TW - Earnings call transcript Q2 2024

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Operator

Good morning. And welcome to Tradeweb's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] 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, and good morning.

who the our our growth business our Sara for who Billy initiatives, today financial CFO, review our will results Furber, me call CEO, are Hult, and results. Joining review will and key We of material, intend our obligations nonpublic means FD. with disclosing under complying to Regulation website and a the disclosure use as information

Litigation Private statements future related statements. from like the within acquisition and of such, the to, materially Q&A during to presentation among this Reform and as of statements. forward-looking remind I'd meaning and relate the you events Securities to Act in constitute the XXXX. other Actual are guidance differ expectations, forward-looking Statements that forward-looking results may things, certain statements our and these ICD may

actual that reports to is earnings factors forward-looking statements earnings cause in periodic presentation and concerning SEC. from could contained the differ our release, with results filed Information

reference Information presentation. call, addition, non-GAAP is as data. industry GAAP earnings earnings to will on in well today's market measures our certain release In regarding including non-GAAP reconciliations and certain measures we measures, these as

Information regarding industry market is earnings presentation. including in sources our and data,

Now the to call Billy. let over turn me

William Hult

to continues morning, macro with This elections Bank sector the one-stop solution our for thank globally, and quarter earnings snap resonating across to be as U.K., second continues intermediation is Europe flourish our the clients. debate evolving call. Thanks, you print step From and Good was Ashley. inflation quarter everyone, outstanding private and another joining Central to back, our vogue. in

financial service are a technology At that company to we our the caters core, industry.

on and of them clients behavioral. forefront can constant of change or the we markets. trading technological, with we Change on time simple via that more job, and to continue have being structure means focused how save are a and market financial the is in efficient our provide money We

the As to continue position the for clients our and Tradeweb markets future. evolve, we

pleased are in the of Fin, of and signing acquire acquisitions Yieldbroker our to closing an have agreement Rate we After ICD to announced April.

shortly, ICD will our client We fourth are channel. corporates as which add to on close track

achieved in Diving we quarter, into the best history. second our second our quarter

activity, gains XX.X% on drove environment growth basis. a Specifically, and risk share reported year-over-year strong client on revenue

profitability investing XX expanded margins balance basis the for points to to EBITDA growth of second XXXX. and continue as relative adjusted We by quarter

Turning revenue to Slide growth, Rates the of way, XX% XX% X. our and for led respectively. credit and accounting

by European business of the and Specifically, driven mortgages by market by across corporate organic credit government and supplemented Yieldbroker. was strong growth the electronic was bonds continued Redfin with growth addition bonds, global bonds, record across in by credit, and aided derivatives. swaps China strong also U.S. investment was led quarterly and municipal and rates Credit grade and U.S. share

challenging ETF markets revenue low despite core growth repos, Money in posted growth equities volumes by our single-digit business. in was institutional led continued industry

market data proprietary were and by data in products. revenues market growth contract Finally, driven data our LSAG

with U.S. Turning into to will second Slide U.S. rate our by and all XX% swaps. by ETFs, U.S. increased year-over-year, treasuries. will areas: brief across revenues focus I channels. Record X credit global our Starting of a then and update I and dig on X. records treasuries client interest deeper quarter led provide

The our RFQs usage adoption of our business of remains record leading business of streaming strong. institutional and institutional Our protocol saw offering. the growing indicators

XXX% increasing Bloomberg to Automation healthy an versus daily AIX, up which was engagement continues quarterly by have maintained. first for achieved average XX% and record we We market U.S. institutional of average the crossing threshold the year-over-year. share theme time, with be institutional XX% important year-over-year. share daily treasury gained U.S. treasuries nearly with trades trades Client

streaming volumes record Our led business by produced offering. our wholesale

particularly to trend Our higher. growth, has which club, strong protocols our other also begun saw

our to to providers over off is approximately liquidity strategy as on and X.X% protocols. market share cloud U.S. a streaming more overall protocols. across deliver holistic the Our Ravin recent quarters focused team our acquisition onboarding The of our wholesale strong remains Treasury coming a club complementing contributing they start, on

ETF initiatives XX% equities, faced to a lower brand equity our but ETF backdrop revenues franchise our our mid-single bond industry grew expand market volatility. revenues convertible to tougher second with given flagship beyond increasing digits Within fruit bear equity continue Other by quarter year-over-year.

to the as client strong electronic continue pipeline our remains solutions resonate. Looking the of benefits ahead,

ETF believe we equities, We on income positioned across but our in growth story, well just secular capitalize the not business. are to long-term fixed

driven revenue double-digit for Slide respectively. Strong XX% look across X to year-over-year growth and and quarter was by XX% credit. credit, U.S. for revenue growth Turning a closer strong at another European

also strong credit global Automation China XX% across increasing trades with continued to growth year-over-year. and double-digit [indiscernible], AIX surge derivatives. bonds about We achieved daily by average credit

We electronic IG quarterly record fully set U.S. record market market of X%. helped share another share a IG in block by

second as clients our achieved business to yield, protocols of diverse highest fully in price and to continues scale transparency also improve our We adopt efficiency. share U.S. institutional Our liquidity, electronic set market high

Our primary continues growing institutional pay growth year-over-year, strong daily IG with average with yield. XX% growing across volume to focus double-digit both on RFQ off and high

