TW - Earnings call transcript Q2 2022

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Operator

Good morning, and welcome to the Tradeweb Second Quarter 2022 Earnings Conference Call.

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

Ashley Serrao

Thank you, and good morning.

the review Chairman quarter the a update. for Olesky, CEO, and today business will who highlights me call and are Lee provide Joining for the

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

today's earnings reported these earnings we release we presentation. share In non-GAAP addition, and GAAP morning, on non-GAAP in diluted regarding certain GAAP posted our call, recap, of measures, will to measures. Information reference measures including reconciliations with To $X.XX. this

XX%, adjusted income presentation expense, see of of the the assuming to results. effective D&A certain the share Form and and release additional regarding stock-based reported $X.XX. filed an non-cash the Refinitiv-related net and compensation at rate information earnings FX with certain SEC historical transaction acquisition-related be our diluted Please acquisition for costs, Excluding XX-Q per tax items we

to Now let call turn the me Lee. over

Lee Olesky

second quarter surging rate and Ukraine. uncertainty. the the led beginning events thank increased fears XXXX bond as joining chain highs the investor morning, you of valuations. equity supply average, engaged quarterly with bond The war issues frantic growing our And to a wider Good hikes, spreads brutal We to global XX-year as yields, macro earnings continued lower inflation, quarter and with corporate hitting Thanks, and coupled call. on June, recession into for remain they another of Ashley. that's everyone, second continuation market trillion in $X government clients in our daily more traded very record. setting X-year than These backdrop

our generated strong thrive. yield by record hampered highest other curve. client double-digit Our second its and certain while Tradeweb quarter The to for mentality allowed an risk-off more as revenue one-way revenues certainly translated into products was were volumes growth products conditions continued all in history. traffic, same the It

and across derivatives diversity swaps, business like We last building in second and advantage over class global multi-asset Credit, mover Treasuries, achieved early in global decline moments years CDS, XX the Our quarter multi-protocol this. global across munis, our U.S. revenues really ETFs, repo. U.S. equity record shines

and bonds to produced also highest achieved quarter continued its quarterly also in a the second In revenues government credit in European currency European which revenue great business, It's basis. history. fact, pickup we retail record the our on in constant see

margin resulting basis. year increased and profitability full to improved and XX.X%. revenues X. were of year-on-year adjusted XX.X% The EBITDA the to basis a Record on growth XX.X% as scale our Turning reported a quarter second revenue into on to translated Slide second $XXX million currency quarter up 'XX constant relative

X. Turning to Slide

growth, of lead the our XX% way, by rates XX% This performance continuing quarter was asset marked for and across all and respectively. credit revenue of with strong our classes, accounting to

revenues, cash fundamentals and backdrop. organic equities by strong markets solid posted rate in highest posted across the market credit Money Muni, equity ETFs growing record, to Not growth and second global produced coupled rates, with by its the CDS grow channel highest driven in of with products. driven credit Global addition its helped by Similarly, share retail its volatility swaps. our rates by revenues and positive NFI. bond the another Swaps And debt second were corporate be driven efforts given institutional institutional quarter government our by government franchise. revenues trading. quarter overshadowed, -- a challenging U.S. declined also CD revenues levels, fueled quarter to bonds second Specifically, helping growth, wholesale improving new revenue diversify other higher in set while our mortgage repos growth best quarter revenues our posted quarter continued ever, and partially second government

growth revenue contract to split and Finally, data continues products, our growth. Refinitiv our proprietary equally was Data Market robust enjoy across which

now Moving Slide X. on to

largest Let rate revenues. quarter me U.S. swaps, product, U.S. second ETFs. rate provide record our main areas: a X our is Treasuries, achieved Interest brief which and update focus interest global rate swaps, on Credit Global

grew macro XX%, volume by an backdrop swaps overall as market higher efforts, organic relative by share XX.X% our to by which measured improved and year last drove Our to growth led continued Clarus.

attract We driving and share deepen clients client our higher wallet engagement products and protocols. with existing by new continue and newer both to

Moving on to Treasuries.

wholesale rose the increased U.S. Treasury share year-on-year volumes acquisition. XX.X% Our and XX% the NFI to led aided business Market our of market. by by

sidelines manager In aid to asset fund In move our wholesale trimmed and pickup and volatility clients volatility the our contrast, to the continued behavior, as channel. terms client risk in of spiked. hedge

more been gains doing on the have to business, continue share clients focus Our making and market. into existing we further inroads by driven T-Bill

million initially are credit. streaming consolidate to end as adoption $XX business, June in expansion anniversary acquisition generating fee NFI The the marked margin with X-year another of This in PLUS. Shifting and also invest to further of to pleased forward. institutional of and Looking despite continues X million NFI. We're the currently surge integration protocols progress planned, our ahead, corporate revenues we continue early-stage expect our institutional broker the regulatory approval in we is progressing dealers. to great Tradeweb margins like awaiting largest as ahead, per are moving credit. driving NFI quarter business pressures the

up revenues our $XXX XX% of client corporate of were it's half year. despite volumes. lackluster first of last million half years the conditions the sustainability and journey, the first industry business credit Our see amazing tough into to X from

