Tradeweb Markets Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Christopher Allen - Citi - Analyst : Good morning, everyone. Thanks for taking the question. I wanted to get a little bit more on the rate environment. Billy, as you noted, volatility and activity levels have been low. It sounds like clients are sitting on their hands to an extent. Just wondering, from your perspective, what potential catalysts are ahead that could spark volatility and improve activity. Also, you noted the lack of data impacting activity. Is there any way to gauge the impacts of government shutdown and the lack of releases on activity levels?

Question: Christopher Allen - Citi - Analyst : Much thanks. Yeah. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 30, 2025 / 1:30PM, TW.OQ - Q3 2025 Tradeweb Markets Inc Earnings Call

Question: Christopher Allen - Citi - Analyst : Thanks guys.

Question: Alexander Blostein - Goldman Sachs Group Inc - Analyst : Hey, Billy. Hey, Sara. Good morning, everybody. So wanted to spend a minute on the topic of tokenized assets. Obviously, quite an evolving landscape there. What are the opportunities, I guess, and risks that you see for Tradeweb on both of those fronts? Thanks.

Question: Simon Clinch - Rothschild & Co Redburn - Analyst : Hi, Billy. Thanks for taking my question. I was wondering if you could talk maybe give us a sense of how to think about the stages of electronification in US credit in particular. And how Tradeweb is positioned to both drive and benefit from this trend, specifically in terms of, like, the technologies you have in the pipeline, accelerate this opportunity, how the value trading fits into the frame, particularly in the case of locks, and ultimately, how we should think about the revenue benefits that accrue from this opportunity. Thanks.

Question: Simon Clinch - Rothschild & Co Redburn - Analyst : Thanks very much.

Question: Elias Abboud - BofA Global Research - Analyst : Good morning. This is Elias Abboud on for Craig. Thanks for taking the question. You launched treasury trading on ICD last quarter. Can you update us on what adoption has looked like? Do you have any plans to launch more products in ICD? And then bigger picture, you're still sitting on a lot of cash. Is there more opportunities for M&A in the corporate channel going forward?

Question: Elias Abboud - BofA Global Research - Analyst : Got it. Thank you.

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Hi. Good morning, thanks for taking the question. Maybe following up here. Sara, you highlighted in that '25 would be an investment year, remain open to evaluating M&A opportunities, like if and where appropriate, when you're looking at the product suite as it stands today, are there particular protocols, technologies, geographies that you think could better amplify Tradeweb's value proposition? And to Alex's question earlier, you spent a lot of time on digital and the Canton Network. Are there pieces particularly on the digital side, that would be helpful to fill in here.

Question: Kenneth Worthington - JPMorgan Chase & Co - Analyst : Perfect. Great. Thank you.

Question: Benjamin Budish - Barclays - Analyst : Hi, good morning and thanks for taking my question. Billy, in your prepared remarks, you talked a lot about very low levels of market volatility and what that's doing to electronic share. I'm just curious, I think earlier in the Q&A, you talked about your outlook for [e-share]. Maybe just on market volumes in general, both Trace and US Treasury. What are your thoughts on? Why is that the case it feels like uncertainty remains quite high. The comps are fairly tough, but like what do you think are the reasons that market volumes have been a little bit lower? And how do you think about how that unfolds over the next 6, 12 months?

Question: Alex Kramm - UBS - Analyst : Yes. Hey. Hello, everyone. Late here, but look, there's been a lot of questions today, I feel like on electronification of various markets, both longer term. The one that hasn't come up is actually our largest business, which is interest rate swaps. And I think, Billy, you mentioned earlier in your prepared remarks, only 30% of the market is -- of the cleared IRS market is electronic today. So this may be a little bit nitpicky, but I feel like I've heard that number for multiple years, maybe even back to the IPO. So just wondering, is it just a very rounded number? Is there just not good data out there? Or has the market actually not electronified more in the last few years? It's just all been market growth that you've been participating in?

Question: Kyle Voigt - Keefe Bruyette & Woods Inc - Analyst : Hi, good morning. Maybe a question on capital priorities. Just given the pullback in share price, have your capital allocation priorities shifted at all? And I guess, why haven't you stepped up for purchases in light of that pullback in the share price? And then you addressed some of the inorganic investment outlook in a prior question, but also maybe you could address the priorities for organic investments from an asset class or product perspective as we're looking out over the next year.