XXX% Moreover, IG reaching portfolio rose daily levels. record average year-over-year portfolio trading with trading volume

portfolio our items We continue over and XX% number in the excess focus record trade traded We portfolio of a $X leading this largest-ever line on in trading of quarter and resonating users is grow with innovation our year-over-year, billion. to with saw clients. by

up year-over-year in certificate over U.S. credit allocate their produced year-over-year. towards credit Retail of $XXX a complement XX% solid over revenues buying to deposits. All retail with investments XX% as and to were advisers trade quarter treasuries of financial billion continue volume, up nearly

Specifically, RFQ and year-over-year. over offering our year-over-year, our XX% grew dealer over XX% grew all-to-all volumes

the number to increasing broadening inquiry and trade the quarter, year-over-year. of continues on be by our the on responders all network number In rose second focused of team all-to-all the per platform. out The responses XX% average

We ETF market engagement with wallet makers. also continue and increase our to share

volume ever. quarterly grew daily XX% Finally, average average the our sessions over daily produced second and volume year-over-year highest

like We believe long focus channels. client a our credit have ample opportunity for U.S. positioned with alongside our growth our clients. we remains innovate the we across ahead, we runway Looking X area, to are and biggest way

our our and continuously expanding wallet our pre- protocols increasing share, client analytics enhancing Our focused and experience. network, post-trade strategy on improving our and is

In users our our RFQ our ticket and of real-time the data, offering RFQ second takes seeing already and trading utilizing RFQ functionality of RFQ cost over RFQ rollout where XX% with execution Edge, Edge. list quarter, we enhanced traditional we're RFQ analysis. the Edge incorporates charting

we focused remain had believe away also yield, in very to are IG. We at the we success on replicate high positioned well and chipping we've

markets. improving the Specifically, we're making with integration the experience electronification and Aladdin in of progress increasing goal client in our these

focused to all trade which but network RFQ, is closing road, clients expansion providing driven and still client on of and be our all ETF meeting for the integration sales them our by enhancements are makers. respective to already our by a walking a with teams With the Aladdin hires, growth, X, We're on date. made and on enhancements foundation we through market gap here out Phase penetration functionality and the high strategic from expect growth led yield stronger with

our efforts trading Beyond RFQ continue U.S. credit, across early EM EM. and signs and our offerings with portfolio growing adoption wholesale positive expansion of

out our enhancing to we trading. side, package product on functionality build On leveraging with for expertise, are the integration and FXR multi-asset focused diverse our product continuing

currencies. client X. continued partially Strength macro response market environment Global record to engagement a [indiscernible] was to in market reduction grew produced in, duration compression and across in offset and here and with quarterly by denominated X% and of revenues All global revenues rose Moving to EM XX% Slide activity. dollar, XX.X% elevated swaps year-over-year gains. share share share strong swaps the combination driven by a record

is ethos connecting on our our focus across fixed clients by income the dots to Central helping products.

heightened Yet market their our evaluating curves have clients clients process repo repo for better trades, the increasingly volatility our referencing was markets, cumbersome Given swap fixed-rate ask a across money solution. when been and

curves platform the During the institutional competitiveness negotiation electronic available and helping trading first overnight we make across during assess repo process, rates became clients price to trade maturities. of different different currencies swap the quarter, repo the index

RFM emerging rapidly to swaps continue and across we make Finally, market our progress growing protocol.

room there is grow levels the still more significant and quarter second than year-over-year, doubled EM of swaps given we Our revenues to believe electronification. low

protocol RFM with Our over average adoption picking saw year-over-year rise volume XXX% daily up.

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

about there our help digitize lot fixed market clients' while And grow. can our manual the that, to over broader turn more workflows financials a market with remains do With global detail. still me we to let believe the we discuss it electronified, swaps Sara income XX% markets and to in

Sara Furber

morning. Thanks, Billy, and good

year performance. As be the period, unless quarterly our all comparisons I to summary earnings provides Slide prior of otherwise noted. a X the go through numbers, will

up basis. a basis saw that this earlier, recapped revenues and year-over-year million Billy $XXX As on quarter, XX.X% record of currency second constant were on a reported quarter XX.X% we

other denominated clients international from revenue derived XX% approximately than approximately in quarter of is that revenues euros. of currencies XX% dollars, base our second our predominantly recall We and in

increased trading reported X.X% variable Our fixed asset on up revenues revenues X.X% on revenues related a by were major total to constant our by a classes X basis. and XX%. increased XX% currency and Total

previously the Fixed revenues of in credit instituted fee were X%. trading dealer up primarily by were start And of driven quarter disclosed increases was revenue third growth at that the XXXX. other

line periodic it tied revenues performed technology reflects for this to fluctuates as clients. As our a retail reminder, enhancements

of margin reported the on year margins. increased to points when basis by EBITDA XXXX full adjusted XX.X% Year-to-date, basis compared XXX a

the key a Moving Slide on for XX to and fees per quarter. the million on highlight of trends

additional for quarter. regarding on You fee XX this detail performance per the presentation our earnings can Slide million see of

For in fees cash Australian up products, rate to primarily government an due fees European increase per million. were and million X%, bond per

fees well to X% duration. a X%, as swaps, per in decline long-tenor as slight million due primarily down increase For compression were a in

away and cash decreased per For mix [indiscernible] sessions million a due shift credit, traded. fees to XX% average from

per U.S., This lower decreased average million equities, notional per value fee towards institutional And within offset in and increase charge by per fees higher share shift fee due million our flat million away U.S. growing cash fees X%, an not we and by million, average million repo driven ETF traded. money for per CDs a higher towards traded. markets, mix given Recall from per the U.S. EU were mix fees notional per per ETFs. in to share was finally, a business. shift For

to our growth nature base allows and margins. XX the a for level, scalability invest Slide adjusted At high variable to grow expenses. continue our of details us and expense

basis basis. the headcount and on constant primarily severance. maintained on reported XX.X% We philosophy in compensation XX% increases a Adjusted second due and XX.X% currency to increased for a cost performance-related Adjusted a have increased quarter expenses consistent compensation, here.

