SNEX - Earnings call transcript Q3 2022

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Operator

Welcome to the FY '22 Third Quarter StoneX Group Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today Bill Dunaway. Please go ahead, Bill.

Bill Dunaway

morning. Good Bill is Dunaway. name My to conference quarter for third earnings June Welcome XX, call ended XXXX. our our After the of market reporting closed yesterday, we issued for third our a our fiscal quarter XXXX. results press release on our presentation, our slide refer discussion This release our will is website www.stonex.com and as we call as this on quarterly at to of a well in results. available year-to-date

webcast view to will the our the to need webcast live will archive on the of be sign an also on the The available website presentation. call's order You presentation conclusion. and to in after

Before the you statements following financial getting statements should XX-Q SEC. the Act meaning Form are with and underway, may discussion of XXXX we all our the Securities recent as with are most and required involve filed forward-looking SEC. XXA forward-looking of with notes Section the detailed conjunction filings of to note discussion Securities statements in XXXX as the and Exchange within This the XXE advise thereto of uncertainties, which and of should and contain taken risks and Act be These well participants the amended the in Section amended. unknown as known as

by cautioned forward-looking are or that, future call future Sean assumptions business differ materially forward-looking or from as result its are the I'll of over believes company's information, actual a not turn to will no any performance. company's statements. the the events publicly company CEO. implied whether results forward-looking statements the undertakes can Although update that assurances are Readers any and conditions, be expressed based regarding now upon there of statements company's The no market any revise reasonable its O’Connor guarantees future With that statements. or forward-looking company obligation the to not results otherwise. new that

Sean O’Connor

morning, third XXXX everyone quarter for joining and Thanks, Bill. call. earnings Good thanks our fiscal

XXX.X effects and both fiscal of the 'XX, increases recorded see rates in we We markets, inflationary markets. sharp and year short-term up quarter up XX% produced of continued of the XX% in XX%. XX.X in financial on up diluted million global physical revenues a versus expenses XX.X% the to up volatility net EPS while third the earnings of This million During operating which $X.XX ROE. are XX% pressures continued and of resulted prior

now XX% deck, Turning course The [Technical securities. as was the FX transaction of Difficult] $X in for here at was off and X, Difficult] up total FX balances a XXX% fine strong client earnings interest CFDs to except the OTC double-digit XX% up being This record Slide standouts which up stands XX%. increase billion. And a revenue CFDs, on as being [Technical being in float, of the driven contracts. by back volume increases then well

capture, saw offset volume in revenue of decrease increase. XX%, we a large XXX% terms securities of In which significantly

have we our these equities the of expanding growing mentioned previously, and metrics As couple transactional our fixed is that market offerings over large presents and and but have vanilla a we are where share opportunities. more lower include now limited us, thus last quarters. business business have which has higher market to addressable as and Both capabilities product and the of front capabilities large income products expanded volume in and margin, securities

has Just declined. of volumes revenue obviously the impact capture as while increasing

has increased personnel new the upfront revenue, areas faster impacted required [Technical Difficult]. these costs Additionally, also which slightly have than investments in

market businesses should clients the new and financial uses. transactional to should wallet pick drives metrics the from of As in This from you start bottom-line on and ecosystem adoption a out share we can in see continue Difficult] see as the enhance boost to invested stabilizes. increased pillar level is to revenue expanding core turn to and a capabilities. product by and initiatives [Technical existing these products up our our strategy enhances and client our

metrics XX and now looking revenue at the for and trailing X months. to Slide Turning product

the operational earnings quarter, net slightly situation. cost ROE two the higher XX.X [Technical quarter, digits Our board the standouts resulted again, just reported by for But our the all as of volume for of at [Technical This was were million products. prior Revenue was Setting operating the except excludes for for an up Difficult] securities, increase of standouts for comparison playing immediately numbers The up of years with our all up of immediately here best ago. XX% XX% ROE. are OTC securities up revenues on slide compensation up view, still market Difficult]. and down rates. also This CFDs. products, higher recorded revenue. used. is a if for and [Technical up EPS XX% boosted revenue the XX% we earnings prior down with variable are election slightly in for We a capture was the quarter In are FX summary Ukraine double across of of basis tangible FX increased and the prior adjusted which operating ever accounting board expenses up with comparative and the now balances other across Revenue XX% diluted contracts volatility our in and XX%, from line Fix in and X%. up XX% were Difficult] and CFDs. being versus XX% point adjusted period. The XX.X and impact and interest equity securities remember is CFDs and other an [indiscernible] transaction by XXX slightly five the which compensation robust

