Block Trading Solution Launch
Q: What's the plan to grow your new block trading solution?
A: We recently launched our targeted block trading solution, X-Pro, to capture large block trades that account for 30–40% of the market. " Early feedback from pilot clients is positive, and we're leveraging pre-trade analytics and AI-driven dealer selection to reduce information leakage and improve execution. " We're moving from defense to offense, targeting the phone and chat market with better data and fewer clicks. "

Portfolio Trading Competitiveness
Q: How competitive is your portfolio trading offering now?
A: We're still behind our primary competitor but are rapidly enhancing our portfolio trading tools. " We've recently added benchmark trading features and plan significant upgrades by the end of Q1. " Despite not being on par yet, we're growing market share and expect our fully enhanced offering to drive further gains. "

Fee Per Million Dynamics
Q: How will duration and yields affect fee per million?
A: An increase of one year in weighted average years to maturity adds approximately $15 per million in high-grade fee capture. " Additionally, a 100 basis point decline in yields can add $3–$5 per million. " We're currently at about 9 years weighted average maturity, up from 8 in Q2. "

Emerging Markets Growth
Q: What's driving your strong growth in emerging markets?
A: Emerging markets volume grew 19% year-over-year in Q3. " We're seeing record block trading volumes, up 24%. " The competitive landscape is favorable, with the phone being the main competitor, and we're capitalizing on new electronic solutions like our request-for-market protocol. "

Electronification Pace
Q: Do you expect electronification to accelerate in high-grade markets?
A: Yes, we anticipate faster electronification than in the past 25 years. " The adoption of electronic solutions like portfolio trading, now 10–13% of the market, shows clients embracing electronification. " We're optimistic about increased adoption of electronic block trading due to commercial pressures and efficiency gains. "

Automation Suite Advancements
Q: How is your automation suite progressing?
A: Automation grew 32% year-over-year and now represents 27% of trades on our platform. " Clients are using it for larger trade sizes, including block trades. " We've launched a new solution leveraging Pragma technology to enhance our adaptive Auto-X tool " , and we're seeing growth across all products and regions.

ICE Partnership Benefits
Q: How is the ICE partnership developing?
A: The partnership with ICE is off to a great start, especially in munis and high-yield credit. " ICE has become one of our top open trade liquidity providers, offering unique liquidity, particularly in smaller trade sizes. " We're expanding connections with ICE bonds and exploring opportunities in treasury clearing. "

Expense Management and Investments
Q: What's your plan for expenses and investments in 2025?
A: We're balancing investing for growth with disciplined expense management. " While some fixed costs are shifting out of 2024, variable costs increased due to higher volumes. " We remain focused on deploying resources into key investments like proprietary data sets and technology enhancements. "

Trade Velocity Increase
Q: What's driving the increase in trade velocity?
A: Higher yields are attracting inflows into ETFs and mutual funds, requiring investment. " Portfolio trading facilitates faster market exposure and portfolio changes, contributing to increased velocity. " Record new issuance in 2024 also boosts turnover. " We expect these trends to continue into 2025. "

Dealer-to-Dealer Expansion
Q: How are you increasing share in dealer-to-dealer trading?
A: We're investing significantly in the dealer business, enhancing our RFQ protocol and automation solutions for sell-side traders. " We've introduced a "Work up" protocol allowing traders to expand trades after initial execution. " We're also investing in single-price auctions with our Mid-X product, expecting good results in 2025. "