and and Excluding due $X.X increased compensation strategy costs communication communicated previously to severance, XX.X%, primarily in data Technology infrastructure. costs increased investments related our XX.X%. million to

increased increase in fees professional X%, mainly to consulting costs. Adjusted due an

a spend General and growth. time organic increased reported support pickup professional basis to more expect FX to our gains on technology continue offset grow on in partially administrative fees entertainment, We a year-on-year. over by was as to travel consulting and costs which to we due

movements of the cash cash gain equivalents, $X.X Slide position and ended 'XX capital versus strong policy. the guidance. FX billion $X.XX loss our a for resulted and management quarter second of On our capital a position second 'XX. $XXX reached XX free in with a We XX cash approximately months. and quarter and details million quarter Favorable in million return in in in trailing flow in the second a $XXX,XXX cash

we to closes. ICD cash consideration it $XXX Recall, million intend pay in once for

a earnings, B million and by Our per efficient environment This the our rate interest increased shares. management primarily of dividend of Class net and declared cash. to cash interest due $XX quarter's more combination balances A driven higher was Class Board of interest higher of a $X.XX and With income the quarterly this yields.

million. an Turning our XXXX. expect increasing are momentum now to business strong we $XXX for the million be versus We Including towards adjusted the of expense anticipated range increase range, our and to of adjusted closing shortly, for ICD ICD, of updated guidance light trending approximate closing of this XXXX. $XXX would expenses. million which In represent from midpoint we guidance are in XXXX $XXX the currently to XX% anticipated the

this increase increase. X% approximately Focusing the to $XXX on the the gap organic and growth, XX% XX% million range, of would coming from momentum is changes, management our XX% and from an with midpoint coming new represent the from business this Bridging of announced ICD recently of inclusion the respectively. range better midpoint of

anticipated revenue EBITDA in we months primarily same and factoring support future in XX on to accelerating healthy time, we to shortly, adjusted to expected our exceed push All XX%. closes revenue organic we expect first investments EBITDA $XX approximately business the over invest now the At current better expect down Recall, during Provided growth. the is in, the which expansion we margin next XX% may XXXX closing, environment months. ICD be ICD levels. to to adjusted capitalize XXXX million momentum, X the to temporarily slightly our ICD's technology post plan that marketing and expect to from margin by

as enhancements growth stack, such seen allow years. in cloud-based investments infrastructure-related to support the our to Python includes further recent for retail integration our and This integration trading to in tech global capabilities we've activity credit platform expanding enhancements

We also and and investments small assets from making having such significant benefit without leverage digital digital their are selectively as to emerging order blockchain in in-house. technical investment to experiment technologies in to make expertise

We CapEx $XX expected be adjust and to now increase million the Acquisition now development out Refinitiv pushdown XXXX. $XX due is to and D&A, to accounting to transaction-related $XXX be expect which associated our capitalized software million. for million about we with

to the master approximately PAUSE respectively. generated revenues LSEG to data million million, $XX continue $XX and We with XXXX XXXX be expect under agreement and new

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

William Hult

thrives Thanks, about the we problems. in fast complex our trusted market. outlook. look forward be happen unchanged, in intermediation and drive time that innovation a towards feel It's risk to I to but be Change very business. partner future clients we slowly, good very the look Sara. to solving great growth to that can want Tradeweb or our

days our at is diversity growth XXXX. average days, to left tend growth be With revenue trending revenue our remains theme. rate relative a teens a a daily couple high trading growth of important July, of month-end in July which strongest The to

and interest global We government mortgages, credit strong corporate are volume swaps, seeing repos. growth across bonds, rate

trending X%, respectively, and above July. are and XX% in high-yield share IG Our

joining Officer more years corporate I would experience brings be Administrative of Clock to business in who welcome and will as member to and Chief also than a the will like Tradeweb the of as integration Amy risk August XX oversee Committee. services. team, and Amy operations, Executive

their partnership conclude the quarter Ashley the that second volumes my for and like I questions. at turn by quarter, and revenues that, Finally, in want your to it my for back I efforts our to and to contributed thanking thank to their I clients would remarks business colleagues With Tradeweb. best will for

Ashley Serrao

Thanks, Billy.

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

Operator

of line [Operator comes of Siegenthaler Instructions] America. of Our the Craig question Bank first from

Craig Siegenthaler

platform provide asset competitive a multiple to We classes. a advantage. question ability on had key Tradeweb's a shop one-stop across

And trading asset class offering how your has ability to to So traders the more what common pitch on important multi-asset time.. and wide penetrate sales is or to also the become over less buy degree side?

