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Group CFO Rob Irvin attributed the negative Ags revenue to reduced market liquidity from tariff announcements and elevated prices in cocoa and coffee. Group CEO Ian Lowitt added that this headwind continued into Q3 but was offset by strength in metals and energy. Regarding clearing balances, Lowitt stated the client pipeline remains strong and expects growth consistent with H1 2025 levels.

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Executive Crispin Robert Irvin explained that the growth in total balances was driven by increases in house cash, clearing balances, and prime services balances, and noted that balances have held up well into April. Executive Ian Lowitt added that a robust pipeline of new clearing clients provides good visibility for continued growth. On M&A, Ian Lowitt confirmed that Marex remains very active and disciplined, targeting a 20% ROE, and that its appetite for acquisitions has not declined. Crispin Robert Irvin noted that deal timing is inherently uneven but expects to announce transactions in the coming months.

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CEO Ian Lowitt stated that while Marex is gaining share with small and mid-sized clients, the more significant driver of market share gains is winning mandates with larger clients. Regarding the metals business, CFO Crispin Robert Irvin explained that Q4 performance was compared against exceptionally strong Q2 and Q3 results driven by high volatility. He also noted that a fair value adjustment on open risk positions at year-end negatively impacted the Q4 result, which Mr. Lowitt described as more of a 'technical accounting' function than a sign of underperformance.

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CEO Ian Lowitt identified Brazil as a geographic region of interest and highlighted capital markets agency as an attractive product area for M&A. Regarding the CME's FCM application, he dismissed it as a significant competitive threat, viewing it as a defensive relic from the FTX era and believing CME is unlikely to enter the different-skill-set FCM business.

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CFO David Morton outlined a three-pronged capital allocation strategy: first, continued internal investment in the product roadmap, especially AI; second, pursuing strategic M&A that fits their profile; and third, utilizing the newly authorized $150 million share repurchase program to put capital to work when deemed appropriate. He did not specify the pace or timing of the buybacks.

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CEO Asher Genoot explained that the new capacity is targeted for both dedicated AI customers and dual-purpose sites (Bitcoin and AI), primarily in Texas. He noted that the development pipeline is maturing from exclusivity to active development, with more specific project details to be shared in the next quarter.

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CEO Asher Genoot explained that the new capacity is for sites purpose-built for AI partners and dual-purpose sites (Bitcoin mining and AI), primarily in Texas. He noted that the pipeline is evolving from exclusivity to development assets like Riverbend, with more details to be shared in the next quarter.

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CEO Sandeep Sahai stated that trends like tokenization, growing alternatives, and global volatility play to Clearwater's strengths. He argued that the company is in a prime position to lead this evolution because its single-instance, multi-tenant platform with a single security master provides the ideal foundation for building such solutions, creating a significant competitive advantage similar to its edge in generative AI.

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CFO Ilene Fiszel Bieler explained that the year-over-year reduction in fee capture was principally due to protocol mix, with higher volumes in lower-fee portfolio trading putting pressure on the metric. She noted the slight increase in July was driven by a beneficial move in high-grade duration, which offset the negative mix shift from continued strength in portfolio trading volumes.

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CEO Christopher Concannon confirmed a significant influx of demand from alternative market makers and systematic funds, resulting in record volumes. He stated that their number one request is for the all-to-all RFQ protocol, as it allows them to price client inquiries anonymously without the operational burden of direct settlement facing. These firms are also heavy consumers of MarketAxess's proprietary data to fuel their API-driven, high-velocity trading strategies.

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CFO Ilene Bieler clarified that the weighted average years to maturity on the platform reached approximately 9 years in Q3, which is already at the higher end of the historical range. She reaffirmed the sensitivity guidance: a one-year increase in maturity adds about $15 per million to high-grade fee capture, and a 100-basis-point drop in yields adds $3 to $5 per million.

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President & CIO Christopher Ferraro explained that demand from hyperscalers remains strong for power deliveries in 2027-2029, aligning with Galaxy's capacity pipeline. Founder, CEO & Director Michael Novogratz added that TradFi firms are increasingly preparing for tokenization and that Bitcoin has become a standard macro asset for most hedge funds, driving engagement through ETFs and balance sheet companies.

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Founder and CEO Michael Novogratz stated that the study for the 1.7 gigawatts is far along, with approval for the first 800 megawatts expected within a 'single-digit number of months.' He clarified that while Helios is the priority, the company is prudently evaluating other sites to build a geographically and customer-diversified portfolio, emphasizing a thoughtful acquisition strategy matched to client demand.

