BGC Group, Inc. — Call Transcript 2026

All right, everybody. Next up, we have all three Co-CEOs of BGC Group. We're joined by John Abularrage right here next to me, we have JP Aubin over there on the end, and Sean Windeatt here in the middle. BGC is one of the largest energy and wholesale financial brokers in the world, or energy and financial wholesale brokers operating across rates, FX, credit, equities, and energy and commodities. Over the last 18 months, BGC has delivered mid-teens organic top-line growth, completed the OTC Global Holdings acquisition, which significantly expanded your energy franchise, and launched FMX into both SOFR and U.S. Treasury futures. A lot going on, gentlemen. Great to have you back. Thanks very much for having us. All right. You just put up a record first quarter. There's a lot of rate volatility, commodity dislocations, energy market turmoil. Broadly, a great setup for your business. Could you talk about how the year shaped up, where's the revenue strength most concentrated today, and how are you thinking about going forward from here, the outlook for the rest of the year? Yeah. Why don't I start? Look, you're right, Q1 couldn't have been a better setup for us in terms of the business. We were up 44% in Q1 compared to the previous year in revenue and generated $955 million of revenue. Then, of course, people say, well, it must be because of the conflict. Well, actually, pre the conflict, we were actually up 41%. Sure, the conflict obviously increased volumes, particularly in, as you mentioned, our biggest asset class in the ECS space, ending up that 44% for the period. The majority of that growth was what I would call standard market growth. It wasn't just market share gains, it's the targeted acquisitions that we've done, the electronic trading platforms that we've built, and that's what really drove our Q1. Then again, for the balance of the first half of the year, April was a quieter period for exchanges, right? As everybody sort of checked back a little bit. As you saw within our guidance for Q2, still, that would have us up for the first half of the year, 22% for the first half of the year as compared to last year, and 13% of that being organic. You saw a little bit of a tail off there in April as market participants were digesting what had happened throughout that really volatile month in March. Life has returned to, I don't know what normal is these days, but some level of normality for the month of May. Sure. Looking back, OTC Global Holdings acquisition seems exceptionally well-timed given the energy market strength that we've seen here recently. You're now much more of an energy play than you were before this acquisition. I think before it was 15% of your revenues. Today, it's between 30%-40% is coming from the energy and commodities business. What impact do you think, you talked a little bit about it, but the geopolitical setup, the things that you're doing in energy specifically, maybe cross-sell opportunities with the legacy franchise, where have you seen success there? I'll take it. Sorry. The biggest successes when it comes to the integration on the revenue side of OTC come from the OB business. The gem in the OTC business is OB, which stands for Oil Brokers, which I'm sure took them a while to come up with. They were number one franchise in London. We had a great franchise in Asia, they're number one in London, and we had a great franchise in the U.S. Those are mainly follow-the-sun traded businesses. To be able to have all three has kind of completed the circle for us, and where we were number three or four in the market, we've now taken that to number one or two, and as you say, look, volatility, people are going to go to number one or two who's got the biggest and the best liquidity, and that's what you've seen happen with the OB acquisition. Sure. One of the things that I think that's also differentiated about you that a lot of people, I don't think understand it, doesn't come up a lot in my conversations, but you have a shipping business that gives you very good insights into what's going on in the world. There's obviously been a lot of dislocation with global shipping lanes here recently. Could you talk about that business, how much of a revenue driver it is for you, and what sort of opportunities you're able to take advantage of with that business? It's exactly as you said. The integration of the OTC shipping business and the existing brand, it's branded Poten, which is the number one LNG shipping business in the world, gives you the insights to the actual brokers who are looking at a barrel of oil. Knowing where we're traveling around and being able to sit there on our data sales business and know what's coming in from those platforms, both on voice, hybrid, and electronic, and give that information to our desks. They're doing a much better job voice broking the barrel of oil on the back of knowing where those ships are going. Got it. I think we've also been fairly clear that we want to expand that business further. Sure. How do you think you'd go about doing that? If you don't mind kind of elaborating. Sure. If investors' return on capital is appropriate, we would make an acquisition in that business. Sure. All right. Fenics, I want to shift to electronic revenues continue to grow. The transition of voice brokerage activity to electronic has been kind of an underlying narrative in the stock for several years. Some of your most recent acquisitions, OTC Global Holdings being one of them, that's a primarily voice brokerage business. How do you think about the balance between voice and electronic, and what's the strategy going forward to continue driving volumes electronic? What are the things you're doing internally to facilitate that? Look, remember, for those of you who don't know our company as well, think about the fact that we've got three elements to the business. You've got really the voice, the traditional voice broking business. You've got the hybrid business, where a trade starts off voice. Then the size increases through either voice or electronic, can go either way. You've got the fully electronic piece. Over 25% of our business is fully electronic. Some people were looking over the last year, they'd say, "That's slowed down a little bit. It was 25% a year ago or 24% a year ago. That slowed. By the way, over the last few years, the company's revenues have grown from $2.2 billion, just a few, $2.262 to be exact, a few years ago, up to over $3 billion for the trailing 12 months. As you quite rightly said, in our rates, our traditional biggest asset class of rates in foreign exchange and credit, north of 90% of those businesses have the capability to be traded electronically, which obviously gives a higher margin to the business. We're an exchange, right? We are an intermediary, therefore, it's how our clients choose to transact business. They either choose to transact voice, electronic, or a mixture of the two. In terms of the tremendous opportunity is we now have a huge ECS business, which as you quite rightly say, is pretty much today all voice. That really gives us fuel to take that piece of the business electronic. Let's not rush, right? We'll do it. It's as our clients want it, don't expect it to go there tomorrow. It's a great opportunity to do exactly what we've done in the other asset classes. Sure. If you were to build that Fenics equivalent within energy, what makes the most natural sense in terms of the offering and the products offered, the assets within ECS that you think could go electronic fastest? What does that market look like? In terms of the way that some of these are traded now is they're blocking to an exchange, right? I think when you say turning them electronic, if you're talking about listing a future on FMX. Yeah Yes. Certainly. I have one of my partners sitting in the stands over there, so I don't want to say too much or he'll hold me to it. Certainly that's got to be a discussion as to whether the partners in FMX want to do that. Taking advantage of the energy franchise at some point in the future makes sense in those listed products where you're blocking. In the products where they're traded completely voice, and that is primarily going to be in the non-standard part of the barrel, right? In terms like we're number one in biodiesel. As you know, we went and said last year bought a fats and greases business to pair with our biodiesel desk. Things like that, where there's no electronic element to it, bringing that transparency and price discovery in an electronic fashion is certainly part of the plan going forward. Sure. Maybe double-clicking there on FMX. Futures launched a little over a year and a half ago. Stepping back, how satisfied have you been with the launch so far, and the trajectory of volumes there, and how would you frame for the audience where we are in the J curve of adoption and revenue growth, volume growth, open interest growth within that business? Well, what's happening recently is great, right? I think we said on the earnings call that at the time when the war started, it was worrisome when you watch your volumes drop. We'd be lying if we said that watching that happen, and of course, in hindsight, everyone turns and says, well, that's what you would expect for a nascent exchange. Which is SOFR and Treasury futures would move to where the most volume is. Now being back where we were prior to that gives us greater confidence than we've ever had that the market is demanding a second venue. We believe that, as we've said to you before, we've got the right partners, we've got the right clearer, right? We've got the right technology. We have the right guys leading that business. We are more certain today that the marketplace is apt for our entry to continue to gain more market share. You're seeing OI and ADV back improving on the trajectory it was before year end, which obviously gives us the ability to look back on that and say, hey, we're glad that happened. Sure at the time it didn't feel like that. I think as well, John, what's exciting, and with some of our earlier meetings today is you think it's really mirroring what happened in cash Treasuries. Right. In cash, in Fenics UST, that obviously started with lower market share. In times of particular volatility, you saw a dip, and then you saw a recovery. Here we are with our cash Fenics UST with a market share in excess of 40%. We're very encouraged. Actually, as John, JP and myself were talking