William Hult

technology this platform Yes. Craig, was like making said isn't connected depth more shop, for product been because don't Tradeweb question, like it on [indiscernible] CNBC. while of this saying our one-stop it shop. that is kind that of because well say good amazing, being say, actually you just really And 'XXs. to maybe as pretty this I I've hear clearly like sounds ever, on the the your hear is markets than a like positioned and the voice.

going to at watch all night. home not go signs You're and

think But the really you well. thesis, I understand

kind And would think moment, when of so company's part about a we I of history for this forever. the say

can into kind let European me way when So there's in helped slots. being of for government like mortgages of moments describing our us mortgage class was of bonds a to for terms clearly, at map, originators of of -- into in kind this swaps cutting kind rate us sort say so rate history like the and where sure, became interest consumer of we you government massive us kind the swaps rates terms TBA very like get of of example, trading. in Fed just feel get on what point in helped European bonds into, being get in wanted the Then multi-asset put I'm where this and commitment more back interest time seismic to

second, perspective, in XX% in of the a basically for products our X at to perspective, and around trade X in XX% up X From is from sitting higher. think going that's like think for of of moment, the XXXX, Craig, are That's are now we a clients continually products. least about from multi-asset our at level, global bonds. When kind firm trend about we today XX% trade stats a X our AUM think on stats I least about

those So of pretty kind are interesting numbers.

On a We us. a little traders understand XX% trader trading products [indiscernible] that. are it's even bit interesting. now with level, more of our can

macro over businesses, a right? that about I If Sameer was trading like actually the And Tradeweb. trade think different from us, XX% we traders makes now lot you like products, gave I like over needs guy our stat that [indiscernible] me -- of of X have that X X think it with who's think XX least markets that a sense. trader like at

the But me, then build there kind and just And grow from the businesses say how part I we this, stats. would matter those of and is of which are of very straightforward is here. piece Ethos the the stats

we when a to So PIMCO and get into and you us credit, if walk door business, make we of credit that wanted in to a a there for the question partner into credibility you're it that is there was opener compete think help saw reality terms to that us a leads to credit sale XXX% is them a mortgage in I because building into opportunity. does when

Credibility I think to that's leads a opportunity. straightforward comment.

can't Look, sell leave of with think the banks well. the at interfaces interface we the or Goldman, you big really the And firm's Morton. JPMorgan I Troy then when at we and firm of the think out the [indiscernible] balance we or about about side the in world, the and Ashok world with think the relationships Andy how about

think businesses have because that we think of And when about you I you about the think how we're with kind very their resonance a that's them those businesses in. strategic when touch P&L. we're partly

been advantage so forever. us that's big for way And a a certain in

heard we for for markets we're the through think market of business ability example, us if doing, our world you of all swaps. And what and that of interest you kind kind the funnels rate repo connect money the even in, how it are about into to sort of

X You're And historically those been operating. now in roles innovation that terms how of massive of we're markets are like have sleepy. kind talking showing about pretty

the are strong very advantage continue And than So market advantage my instinct the been us a connected build way more of our sort for ourselves -- markets in it's ever, given it's big we share these a is of the markets. is instinct technology us. as into new for trend and to further grow

So I question, appreciate the view. that's Thank you. the Craig.

Operator

from comes Barclays. Ben the question of line next Our Budish of

Benjamin Budish

engaging that are how your in trade stats trading the are out kind the usage How if before? trades types Billy, of on the items, growth some a protocol? joining of you I changing. And are they makers, on weren't could the prepared for ever are new the medium- longer-term large that outlook trading, portfolio What about largest to these firms are remarks, protocol. the increasing of called the market that line newer ADV, recently? your is portfolio portfolio was of -- your number of with with How firms number wondering engaging platform. talk you platform in

William Hult

Yes.

significant that for guys is kind that question, So love -- concept to we clearly, of the we think acting because positive like side me heard be -- makers, side we it's and banks on right? buy say And are portfolio goes of the the market in buy volume balance, the we're this basic trading, through you Ben. as good have going you that ultimately, there's direction. the right? acting thesis a So and stand so How very

trading perspective, represents our in And 'XX. bit second from than XX% from TRACE the the of less quarter little portfolio a of quarter second in That's 'XX. up of so now X%

kind It's can total have higher. We're concept deal, concept progression instinct we all, remember, sort originally, protocol the and getting XX% the And TRACE shifted perspective. managers a rebalancing is asset end about month zone a lot I right? equation kind back changed big can you if of think for land that the be entering it So of trades. Again, risk right, have now fund it when protocol of for about the of into hedge electronic into to clients the for right? thinking kind from of balance, lot an the that, of that of trade, volume. then sort of sort think that opinions like XX% on protocol So there, built of of period. coming kind the about risk how of that using we banks or an trading tactical was of really of from a you in quarter

of using in like recently, seen big insurance firm asset we've behavior. of More are management. progressions it liability for terms These kind pretty

of right, think Your the the the of interesting, and seeing emergence is talking we're second sort we're about about we quite now question of makers. because part how market alternative

technology, that's kind think alternative of sort warehousing we around the the way changes of to a that job makers risk. world about doing terms an still but describe of in are market world, emphasis Citadels with the think I of the the the of excellent of the space them, right lot entering

has very [indiscernible] plans. clear their been about

and kind I word right? very I'll of of kind Market You Access. with that very, himself to -- think used But Switzerland, players have void. describe important they're space, in him firms I'm Tradeweb these the his conversation of Doug relationship always between in filling off-line. I we have terms a were going to the Switzerland but thought

getting that do kind traditional sort big issues. companies disclosed of the significant then business and experience and have and into of anonymous and expertise kind DNA the disclosed trading, wallet around a on And trading that's of not doing have the side world trading You have the of legacy of deal. you way

partner take the for portfolio with that's and is deal forward. very of concept them a the going seriously. going big instinct my trading premise they're So how in of we to us And terms

for we're the and thanks good question. going feeling directionally So where with portfolio trading, quite about

