europe thing U.S. Europe I in with a would both in quiet in in get I say fourth-quarter. the

Lee Olesky

Yes.

The more even it's add with we there's me, a its thing lot started trajectory the cycle. month-to-month, years ago later it's surprising not add, and is so three is inconsistency in growth to that from a portfolio because just see a of would Europe slightly maybe bit I earlier little quarter-to-quarter, to other U.S. timing perspective, in

something news market incredible a markets later the different adopter I designed the Europe was spread portfolio different we've platform, the so remember -- to U.S. bit, by we're it great I our year, I of classes. with a international IG surprising it's the created this what but is that not we've asset but that one a to to something trading. think applications exactly year. of in now thought think of that a strengths lot was the timing, was A doing don't designed, is and actually is of,

their later. earlier -- of So they're life This little a cycle a in year is growth.

Brian Bedell

That's guys. great color. Thanks so much,

Operator

a you. piper. Repetto follow-up from Sandler Richard I Thank have with

Your line is open.

Richard Repetto

two more Hi follow-up close or years guys, ago Billy. to Actually, one that. again. about Billy for

quite pandemic refreshingly -- the blunt out to-all during volatility your of as blunt, you pretty it wasn't network - as when started all the [Indiscernible]. You're when market built said trade that

there I events in high-volatility share made now is happen What Now looking happen -- what that would over if the institutional you're gains if with question and penetration the at of the marketplace. guess would years. you now same was the assuming two market the you deeper. you've have volatility

Billy Hult

we Yeah, that functionality. will resources and I and our that appreciate equally We was will much be that. AllTrade feel around the competitive get I possible, that, know that we confident reflected zone any all share into going blown more about we've which about that that. then be anything the gains extremely our is are now feel of confident if because hold investments I made kind March Rich, markets XXXX, and blunt of the to we

to So you. that's me again, back speaking bluntly

Lee Olesky

not We have to pandemic. prefer another

Richard Repetto

for curve been ball like know. we But a while. don't It's Anyway. Lee, said, you a

Lee Olesky

question. for the Thanks Yes.

Richard Repetto

you. Thank helpful. That's

Operator

Thank you.

Kyle Voigt KBW. from Our next question with comes

open. is line Your

Kyle Voigt

bring just impacts to just or treasury proposal, you potential as ATS from well? proposal any from that EFT's standpoint compliance of in with standpoint compliance Reg CI, could or an kind platforms and operational if under wondering expand guess costs upon

Lee Olesky

we standpoint in a array When it's little we like transparency instance, the respect a thought as ATS, we for practical operating Thanks, start with big to Kyle. We're but we challenge. don't would through kind that more a just basis, to ATS by bit not that are carefully. see pretty proposals regulation see cost saying, we'll broker-dealer It's significant so like set do, it been are a [Indiscernible] up focuses and for of it another efficiency continue from a thing. from Sure. things some take and following I in of that. say, There so a are all that, off very it as a we're I proponent Reg been to for to us, Yes. we to some comes that approach. two and that we've We No, want taken on obviously folks. instances sure kind -- very thoughtful to ultimately more that and of would engaged Tradeweb that's of that we've carefully Overall, for broad stuff have significant decades a in it's a to we're that change. see of a something proposal we regulated and lot how don't impacts and implemented. make all just of it's terms how it about But should

Kyle Voigt

market Great. Thank just if a I follow-up then can on quickly data. And ask you.

market terms You of demand gather out that ability share continue helpful take just in data all growth view Thank you any increasing wondering the on really datasets would to XXXX. in that for for platform. And your across the trends you. the to how products. underlying framing really you're I'm continuing be to monetize,

Sara Furber

This I Sure. take Sara. Thanks. that? don't Why is

our is is ahead, in proprietary on that we 'XX, a we trends our coming there's with has that that in, new products. think lot including positive. pricing two Overall in with the so certainly what that from positive clients, outlook addition But the remain that of have, that the that mid Also new see alluding clients continue TCA, line, data. unit growth. saw benchmarks for I you some line. grow, which to think products we that, think to data We've positive quite line of to, and seen growth. components Obviously opportunity new we API expect APA Refinitiv, data NFI looking were single-digit you market in as I as market for adding well

Kyle Voigt

Thank you.

Sara Furber

No problem.

Operator

from you. Alex Thank have follow-up And Kramm with I a UBS.

Your line is open.

Alexander Kramm

happening. Hello, Also think define and trading how the around actually an seems how are wanted to an there. active side, trades quickly hey. like you the market again. I there's also on debate on active many portfolio debate Yeah,

these day it, or this the -- over trades And can already, also, do, look how if you I generally sure client and platforms, this cannot you we addressable happening how talk can addressed going extension? to missed not then talk marketplace, the on the about you better at if portfolio-like you terms maybe the what's get sorry on trades how but how So when many you overtime? many trades side, for a has etc., and every and portfolio your sense big are trading so other on in maybe market phone actually changed

Billy Hult

of portfolio actually other going transaction to of we major to never higher amount do. The like ticket business that trade types have or trading Alltrade

say day. do of I a So reaching some portfolio XX trades would XX we our to

think describe trades. the block trades very done to of are is I conscious through that what trend that now we around as would portfolio size be getting

exactly think significant. protocol. through done and I our correct. this number getting indication perspective portfolio that I are So style We risk transacted $X that can from trades real trades real That's this get did billion of a

getting tell a feeling of real portfolio is as by it's risk on trading. on funds hedge Clients to can asset becoming you adopting it It it the general this, -- we're protocol is our real So transfer from amount great and it's mainstream, a are managers tool. a questions question.

has this early around general partnering the Our being adopter given the this significant us being advantage. and with is on feeling like protocol and way pretty marketplace right early the a

Alexander Kramm

again. thanks Okay,

Billy Hult

Yes.

Operator

call. you, for concludes Thank today's this participation. Thank conference your you

disconnect. now a have wonderful may day. Everyone, You

Tradeweb Markets (TW) 3 Feb 222021 Q4 Earnings call transcript