about just only half an hour or so ago, when you see something like that happen in the month of March, or end of February, beginning of March. When you see that, and actually you see the trajectory not then go, it actually went back to the levels it was and has continued to grow again, as John said, gives us tremendous confidence that with the partners that we have and the demand that we've got from the client base for the competition, gives us even more confidence today. One of the more cited, I think, selling points when FMX was launching was the ability to cross margin. For futures with swaps collateral at LCH, any chance you could help just break down or quantify how much of that benefit FMX users are actually realizing today? What are those conversations like? Any color on that? Sure. We've spoken about the number of FCMs that have onboarded, so what percent of the market that is, and like everything else that we talk about when it comes to FMX and how laborious it is to get to those next stages, this is part of that process. What's happening in terms of the benefit is you have six of those FCMs ready to offer a cross-margining benefit. At last count, I think three more would be ready by the end of the year, and then you would have something like the 12 that you and I have spoken about before ready by the end of Q1 of next year, which would give you 90%+ of liquidity available that could receive that cross-margining benefit going forward. As you rightly point out, in terms of talking to new participants or non-partner participants, that's a big part of the story. Offering it from the six that are ready to do it now is certainly a huge selling point for FMX. Sure. Switching gears, you've done three acquisitions over the last year or so. I mentioned one of them. At this conference last year, you told us that with OTC integrated, you expected to lean more toward buybacks unless other opportunities surfaced. A year on, can you talk about how that's played out? Where does the pipeline of potential M&A sit today? What's attractive, is there an appetite for maybe doing something more transformational? In terms of our capital return, nothing has changed. You saw from our overall share count was fractionally lower year-over-year. In terms of our buybacks, we tend to do those more in the second half of the year. You have slightly more uses for cash in Q1. Every decision that we make is EPS, is all about what's the best value to our shareholder. As you can imagine, when you do an acquisition, you mentioned three, when you do transformational ones like OTC, there's a lot of incoming calls, of course, to BGC. If something's going to be of good value for our shareholders, then of course we'll maintain acquisition mode, and if there isn't something that's readily available, then we'll continue to buy back stock. Both of those things will be highly beneficial for the shareholder. From an asset class perspective, do you feel like there's any gaps that are glaring that you would be looking to address potentially through M&A? How do you balance as you look across the different franchises investing for growth organically versus M&A? Oh, sorry, go for it. Sorry, JP. No, good. We noticed on ECS, where we are leaders now, right? The shipping market remains so fragmented. Obviously, we have incoming calls due to our current critical size on that product, on that asset today, and we're looking at every option. Definitely shipping is a segment where we want to invest. For people in the audience who might not be as familiar with that business, can you talk about the economics of it and how you make money in that business specifically? I think that would be helpful to kind of just help people get a better grasp of that. Do you mean the way we-? The way the shipping business works and how you make money off of that, where you sit, just an overview of what the business looks like in terms of the operations and also the revenue model. Again, thanks to our market share and critical size, we match in roughly all the shipping routes in the world, but we can grow more, definitely. We have OTC shipping business. That's Poten, which is the leading in this segment, but we can grow larger. Now with the war, the conflict, we have different routes in the shipping business. Again, that's where we have to invest more. We're leaders in oil, right? That's shipping the next move. Got it. All right. Earlier we had Yuval Rooz up here from Digital Asset. They're working with the DTCC on tokenizing Treasuries on Canton, which is the network that they use. One of the things he said was that banks and financial institutions, through tokenization, collateral mobility, increased collateral efficiency, could see 50%+ improvement in balance sheet efficiency. There's a thought out there that this is going to lead to volumes, especially among large financial institutions, just given the fact that they have these efficiency improvements. We're going to see a huge boost in volumes. How do you think about that as an inter-dealer broker, where you sit? Are you paying attention to that? Do you view it as a tailwind of the business? Is there anything maybe related to tokenization that you guys would be looking at or you think could benefit the business? I suppose it depends for us on which part of the business you're talking about. Certainly when we look at tokenization, the same conversations are happening from BGC that you just referenced before, whether it's a DTCC or not. Remember, we also have the aspect of FMX and looking at it from that perspective. Our view on it is not dissimilar to what you said, which is it might have the benefit of greater volumes. I think what we try to do is prepare the business in the event that that won't happen. If it becomes a tailwind for us, great. Okay. Let's talk about non-bank liquidity. We have Joseph Mecane from Citadel coming up here later this afternoon. Citadel's been pushing harder into credit, harder rate liquidity. How do some of these alternative liquidity providers coming into the rates and fixed income space affect the competitive picture for BGC? Do you view them as a partner, competitor, both? For Citadel, we view them as an essential partner. Sure To what we do across asset classes and across FMX. They've been a great partner, continue to be a great partner. As they disrupt and we try to disrupt, I'm sure there are many more things that we can talk about and hopefully do together. We try to view innovation and disruptors as partners in these businesses and see where we can provide a certain element that perhaps aids what they're trying to do and vice versa. Sure. No, we very much see them as a partner. All right. Maybe just finishing off, if we look ahead three years from now, where do you see BGC as a company? What are the milestones investors should be paying attention to? Really, what are the things that you're most excited about in your business specifically as we look out over the next three to five years? Let's start to go back to the three parts of our business. You've got the traditional IDB voice hybrid business. Round about three years ago, after zero interest rates, we said that the company is a growth company again. We've grown 13%, 12%, 30%, and then another 22% for the half of this year. I think that is because we have interest rates again. Remember, think about us as an exchange for everything that doesn't trade on an exchange. Right? From 2008 to 2022 with zero interest rates, people were trading less. The business that exists today, where we're at in 2026, excluding our acquisition, really is almost where we were back in 2008, for all the things that we now own. For us, I think you'll see continued growth, significant growth within the ECS space. You'll see market share gains in terms of rates. When it comes to credit, you'll see movements in credit. John has spoken significantly on various calls about the movement away from what I would say traditional IDB credit into the PortfolioMatch, into the electronic trading, and that side of it within terms of the credit space. You've already heard the bifurcated market that exists in the ECS space. There's three or four main players in the other asset classes. There are still plenty of players in ECS. What we've started in terms of consolidation will continue. By the way, we haven't even spoken there in FMX, right? Yeah, for me, it's just the ecosystem that we're creating. I hate that word, so I apologize for it. If we think about the pieces that we're bringing together and what the electronification of our world, particularly with AI coming in, could look like. You're talking about API connectivity coming in. The data that we're capturing on fully electronic trading coming in on this side. You sit there, you're the exchange. The exchange spills off that data. Again, you are now doing a lot more with that data than what we've traditionally done, which is just basically sell the exhaust of our exchange to a client base. Now you're actually doing derived data products and being able to pair that, and then you're selling that data back to the client base over here. It's almost, if you've got a piece of paper in your hand, just folding back then. You're sitting there saying, no, you own front to back of that market. As you gain greater access to new client bases, and what we've seen thus far in terms of deployment, we internally use Claude, but it could be a different animal in six months, who knows? What we're able to do in terms of consumption of large amounts of data, and what we've got in terms of 15 years of verifiable bids, offers, and trades sitting there that we're now able to consume and use, it's incredibly exciting, and I think we've got the pieces to do something different with BGC than hopefully, I think you said two to three years. Hopefully in two to three years, we won't be sitting here talking about an interdealer broker. Sure. Something significantly more. Sure. I think that's an interesting point, too, because there's a lot of exchanges who the data business has been almost a drag recently, but in your business, in the OTC markets, it's still a relatively untapped opportunity. What is it? Less than 5% of revenues today comes from data, probably? That's right. Yeah. Yep. The rule of thumb on other exchanges is 15%-20%, so a lot of runway there. Gentlemen, I think we're out of time, but thanks so much for joining us. Thank you very much. My pleasure. Thanks for having us. Thank you.

