Tradeweb Markets Inc at Goldman Sachs U.S. Financial Services Conference Summary

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

Question: Alexander Blostein - Goldman Sachs - Analyst : Great. Look, I want to start with a question on 2025. Tradeweb is wrapping up, obviously, an excellent year. I think if you look at consensus numbers, earnings are tracking something like 30% up year over year or something in that range, and importantly, driven largely by revenue growth. Comps are high. You guys had a good year. But what do you expect to be the biggest drivers of the firm's top-line growth into next year?

Question: Alexander Blostein - Goldman Sachs - Analyst : I don't know about that. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 8:00PM, TW.OQ - Tradeweb Markets Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes, it sounds like it. Let's maybe take it actually in that order. So let's talk about a Trade Global Swaps business remains its largest revenue source, to your point, and obviously, a huge growth driver. I think revenue growth here is tracking up like 50% year over year or something close to that. One of the most common questions that we get from investors -- and frankly, it's not that different than the question we got around the IPO many years ago, cyclical versus structural, right? Like lots of vol and rate markets over the last couple of years. You guys clearly benefited from that. One of the interesting stats you did highlight is that 60% of rate swaps revenue growth was not related to macro factors as what you talked about in the last call, which I guess implies maybe like 30%-ish kind of organic growth in the business. So how sustainable do you think that is? And if you think about like the multiyear growth algo in the swaps market, what does that look like. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 8:00PM, TW.OQ - Tradeweb Markets Inc at Goldman Sachs U.S. Financial Services Conference

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. So that's the volume side of the ledger. And let's talk about fee per million in that business as well. And that's been a bit volatile, and there's a lot going on underneath the surface that's mostly due to mix read there's compression trading, and we could probably spend 40 minutes on that alone. But there's compression trades it's different in currencies; there's difference in duration. You've given a bit of a framework to the market, how to think about it in respect to duration. But looking where you are today, how do you think about the fee per million evolution over the next couple of years, call it, not to pin you down --?

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. Based on the experience you guys had in that over the last 1.5 years really since compression trading started to become a bigger part of the overall mix, any evidence you can provide how much has converted into risk trades directly from your compression --?

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. I got you. Let's wrap up on rates. Let's talk about kind of the rest of the conflicts outside of swabs really with cash strategies and mortgages being kind of the biggest two other lanes for you guys. Both are a bit more competitive, right? So like a different dynamics in that market versus swaps. So maybe just hit on some key idiosyncratic opportunities. You've seen those markets for Tradeweb to gain market share against our competitors.

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. So cyclically, that should be telling SP-5 That makes sense. Okay. Let's switch gears, talk about credit. Super important for you guys. It was, again, critical from the day you went public. I think there were quite a lot of skeptics on how much market share you could achieve in credit, and you've guys done quite well in IG. I think you're about the same size now as MarketAxess, give or take, kind of 17%, 18% sort of market share. In high yield, you're still tracking below, you're in kind of high single digits. Portfolio trading has been a huge tailwind to that. That's been no doubt, a big driver of the share gains. So all that said, things feel like they stalled out a little bit. If I kind of look at the trends over the last six months, we're kind of been hovering around these market share levels. Why is that? And I guess, what do you think ultimately needs to happen to reaccelerate the momentum there?

Question: Alexander Blostein - Goldman Sachs - Analyst : I got you. does the evolution of that type of trading have a negative impact on fee per million do you now at all or no?

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. It's interesting. Let's stay on the credit topic for a couple of minutes. I did want to zone in on portfolio trading, just again how important it is for you guys and how it's point's been to the growth. The space is getting a little bit more competitive. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 8:00PM, TW.OQ - Tradeweb Markets Inc at Goldman Sachs U.S. Financial Services Conference And I think when you look at MarketAxess they have an offering out there. They were kind of maybe in a little bit of denial about the importance of the protocol a couple of years ago, but like now they're fully in. Trumid's got an offering out there as well. You guys certainly have the early mover advantage. But how do you think about that competitive moat for you and what drives that competitive mode versus what others bring to the table?

Question: Alexander Blostein - Goldman Sachs - Analyst : Yes. All right. One more on credit, and I do want to get to a couple of other topics. But Aladdin, that's been another important topic and accomplishment for the firm. You guys are, I think, in the process of onboarding to Aladdin. And maybe you could just talk about where you are in that journey? And what does that actually mean from an end user perspective, how is their experience changed in the back of what you're ultimately yes. And what do you --

Question: Alexander Blostein - Goldman Sachs - Analyst : Got you. Well, to be fair, Blackrock has also been busy. With acquisitions, good point. Speaking of acquisitions, let's touch on ICD4 for a couple of minutes and you guys, we got four, five minutes left on the clock. But an important deal for you guys gives you an interesting new kind of lane of growth. Update us on what the integration has been like so far? Any kind of key milestone in terms of revenues and expense objectives you have for 2025 for this business. And from the cyclical perspective, the question that comes up a lot is like money market funds could start to see some outflows, maybe -- there's other ways still have that in the rest of your business, but how big of a risk is that?

Question: Alexander Blostein - Goldman Sachs - Analyst : Okay. All right. Well, my last question is around investment spend and margins. And you guys have always had margin expansion as part of the framework that's been, again, a key point since day one. But you definitely dial things up and down in down based on the environment, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 10, 2024 / 8:00PM, TW.OQ - Tradeweb Markets Inc at Goldman Sachs U.S. Financial Services Conference So right now, revenue growth is really strong. So you're really kind of leaning in, we've seen expense growth accelerate throughout the year, but still with a focus on delivering operating leverage. Where are you in the investment cycle? When do you expect the pace of investments to maybe normalize a bit? And how important is margin expansion in the context of Tradeweb.

Question: Alexander Blostein - Goldman Sachs - Analyst : Great. Well, I guess we'll leave it there. Billy, thank you very much. Thank you for joining us always. thanks for joining us.