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Christopher Ferraro, an executive at Galaxy, confirmed that the remaining capacity at Helios is under option with CoreWeave in several tranches. He explained that future development would be greenfield, potentially increasing CapEx, but noted that Galaxy's arrangement provides for a fixed yield based on those costs, making it a collaborative process to determine the final design and cost structure.

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Co-CEO & COO Sean Windeatt explained that the OTC acquisition temporarily diluted margins, but the $25 million cost reduction program, to be completed by year-end, will align OTC's margins with BGC's by 2026. Co-CEO JP Aubin highlighted FMX's success, noting record SOFR volumes, a UST market share increase to 35%, and near-complete connectivity with equity partners. Co-CEO John Abularrage added that they expect to have 12 FCMs onboarded by year-end, covering the vast majority of the market.

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Co-CEO Jean-Pierre Aubin confirmed the FMX launch was delayed by market volatility but is set for May 2025, stating both BGC and its clearing partner LCH are ready. Co-CEO Sean Windeatt addressed the OTC acquisition, noting that while it's early, the integration is progressing well and implied guidance shows strong growth. He explained that OTC's initially lower margins are affecting the group average but are expected to improve by the end of the first year. Co-CEO John Abularrage added that synergies are already being explored. For the modeling questions, Sean Windeatt reiterated the full-year 2025 adjusted earnings tax rate guidance of 10% to 12% and stated the cash outlay for OTC was $325 million.

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Sean Windeatt, Chief Operating Officer, explained that Howard Lutnick will divest his holdings within 90 days of Senate confirmation with no open market sales expected, and described the new leadership as 'business as usual.' He stated the Sage acquisition added 1-2 percentage points to Q4 revenue growth and will do the same in Q1. Margin expansion was attributed to operational gearing, economies of scale from acquisitions, and the shift to higher-margin electronic trading. Windeatt confirmed the FMX launch and 3-year strategy remain on track. For the OTC acquisition, he validated an estimate of ~$400 million in annual revenue with initial margins around 15%, noting it will be immediately accretive. Finally, he defended stock-based compensation as a critical and successful tool for employee retention and growth.

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CEO Howard W. Lutnick and COO Sean Windeatt addressed the questions. Lutnick stated the FMX Futures launch was successful, meeting the high end of their FCM onboarding target, and explained the multi-year rollout plan. He attributed the slight CLOB market share dip to a spike in a market segment BGC doesn't target. Windeatt detailed that the Sage and OTC acquisitions fulfill a strategy to expand in Energy & Commodities, are expected to add over $450 million in annualized revenue, and will be immediately accretive to EPS. He noted the acquisitions would contribute 1-2% to Q4's growth, with margins initially lower before normalizing around 20%. Lutnick confirmed that acquisitions were a superior use of capital, temporarily reducing share buybacks, and reiterated that BGC is open to divesting certain high-growth tech assets. He expressed confidence in achieving 10% organic growth long-term, describing current business conditions as 'lovely'.

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CFO Jason Warnick confirmed they like the economics they are seeing, with the revolve rate in line with expectations and the book performing well, giving them confidence to accelerate the rollout. CEO Vlad Tenev added that there is typically a lag between cardholder acquisition and the build-up of revolving balances, which explains the difference in growth rates.

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CEO Vladimir Tenev and CFO Jason Warnick responded. Tenev confirmed no technological barriers exist and that clarity is needed for listing crypto assets as securities, which would enable tokenization of real-world assets. Warnick added that specific SEC guidance on listing coins with security-like characteristics and on staking would be helpful, noting the current administration appears supportive of innovation.

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CFO Jason Warnick detailed the pricing for the new products, with industry-leading rates for non-Gold members and even better rates for Gold subscribers, noting exchange fees are passed through. He attributed the lower equity take rate in the quarter to lower market volatility and a customer trading mix shift towards more liquid, large-cap stocks.

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CEO Billy Hult confirmed an openness to more transformative M&A that could expand Tradeweb's total addressable market, either through new asset classes or geographies. He stressed that any deal must align with the company's strategy and culture. CFO Sara Furber added that while the company is in a position of financial strength, the bar for acquisitions is high, requiring a strong strategic fit and financial discipline, with a goal for deals to be accretive within a few years.