Operator

line William Tyler question Muller the of next from Blair. Our of comes

Unknown Analyst

Mueller response of for has analytics Tyler in Edge? We what on the to Jeff client the Schmidt. trades. functionality were is Is been block the rollout of larger curious, RFQ additional This helping penetration

William Hult

Sure. Tyler, by Well, way, Edge. RFQ question. I good the sort love the of

We think early It's are question. From positive. it's of real-time marketing protocol has a The the charging a feedback perspective, that's days, our about I company. enhancements for great directionally kind ticket. our in kind more That's all of for kind analytics quite the is good RFQ of adding portfolio clients us. what and kind initial that across move a the been analytics, into Edge enhancements, of we like clients upstream RFQ strategic think to to investing strong important. very trading. they basically reflect similar provide

allows of trade and sort and at all market the into Again, client It the dealers once. you to experience. it's investing about all with all-to-all enhancing multiple

few where a I like fewer in something they're larger a invested for really time, information have sized important the very who leakage, are very sending These in trade, think are trades, for of we've that very, and larger portfolio sized to principles it trades, We minimizing client leakage. edge us. a fewer concept ultimate utilizing That's dealers, long a going of dealers flow, clients information understanding sort like way. straightforward that

good appreciate and the days, come to more So on that early protocol we're it feeling question. about

Operator

Allen comes the Our next Citi. Chris of of question from line

Christopher Allen

now, what how little growth I'm new to I Any be may the business bit. you of between about expand us the maybe data today some also, contribute. wondering introduce remind much a existing of here. you drivers kind want able key of mix the are kind products? to they penetration market are different able products data And to of talk third-party the you offerings how can and

Sara Furber

has $X and have foremost, for direct always quarter In [indiscernible] of from coming question. I Data obviously, first we well. our is that as you're top of market utilizing clients. the The million revenue we the data second our And But for improve that, for business $XX in quarter, a and the Sure. from asking Chris, data $XX us. had about of the line overall the you market Market for it's Sara. great about. we bulk third-party million [indiscernible] as Thank with been execution talk Market about priority million Data. data to think about

line, it's base, really but nicely us, grown much a smaller That on last average. years XX% over about obviously, X the for

in you third-party components. that product. few line is really If pricing The a about biggest there think what's driving bucket, element that

of like and reference So that pricing XX% would really benchmark constitute $X products. and it's million about things

closing So ability have U.K. a think U.S. about treasuries. on Gilt price or to our

INAV, ETF products of intraday our like pricing. Newer type

New indices AI ultimately, as pricing. X you terms people lines. flow, closing growth great a and then they our fees also concept directly This increased but in reference it of as creating which strategy, ways: adopted, trading licensing is from growth benchmarks further for one, of get as adds consume in and other prices, create obviously

that. the by growth That's a bucket. of biggest the owned we're which is [indiscernible] That's to do obviously the driver, biggest lot thing most excited about, partnered with FTSE,

some in things components like and really line that PCA. around regulatory-type are post-trade analytics other The products,

of create can can that Thanks more then inherent But things further gets network, And model, of that benefit we're it's for you think, a closing as create. here. can benchmark adoption, both more trading, It create our So types today. we're see can that help or we question. class And I There's products. data ways, in entrenched it happen in In for. new licensing asset you of grow that ability line quite we those and reference seeing the Any there's limitless. overnight. of bullish in the we're opportunity to terms doesn't overall, growth. then price the further the some in

Operator

from next of question Sachs. comes Blostein Our Alex line of Goldman the

Alexander Blostein

I've I and a the new I records this topic to it quarter numerous as an that bunch rate past well. and like So come seems set of wanted talk swap this in the kind just a past, exception business to know business. little about that. more it's continues was up interest you the in guys of bit a times But asked second

next what in thinking much the it That's broadly over than algorithm what about the you're kind the it just revenue out this one. do to years seems you of the the drove strength should because can be. growth baseline continues couple like talk zoom of in So and better how quarter? second And maybe business

William Hult

great a us, and been question. for it's It's a obviously, kind very good of Alex, environment

of quarter So like like election care most. in. second prints, varying of the business was clients been really changing inflation about all uncertainty, is a has the our of odds, almost geopolitical of like There's kind perfect that kind stuff what and microcosm our clicking

It's share primarily us, a I story would been say. market for

and I complementary I mortgage franchise. As think the of swaps our a made and sort business, of we the you business point, into as it keep about when know cut thinking want to gets Fed to like very almost our rate well, our about this bond mood. us kind government global

by That's instinct is the big first equation going a growing market from gained But share [indiscernible]. to market mortgage of those that them and into sort X It's ways. been kind around revenue Our foremost like really of Tradeweb swaps. and in migrating we've new driver of adding are kind step that's and kind of really originators our XXX customers stuff, and share. of

I've protocols. think before, say, kind from second, by would then of it's that, used be I And our would very perspective, micro importantly, trading new very, expression and and building always the I products EM.

market it through funds would Tradeweb. kind a size request trade they're X-sided for the that would now So happen where marketplace, exact big like one in bluebird ultimately a kind on to And trade the go call a request and market, trades the example dealer, for We be RFM, large then market. words the really code those and can through one of market but phone client something it replicates or on the like of web, trade macro on. ask messaging side that of of happening buy-side for behavior

continued kind we a around bit, plot to going swaps. As sort it's about future of be success little feel on We the bullish EM swaps. of inflation