We are trading, to continuing adoption see growing Munis, net ReMatch. growing and portfolio demand AllTrade, wholesale and client institutional users, across increasing spotting session trading with

continues a and of continue we recover. in scale credit our to ahead, retail see as business the platform continues Looking to lot to opportunity

increasing produced half volume history revenues low-cost, ETF client volumes. ability environments. trade market greater amounts liquid and ETFs new a of navigate investors a as to investors as also alter driven usage continue options year-on-year, in large of strongest risk within Finally, their institutional institutional produced within ETFs to gives up the strong wins revenue the driven adoption institutional range has equities, first RFQ XX% wide and exposures our growth strong efficiently it by of quickly industry daily flexible We the average quarterly the highly portfolios of of The embrace as and portfolios.

believe benefit to growth as we we our well and Billy. will With continued it ETF I scale. global growth over from forward, Looking initiatives positioned turn that, to remain

William Hult

on across focused at of Thanks, has the Since trading been developments needs ecosystem. Lee. forefront the inception our while meeting technological Tradeweb our clients' being

on Our to continuing remain competitive network and people, grow advantage technology, that is our and hyper-focused moat. we

his Tom trader will spent as client, with Board enhance global JPMorgan CEO joining we in firm our before start will as team's at people who has the as as most the further and we last Pluta transition, of of further and of for recently likewise years to excited we long President relationship front, leader a are continue had be drive the recently a ability one investor Tom officially is the believes at the in believe President-elect with next innovation our seasoned most year. On Directors. becoming Tom the clients. approach, that and October a he firm client-first our XX

On of last front, Diversity importance with important leveling was the very the and we the Program. the Dealer crafted genuinely playing clients recently a that field. over network in year, we carefully placing our on initiative This collaboration a lot technology launched Spotlight

will provide ground to in the meaningful Now AllTrade already to trades our on has elevate trading diverse having a dealers electronic directly intermediate initiative running. option by their the hit or able leverage The profile either liquidity network. and be way

we Slide to X closer validation that the correct Turning believe one. strategy for received a our entire of credit. catering to we Last look was quarter, at the market credit

resiliency. This quarter, the first to that mind comes word is

XX% uncertain Institutional pressures corporate from As operating a and and duration credit complicated the per during our clients Lee year-over-year. overcoming investment-grade fee in business quarter. continued our diversity very shined to time. falling The Credit grow of million trading his highlighted in bond opening, are

our helped spreads On our the hand, overall retail and businesses. wider and rates muni boosted business credit CDS higher other

our our to our pleased respect the thought pay As that and business, to picking the we the need competition. income attention are we credit and a product we Today, always needed the clients' continue of our protocol them complexity corporate diversity, best. give protocol very choice clients business by fixed of powering suits we build we market for close to

to continues growth RFQ in and portfolio institutional trading. Our underpinned be by growth

investment strong spreads grew success continued and grade we wallet activity volume and our trading we also volatility, have on quarter growing market biggest cross-selling both platform yield. our average portfolio to to to innovations share. see increase brought driven RFQ XX% presence we with gain to daily continue Our the the remains average great by year-over-year. see and XX% RFQ credit volume second continue high year-over-year, the daily in opportunity, Expanding the Despite

of year. something billion the and the largest takes that year-over-year some greater these portfolio macro over trading back, also speak than to certainty associated introduce volatile trends as to portfolio step execution, large using we volume was items the to the new, XX%, When comfort Behaviorally, despite the users quarter. growing all-to-all in while traded protocol. portfolio As clients in trends with with the line reached remain executing from were up trading number cost up our and last $X.X taking Globally, substitute behavior have trading, impressive. engaged also continue you trade trades savings very time time see and in-comp Dealers RFQ the advantage of XX% underlying were and clients our we change, environment. XX% of

continue robust XX% pickup effective depending also in Barclays recently level remains transaction fact, portfolio trading. the adoption savings a X% increasing the of by published AllTrade, billion In to volatility, submission the anonymous volume on our trading. trading in over despite volumes strength future of year-over-year. ETFs noted portfolio ReMatch, terms in growth our increased that to They in with of all-to-all trading platform our more of and portfolio strong solution, steady RFQ that protocols the of deep liquidity. bodes The other reducing access cost relative They on volatility. Research and through protocols remain uploaded Session on $XX by on costs remain growth XX% concluded growth and the liquidity volatility, for laser-focused we prospects for dive portfolio to liquidity saw trading Credit well the maximizing the average volume was matched like value despite which session newer daily which