this with and our Difficult] quarter. earnings down us against immediately revenues quarter, XX% exceptional [Technical were prior However, operating comparing

ROE We comparable XXXX XX.X or million value a operating Looking the basis. a an QX per at months for for net an the share summary XXX.X billion on on income with XX book of was up XX.X% adjusted adjusted. [Technical X.X XXX.X Difficult] months, XX $XX.XX. period, trailing the the revenues and XX% over trailing $X.XX for were ended

Turning more now our Bill touch six, just highlights to to goes before detail. on segments summary Slide the into

segment revenue income across was operating and For the board. the quarter

commercial segment clients a driven side physical XX% solid the segment revenue income XX% largest of on of in business. by our the Our spark increase up was

and Global up as as in record Our earlier. in payment XX% digital revenue the payments its a well up segment saw to XX% new and [Technical institutional clients. Difficult]. segment operating for midsize also equates into been capability XX% X% has realized increase platform The for which X%. translated local We pay also record mentioned investing commercial a income segment strong in with realized new performance driving a reasons revenues a revenues at segment income the very

the X%, operating repeatedly, strong for months, how across and said the our company we of we the how was double-digit I've For and board, grow the was segment where as reasons we we and trailing income we've much a These long-term segment XX down discussed manage for our view X% up earlier. institutional revenue see same strong except results. take are But with the growth franchise.

rather is believe our longer best such As performance, we in isolation. such, look XX progress that trailing taken gauge as term the specific to quarters than months way results the at to and

trailing to on which the earnings appear XX-month filings I this adjusted Difficult] to out in for Turning gain page did the our related numbers deck. our acquisition set in reconciliation [Technical the we've and performance. last disclosed have financial treatment Slide seven, of These as been prior

On month nine the over [Technical quarters. revenue left operating the Difficult] side, hand trailing XX last

been As our can remarkably strong footprint you a this capabilities. expanded has have steadily trend and with upward see smooth as we

for a period this over XX% up rate. XX% are revenues Our annual growth compound

rates. adjusted has average Our grown income pre-tax a growth likewise XX% significantly

you graph ROE see years which represents in though right-hand even this XX% are capital Difficult] has can adjusted period. over up the The a dotted CAGR. grown On last remained few above our XX% over has XX% our yellow bars earnings by which the our line the [Technical for

dollar much the We of not on And majority rates on as like in have seen earnings of I this to impact on have writing as couple life. of denominated touch quarters such, last see globally earnings, the interest significant impact dollars. over our do direct our we just the the strength the are would diverged. briefly in

I'll addition, variable in In majority note compensation is also our vast the of dollars. that calculated also

shows amount run expenses. annum of essence, in the terms $XX have these million strength have XXXX. This I'll COVID rate, year our to to result wealth? benefit. of costs on over you intend a Thank more you, by for rates in I that a the A currency now We Side With some be per to statement now In fixed reduced quarter we will lock on ensure is eight, fixed base. of to dollar current significant denominated benefit financial on material locally a our [Technical the from Dunaway third number which a discussion Sean. detailed that, provide cost fiscal as ago. it have we starting some Difficult]. And been consolidated However, Bill Bill income dollar - discounts hand a in

highlights many uncovered segment the to a So quarter the for of just a discussion. so I'll consolidated few bond highlight