I we of multi-asset think swaptions of there's technology of of and interesting be, then is for very a And not to going to talked kind sort this pack us. about concept kind crack again, swaps.

continued do for perform, really market the more feeling us and a swaps. So lot share we've about good really, how in to in to area gaining

and like bit And feel of well, sort the the sometimes alley made Tradeweb, of I've all and long where and feeling very all a to rates macro flourish the good rewarding like you volatile to from was for little As it's see markets this environments has business here. the the -- know, going really I been for joke of a the in Tradeweb about this And Alex, markets interesting company back time. story. quite

thanks the you, question. So for Alex. Thank

Operator

comes of line question Patrick Piper the next Sandler. from Moley of Our

Patrick Moley

have a launching the a treasury So lot that compete the a that with is understand with you business September. FMX but I around they of question. currently. been club had has business, futures I do conversation in FMX

this a So your what consortium huge that your part and means of get FMX on in -- of thoughts I competition I for in understand not space rate just new it's industry? business, broadly was the to curious the but dealers

been you business And [indiscernible] Nasdaq follow-on then trend since from bought if that's I could the I for that years ago. starting completely to mentioned with that haven't a a that, remarks to been you your you was a few add in satisfied prepared know it higher you.

So maybe your there on business that could forward. going strength you expectations and you're expand just seeing for the if

William Hult

Yes. Patrick, myself, moment. no about watching of about before. a kind I yesterday CNBC Hope this kind Switzerland of like of Duffy Howard is personality, business well. talking thinking hear sort good Maybe comment with Switzerland to was doing kind Mr. your in this of there's big knows you're that. and really everyone voice. there's a

and instinct model, business FMX's we've [indiscernible]. see well -- of our play in the very of known all clear him will on that is a and take kind is respectful with from how incumbent goal market. to And and have with that's the futures perspective My out. to we'll we think is I him both the relationship the

play I and think interesting out bit it's an watch. a to it to going kind story of on TV, be will

make a about strong landscape. aware obvious a super to feel and feel very I and the of an question, treasury on We company, really, really have the super competitive message conscious the strength the I we be is to that on our side both which of and wholesale good business, delivered it's good the side. point, client

And this continues this so well in try everything Howard obvious space. to done aware to of to make space in has do an very point, and that

the live straightforward breathe of landscape, most aware always the that competitive super focus. and your make clients but with and Be

the side streaming we your So of cloud our our wholesale terms the versus all The question to well. extremely to of the rXfin business about in well business. on treasury business, helpful in continues From streaming do growing do continue that. to exceptionally been has acquisition not us, surprisingly

work do think have on to still I CLOB. do the we

shifts to an this been to kind of investing forward. and we a sort company cylinders. area where and from pressing of people right have the the the continue market we're our And of there make CLOB in CLOB our we important that's I that tend on all to share hiring and moving and the little executes buttons correctly perspective, market. think right piece business sure an And the world. the up is click bit company roll want and in There that sleeves that

of do around well hear stick company in focused. out going know We're you And our piece sit our quite going of with happens all close see to and continue and We're of that is back what clients kind our really to stay focused. to it. for As and stay well, the very that kind business. the in a this there news question. then your is to futures to terms stays wholesale of knitting, the Thanks Good there's very, good enough voice. market of very

Operator

of comes Bank. Bedell question Deutsche Our line next from of the Brian

Brian Bedell

like market here, just a Maybe too focus just Maybe comments for your high Billy, shift on June. just mix, driving and comment a to short share but -- within portfolio looks much investment can of you the or the in little may lower Is you than base what on it not July, client yield be dealer trading term the grade that? environmental due think either if institutional? business or to more to on

William Hult

-- speaking, from a trading of and Yes. to kind portfolio we too get into read those yet. the into some end wind arena up Don't numbers towards outperforming Good that of fully that those month. generally mean, in tend the much you. of around I question market protocols perspective share

see we're our you numbers. a think all-in to very up when July wind going place good in I

which of going portfolio our see thrive of and perspective, continued trading, protocol you're that is, from go-to think to kind our in. growth kind of I we of sort something

a a Aladdin to said when market the big are And in to kind lot. going credit. So a I it I the talk We've of trading when about yield onboarding right and into is portfolio important remains thrive concept going the that say that all, continue buy and clients side all that's the acting And like where about to don't world market we balance in dealers we're the scene. done. high think the buy-side From Feeling credit good the stay. investing in market of is where makers, big see that's you're us arriving disconnect makers really are get trading to about perspective, going our on quite for that the think where focus in open as important trends we us. that's our the we environment, business, high priority and forward to these our an for makers talked integration a company, good for alternative

you. Good question, and thank

Operator

JPMorgan. comes the from Ken Our question Worthington next line from of

Kenneth Worthington

U.S. you focus been question, changes Europe Trump seen versus maybe election 'XX net should season environment, mentioned markets? the for timing maybe And to Tradeweb expect increased impacted election activity already? issuance Alex's to is Harris levels. globally, X, some as we wanted from Tradeweb part or takeaways presidency on any business substantially perspective? then sales income magnitude issuance part from we've there season volume are in a clear And or it's is levels, 'XX how investment in given I from sales funds and in bond grade in to into higher translate a How trading into fixed high-yield in X

William Hult

incredible weeks. And it you've an changing just feel story got I X of like constantly. the like kind Sure, like had Yes. is

As before, in business. think good we healthy I the market said for our debate is