Our second ReMatch average volume nearly in daily quarter. XXX% the up was

to Turning great a We record was institutional to European currency revenues rest the really achieved drive. products by of strong portfolio of with constant our credit growth lot our driven business. in It credit trading. see

to grew seeing the revenues second continues business attract as given our which XX% for gate quarter, markets the life we in year-over-year over the back market institutional clients. muni the team by regions. of record grew strong across Last sprung product volatility CDS retail achieved The to also interest launch business quarter the out pricing. the new for more quality boosted XXX% Munis, the Ai-Price is than in with which Our year-over-year announced of the strong of growth revenues, and the

growth our to and out for continue for ahead. efficiently. Credit believe it emerging quarter credit, a about EM we London offering, we another of have In to invest ahead, products solutions workflow develop sum, hedging excited with was we're be we our Looking Group's market in continue collaboration FXall solid traded Stock Exchange to to as allow building lot and look that we potential more

Moving on to swaps.

industry Credit, Just market swaps continues multiyear growth gains. strong the like rebounding registered story as and by aided another share volumes quarter

and XX.X%. grew driven climbing across share variable swap tenors Our growth by revenues XX% to year-over-year, strong market

our and Our progressing on I swaps. in euro currencies record and swaps. in believe inflation environment. volumes equally half the swap dollar we swaps, important. XX% came continues LIBOR a inflation up year. the credit, XX% denominated from in year trade period, of pound trading. of liquidity our of wanted responded swaps the executed momentum ago become of trades, start SOFR our a transition transaction cleared electronic leaders XXXX become inflation to having taking can swap We protocol major first XX% since cleared across an X efficiencies the product today's our RFQ spend the the from with in Today, in tool protocol, which clients Since with to using is share minute half first well. to major SOFR-based swap is demand clients first Like increasing from important of our clients market have electronic diversity trading aggregate the executing inflation of indices, in advantage have in

first early half success seeing are up efforts with Our year-over-year. volumes XX% over

EM strong market, and RFM transition We saw revenues share cleared increasing early inflation we first over with XXX% by risk-free to continue adoption a half trading. in protocol swaps, record in the multi-asset and making the swaps changes Beyond to swaps, advances respond structural year-over-year. the in but EM rate

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

half saw year EMEA first regions. in and activity full XX% across of we activity with growth APAC is XXXX strong U.S., Our the RFM over

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

the successfully SOFR ever completed electronic institutional This swaps trades. quarter, fully first we and

of example look how electronic pie. our conjunction Just to another the we, with in customers, grow

remains the manual broader do market workflows to we income and XX% believe our market only fixed markets the can global we help swap a electronified, With while there still grows. digitize clients' lot

our leading second AiEX. is transaction our lower quarter across trading clients to how we're into of journey, testament a various years capability, sizes and XX to the operational costs continue we automated Finally, helping our class risk in invest and trades multi-asset complexities.

XX% by the second the in Specifically, number over quarter. trades grew AiEX of year-over-year

to our hike modifying trading AiEX's recently with manage the larger Russian-Ukraine it And navigating seen the by are over to new have The Sara by We financials through that get COVID-XX challenges seeing clients and learned transaction more been inflation lessons we rate with relative innovative to me on upshot applied that, surging clients Central brought ease, the auto has fears. on comfortable traders [indiscernible] to costs from War, being Bank let become fly detail. automation, in using are volumes trading comfortable discuss And features. with them as AiEX. turn more more rules

Sara Furber

and Billy, good morning. Thanks,

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

overview quarterly a quarterly swaps, XX.X% global government of of a volumes ETF up average volumes Let by provides our second of XX on translated record growth our X. performance. into increasing in while achieved XX% the XX basis. earnings highest that U.S. the excluding areas global our in Slide reported European and predominantly other excess me $X.X constant when summary X volume volume growth hit XX approximately of Corporate repo. Among currency short-tenor a reported include record base of denominated institutional XX% on more revenues revenues begin quarter with Slide an from in is on gross XX% and activity bonds, XX% include more XX%. the Perhaps categories daily of our swaps. recall We product strong customers. another notable, trillion, year-over-year and and that than we ADV. Credit, euros. year-over-year The even quarterly second of international report, X currencies product derived revenue in than We of XX our dollars, produced monthly Areas quarterly up approximately records, XX.X%