period. listed payment in the businesses increased contract increased is commodity higher prior operating period, transaction increase decline Introducing the prior to offset in an to and relatively volumes institutional average versus as commissions offset up X% clearing the flat in in period, and increase represented in versus operating derivative million business. than well increases due to XX% the current broker well by headcount, current in costs our prior primarily net which was million due with global higher commercial revenues primarily were of expense which of XX.X compared physical as XX.X to revenues side our million compensation Variable increase based expense the current X.X IB to salary year our a the the business. million with rates prior compared trading an have to listed XX.X declined funding to as and increased as to during year related compensation costs expenses the year short-term the borrowings the increase period this interest to the our related payments interest activities principally as On period, periods. in expense XX% in XX% global in partially in listed prior versus derivative deferred and This increased in were by million more increased net prior increases the ADV, benefit XX% growth in Interest net corporate due year operating commissions securities year and compensation. the in year revenues as XX.X

as Our preceding increased up million quarter. year million prior versus fixed XX.X the we're and to X.X expenses XXX.X million compared the to immediately

million primarily our marketing relates in and compared increased to X.X million. Forex expenses prior in business. selling retail the and marking increase professional fees X.X selling increase year, in As increased to digital The

and business as compared increasing travel in have We increases development X.X started prior year. see to to the million

quarter of million the in and gain the in Gain market million Differentiation prior our and trading million Amortization for liabilities the prior non-trading developed X year primarily increase preceding point adjustment increased addition, In the X.X expense and of which recorded part versus systems digital and In information million year, to and on bad and and X,XXX,XXX respectively. acquisition internally in an of was to their debt games, X expense had offerings. $X.X X.X in one of that's technology we expand to other support acquisition quarters the related recoveries leads in primarily We Capital. net point to an software. assumed XXX,XXX initiative immediately increased a

a million quarter, foreign versus was action period. preceding decline represented or preceding represents no and fiscal immediately in antitrust on quarter third increase current best acquisition of This for received recorded gain a we the our XX% Net the other million settlement. the $X quarterly the XXXX immediately year. performance recorded lawsuit the a in exchange XX% prior all We over in time quarter. XX.X games While class income

XX year. Moving Slide segments. more versus nine, provide information number I or in the will another The strong some on quarter prior company had million operating to adding revenues operating

immediately a record preceding decline the represents this quarter. $XX.X versus second However, million

transactions in a rate revenues in X% the as of increased a the in quarter by derivative for offset million an volumes. X% per segment OTC year physical which a the XX.X year to primarily of X.X a of the up looked as increase metals derivative prior was revenues OTC contract decline operating well million average revenues. contract period, compared partially X% per the derivative Operating X% million revenues operating contract. which as result million the as at in year versus prior decline a as rate contract result volumes XXX,XXX declined increase Within a precious was quarter XX.X in from operating average a result versus were prior decline XX.X

of balances as actions. XX% increased on short-term and for increased increase increase Finally, a an interest year year client and versus and in following well million the equity, prior in XX.X XX% earned respectively. income our prior average as preceding the result X%, period X.X million as was over in client Fed Segment of the quarter a

of volumes to primarily result offset per ADV U.S. securities hires in Moving volatility in by to of and most and volume by million operating a U.S. this recent in by traded, daily XX, the $XX.X notably business market number Treasury a operating decline product to driven Treasuries segment to volatility. with mix an securities driven rapidly our versus markets to result million actions lesser on Slide in in environment, the increased increase most average primarily XX% security and notably by increase equity partially XXX% increase debt year, XX.X extent, and the anticipated securities increased rate in revenues related in the a volumes. period million. increase actual was combined the rate curb of increase a significant prior transactions primarily inflation, in year changing in new institutional capital as of result as million Fed prior share was the per markets, driven revenues compared in The The rate

driven FX and continued global operating enlisted in million addition, million products, revenues In markets. respectively derivative X increased volatility X.X in by

favorable increase non-variable income in development, and the a market in and preceding year. to prior million primarily million $X.X $X quarter. trading information balances fixed client travel and the X.X is million of $XXX,XXX The as compensation a $X.X a and Segment in non-variable the increase a variable due period $XX.X net result XX.X versus client increase in which million million variance offset versus increase partially direct were a average equity, on is million increase in versus increase revenues, compensation of as year million actions. increase increase rates interest a an following million recent well prior X.X in earned as income a interest increased in result million by to by Segment bad and second partially which $X.X system as XX.X offset X% expenses Finally, operating increased short-term current immediately declined and expenses benefits, in in XX% in Fed business a debt. the