And record We June. geopolitical concept bearing days revenue uncertainty, in different prints. so the obviously, we saw of talked some inflation the about

always with, to think I you straight answer get the I'm an for economist. not -- start and look, me

who is. I the think say Fed I'll no going the President is cut to matter that.

going that's wind think good being business. to quite I for up our

policy, is obviously, the get of going playing Fed that in. different global concept to think, markets I but lives importantly, debt instinct a Tradeweb I my of, breathes the sort talk role lesser you're the about very and in rising. is think And I

going to sector into a to this that markets feeling sort are as leaves no And of of that are those like risk private back is 'XX. volume, vogue. do you're see get strong us issuance of my laugh, activity issuance that my pickup debt results going continued intermediation in matter yield so I And with is levels instinct the make Not election of going have thoughts. forward. a to in high we pickup you think

last kind had thoughts going has and I've everyone about call was of happen what sure I feel the like I'm XX different to over month too. this on

human So the challenging a bit with time It's it's things of happening say a the been can this. been little I little bit world. in all in a way a

lucky That's the Thank in we all events just couple months world. how ourselves sometimes. terms remind we so you. in a And of are great been tough question. of But it's a the

Kenneth Worthington

perspective. your Appreciate

Operator

line question Jefferies. of next comes Our Daniel the from Fannon of

Daniel Fannon

kind mentioned growth? that you key yield, is and impact you're growth. in network what prepared segments the today And partnership are where Can you of client your future does accelerate maybe your targeting high current remarks, client your strengths get Within expanding to how to that? Aladdin actually

William Hult

Yes.

We good with business. important with market the high-yield in not relationships to to form obviously So Dan. Sara probably team the like that's long-only are push They're you to the ETF question, of continuing extremely kind deeper strengths, managers. a makers. all. Straightforward I'm would at the around say asset surprising going

with I we've They're them. very well think critical. done

Aladdin So the of space. in we to we're the liquidity Hedge extremely we because very kind private work and on there. to important out kind like of making focused think going high that's institutions way sure banks that kind terms to focused in in keep funds liquidity taking We're of it's best-in-class a going us round that perception have help for and around going in yield. network of responder

you sort a to this because it's always two-pronged say I approach. of And

trading. of we're benefits portfolio continued area around there's around the a be to message to do the we which high growth, continued trading, see in yield we going portfolio going particularly that, As think

to be to kind we're focused So that about the right marketplace thinking very from base. we make on way. want of protocols different always the going sure we're And then X client

deeper market maker the sure which ETF so partly why money us. is much means and we responders right that relationships make world, So to inside integration market, ETF in, Aladdin of have that

Sara Furber

past area. lot in the just Billy building our continue platform. And we've about spent think time focus EM client as talked of a on we another area out we've That's the and maybe well. about one base, and When other energy to

those high I expansion. there think terms overlap of some a in There's yield see big benefit of traders. in some we

William Hult

Yes, Sara. Thanks thank question. for the you

Operator

comes of the question from next line Our KBW. of Voigt Kyle

Kyle Voigt

here, likely you ICD wondering with from given update the so, still incremental have us within So to can week for a just that we your especially be M&A close sounds if of significant may next to on appetite incremental investment the time like there? with respect ICD. integration amount just of balance flexibility sheet close. post And It us upfront. you remind Can or some there line

how So after that? margin the about we can trajectory think

Sara Furber

that's great. Yes,

X quarter. start M&A M&A with last tools let we're me of acquisitions, partnerships focused a thinking question. is executing integrating. think means your organic Billy and -- as XX in tool, which those and this was a the ICD M&A laughing, you the tool on implement and if objectives. done We've Look, We last months, doing growth just answer to So like to part investments first strategic well, are I include question our

and it's of around ICD. mind, So of little top bit obviously specifically like talk more a the I'll plans

we that, we focused said, objectives. on That our do are achieving while strategic constantly

looking disciplined tool and executing to look at to to continue we're about but well. that going going balance opportunities, be we're other So at

our and on foot. opportunistic our be we're think grow We to continue will We company.

have great We balance sheet. a

pursued ones far. we're stock, few to you've We be we've disciplined it. but have so the about going a seen in Hopefully, that great that very

expect we to shortly. specifically, ICD close

we've we ours think, our where bit about lower terms gate about. is the the really of bit out range that strength platform. really dialogue we've that desire that investment to that client XX% and probably relationship, margin Strategically, are, products, really, In of little very thesis pleased think well. strong. talked And a where right XX%, we've a that in I ICD reflecting is our increased the had, now, than little been the business talked is client we've client been have our that ICD types of of the around for for is receptivity their managers I in the has really expectation performing the That's

was some of term bit So for but I our XX-month ICD certainly us obviously, to footprint, take little our road to international and revenue those going longer, really technology it happen opportunity it's the we're our connectivity think map it is introducing where in on big in terms bang, it's a taking a XX- medium and platform. to then near will sooner, not the introducing of into that headed, driving really term client synergies, around and base

can products. interest. our treasurers corporate those They've So buy had

We will to do. very U.S. which well treasuries, we we're likely placed think start with

U.S. there's go in bonds, can whole are you're of these can you and can that mode of to treasurers that portal that CP, term, corporate a we're go once see corporate see opportunity. quite we our a transacting and about to today on can the excited treasuries actually range how products, transacting go to CDs, in over outcomes But medium

William Hult

fit, with cultural been team minute lot the team how maybe a sort the you we've talked with the management on a Tory. that about we Sara, management And -- just of starting for importance impressive of from and just

