Full-Year 2025 Expense Guidance (non‐GAAP)

FY 2025

no prior guidance "

$500 million to $521 million "

no prior guidance

Full-Year 2025 Expense Guidance (GAAP)

FY 2025

$505 million to $525 million "

$505 million to $525 million "

no change

Innovative Product Expansion and Pipeline

Q1 2025 discussions noted multiple product releases, the forthcoming Mid‑X solution, enhancements on the X‑Pro platform, and portfolio trading innovations. " " " Q4 2024 and Q3 2024 calls emphasized high‑touch block strategies, dealer‑initiated channels, and portfolio trading tools. " " "

Q2 2025 continues the focus with significant product enhancements and automation tools, strategic talent additions (e.g., Dean Barry and Spencer Lee), progress on new initiatives across client‑initiated, portfolio, and dealer‑initiated channels, plus the upcoming launch of Mid‑X for U.S. Credit. " " "

Consistent focus on expanding and refining the product pipeline with an increasing emphasis on automation and strategic hires.

Block Trading Solutions and High‑Touch Initiatives

Q1 2025 highlighted the rollout of a high‑touch block trading solution in U.S. credit and a targeted block solution in EM and Eurobonds with positive client feedback. " " Q4 2024 emphasized early successes in EM and Eurobonds and plans for full high‑touch launches, while Q3 2024 introduced targeted block solutions with AI‑driven dealer selection. " " "

Q2 2025 reported significant growth in block trading activity across U.S. Credit, EM, and Eurobonds, with detailed figures (e.g. 40% increase in U.S. IG and notable volumes in EM and Eurobonds) and early-stage rollout of high‑touch initiatives in U.S. Credit. " " "

Ongoing expansion with strong quantitative gains and continued focus on addressing traditionally phone‑based segments through electronic high‑touch solutions.

Portfolio Trading Enhancements

In Q1 2025, the new X‑Pro platform, along with innovations such as net hedging and auto spotting, drove portfolio trading; Q4 2024 emphasized global PT offerings and record trading volumes; Q3 2024 noted recent tool enhancements and further higher‑order functionality planned. " " "

Q2 2025 focused on robust portfolio trading growth with a 69% ADV increase, enhanced pre‑trade analytics, new client features, and ongoing improvements in analytics and dealer collaborations. " " "

Steady and incremental enhancements with a consistent drive to optimize analytics and execution in portfolio trading.

Fee Capture and Margin Pressure Dynamics

Q1 2025 discussions detailed protocol‑specific pricing differences and the impact of portfolio trading; Q4 2024 noted product mix challenges, especially due to lower‑fee PT and block trading; Q3 2024 reported modest improvements in fee capture with increased duration and counter‑balances from premium venues. " " "

Q2 2025 noted a slight quarterly decline in fee per million driven by the growth of low‑fee portfolio trading, partially offset by improvements from increased high‑grade duration; overall fee capture remains under pressure due to product mix. " "

Ongoing pressure from lower‑fee protocols, with marginal offsets from market shifts; fee capture challenges remain balanced by product mix changes.

U.S. Market Share Challenges in High Grade and High Yield Segments

Q1 2025 reported mixed results – some improvements in portfolio trading and dealer‑initiated channels, with market share gains in certain protocols; Q4 2024 highlighted challenges in the high‑yield segment with declining share and strategic initiatives proposed; Q3 2024 noted declines in high‑grade share offset by new targeted block and high‑touch strategies. " " "

Q2 2025 described a decline in U.S. high‑grade share in July due to a market shift towards phone and chat channels, while portfolio trading share increased; overall challenges persist with efforts underway via strategic product launches (e.g. Mid‑X) and high‑touch block initiatives. " " "

Persistent challenges remain with market share volatility; while some channels improve, significant competition from traditional methods continues to pressure U.S. credit segments.

Electronification of Fixed Income Markets

Q1 2025 emphasized increased trading velocity and systematic adoption of electronic platforms; Q4 2024 underscored block trading and portfolio trading electronification in emerging markets and rates; Q3 2024 focused on automation growth, dealer‑to‑dealer protocol expansion, and the shift from traditional phone trading. " " "

Q2 2025 highlighted expanded electronification across various segments including block trading, portfolio trading, municipal bonds, and global emerging markets (e.g. first electronic Indian government bond trade), supported by robust data and automation initiatives. " " "

Continued momentum in transitioning from traditional methods to electronic platforms across multiple markets, driving broader adoption and efficiency gains.

Dependence on Elevated Market Volatility

Q1 2025 noted that heightened volatility supported trading volumes and revenue growth; Q4 2024 mentioned low volatility concerns in rates RFQ and the need for alternative liquidity; Q3 2024 referenced improved results and increased velocity tied partly to market volatility. " " "

Q2 2025 attributed strong performance (record automation volume, active client growth, and increased commission revenue) to periods of increased volatility, which supported higher trade counts and favorable pricing in government bonds. " "

Reliance on robust volatility remains a key driver of trading activity and revenue, with sustained elevated volatility benefiting the business model.

Adoption Risks for New Trading Protocols

Q1 2025 underscored positive client feedback for new block trading protocols despite traditional competition; Q4 2024 did not elaborate on specific risks; Q3 2024 discussed early adoption of new protocols with encouraging uptake, without highlighting major risks. " "

Q2 2025 did not present any significant concerns regarding the adoption of new trading protocols, with the focus remaining on expanding solutions and meeting client execution needs. " "

Adoption risks remain minimally discussed as client feedback continues to be positive, suggesting smooth integration of new protocols across markets.

Strategic Talent Additions

Q3 2024 mentioned future hiring plans with some delays noted in fixed expenses, but no detailed talent strategy was discussed in Q1 or Q4 2024. "

Q2 2025 detailed several high‑profile talent additions, notably hiring Dean Barry and Spencer Lee, aimed at enhancing product development, automation capabilities, and expanding into the block trading and dealer channels. " " "

A new emphasis on strategic talent is evident in Q2 2025, marking a shift from previous periods where hiring was mentioned only marginally or deferred.

Expansion into Underpenetrated Fixed Income Markets

Q1 2025 touched on diversifying into emerging markets and new product areas (e.g. municipals and U.S. government bonds); Q4 2024 and Q3 2024 highlighted emerging markets expansion as a major growth area, with under 5% electronic penetration noted and significant opportunity in local EM markets. " " "

Q2 2025 reinforced the focus on underpenetrated markets by reporting over 20% total volume growth across emerging markets and Eurobonds, emphasizing local market initiatives such as the first electronic Indian government bond trade and strong revenue contributions from these channels. " "

A sustained and strategic focus on underpenetrated markets, with continuous investment in emerging market solutions and local market electronification.

Transition from Traditional to Electronic Trading Channels

Q1 2025 described a shift from phone and chat to electronic trading driven by higher velocity and client demand for data and automation; Q4 2024 detailed efforts in high‑touch block solutions and new electronic RFQ offerings; Q3 2024 noted the adoption of protocols designed to replace manual trading with automated solutions. " " "

Q2 2025 discussed ongoing efforts to transition traditional trading (especially in U.S. Credit) to electronic channels through initiatives such as the high‑touch strategy, targeted block trading solutions, portfolio trading enhancements, and the upcoming Mid‑X solution. " "

The transition remains a central strategic priority with continued adoption of electronic platforms replacing traditional phone-based methods across multiple segments.