quarter. a million of segment precious the compared physical versus Moving by in Operating increase retail retail declined from were driven retail on a the result Segment income increase period. in Non-variable ADV X.X prior CFD revenues XX.X revenues. Closing increase preceding of transactions of prior business in XX.X by million to the the average X.X the year, year, the million, the per quarter. as non-variable increase also the increase the versus increase to depreciation million markets. up and XX% Segment next primarily in the operating income and increase million added slide, increased prior Operating income The primarily the and X.X I rental of Segment receipt $X X% daily versus professional operating and million a a the increase increase our expenses selling quarter operating million the driven million increase with immediately X.X and the offset in as the was year in a metals a increase current and increased in revenues prior is in our the million the versus travel related compared represented and $XX.X partially million $XXX,XXX while by by XX.X declined segment XXXX driven result immediately it's added a segment amortization, RPM prior expenses versus FX to a year, payments to XX.X on X.X revenues XX.X class XX% increase operating in declined and the as million from and year. flat and million in slide primarily marketing next in preceding year expansion $X.X in the direct primarily XX% X% in a year increased to fees versus $XXX,XXX earlier. settlement offerings. FX immediately of compared preceding XX% prior revenues rate which mentioned discussion to million million second action payment a for as record volume revenues volatility result fiscal included prior as a security development. heightened period which of

which XX, however $X the a and operating currency by segments compensation number I've million our period of variable represents XX $X.X for or to operating partially and XX.X across increase number million pre-tax amortization. exchange between unallocated a prior driven and offset benefits. were offset year increase Slide third primarily increases last million the the in held in increase revenues the for operating in to foreign in which a current is prior non-training decrease revaluation segments. a slide million These technology current from clearing XX up of revenue by revenues the in fixed purposes a the over our million million unallocated primarily and operating period support and in is to increase is million increase XX% million in in and expenses, to XXXX, XX.X versus in a marketing variance depreciation year. unallocated and year $X.X increase compensation quarter million quarter related changes represents income positive period. million result were X.X XXX.X overhead $X.X over in variance a in in loss a by The fees, current a on million revenues million Moving shares the this current next including The mark-to-market bridge period $X.X Overall of period. covered in in bridge pre-tax improved performance, XX selling of increase expenses as the income negative $X partially

basis XX, Finally, interest for average associated moving shows a as rates. by interest short-term rate sensitivity on to quarter in and full be depicts points fully to start which the earned increased on during XX earnings as which hikes the of well points balances the current period more annualized XX changes during slide as rate recent rate invested of client balances the table will fourth period, these to our XXXX. basis reflected fiscal Fed quarter interest The number effect

strategy As an increase income XXX estimate with net annualized I'd that, basis. an With we million turn earlier, noted by noted short-term basis in the $X.XX in rates client to for share point per increase a XX interest in increase discussion. Sean like back it on table balances would to or

Sean O’Connor

Thanks, Bill.

high focused Turning now are XX Slide objectives on. to level without we the that strategic

it this I've We have and it detail call, repeat included so on all before, won't again. slide I the gone last in through

or are the we all of Over the this undertaking in various granular going through them not to given again projects quarters and fairly I've view go last time. six so a our I'm segments

and of milestones continue which However, months. hit to in some these make three of the in be to six next delivering excellent will we launched capabilities, many progress our

However, some highlights.