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CFO Sara Furber responded, stating the team is pleased with ICD's progress, with the core business performing on plan with strong client growth and 99% retention. She clarified it's not a classic tech integration but a focus on long-term revenue opportunities. Key initiatives include leveraging Tradeweb's sales force internationally and expanding ICD's product offering, with U.S. Treasuries expected to be available on the platform by mid-2025 to meet strong client demand.

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CEO Billy Hult described it as a 'good time to be in the rates business,' citing a real rate environment, growing debt markets, and the retreat of central banks. He pointed to strong Q3 volume and revenue growth across treasuries (up ~50%), swaps (up >60%), and mortgages (up 25%). Hult attributed rising velocity to the increasing role of alternative market makers and the growing sophistication of the buy-side, which drives automation through platforms like AiEX.

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CEO Douglas Cifu expressed significant excitement for the digital asset space, viewing stablecoins as a driver for adoption and creating a need for on/off-ramp services that Virtu is well-positioned to provide. Regarding tokenization, he described it as a "pie growing exercise" that expands access to U.S. markets for non-U.S. persons, playing directly to Virtu's strengths in providing liquidity for wrapped, multi-instrument products on a 24/7 basis.

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CEO Douglas Cifu expressed strong optimism about the new regulatory environment, anticipating a "new day in Washington" with bipartisan clarity on digital assets and a more industry-friendly approach. He and Co-President Joseph Molluso attributed 2024's stability to the firm's scaled, diverse operations, significant investments in internalization, growth initiatives like crypto, and the consistent performance of the Execution Services business.

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CEO Douglas Cifu and Co-President Joseph Molluso indicated the rule is unlikely to have a direct impact on Virtu. They view the change as primarily a timing difference for delivery rather than an overall capital difference. Mr. Molluso added that since Virtu clears through a third party, the situation is considered manageable.

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Chair & CEO Adena Friedman acknowledged that sales cycles for some U.S. Calypso clients elongated in March and April due to market uncertainty but noted they normalized by May and June. She also mentioned that regulatory uncertainty caused some implementation delays for AxiomSL, but improving clarity is helping shore up the pipeline.

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CEO Adena Friedman provided a breakdown by subdivision, explaining that confidence remains high due to the division's diversity. She noted robust demand in Financial Crime (Verafin) and Surveillance, while acknowledging some implementation timing shifts in RegTech (AxiomSL) and longer decision cycles for large deals in Capital Markets Tech (Calypso). However, she stressed that the overall demand characteristics and client pipelines remain strong, providing a solid ballast against uncertainty.

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Adena Friedman, Chair and CEO, explained that Financial Crime Management's growth is impacted by the timing of large Tier 1 bank deals and global expansion efforts, which are still in their early stages but have a strong pipeline. For the broader FinTech division, she reiterated confidence that growth will be within the 10% to 14% outlook range for the year, supported by strong 2024 sales.

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CEO Adena Friedman stated they are in the 'early, early' stages of the journey and that the path to exceeding the $100 million target will not be linear. She highlighted that 2024 has been a foundational 'building year' for integration, and noted that over 10% of the current FinTech pipeline already consists of cross-sell opportunities.

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Terrence Duffy, Chairman & CEO, stated that the company cannot comment on pending litigation. He confirmed that the trial is currently in progress and reiterated the company's previous public statement that it has not accrued any reserves for this matter to date.

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Chairman & CEO Terrence Duffy stated that the company cannot comment on pending litigation as the trial is currently in progress. He reiterated what has been said publicly: CME has not accrued any funds for this matter to date.

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Lynne Fitzpatrick, CFO, confirmed it is a 50-50 joint venture and stated that CME will hold off on commenting on the use of proceeds until closer to the deal's close, which is expected in about six months pending regulatory review. Terrence Duffy, Chairman and CEO, added that they do not anticipate any regulatory hurdles for the transaction.

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CEO Terrence Duffy commented that competitor volumes have been modest but emphasized CME's focus on providing client efficiencies and superior liquidity, noting CME's tighter bid-ask spreads result in a lower all-in cost for clients. He reiterated his strong opposition to U.S. Treasury futures being cleared overseas. On pricing, Duffy stated it is misguided for anyone to assume CME's strategy, highlighting that the company achieved record SOFR and Treasury volumes without introducing new incentive programs.