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

Refinitiv to as fluctuate for growth Market data periodic due As enhancements a reminder, X.X% proprietary performed in our and revenues tied affected this retail to does by data is by technology line increased products. our it clients.

and quarter's the And of year XXX margin months increased second This EBITDA the by the relative quarter XX.X% increased for to X year our XXXX We remain XXXX. balancing on points change with margin no XXX points EBITDA income from margin been to has delivering XXXX, in the in, margin. All of adjusted revenue growth annual basis diluted there track net margin and adjusted full of first our basis per committed expansion of we philosophy in expansion. share $X.XX. of reported adjusted

driven our blended to Slide X% about year-over-year, by a are mix as to classes. The on XX. per sum, million derivatives fees million In the stronger on a higher fee of per in describe increased and primarily X fees result within I'm equities. million of various Moving our per rates products growth asset trends cash

and per up blended fee lower swaps were million per short-tenor features, Excluding million X%. our fees

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

For primarily cash end clients XX%, to growth were the up fixed per U.S. Treasuries government variable certain bond fee rate of higher products, from contracts fees per European migration due million of to year. and million in last at

swaps, FRAs. futures for credit million second fees For munis, a due duration Notably, and which decreased and Continuing market volumes which fee emerging due credit. primarily our In mix continue with X%, carry were per to rates high-grade processed trades. million to in in long overall OIS, high-grade and million fees shift carries U.S. other fees derivatives to and the quarter. fee on stronger a lower short-tenor towards volume high fee million which down XX% credit, fees see RFM. U.S. decreased volume stronger average includes and a growth Average electronically rates lower to per mix, credit. to XX% per per Drilling cash billable derivatives, a per XX% while swaps increased growth down were U.S. average record per tenor lower growth million due relative cash we credit swaps, to than and the in product than million yield, higher due million per

Looking CDS, the million Average which by XX%. carries for at were credit per the derivatives driven a equities. equities fee processed decreased credit and average. per X%, million fees with per category, fees in U.S. cash up group Continuing stronger growth than lower electronically million

notional charge to we value-traded. U.S., average by cash per increased per the within XX% For increase U.S. an share equities, futures. was in due million traded. in per decrease within fees for million per driven which Recall ETFs, share due fees in equity in increased by fees an per XX% to million increase derivatives notional average not Equity per and fees million a

approximately expenses. XX Finally, within for business dollars, our was in than other money market Slide higher primarily fee million. our given on million improve Adjusted by environment. rate XX% our the recall, markets, currency decreased is basis, continues XX.X% This base U.S. second per the in currencies higher a predominantly details interest decrease in million of driven fees repo retail denominated X.X% fees increased and expenses to per a constant quarter expense money sterling. X%. The per

reported non-comp basis constant expense XX.X%. Second communications, FX. Adjusted Adjusted technology compared to as expense higher on Compensation to D&A non-comp headcount increased 'XX, XX.X% increased compensation. of helped the primarily to G&A and a currency increased communication. and were professional due costs quarter second performance-related quarter employee expenses on by basis technology but XXXX increased and a X.X% primarily adjusted operating movements were G&A, in favorable higher and compensation, to services, due and to due

credit and Specifically, volumes Treasury continue of primarily higher as grow. higher a volumes result which technology to and U.S. clearing fees due increased and communication to streaming costs AllTrade data

guidance. to saw recover in increased to in June in investments entertainment general and a impact legal in we Professional second movements in increased Slide $XXX,XXX inclusion of quarter previously Adjusted the XX due Favorable higher million FX the our and communicated and following quarter gain costs the XXXX. and details of as and increase capital loss this strategy XX.X% the our in an data pandemic. addition, versus quarter acquisition costs travel year. of XXXX our from fees primarily administrative management continued second of In expenses also NFI $X due a in of infrastructure. last the resulted

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

to an development quarter the as $XXX of access capitalized year-over-year. end. increase have that $XX CapEx software We undrawn a million, revolver quarter and was million for of remains XX%

range capitalized offsetting of We during to Class continue With per capital to million expenditures a spent $XX Class quarter. software Board B equity year. for this million $X.XX and the expect in quarterly of quarter's declared A and the the $XX million earnings, dilution to full dividend the share. We $XX.X be

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

$X.X cover withheld we to to related in compensation. obligations addition, equity shares tax million payroll In