institutional into as offerings. expanding we broader leverage product mentioned, longstanding changing business its our product As relationships mix, our and securities is

spread execution [Technical number equity are alternative our trades. broker an have represents our players interested for limited these Difficulty] the NMS by clients is equities, electronic having dealer dominated the execution. making a of on This domestic large best now area platform and side, of On outlets market in while providing we launched

for number of we unlisted the pleased this very us costing We large clients of over long in and clients We'll have the a and us. this ramping is time, And platform. We stocks opportunity of names believe all our these been to and foreign this of number enrolled steadily We make limited of accretive we're to that number stocks for the number and clients a execute have limited increasing is results time. a using a very be with the purpose. of the performance marketing. up already were

paid income interest and been for margin revenues This emerging many diversifying peoples and market higher On the such have provided as volume also high of changed. fixed treasuries, steadily resiliency are strategy fixed off side, our us we structured and lower yield, environments products. which asset rate in and have the but to has classes, income as really

well seen the we change from We that now with franchise Tier-X that As in players. and noticed increased some adoption. income players successful [Fed clients as can we've we in made as compete a and investments, initial] [ph] growing larger as are fixed crews talent seen

can corporate this as Colombia. we've large office. an On options our equity of remit is made the currency into clients head to have and large and efficient them way to a employees. to will and a be platform end-to-end a key in payment provide individuals these from up is One, derivatives. business trading some large to existing and for provide offering will self-directed multi-asset back in digital allow local as unique collect clients. platform the hires country thereafter as based local clients an there a to develop this allowing listed our live client launching clients We'll for by country, corporate being that payments platform, limited US team. from in in quarter side, This We us dollars well payment get base. used service as well This Brazil the ramp to pay local will marketing equities utilizing our for in be This upcoming number StoneX in do

class asset execution and add soon a making also capability. this cross FX will We self-directed crypto gold unique

directed to internalize platform able trading be will market where electronic the where will and making we we flow spreads. appropriate, of to All be

of we probably can launched. projects tell exciting to close being you have number very a As

an also and excellent book diluted an on XX. and off achieved $XX.X This on This move just results stated EPS was earnings at another EPS CAGR we good all-time of of earnings a Right at segments. and to million strong being XX% $X.XX results We XXX.X market have [Technical to months now revenues earnings over $X.XX across of our period ROE nine for had nine trajectory. growing [ph] the Slide show our continued ROI upward strong for XX% CAGR. ever period with Difficulty] Let's of was and month million XX.XX%. the diluted quarter XX% best conditions [an] steady with adjusted

We see client and growth volatility in to real trading assets, base our tailwind which This in continued behind interest to strong volumes within. client client client engagement. growth a and underlying and puts market leads our increasing combined business rates with heightened

So clients of digital by our side, see this which our client more are with platforms interact make year, we'll for number a financial it integrate more being ecosystem. launched, tightly to engaging offerings

We platforms. standing and are increased these associated up bringing seeing costs with initially

actively we with product we and expanding provides We should further As margins our accelerate considered large and of a we profitability. scalability market core us. clients, these with ecosystem to in our capabilities the start our financial market a [indiscernible] to to need growth platforms front that very technology comprehensive increased addressable

access need whitespace global financial segments plants and the providing serving financial lots for monetize capabilities we best One around the good dedicate While have market markets. service to to constant in areas always our and better ourselves the them already the the continue with demonstrable by growing to StoneX is ecosystems world and the thing and team to best market opportunities. trends, tried we niche have of these relationships, of where remains now

the questions. operator, let's open and if that any line with we see So have

Operator

thank please first Great, Instructions] comes from go LLC. with Daniel [Operator Our Jefferies, question ahead. you. Daniel, Fannon

Daniel Fannon

higher higher, going an in issue talk up should RPM I you just guess little of about obviously business. maybe my classes forward? in securities first these dynamics Sean Clearly new going saw the you are into And to on on lower think this this going mentioned, a pretty just about capture on are And massive or thinking because markets rate in you that where in step can these a particular. how within are but color and and going what forward, both you you on question, the volume the quarter normalization where two ADVs we be as complex, lower? more asset going the capture. think And about

Sean O’Connor

Yes. Sure.

before, high VM that probably our time where charities, we us payments, those started as a of a and reasonably was through the business exclusively large exact this ago, kind we and dealing Dan, of of went lot payments were when [indiscernible] global profile business, revenue those metrics off. So result, we with process to our And for before a where a about the partners capture. got that years two we working of not transition payments started business. aggregate And the smaller, to net them. lot plus bank of a more took with leveled In kind it’s still

on we the I now seeing are same exact thing security think the side.