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Founder & Chairman Thomas Peterffy gave a concise, bullish response, stating the current environment is 'very, very favorable' for brokerage firms, especially Interactive Brokers. CEO Milan Galik acknowledged his continued disappointment with crypto market share but expressed hope that enabling crypto asset transfers will attract new clients. He also cited the friendlier regulatory administration as a key factor in expanding their crypto offering.

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Founder & Chairman Thomas Peterffy reiterated his bullish stance, stating the current environment is very favorable for brokerage firms. CEO Milan Galik expressed continued disappointment with crypto market share but hopes that enabling asset transfers will attract new clients. He confirmed that the friendlier regulatory environment and client demand are driving the strategic push to enhance their crypto offering.

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CEO Milan Galik explained that the crypto expansion was driven by a more favorable regulatory environment, including the rescission of certain SEC accounting guidance. While crypto growth has been slower than expected despite low costs, it rounds out their offering. Regarding sports contracts, Galik clarified that the ForecastEx Exchange itself will list them for other FCMs, but Interactive Brokers has not yet decided whether to offer them to its own clients.

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Chairman Thomas Peterffy described the growth of prediction markets as slow and careful, with a long-term goal of building a very large business. CEO Milan Galik added that the immediate crypto plan is expansion into the EU. He is optimistic about clearer U.S. regulations, which would allow for offering more tokens like Solana and raising the current 1% per-account asset limit for crypto.

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President and CEO Milan Galik detailed that ForecastEx has seen initial traction, primarily in U.S.-only political contracts, and the company hopes it will attract new clients. Regarding competitive threats in index options, Galik stated they will wait to see the competitor's actual pricing before assessing the impact, noting the product's client base has been diversifying recently.

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CEO Brian Armstrong stated that Coinbase is working closely with the CFTC to launch perpetual futures in the U.S. and highlighted the imminent launch of Bitcoin futures trading as a step in the right direction. President and COO Emilie Choi added that while they work on a path for U.S. options, the immediate opportunity for Deribit is international.

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CEO Brian Armstrong explained that as the number of tokens explodes, Coinbase must evolve from a simple directory to a search and discovery engine. He stated the strategy involves deeply integrating decentralized exchanges (DEXs) to broaden access, while simultaneously implementing robust consumer protection measures like disclosures and reputation systems to help users navigate the vast asset landscape safely.

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CEO Frederic Tomczyk explained that the Board conducted a thoughtful and disciplined process, considering both internal and external candidates. He stated that Mr. Donohue's extensive global derivatives experience, previous CEO role, strong track record, and industry reputation were the key qualities that made him the right person for Cboe at this time.

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Chief Financial Officer Jill Griebenow clarified that the updated guidance language is intended to align with market standards and remains consistent with the prior year's ranges. She stated that the growth outlook for the Data Vantage segment has not softened.

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Global President David Howson detailed four key drivers supporting the DnA forecast: a strong pipeline of new sales, particularly the 40% from international markets; the ongoing impact of pricing changes from earlier in the year; positive results from technology investments like Dedicated Cores; and the creation of new, valuable data sets and insights from the core platform.

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Global President Dave Howson explained that the opportunity is driven by a secular trend of global assets being benchmarked to the U.S. market. He noted that Cboe's SPX and VIX complex is the primary toolkit for managing this risk. While recent growth has come from onboarding retail brokers, he highlighted the planned launch of VIX options on futures as a key product to attract global institutional players who cannot currently access U.S. security options.

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President of NYSE, Lynn Martin, described the move as a continuation of ICE's strategy to stay close to its customers. She noted Texas is already the largest state for NYSE-listed companies by market cap (~$4 trillion) and home to over 3,000 ICE customers. The launch was executed quickly, with the first listing secured and plans to add ETP listing functionality in Q2, reflecting a response to a clear customer opportunity.

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CFO Warren Gardiner acknowledged that the high end of the guidance, which incorporates industry forecasts of strong refi growth, might be optimistic given current rates. He emphasized that the guidance provides a wide band to account for this uncertainty and noted that fundamentals for the purchase market are improving. He reiterated that recurring revenues are expected to grow regardless of the origination environment.

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CEO Jason Les clarified that the Rockdale site is on a long-term lease with an initial 10-year term and multiple 10-year renewal options. He suggested that while it could impact a deal, the urgent need for power might make it a secondary factor. For contract length, he stated that both Riot and potential partners are interested in long-term agreements of 10 years or more.

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