Sara Furber

been time obviously honed at a mean time our of in deal short teams, joke level. management of management one but a but team, starting ICD, of with connect process, the one broader done diligence with acquisitions is in only of great not it's and [indiscernible] spend a consuming, every the we've the I as Tory, X period Yes. the able to able having team really benefits we with been who's have these of ICD time benefits I and the CEO because playbook to

products, CMOs it but heads broader the and Tory, the through from finance the mentioned goes and CTOs, Billy obviously, So the organization. of parts of

we are I part even on cultural that a really been acquisitions, are of mindset makes having successful. on think things as that platform, we the more about. of And of in clients that bringing focus fit, acquisitions to our one on talent the board grow partners that the So excited number that's

to is were the more we way when the I in right is So the fit announced that clients point is talent our enthusiastic the makes high, we than cultural Billy us that tremendous but deal. actually out fit even think we a serving approach

Operator

Morgan of next question Cyprys Michael comes line Our from from the Stanley.

Michael Cyprys

that. emerging with if are earlier could your one technology. Just like? aspirations on the things little that bit wanted to look investments back you're what articulating hoping making elaborate in circle your was a think blockchain. comments I I you on there? What you were successful, does to the of And

So to do the business how you guess over related I your a for blockchain and in markets potential that, the see your long just term?

Sara Furber

Sure. Thanks for question. the

and at and our of increasingly, technologies And is invest. spend is But avail interesting blockchain perfect be assets us a created really really to digital We've space think partner and I how we point capital. emerging it. are ourselves being and disciplined about very the example. strategy in of years the to born Those cycle. spent have our part really looking technologies to in-house don't for

our that on today in ecosystems more Those gets have want and ecosystems. of in to our markets we be eliminating in front businesses has cost From the reducing technology of space we terms foot obviously manual our also about transactions distributed how reconciliations, just impact how and seat, traditional out lot have leveraged leveraging ledger like figuring of a learn. like things trading blockchain

utilized X blockchain both And which for how are ledgers in like a which giving is a and so and how CDs alpha trading cases table around which brokered seats really X actually infrastructure either investments that we've securities technology around create Network, seeing other ledger, well-understood is network Canton, for that that of alpha Canton can a more the with digital done interoperability scales much around issuance blockchain the recently, be at different or and is assets. us ecosystem network,

trading digital but technologies, it's around certainly, market think traditional. evolves, blockchain an we're still ourselves on to be more important whether it's positioning early assets as or some a these player emerging days I that So the

William Hult

build And Michael, of learn that like aspect pretty Sara you quickly. say, you markets, sort described an perfectly, would pragmatism of when I

blockchain, like about of marketplace. about this describe things and Sara like the process of live type we're of settlement that sort markets type And for out I some X to of market. we with the or thinking specifically obviously, and of in of so can could so point of to of always you these important. we're market that benefit the of our these how that have talk repo would the some time, start feel going really they And kind sort pragmatically you fit technologies are mentioned first sort all sort clearly from

of years traditionally settles. couple second think we kind would this the important we if about you probably then the more to and think and And market is market the out, more point become market that going over next how TBA of is

into a technology time for because our feeling going of way is time An to the that question, be excellent could that over to more there. will market create world, are pragmatically would interesting be thanks. around take The opportunity time. that I of most think kind and do there sort applied but efficiencies in over that think technologies key I Michael, get kind important it is in of blockchain words the really

Operator

Our of Alex Kramm next from question line of comes the UBS.

Alex Kramm

trading When to agree clients, to talk of time. is Just to bigger. more and wanted that your largest they credits one going side totally come to back some get I portfolio protocol buy this

those great. like market have competition. same sounds they we spread talk obviously, over little in all that time, very I bit going So when We're And to to dominant time, to But look, at definitely say you like, that more. have business. a share the do clients, off

maybe workflow I think that, think it's effect little network you? right And a defend again, real considering something Is don't that's you can [indiscernible] a network a that bit do as that that than So how liquidity. RFQ it concentrated much you a maybe of more market and as, very worries has. than has now,

William Hult

I a your That's think a with way, a of I really, agree lot mean certain really in thesis. kind of good question. like

First way of all, the that with that embracing are like buy-side the protocol. clients

going of sort expect ecosystem. that's technology to you sort to experience sort think the and and exactly I hear things which the me spot is innovate And the and with to clients' think do, of like around loud importance clear enhance to would us what trading. do enhance portfolio We're continue you balance the I on. of to around around of do

for our also you partners back very bank of We're that. our that absolutely, bring went but banks the the think we've big we we created guys, straightforward gotten not to portfolio out do way as a going into it's that done in and we remind concept this support a lot we've equation, of to

trading. of share So going growth to is be market trend I forward continued portfolio think the sort around

the of think that company the make ways our stay portfolio as I big stay a sure to leading trading. to we we forward. focus will we for It's for defend have sort venue and

it. on focused we're So

trading. feeling portfolio market is going strength we're show continued And my to in general share

Operator

remarks. you. Billy concludes to it back to Thank session. now This turn for would CEO, Hult the I question-and-answer closing like

William Hult

Sameer us please Bye-bye. joining great a day. all. much Any questions, to free this Thank follow-up, Thank Ashley, great for morning. Great as always. Have to you and out our reach all you very feel team. obviously,

Sara Furber

you. Thank

Operator

Thank program. you today's the for does This conference. participation your conclude in

disconnect. now You may

Tradeweb Markets (TW) 25 Jul 242024 Q2 Earnings call transcript