a pretty with revenue market foreign unlisted stocks, example, the has NMS making high revenue, equity is On been a capture associated now magnitude. market, and orders into side, the for the bulk our which moving of it. capture of up the until We has now revenue in

everyone we equity and equilibrium correct, foreign conservatively, think to [Technical NMS going two I national not achieve but I the numbers while I I'm I'm those shares in if don't this significant cautiously. sure it of, of make technology, shift sure automated and for side, the years of We on too. so let carefully. have added like I want on want our very responsibly the to to there rip just be it and we would clients do to electronic did We the now a is trade exactly So would on It's think of think say the an the Difficulty] it's portion just just probably probably sort that side. sort to number We prudent it approach take, want out platform. payment it

mostly you might or seen few four to of guess. it get will another probably you and sort when incremental we that of, as Obviously, slower. same we've five trend, see for XX:XX, should in what last gets doing are rate to the the quarters continue if the probably perpetuate, quarters We XX:XX, you because, already change slow

law of the some averages at start mean, to I point, apply, So, I guess. you do

And same fixed the XX% where income the focused some in a has more that then diversifying mortgage of of others. And revenue our and business product. theory, ago. high business made, other yield bills happened, exact we into income fixed years three our whole a we actually, commission on based, the was like products we have high market, very And that's that's side, are range On into into there's T process margin products. where treasuries

is, it the of what [Technical rate happened in what's market and is so up. Difficulty] in as slow, grows mortgage market this So, is mortgage interest again, fractions the capture is volume revenue there environment the the

But think, because I gave to you income has is us of we been anyway, some more But time, the those resilience. need affecting a good comments, just probably side, I Difficulty] the there closer [Technical are think precise faster. those metric. flattening because I data metrics again, equilibrium, I an period on vary in sense? really you it move So, continue mean, to see, time, time, trend make I should a but of these these Does over same but to way, of continue that out, think the over when will I may period a metrics see think. it quarter-to-quarter, seeing

Daniel Fannon

I it the your something understand costs, to rate mean fiscal this for kind spot third per lower your said helpful. that benefit benefiting the a in potentially, versus just quarter? prospectively, was I is Or kind how based just number, that's numbers annum? provided that about XX on rates about thinking comment then think fixed is in now want that, decent was of fixed forward? already that in you FX going your much Yes, in still quarter? run Is exit and So came your -- And fixed of that fix the costs

Sean O’Connor

Yes.

million is the dollar $XX we've really high. dollar low the number from So the had, the benefit to

over experienced sort all we here, last currency XX kind XX aggregate that our at looked And way seen we've months. said, probably it the impact the wow, and and we of million in all numbers. have coming achieved So of the that our because of

see that now, in, because happen like if rate, exit have basic the current the So try we and up And a think on But I dollar is, built other lock rate of the have to and right. think see we've spun the million is, we [Technical just quarter. about rate million up, exit a now. going we what hired the are want we all Difficulty] the it, that's the and we'd offices is, got don't to way, sort discount to goes the a where we over I what people ramp we from $XX average use $XX we're in

to we lower long So preserve can. as want for as we try cost space that

adjustments good hedge net to from the that have to here in, going your sort question, is adds, be impression. exit we're And So rate and will and are we of out. probably at than inflation. be risk we previously a we end now year, the to of sort going it on site, answer the going of have been some review to try just But because are make are obviously of they larger

So there'll rate. that all into run of of impact that some coming be

Daniel Fannon

from side understand some account FX, the Yes. of That's is well of might business, to one just trading the you just benefiting trying about forward? said. talk more, kind maybe Perfect. like? existing then talk that another What that, can going customers volatility, business can or growth And look you about just retail clearly on

Sean O’Connor

Yes.