Speaker 4: All right, everybody. Next up, we have all three Co-CEOs of BGC Group. We're joined by John Abularrage right here next to me, we have JP Aubin over there on the end, and Sean Windeatt here in the middle. BGC is one of the largest energy and wholesale financial brokers in the world, or energy and financial wholesale brokers operating across rates, FX, credit, equities, and energy and commodities. Over the last 18 months, BGC has delivered mid-teens organic top-line growth, completed the OTC Global Holdings acquisition, which significantly expanded your energy franchise, and launched FMX into both SOFR and U.S. Treasury futures. A lot going on, gentlemen. Great to have you back. All right, everybody. all right everybody Next up, we have all three Co-CEOs of BGC Group. next up we have all three co-ceos of bgc group We're joined by John Abularrage right here next to me, we have JP Aubin over there on the end, and Sean Windeatt here in the middle. we're joined by john abularrage right here next to me we have jp aubin over there on the end and sean windeatt here in the middle BGC is one of the largest energy and wholesale financial brokers in the world, or energy and financial wholesale brokers operating across rates, FX, credit, equities, and energy and commodities. bgc is one of the largest energy and wholesale financial brokers in the world or energy and financial wholesale brokers operating across rates fx credit equities and energy and commodities Over the last 18 months, BGC has delivered mid-teens organic top-line growth, completed the OTC Global Holdings acquisition, which significantly expanded your energy franchise, and launched FMX into both SOFR and U.S. over the last 18 months bgc has delivered mid-teens organic top-line growth completed the otc global holdings acquisition which significantly expanded your energy franchise and launched fmx into both sofr and u.s Treasury futures. treasury futures A lot going on, gentlemen. a lot going on gentlemen Great to have you back. great to have you back

Speaker 2: Thanks very much for having us. Thanks very much for having us. thanks very much for having us

Speaker 4: All right. You just put up a record first quarter. There's a lot of rate volatility, commodity dislocations, energy market turmoil. Broadly, a great setup for your business. Could you talk about how the year shaped up, where's the revenue strength most concentrated today, and how are you thinking about going forward from here, the outlook for the rest of the year? All right. all right You just put up a record first quarter. you just put up a record first quarter There's a lot of rate volatility, commodity dislocations, energy market turmoil. there's a lot of rate volatility commodity dislocations energy market turmoil Broadly, a great setup for your business. broadly a great setup for your business Could you talk about how the year shaped up, where's the revenue strength most concentrated today, and how are you thinking about going forward from here, the outlook for the rest of the year? could you talk about how the year shaped up where's the revenue strength most concentrated today and how are you thinking about going forward from here the outlook for the rest of the year

