The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Alex Kramm - UBS AG - Analyst
: Yes. Just wanted to come back to the market share trends in US treasuries. Billy, I think you proactively talked about this a little bit, and -- but those
have been certainly looking lower in recent quarters. So can you just maybe unpack a little bit more? Is it just mix phone versus electronics, wholesale,
institutional or are there some other underlying trends that you and we should be watching? And if so, what are you doing to recapture that share?
Question: Craig Siegenthaler - Bofa Merrill Lynch Asset Holdings Inc - Analyst
: Our question is on pricing and credit. So we're curious what has been the initial client reaction to the new buy-side fees on high yield? And what
are your thoughts on employing a similar strategy in investment-grade next?
Question: Benjamin Budish - Barclays Services Corp - Analyst
: I wanted to ask about ICD. I mean my high-level question is about the progress in your cross-selling of additional products across that embedded
customer base. But Billy, I was also wondering if you could maybe unpack some of your comments from your prepared remarks about volatility
impacting balances in the quarter. Just anything you can share like anecdotally from what the company has seen in the past?
How long does it typically take for balances to recover? How should we think about the next few months or quarters there?
Question: Alexander Blostein - Goldman Sachs International - Analyst
: I want to switch gears a little bit and maybe talk through some of the fee per million dynamics in the rates business, particularly related to swaps.
You guys continue to see a pretty nice improvement there. It's been a driver of revenue growth for the company, of course, as well. I know it's tough
to predict so maybe we can hold the mix dynamic constant, especially when it comes to compression trades.
But I'm curious how you should think about -- how we should think about the outlook for fee per million and swaps over the next one years to two
years more from a structural perspective?
Question: Alexander Blostein - Goldman Sachs International - Analyst
: Yes. No, that's perfect. And we care about revenue, too. So that helps.
Question: Christopher Allen - Citibank Cameroon SA - Analyst
: In your prepared remarks, you noted that you're seeing higher levels of growth overseas in the US. I'm just wondering if you could dig in a little
bit, maybe talk to where managers focus from a regional perspective, what are the best growth opportunities from a regional country perspective?
And which asset classes or products?
Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst
: I wanted to focus on digital. Given the passing of stablecoin legislation, how do you view stablecoins and tokenized money market funds impacting
the short-term treasury market and Tradeweb more specifically, including ICD. There seems to be a lot of buzz in the rates world, so curious your
thoughts there. And Billy, both you and Sara mentioned investing in digital markets multiple times throughout the call. I think you previously
invested in Securitize and the Canton Network. Where are you investing now in the digital world?
Question: Patrick Moley - Piper Sandler - Analyst
: So Billy, you recently made some comments about potentially having an appetite to do some larger M&A. I was hoping you could just expand on
those comments what that could mean? And just as we sit here today, what part of the business do you think could benefit the most from M&A?
You talked about crypto there a little bit. Is Crypto an area where you think growing out of your digital asset presence through M&A makes sense?
Question: Daniel T. Fannon - Jefferies LLC - Analyst
: So Billy, just in terms of regulatory reform, how should we think about the potential capital relief from SLR and other potential regulatory changes
at the largest dealers and maybe what that means for velocity in the rates market, if any, change at all?
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