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

guidance for expenses we from other In to to million. adjusted line previous Turning with million expect guidance, items to $XXX our $XXX XXXX. range

use an in rate XX, on for updated we For year. purposes, the finally, quarter to XXXX And help for count sensitivity continue to share XX% share our of our of the you models for have quarterly price. assumed fluctuations non-GAAP your Slide calibrate third forecasting we tax

for remarks. concluding turn I'll Lee to it back Now

Lee Olesky

to Thanks, the our products of Sara. growth the solidifies encouraged diversity off of which and further and is channel, start, strong growth a by foundation. through retail Halfway XXXX our I'm reemergence across very

volumes revenue meaningful opportunity in the and our to our majority in step having remain the than We collaborate focused customers average secular areas to display investing in increased are on our more over July again morning volumes we markets, released the of on growth this experience. to client with volumes. facilitated fall. While a their the we to and risk-off earnings already trading trends trillion further powering $X clients July with innovate daily -- were our and improve more electronification markets ETFs. trading display our diversity power rate our The products across continue on electronification business XX% institutional position behavior, was year-on-year, growth we credit, still strong money in have interest of we of and CDS. credit Taking growth business across yet with higher. our over continue And position leading munis IG believe swaps, as U.S. by drive lead and again, back led contend a

who the Directors independence leader a Before to I think Rana be to I your at Yared my would contributed welcome for the conclude X financial terrific will it their back questions. increase Board volumes a for Board. as the Tom, efforts Aigrain Tradeweb. want I Ashley conclude, service to years years in and of Tradeweb. also thank quarter, remarks I'd XX to on leadership record partnership I our quarterly to more of like experience I'd Rana and our Board. thanking we I the the of their to to welcome will like clients and our our strong Jacques back brings than to colleagues to and revenues prior Board that With to for Board. by like brings financial welcome business global IPO expertise spent that, leadership my of Jacques experience and turn and and human our capital and previously

Ashley Serrao

Q&A time. our first can we question. Operator at Instructions]. a.m. take Eastern end [Operator XX:XX will now

Operator

[Operator Instructions].

Our from Goldman comes Alexander Sachs. first question of Blostein

Alexander Blostein

considering mitigation a RWA various and potential any is seen pretty sheet capital of across issues, bit banks center, which the the excess of credit meaningfully But of you leading money decline balance guess. number an at we've I cycle, A guess, large for space. to ecosystem sort I and that's question before guys,

liquidity impact I predict particular, rates, balance bank So guess, you curious risk? businesses, are a volumes, you sort negatives? I that be, the bank's sort that are not there less but as How obviously of consumption. balance is asking Tradeweb's you the positives? how think larger a tends about Is various in are think sheet to in dynamic? one there of maybe sheets and but thinking from, smaller in general about Is there to bit system, little Is

Lee Olesky

first same. response when are all that together, I part to the group the banks Thanks Alex, all my is, it's Lee. tough guess right? for it's of Not the question. the you banks

a to the liquidity have We going differently. network providers who environment of are to react large

risk, up dial will back. Some pull others will

way, how And continue and important the platform, you market in electronic sheets. to what's either as helping can an manage see here, believe play that think regardless of is their we're liquidity role banks this we've has in are a as going critical macro I to we changed. consistently most attract dealers So clients biggest large individual to a the react $X are balance find cleared. products very bank environment cash over months, traded majority derivatives line is vast risk perspective, capital trillion low recent daily products the of From bottom and weightings relatively right? our our the efficient, essentially

repos impacted, along that So they're for but sure, far could high-yield on not electronification in the margin, their journey. be

-- another So I is evolve. to here think another point continuing market structure is

sort they're Principal our more and of right? an also point. in bigger markets non-banks, set banks Credit. in treasury is 'XX, like of are U.S. So a trading of are this the XX% where accepted at than role important larger playing role a now So in right? look you if broader a So playing firms liquidity market,

we remains back, fluid. clients We're sales positioned. shifting today's stressed and step a with our well to Market engaged even very very we take environment, think from in we when So we're have voice new force electronics.

very on to opportunity this believe focused that continue we're have. laser future kind we we So of

Operator

Repetto of from Sandler. Richard next question Piper comes Our

Richard Repetto

a Hello? [Technical I'm Difficulty]. little having [indiscernible] here. difficulty

Operator

he apologize, looks Instructions]. [Operator disconnected. like I

next Our America. of comes of Siegenthaler Craig question Bank from

Craig Siegenthaler

Is MBS lower also now is in rate function question higher perspective my cuts volumes to for of a to by get your share with decline. starting MBS this the more bond on less of or to year? price the want rates give issuance. 'XX, industry tie due to next which reacceleration And electronic volume markets then volumes, declines So trade potential we for and