Speaker 3: Yeah. Why don't I start? Look, you're right, Q1 couldn't have been a better setup for us in terms of the business. We were up 44% in Q1 compared to the previous year in revenue and generated $955 million of revenue. Then, of course, people say, well, it must be because of the conflict. Well, actually, pre the conflict, we were actually up 41%. Sure, the conflict obviously increased volumes, particularly in, as you mentioned, our biggest asset class in the ECS space, ending up that 44% for the period. The majority of that growth was what I would call standard market growth. It wasn't just market share gains, it's the targeted acquisitions that we've done, the electronic trading platforms that we've built, and that's what really drove our Q1. Yeah. yeah Why don't I start? why don't i start Look, you're right, Q1 couldn't have been a better setup for us in terms of the business. look you're right q1 couldn't have been a better setup for us in terms of the business We were up 44% in Q1 compared to the previous year in revenue and generated $955 million of revenue. we were up 44% in q1 compared to the previous year in revenue and generated $955 million of revenue Then, of course, people say, well, it must be because of the conflict. then of course people say well it must be because of the conflict Well, actually, pre the conflict, we were actually up 41%. well actually pre the conflict we were actually up 41% Sure, the conflict obviously increased volumes, particularly in, as you mentioned, our biggest asset class in the ECS space, ending up that 44% for the period. sure the conflict obviously increased volumes particularly in as you mentioned our biggest asset class in the ecs space ending up that 44% for the period The majority of that growth was what I would call standard market growth. the majority of that growth was what i would call standard market growth It wasn't just market share gains, it's the targeted acquisitions that we've done, the electronic trading platforms that we've built, and that's what really drove our Q1. it wasn't just market share gains it's the targeted acquisitions that we've done the electronic trading platforms that we've built and that's what really drove our q1 Then again, for the balance of the first half of the year, April was a quieter period for exchanges, right? As everybody sort of checked back a little bit. As you saw within our guidance for Q2, still, that would have us up for the first half of the year, 22% for the first half of the year as compared to last year, and 13% of that being organic. You saw a little bit of a tail off there in April as market participants were digesting what had happened throughout that really volatile month in March. Life has returned to, I don't know what normal is these days, but some level of normality for the month of May. Then again, for the balance of the first half of the year, April was a quieter period for exchanges, right? then again for the balance of the first half of the year april was a quieter period for exchanges right As everybody sort of checked back a little bit. as everybody sort of checked back a little bit As you saw within our guidance for Q2, still, that would have us up for the first half of the year, 22% for the first half of the year as compared to last year, and 13% of that being organic. as you saw within our guidance for q2 still that would have us up for the first half of the year 22% for the first half of the year as compared to last year and 13% of that being organic You saw a little bit of a tail off there in April as market participants were digesting what had happened throughout that really volatile month in March. you saw a little bit of a tail off there in april as market participants were digesting what had happened throughout that really volatile month in march Life has returned to, I don't know what normal is these days, but some level of normality for the month of May. life has returned to i don't know what normal is these days but some level of normality for the month of may

Speaker 4: Sure. Looking back, OTC Global Holdings acquisition seems exceptionally well-timed given the energy market strength that we've seen here recently. You're now much more of an energy play than you were before this acquisition. I think before it was 15% of your revenues. Today, it's between 30%-40% is coming from the energy and commodities business. What impact do you think, you talked a little bit about it, but the geopolitical setup, the things that you're doing in energy specifically, maybe cross-sell opportunities with the legacy franchise, where have you seen success there? Sure. sure Looking back, OTC Global Holdings acquisition seems exceptionally well-timed given the energy market strength that we've seen here recently. looking back otc global holdings acquisition seems exceptionally well-timed given the energy market strength that we've seen here recently You're now much more of an energy play than you were before this acquisition. you're now much more of an energy play than you were before this acquisition I think before it was 15% of your revenues. i think before it was 15% of your revenues Today, it's between 30%-40% is coming from the energy and commodities business. today it's between 30%-40% is coming from the energy and commodities business What impact do you think, you talked a little bit about it, but the geopolitical setup, the things that you're doing in energy specifically, maybe cross-sell opportunities with the legacy franchise, where have you seen success there? what impact do you think you talked a little bit about it but the geopolitical setup the things that you're doing in energy specifically maybe cross-sell opportunities with the legacy franchise where have you seen success there

Speaker 2: I'll take it. Sorry. The biggest successes when it comes to the integration on the revenue side of OTC come from the OB business. The gem in the OTC business is OB, which stands for Oil Brokers, which I'm sure took them a while to come up with. They were number one franchise in London. We had a great franchise in Asia, they're number one in London, and we had a great franchise in the U.S. Those are mainly follow-the-sun traded businesses. I'll take it. i'll take it Sorry. sorry The biggest successes when it comes to the integration on the revenue side of OTC come from the OB business. the biggest successes when it comes to the integration on the revenue side of otc come from the ob business The gem in the OTC business is OB, which stands for Oil Brokers, which I'm sure took them a while to come up with. the gem in the otc business is ob which stands for oil brokers which i'm sure took them a while to come up with They were number one franchise in London. they were number one franchise in london We had a great franchise in Asia, they're number one in London, and we had a great franchise in the U.S. we had a great franchise in asia they're number one in london and we had a great franchise in the u.s Those are mainly follow-the-sun traded businesses. those are mainly follow-the-sun traded businesses To be able to have all three has kind of completed the circle for us, and where we were number three or four in the market, we've now taken that to number one or two, and as you say, look, volatility, people are going to go to number one or two who's got the biggest and the best liquidity, and that's what you've seen happen with the OB acquisition. To be able to have all three has kind of completed the circle for us, and where we were number three or four in the market, we've now taken that to number one or two, and as you say, look, volatility, people are going to go to number one or two who's got the biggest and the best liquidity, and that's what you've seen happen with the OB acquisition. to be able to have all three has kind of completed the circle for us and where we were number three or four in the market we've now taken that to number one or two and as you say look volatility people are going to go to number one or two who's got the biggest and the best liquidity and that's what you've seen happen with the ob acquisition