So, business with certainly Dan, that business dependent by probably GAIN market And the quarter-to-quarter, you're on conditions. can previously. vary be familiar

obviously I for not this we performance a was main of would So, because conditions time growth. market say driver the volatility quarter good. our account had it and last was increased good the

benefits been do have we starting coming of And better. the sort this of think, see so see count better some But can of we are we're going not Hood because the we bases their our trades mean, grown okay, to just the start I I guys, same conditions of all I growth those in to I at from been fantastic. our and at the significantly. account them products we look revenue out can capture, that haven't mean, think transaction where, if different areas. market internal seeing same like mentioned plummeted have on. kind right, offsetting, the Robin time think but I of has I peers And thing,

launch, got us, there cash it's I think but [Technical speculative for we're of launching going at we're exciting pretty things some products, which section, for us from I capture, to to And forward hard in conditions the hadn’t to moves to business should very, has to investment revenue of key the well soon, access. sort But be going still done that U.K., think but Difficulty] my acquisition. we crypto market mentioned see the us going the expectations starting time business. in to equities sort products going So conditions of are better predict exceeded and very do it's market it’s which our help the

drive also So But if volatility things like Right? sort that bodes I have think are But for thing. -- a is key can conditions, trading business. well market and all forward. going good I growth revenue we capture, to think better that client of going

Daniel Fannon

Yep. that about area you've And broadly, lastly, But any, in of for a or year initiatives then where just the point? lot you're current valuations got backdrop, businesses makes about subset the sense and M&A on. there is at guess a for me, and Understood. maybe I market you're coming is of how focused an thinking thinking and organic this more there a just

Sean O’Connor

still But cycle. for them I these sort it's that starting go certainly, fallout a can't think I say, a point, you and some sort bit us. get raise be need interesting. as in to development interesting, to at think find an this mean, more there's and think would money I buyers interesting to I to it's just it's out. to early they some when of been that startups help because honestly, of that of more going of get

will opportunities certainly interesting of to interesting if we but months been next over XX six us seen up, exciting the think opportunities haven't in months. I last to some the have that to be six come sort see

Daniel Fannon

actually I it. you question Got charts do So guys that have one rate in incremental that's provide? here. from on the interest the more just sensitivity

ago, -- your got run like, is weeks are XX a we've basis wasn't So prospective. the in points or certainly rates few

about you've in fiscal got provide we those together? kind the exiting, thinking that versus benefit terms of hikes, chart that just So blend kind of third how quarter should of and incremental you the rate

Sean O’Connor

Yes.

ahead, mean, Bill. I'll Go in let chime So I here. Bill

Bill Dunaway

into going Dan. kind the certainly baked and fully think in, the wasn't XX to I month I came that right, even the you're of was say, quarter. I XX in mean, a

effect seeing QX those So be of in in I coming think an you onward two, of the should kind basis us. for

Sean O’Connor

think for and is, I of There's side. on banks, all rates, normally, their in the a it's sort treasuries put in rates way T three don't up it they of sort think the with particularly interest should we month catching about other two things, us of delay deposits bills invest and you with immediately. kind

a there. So a there's impact lag of bit

of a than So of, the sort of we of three guess, little I a moving sort rather time. interest the rate at interest maybe average the month rates bit exact

catch So, sort we of the it on end. back

was invest or I [Technical to XXX that. see bills, points. actually months basis points, we pretty so And moment, Difficulty]. XXX At shocked in basis three the treasury

long So, increase or there's next a in two quarter the up start of that baked in us. should kind we showing for

Daniel Fannon

you. right. understood. Okay, Thank All

Sean O’Connor

operator? questions, other Any

Operator

any do At more have not we this point, questions.

for it closing turn back to Sean, like over remarks. I'd you, So to CEO

Sean O’Connor

you joining December and speaking Thanks the call. the Okay. summer Thanks, be us in rest Enjoy your Well, will of we again. early to Bye-bye. for thanks very much. again. everyone, on

Operator

today's This you disconnect. may Thank concludes conference. the in participation for now all your program. Everyone

Sean O’Connor	President and Chief Executive Officer
Bill Dunaway	Chief Financial Officer
Daniel Fannon	Jefferies

StoneX (SNEX) 7 Aug 222022 Q3 Earnings call transcript