William Hult

Good Billy. question. it's for Craig, asking it. Thanks

very of in sort you know leading think, well, issuance. situation a mortgage through Fed strong yields, and a franchise sort It's the market both higher is being on technical know of spell. position like as think we side. going of I really you the The -- combination And have a We lower middle side of I a mortgages, in wholesale well, trade. have mortgage as institutional the the rough with very the

good And right now. there. will challenging the marketplace. before. space. ultimately, do And very We is through so from And like exiting resilient we that feel a volumes volumes this gone position about we impetus increasing really It's the market like for our share ups mortgage and feel trade feel downs are an be Fed perspective a in

volume kind forwards will from mortgage look And the we strong with of that way the share space thanks for the of that are And around our set up a So perspective question. the kind across good. very in board. market love we

Operator

question of Michael Morgan next from comes Our Stanley. Cyprys

Michael Cyprys

wanted the ask Munis about I to business.

putting some strong guys there. up You are volumes very

XX% was it continuing quarter, think in up XX% is here in the looks year-on-year. strength July, over the it I like up

revenue Muni Munis could to guys a are talk more of help So M&A institutional? priorities I elaborate Tradeweb. contributor bit the your you the for you a from seeing coming role that was of is is you franchise. And accelerate of meaningful to your presence space? from hoping retail just that Munis think your How within initiatives there on about at the can much strength versus some I sort business make any play and to

William Hult

of continuing strategy. is out just business. and also real the around It's perspective, things happening rates -- our It's not inverse, of bunch that's last but our the strategy. obviously the of point, the amount from higher an Lots with obvious right? in And At way, out of mortgage it's it's has Muni great the an transparency modernization that validation to has our same a building one platform, on from exact things not perspective, feel that like are will Muni a investing basically it's to been of is engine in where good -- these right? from and of months -- time, the now, volume Muni story, your really the our we it's we're space sort Billy. opposite efficiency of this and right been institutional like market build retail retail the like a a around in benefit tremendous And hyper-focused

us. So institutional like us businesses, opportunity approach us we're like two-pronged muscle as exact It's you'd feel perfectly is traditionally the that focused market amount because into sort a level kind expect. retail of a a certain school on and up of emphasis business represents side. we're Lee's of into those And where it's on way, a sets old highest remarks, and and in Muni Munis, in that of transitioning in electronic of firm the constantly right world for the for this to kind ways market side lot super point, the the in sitting prepared the putting we an for really and front his both at of us

So for company. big priority it's us as a a

Michael Cyprys

could thoughts just point, Great. just M&A that the if on there any And helpful. be

William Hult

I we right don't feel Obviously, have I about we're Nothing we a good mind of But incredibly space, in to our kind for really our because grow add piece at we're how think be approaching business, this that come would big of us of would network looking part useful now in in would lead technology that like help around a us. around absolutely think we for that M&A opportunities that. M&A business ways always feel that comment a that or organically. sort would

Operator

question next KBW. comes Voigt of from Our Kyle

Kyle Voigt

for Question Billy.

in of mentioned prepared president external You to the that Pluta position. your hire Tom remarks fill

infer rate bit could versus wondering choosing if with for someone fill move down on that you credit from landed why on a role? that you doubling just Tom elaborate a a should if maybe background. candidate in wondering more example? you're to trading specifically, with background, an more And of I'm rates that we Just kind interest

William Hult

Yes.

it's a question. great So

externally, of Lee at because bringing ton I position think senior not a on a like this the into a someone spent So very time surprisingly, I company means and lot.

tangible background space So the for matter were kind focused amount background. confidence want genuine in a of to we very kind at way, very of kind strong I client, had breathing always him tremendous of and JPMorgan, long a I has say his feel don't gives of have a as hire date Tradeweb the sort And intangibles a a sort matter. very we also a lot. like comment, don't concept too a company member -- great make in very of obvious intangibles also Intangibles it. time, about a experience living that there's way. in a at of we known right. and We've this Tradeweb of do both that we Tom his kind of specific world. both on operates market would Board much an qualities, describe And for getting our Tom -- years to into in XX amount XX-plus tremendous and of

with operates, And transparent, comfortable a exceptionally great communicator. Tom he's we very, got how so very he's

a be and a perspective, is very reacted our that hire. we company from to And has person well to additive team. the management really strong way our good would very team the his news, the felt really say, so I And he in would

we're into background for background the we the and skills him history he The excited in that rates he the and October a about so has start thing. good equation. the And really to rates good that brings feel only and is

they're of We the and rates have our to so by him excited kind on a team is here, team. have very But board. way, credit strong

feel we expect have. the be that for would going questions. contribution you the his like really to And every in board thanks to So way is them across