Speaker 4: Sure. One of the things that I think that's also differentiated about you that a lot of people, I don't think understand it, doesn't come up a lot in my conversations, but you have a shipping business that gives you very good insights into what's going on in the world. There's obviously been a lot of dislocation with global shipping lanes here recently. Could you talk about that business, how much of a revenue driver it is for you, and what sort of opportunities you're able to take advantage of with that business? Sure. sure One of the things that I think that's also differentiated about you that a lot of people, I don't think understand it, doesn't come up a lot in my conversations, but you have a shipping business that gives you very good insights into what's going on in the world. one of the things that i think that's also differentiated about you that a lot of people i don't think understand it doesn't come up a lot in my conversations but you have a shipping business that gives you very good insights into what's going on in the world There's obviously been a lot of dislocation with global shipping lanes here recently. there's obviously been a lot of dislocation with global shipping lanes here recently Could you talk about that business, how much of a revenue driver it is for you, and what sort of opportunities you're able to take advantage of with that business? could you talk about that business how much of a revenue driver it is for you and what sort of opportunities you're able to take advantage of with that business

Speaker 2: It's exactly as you said. The integration of the OTC shipping business and the existing brand, it's branded Poten, which is the number one LNG shipping business in the world, gives you the insights to the actual brokers who are looking at a barrel of oil. Knowing where we're traveling around and being able to sit there on our data sales business and know what's coming in from those platforms, both on voice, hybrid, and electronic, and give that information to our desks. They're doing a much better job voice broking the barrel of oil on the back of knowing where those ships are going. It's exactly as you said. it's exactly as you said The integration of the OTC shipping business and the existing brand, it's branded Poten, which is the number one LNG shipping business in the world, gives you the insights to the actual brokers who are looking at a barrel of oil. the integration of the otc shipping business and the existing brand it's branded poten which is the number one lng shipping business in the world gives you the insights to the actual brokers who are looking at a barrel of oil Knowing where we're traveling around and being able to sit there on our data sales business and know what's coming in from those platforms, both on voice, hybrid, and electronic, and give that information to our desks. knowing where we're traveling around and being able to sit there on our data sales business and know what's coming in from those platforms both on voice hybrid and electronic and give that information to our desks They're doing a much better job voice broking the barrel of oil on the back of knowing where those ships are going. they're doing a much better job voice broking the barrel of oil on the back of knowing where those ships are going

Speaker 4: Got it. Got it. got it

Speaker 2: I think we've also been fairly clear that we want to expand that business further. I think we've also been fairly clear that we want to expand that business further. i think we've also been fairly clear that we want to expand that business further

Speaker 4: Sure. How do you think you'd go about doing that? If you don't mind kind of elaborating. Sure. sure How do you think you'd go about doing that? how do you think you'd go about doing that If you don't mind kind of elaborating. if you don't mind kind of elaborating

Speaker 2: Sure. If investors' return on capital is appropriate, we would make an acquisition in that business. Sure. sure If investors' return on capital is appropriate, we would make an acquisition in that business. if investors' return on capital is appropriate we would make an acquisition in that business

Speaker 4: Sure. All right. Fenics, I want to shift to electronic revenues continue to grow. The transition of voice brokerage activity to electronic has been kind of an underlying narrative in the stock for several years. Some of your most recent acquisitions, OTC Global Holdings being one of them, that's a primarily voice brokerage business. How do you think about the balance between voice and electronic, and what's the strategy going forward to continue driving volumes electronic? What are the things you're doing internally to facilitate that? Sure. sure All right. all right Fenics, I want to shift to electronic revenues continue to grow. fenics i want to shift to electronic revenues continue to grow The transition of voice brokerage activity to electronic has been kind of an underlying narrative in the stock for several years. the transition of voice brokerage activity to electronic has been kind of an underlying narrative in the stock for several years Some of your most recent acquisitions, OTC Global Holdings being one of them, that's a primarily voice brokerage business. some of your most recent acquisitions otc global holdings being one of them that's a primarily voice brokerage business How do you think about the balance between voice and electronic, and what's the strategy going forward to continue driving volumes electronic? how do you think about the balance between voice and electronic and what's the strategy going forward to continue driving volumes electronic What are the things you're doing internally to facilitate that? what are the things you're doing internally to facilitate that

Speaker 3: Look, remember, for those of you who don't know our company as well, think about the fact that we've got three elements to the business. You've got really the voice, the traditional voice broking business. You've got the hybrid business, where a trade starts off voice. Then the size increases through either voice or electronic, can go either way. You've got the fully electronic piece. Over 25% of our business is fully electronic. Some people were looking over the last year, they'd say, "That's slowed down a little bit. It was 25% a year ago or 24% a year ago. Look, remember, for those of you who don't know our company as well, think about the fact that we've got three elements to the business. look remember for those of you who don't know our company as well think about the fact that we've got three elements to the business You've got really the voice, the traditional voice broking business. you've got really the voice the traditional voice broking business You've got the hybrid business, where a trade starts off voice. you've got the hybrid business where a trade starts off voice Then the size increases through either voice or electronic, can go either way. then the size increases through either voice or electronic can go either way You've got the fully electronic piece. you've got the fully electronic piece Over 25% of our business is fully electronic. over 25% of our business is fully electronic Some people were looking over the last year, they'd say, "That's slowed down a little bit. some people were looking over the last year they'd say "that's slowed down a little bit It was 25% a year ago or 24% a year ago. it was 25% a year ago or 24% a year ago That slowed. By the way, over the last few years, the company's revenues have grown from $2.2 billion, just a few, $2.262 to be exact, a few years ago, up to over $3 billion for the trailing 12 months. As you quite rightly said, in our rates, our traditional biggest asset class of rates in foreign exchange and credit, north of 90% of those businesses have the capability to be traded electronically, which obviously gives a higher margin to the business. We're an exchange, right? We are an intermediary, therefore, it's how our clients choose to transact business. They either choose to transact voice, electronic, or a mixture of the two. In terms of the tremendous opportunity is we now have a huge ECS business, which as you quite rightly say, is pretty much today all voice. That slowed. that slowed By the way, over the last few years, the company's revenues have grown from $2.2 billion, just a few, $2.262 to be exact, a few years ago, up to over $3 billion for the trailing 12 months. by the way over the last few years the company's revenues have grown from $2.2 billion just a few $2.262 to be exact a few years ago up to over $3 billion for the trailing 12 months As you quite rightly said, in our rates, our traditional biggest asset class of rates in foreign exchange and credit, north of 90% of those businesses have the capability to be traded electronically, which obviously gives a higher margin to the business. as you quite rightly said in our rates our traditional biggest asset class of rates in foreign exchange and credit north of 90% of those businesses have the capability to be traded electronically which obviously gives a higher margin to the business We're an exchange, right? we're an exchange right We are an intermediary, therefore, it's how our clients choose to transact business. we are an intermediary therefore it's how our clients choose to transact business They either choose to transact voice, electronic, or a mixture of the two. they either choose to transact voice electronic or a mixture of the two In terms of the tremendous opportunity is we now have a huge ECS business, which as you quite rightly say, is pretty much today all voice. in terms of the tremendous opportunity is we now have a huge ecs business which as you quite rightly say is pretty much today all voice That really gives us fuel to take that piece of the business electronic. Let's not rush, right? We'll do it. It's as our clients want it, don't expect it to go there tomorrow. It's a great opportunity to do exactly what we've done in the other asset classes. That really gives us fuel to take that piece of the business electronic. that really gives us fuel to take that piece of the business electronic Let's not rush, right? let's not rush right We'll do it. we'll do it It's as our clients want it, don't expect it to go there tomorrow. it's as our clients want it don't expect it to go there tomorrow It's a great opportunity to do exactly what we've done in the other asset classes. it's a great opportunity to do exactly what we've done in the other asset classes

Speaker 4: Sure. If you were to build that Fenics equivalent within energy, what makes the most natural sense in terms of the offering and the products offered, the assets within ECS that you think could go electronic fastest? What does that market look like? Sure. sure If you were to build that Fenics equivalent within energy, what makes the most natural sense in terms of the offering and the products offered, the assets within ECS that you think could go electronic fastest? if you were to build that fenics equivalent within energy what makes the most natural sense in terms of the offering and the products offered the assets within ecs that you think could go electronic fastest What does that market look like? what does that market look like

Speaker 2: In terms of the way that some of these are traded now is they're blocking to an exchange, right? I think when you say turning them electronic, if you're talking about listing a future on FMX. In terms of the way that some of these are traded now is they're blocking to an exchange, right? in terms of the way that some of these are traded now is they're blocking to an exchange right I think when you say turning them electronic, if you're talking about listing a future on FMX. i think when you say turning them electronic if you're talking about listing a future on fmx

Speaker 4: Yeah Yeah yeah

Speaker 2: Yes. Certainly. I have one of my partners sitting in the stands over there, so I don't want to say too much or he'll hold me to it. Certainly that's got to be a discussion as to whether the partners in FMX want to do that. Taking advantage of the energy franchise at some point in the future makes sense in those listed products where you're blocking. In the products where they're traded completely voice, and that is primarily going to be in the non-standard part of the barrel, right? In terms like we're number one in biodiesel. As you know, we went and said last year bought a fats and greases business to pair with our biodiesel desk. Yes. yes Certainly. certainly I have one of my partners sitting in the stands over there, so I don't want to say too much or he'll hold me to it. i have one of my partners sitting in the stands over there so i don't want to say too much or he'll hold me to it Certainly that's got to be a discussion as to whether the partners in FMX want to do that. certainly that's got to be a discussion as to whether the partners in fmx want to do that Taking advantage of the energy franchise at some point in the future makes sense in those listed products where you're blocking. taking advantage of the energy franchise at some point in the future makes sense in those listed products where you're blocking In the products where they're traded completely voice, and that is primarily going to be in the non-standard part of the barrel, right? in the products where they're traded completely voice and that is primarily going to be in the non-standard part of the barrel right In terms like we're number one in biodiesel. in terms like we're number one in biodiesel As you know, we went and said last year bought a fats and greases business to pair with our biodiesel desk. as you know we went and said last year bought a fats and greases business to pair with our biodiesel desk Things like that, where there's no electronic element to it, bringing that transparency and price discovery in an electronic fashion is certainly part of the plan going forward. Things like that, where there's no electronic element to it, bringing that transparency and price discovery in an electronic fashion is certainly part of the plan going forward. things like that where there's no electronic element to it bringing that transparency and price discovery in an electronic fashion is certainly part of the plan going forward

Speaker 4: Sure. Maybe double-clicking there on FMX. Futures launched a little over a year and a half ago. Stepping back, how satisfied have you been with the launch so far, and the trajectory of volumes there, and how would you frame for the audience where we are in the J curve of adoption and revenue growth, volume growth, open interest growth within that business? Sure. sure Maybe double-clicking there on FMX. maybe double-clicking there on fmx Futures launched a little over a year and a half ago. futures launched a little over a year and a half ago Stepping back, how satisfied have you been with the launch so far, and the trajectory of volumes there, and how would you frame for the audience where we are in the J curve of adoption and revenue growth, volume growth, open interest growth within that business? stepping back how satisfied have you been with the launch so far and the trajectory of volumes there and how would you frame for the audience where we are in the j curve of adoption and revenue growth volume growth open interest growth within that business