Operator

Alex from UBS. next Our comes Kramm of question

Alexander Kramm

give So hoping update high-yields an you on could trading. credit us

year-over-year market but bit. in little solid, electronic clearly the out the think I are have like seems gains stalled trends it a trading share

then IG about be remind maybe guess, efforts relative in should just competitors, other, business? to And how I environment? pricing So macro thinking area, and we just specific around that us that wondering

William Hult

we week, quarter-to-quarter very, of share that that you every It's a every month-to-month we And sort market numbers care day, static good as every noise even or question. sort guys wouldn't We because wants every a about company competitive dismiss are to very know everything. win shares of quarter. market say month,

XXXX just X% basically So yield you in than increased in less high of specifically if it. take We about step share, X% of market back, from we our a have, from of being March right? sort speaking, all care of January. to sort That said, to up

would from back the March very And again, there's went I year this you going some then on our past say and all February, into the to markets is was is been as be of around course, got more it sort take April the portfolio I just, that describe historical all-to-all at and has volatile, Of through bluntly what channel if numbers. of which always going specifically, strength to trading, more business our to and forth lead.

job do a of or close what lot would to sort attention pay describe One good very I is perspective, that strength. as signposts I of and from we think, our of you the indications franchise things, sort at to a of of,

very XX% Tradeweb our I to So up would number. around in is on and responder second think, important high yield, a That's specific strong that in quarter, a very the you, was what way we say year-over-year. rate

XX% sort And as to of Xx trades for to Our saw percent, that in quarter going. play XX% high-yield leading over XXXX. sort we average second do we of AiEX way, of or increase and up along over the daily And of way stats our up XX-odd indicators year-over-year. volume really well, was continues important market These the the where share are actually percent up kind a RFQ a that us. it since continues they and in utilize of increased role mimic become now very important exceptionally IG

kind about of at are look where all the we we that of we are focus this. on those things when So think and we around

Operator

Daniel Jefferies. Fannon Our next question of comes from

Daniel Fannon

the hoping on talk about of through halfway you headwind? some Sara, I color as inflation as year full of outlook provide Maybe could tracking just spending kind you're the a maybe levels. with current FX benefit as year additional a expense think the you how on about with kind was based

Sara Furber

first months for helped are middle the trending year. for year, $XXX we've point the Sure. the the And depreciation to is of your expenses, of FX, in six million on pound, which Thanks for the the question. $XXX seen we're being our partially range to that's of Based the first half which towards the on where we million. by of

portion variable, of large really the how our As as a about we we part and And a to think get expense the impacted obviously, about revenue. you're a XX% rest trying year on that revenue base with do well varies margins. hit is in and of of which of significant by compensation, is is terms it,

clearly about comparisons where an an to of [indiscernible], is a we that, in expect a pandemic. quarters, the would area volumes Beyond out which of just thing terms basis look not if is at grow or think sequential tech and with the absolute you as G&A we're on to bad say pickup I you obviously, when year-over-year coming communication continue seeing grow.

an that Even X%. we half, at pound years in we July, an expect from another the currency, eye almost to on hasn't look keep in the impact just so queue. I'd an first I But and of when a the in big been about those past. talked obviously lay increase. as And a absolute lot out was you level, seeing down And then which factor we're

in variety But FX range. And that's you we're overall, overall another that's the that. think comfortable expense I the middle think conditions. in as of a think markets just So of that and about element I feel we

Operator

from JPMorgan. comes of question next Ken Our Worthington

Kenneth Worthington

win you. for on think seem be I and Lee maybe an unique loss which hiring And closely you then LSE initiative, or would called Tradeweb. Billy you us, for Bill, Congrats LSE a Tom. as businesses that to might It's with working more for capabilities, and you're have mentioned a relevant out for big and FXall some

than that out bigger look a collaboration? opportunities big LSE you further for are are for products bigger as opportunities represent others? there and deal, Tradeweb opportunity at asset future, is innovation if set So how And in deal, a any the new classes the it

Lee Olesky

kick I'll it's Ken, Thank Lee. with this off one. you. Yes.

for partner with always the important on players we're look, hunt market LSEG. to So like opportunities

FXall that initiative EM EM. the FX we've really at great we've able all FX going and first EM, opportunity focus a customer We evidence on So is this we've swap capabilities. shown always is the interesting. deliver effort problems, that we And -- we is with of the efficiency, announced and to their It's place a really in in to we the got going across on started. nice dialogue that's with some to EM looking It's think that reducing in costs. LSEG some the solving it sort traction some respect where particular, the of think we're we're them market and are have space that and board with to the what I always creating