Speaker 2: Well, what's happening recently is great, right? I think we said on the earnings call that at the time when the war started, it was worrisome when you watch your volumes drop. We'd be lying if we said that watching that happen, and of course, in hindsight, everyone turns and says, well, that's what you would expect for a nascent exchange. Which is SOFR and Treasury futures would move to where the most volume is. Now being back where we were prior to that gives us greater confidence than we've ever had that the market is demanding a second venue. We believe that, as we've said to you before, we've got the right partners, we've got the right clearer, right? We've got the right technology. We have the right guys leading that business. Well, what's happening recently is great, right? well what's happening recently is great right I think we said on the earnings call that at the time when the war started, it was worrisome when you watch your volumes drop. i think we said on the earnings call that at the time when the war started it was worrisome when you watch your volumes drop We'd be lying if we said that watching that happen, and of course, in hindsight, everyone turns and says, well, that's what you would expect for a nascent exchange. W hich is SOFR and Treasury futures would move to where the most volume is. we'd be lying if we said that watching that happen and of course in hindsight everyone turns and says well that's what you would expect for a nascent exchange. w hich is sofr and treasury futures would move to where the most volume is Now being back where we were prior to that gives us greater confidence than we've ever had that the market is demanding a second venue. now being back where we were prior to that gives us greater confidence than we've ever had that the market is demanding a second venue We believe that, as we've said to you before, we've got the right partners, we've got the right clearer, right? we believe that as we've said to you before we've got the right partners we've got the right clearer right We've got the right technology. we've got the right technology We have the right guys leading that business. we have the right guys leading that business We are more certain today that the marketplace is apt for our entry to continue to gain more market share. You're seeing OI and ADV back improving on the trajectory it was before year end, which obviously gives us the ability to look back on that and say, hey, we're glad that happened. We are more certain today that the marketplace is apt for our entry to continue to gain more market share. we are more certain today that the marketplace is apt for our entry to continue to gain more market share You're seeing OI and ADV back improving on the trajectory it was before year end, which obviously gives us the ability to look back on that and say, hey, we're glad that happened. you're seeing oi and adv back improving on the trajectory it was before year end which obviously gives us the ability to look back on that and say hey we're glad that happened

Speaker 4: Sure Sure sure

Speaker 2: at the time it didn't feel like that. at the time it didn't feel like that. at the time it didn't feel like that

Speaker 3: I think as well, John, what's exciting, and with some of our earlier meetings today is you think it's really mirroring what happened in cash Treasuries. Right. In cash, in Fenics UST, that obviously started with lower market share. In times of particular volatility, you saw a dip, and then you saw a recovery. Here we are with our cash Fenics UST with a market share in excess of 40%. We're very encouraged. Actually, as John, JP and myself were talking about just only half an hour or so ago, when you see something like that happen in the month of March, or end of February, beginning of March. I think as well, John, what's exciting, and with some of our earlier meetings today is you think it's really mirroring what happened in cash T reasuries. i think as well john what's exciting and with some of our earlier meetings today is you think it's really mirroring what happened in cash t reasuries Right. right In cash, in Fenics UST, that obviously started with lower market share. in cash in fenics ust that obviously started with lower market share In times of particular volatility, you saw a dip, and then you saw a recovery. in times of particular volatility you saw a dip and then you saw a recovery Here we are with our cash Fenics UST with a market share in excess of 40%. here we are with our cash fenics ust with a market share in excess of 40% We're very encouraged. we're very encouraged Actually, as John, JP and myself were talking about just only half an hour or so ago, when you see something like that happen in the month of March, or end of February, beginning of March. actually as john jp and myself were talking about just only half an hour or so ago when you see something like that happen in the month of march or end of february beginning of march When you see that, and actually you see the trajectory not then go, it actually went back to the levels it was and has continued to grow again, as John said, gives us tremendous confidence that with the partners that we have and the demand that we've got from the client base for the competition, gives us even more confidence today. When you see that, and actually you see the trajectory not then go, it actually went back to the levels it was and has continued to grow again, as John said, gives us tremendous confidence that with the partners that we have and the demand that we've got from the client base for the competition, gives us even more confidence today. when you see that and actually you see the trajectory not then go it actually went back to the levels it was and has continued to grow again as john said gives us tremendous confidence that with the partners that we have and the demand that we've got from the client base for the competition gives us even more confidence today

Speaker 4: One of the more cited, I think, selling points when FMX was launching was the ability to cross margin. For futures with swaps collateral at LCH, any chance you could help just break down or quantify how much of that benefit FMX users are actually realizing today? What are those conversations like? Any color on that? One of the more cited, I think, selling points when FMX was launching was the ability to cross margin. one of the more cited i think selling points when fmx was launching was the ability to cross margin For futures with swaps collateral at LCH, any chance you could help just break down or quantify how much of that benefit FMX users are actually realizing today? for futures with swaps collateral at lch any chance you could help just break down or quantify how much of that benefit fmx users are actually realizing today What are those conversations like? what are those conversations like Any color on that? any color on that

Speaker 2: Sure. We've spoken about the number of FCMs that have onboarded, so what percent of the market that is, and like everything else that we talk about when it comes to FMX and how laborious it is to get to those next stages, this is part of that process. What's happening in terms of the benefit is you have six of those FCMs ready to offer a cross-margining benefit. At last count, I think three more would be ready by the end of the year, and then you would have something like the 12 that you and I have spoken about before ready by the end of Q1 of next year, which would give you 90%+ of liquidity available that could receive that cross-margining benefit going forward. Sure. sure We've spoken about the number of FCMs that have onboarded, so what percent of the market that is, and like everything else that we talk about when it comes to FMX and how laborious it is to get to those next stages, this is part of that process. we've spoken about the number of fcms that have onboarded so what percent of the market that is and like everything else that we talk about when it comes to fmx and how laborious it is to get to those next stages this is part of that process What's happening in terms of the benefit is you have six of those FCMs ready to offer a cross-margining benefit. what's happening in terms of the benefit is you have six of those fcms ready to offer a cross-margining benefit At last count, I think three more would be ready by the end of the year, and then you would have something like the 12 that you and I have spoken about before ready by the end of Q1 of next year, which would give you 90%+ of liquidity available that could receive that cross-margining benefit going forward. at last count i think three more would be ready by the end of the year and then you would have something like the 12 that you and i have spoken about before ready by the end of q1 of next year which would give you 90%+ of liquidity available that could receive that cross-margining benefit going forward As you rightly point out, in terms of talking to new participants or non-partner participants, that's a big part of the story. Offering it from the six that are ready to do it now is certainly a huge selling point for FMX. As you rightly point out, in terms of talking to new participants or non-partner participants, that's a big part of the story. as you rightly point out in terms of talking to new participants or non-partner participants that's a big part of the story Offering it from the six that are ready to do it now is certainly a huge selling point for FMX. offering it from the six that are ready to do it now is certainly a huge selling point for fmx