So as solution a this in beneficial. said, we where collaboration. participants is places we're our to and find deliver customers an I in to And market connect with important can order constant dialogue that's

LSEG that other with are sure combine I'm to the there's market and opportunities significant beneficial market. for be things more to and So do going participants

Operator

Credit next Our Gautam Suisse. from Sawant of question comes

Gautam Sawant

attracting most market, longer of given heightened clients to some is the the positioned you what level volatility for on grow important could are of term? to firm's network new And longer the in is client in Tradeweb growing then domestic Europe expand Just term, how firm's international the the platform? factors and Asia? what And and

Lee Olesky

take This to I'm I'll -- them. Lee. going is

collectively. that about business And what efficiencies for perspective. proven I technology over a client has to me is participation decades it's is that our doing several in very thing a the of we the XX%. And and off grow we what last all to about great for A globally. would the in forget franchise on side, the Europe Let we've both this over the focus international XX%, as the us terrific exactly The built a our time. start for in technology. people call the solving, what high level clients people before, team has It's amazing scales real it's on the building -- have similar supports this. that Europe for it Asia the is be And what us we And business job in Asia, very it's and done international advantage competitive I people, issues, network, business. revenue terms solving was decades. an at saying for do really to

Europe been add tremendously. a been number network. always So in to regions, in by point our continues would leading grow that started this. global further now, which, way, while classes, years a that to global swaps, protocols looking this in it's I We're the asset we've new of into out position doing we new ago

with Asia have markets things with respect And We technology we to Europe opportunity, like emerging leverage of that. to lots to our in and and into footprint greenfield respect both continue our in swaps.

real competitive EM even added opportunity We've it we a date. we we've comes XX to currencies advantage So a that. accelerate -- to EM, think have and recent strong The when to will started accelerate in and shekel, be think most July. growth continues over our to The bigger think we Asia is we that story, I Israeli a region which international component in time. playing

and network, Europe presence So got the extend have grow room we in in to and products kind our of our we've of that our cross-sell a global lot reach Asia. through

Operator

Our Bedell from of Brian next question Deutsche comes Bank.

Brian Bedell

citing Billy, whether resiliency portfolio here you're that play kind rest extent trading. you're you -- given of different Maybe the of studies the actually that how terms move gains out a [indiscernible]? from and in we portfolio in into environment. in what updated to view seeing different market portfolio summer become trading seeing of share share more -- just your volatile any on as And market, the you're if trading to on about dominant of sort want if or could of you can share

William Hult

question. asking. for good Very Thanks

you March if February, would trading portfolio -- went you super It's that's both trading and more portfolio kind sure if using and the about resilient high-yield they're weren't becoming and work volatile clients, using in you for think that with If investment-grade And of trading. that them and stickier portfolio months environments, April. they're of it a market trading really would. found as out well through, important test

So that statements big I'm kind are making. of those

in believe save the And and more trading, would you business, in of more are quantifying they as If are the money growth it's becoming getting at time believe portfolio to the more and I say very ETF become more resilient. portfolio clients to growth you and continue good trading. the and sophisticated and use of ability

a of that in in the really And leadership we've yield kind portfolio we challenging lot that understanding to high a global progress share role strong progress be to as strongly that the act, this, continued And we ways getting very we role want power portfolio more trading. behind IG, make it's trading sophisticated sure a always continues becomes strong stress plays as what are and getting that clients more we market in environment, by a of the and that So they in to way, in initiative. these market play make feel is. very best value

risk. of So in to terms real obviously leads lot how a European mechanic ways, in think way volume portfolio we about our as a trading, transfer of specifically the

of we important played our something And terms a for that differentiator -- real it client our for strongest credit us question. as the protocols trading, So around strongest us that was company portfolio in of and within to leadership to we I would be And one experience. the within find that role thanks suite. continues that a think it credit was

Operator

[Operator Instructions]. further I'm showing no this questions time. at

back to any call for the turn Let's closing over management remarks.

Lee Olesky

this So okay. Thank you. Thanks very for much joining us morning.

joining follow-up us As absolutely the of the continued strength And into have half us. to Ashley out saw July. great for it Thanks on has That and a and the Have questions, free Take you course, team. first reach feel to care. you Sameer and of great any was heard a day. from numbers, year. if

Operator

you, conclude This gentlemen. Thank all conference. Thank does you participating. today's for

day. great now disconnect. You Have may a

Tradeweb Markets (TW) 3 Aug 222022 Q2 Earnings call transcript