Speaker 4: Sure. Switching gears, you've done three acquisitions over the last year or so. I mentioned one of them. At this conference last year, you told us that with OTC integrated, you expected to lean more toward buybacks unless other opportunities surfaced. A year on, can you talk about how that's played out? Where does the pipeline of potential M&A sit today? What's attractive, is there an appetite for maybe doing something more transformational? Sure. sure Switching gears, you've done three acquisitions over the last year or so. switching gears you've done three acquisitions over the last year or so I mentioned one of them. i mentioned one of them At this conference last year, you told us that with OTC integrated, you expected to lean more toward buybacks unless other opportunities surfaced. at this conference last year you told us that with otc integrated you expected to lean more toward buybacks unless other opportunities surfaced A year on, can you talk about how that's played out? a year on can you talk about how that's played out Where does the pipeline of potential M&A sit today? where does the pipeline of potential m&a sit today What's attractive, is there an appetite for maybe doing something more transformational? what's attractive is there an appetite for maybe doing something more transformational

Speaker 3: In terms of our capital return, nothing has changed. You saw from our overall share count was fractionally lower year-over-year. In terms of our buybacks, we tend to do those more in the second half of the year. You have slightly more uses for cash in Q1. Every decision that we make is EPS, is all about what's the best value to our shareholder. As you can imagine, when you do an acquisition, you mentioned three, when you do transformational ones like OTC, there's a lot of incoming calls, of course, to BGC. If something's going to be of good value for our shareholders, then of course we'll maintain acquisition mode, and if there isn't something that's readily available, then we'll continue to buy back stock. Both of those things will be highly beneficial for the shareholder. In terms of our capital return, nothing has changed. in terms of our capital return nothing has changed You saw from our overall share count was fractionally lower year-over-year. you saw from our overall share count was fractionally lower year-over-year In terms of our buybacks, we tend to do those more in the second half of the year. in terms of our buybacks we tend to do those more in the second half of the year You have slightly more uses for cash in Q1. you have slightly more uses for cash in q1 Every decision that we make is EPS, is all about what's the best value to our shareholder. every decision that we make is eps is all about what's the best value to our shareholder As you can imagine, when you do an acquisition, you mentioned three, when you do transformational ones like OTC, there's a lot of incoming calls, of course, to BGC. as you can imagine when you do an acquisition you mentioned three when you do transformational ones like otc there's a lot of incoming calls of course to bgc If something's going to be of good value for our shareholders, then of course we'll maintain acquisition mode, and if there isn't something that's readily available, then we'll continue to buy back stock. if something's going to be of good value for our shareholders then of course we'll maintain acquisition mode and if there isn't something that's readily available then we'll continue to buy back stock Both of those things will be highly beneficial for the shareholder. both of those things will be highly beneficial for the shareholder

Speaker 4: From an asset class perspective, do you feel like there's any gaps that are glaring that you would be looking to address potentially through M&A? How do you balance as you look across the different franchises investing for growth organically versus M&A? From an asset class perspective, do you feel like there's any gaps that are glaring that you would be looking to address potentially through M&A? from an asset class perspective do you feel like there's any gaps that are glaring that you would be looking to address potentially through m&a How do you balance as you look across the different franchises investing for growth organically versus M&A? how do you balance as you look across the different franchises investing for growth organically versus m&a

Speaker 3: Oh, sorry, go for it. Sorry, JP. Oh, sorry, go for it. oh sorry go for it Sorry, JP. sorry jp

Speaker 1: No, good. We noticed on ECS, where we are leaders now, right? The shipping market remains so fragmented. Obviously, we have incoming calls due to our current critical size on that product, on that asset today, and we're looking at every option. Definitely shipping is a segment where we want to invest. No, good . no good We noticed on ECS, where we are leaders now, right? we noticed on ecs where we are leaders now right The shipping market remains so fragmented. the shipping market remains so fragmented Obviously, we have incoming calls due to our current critical size on that product, on that asset today, and we're looking at every option. obviously we have incoming calls due to our current critical size on that product on that asset today and we're looking at every option Definitely shipping is a segment where we want to invest. definitely shipping is a segment where we want to invest

Speaker 4: For people in the audience who might not be as familiar with that business, can you talk about the economics of it and how you make money in that business specifically? I think that would be helpful to kind of just help people get a better grasp of that. For people in the audience who might not be as familiar with that business, can you talk about the economics of it and how you make money in that business specifically? for people in the audience who might not be as familiar with that business can you talk about the economics of it and how you make money in that business specifically I think that would be helpful to kind of just help people get a better grasp of that. i think that would be helpful to kind of just help people get a better grasp of that

Speaker 1: Do you mean the way we-? Do you mean the way we-? do you mean the way we-

Speaker 4: The way the shipping business works and how you make money off of that, where you sit, just an overview of what the business looks like in terms of the operations and also the revenue model. The way the shipping business works and how you make money off of that, where you sit, just an overview of what the business looks like in terms of the operations and also the revenue model. the way the shipping business works and how you make money off of that where you sit just an overview of what the business looks like in terms of the operations and also the revenue model

Speaker 1: Again, thanks to our market share and critical size, we match in roughly all the shipping routes in the world, but we can grow more, definitely. We have OTC shipping business. That's Poten, which is the leading in this segment, but we can grow larger. Now with the war, the conflict, we have different routes in the shipping business. Again, that's where we have to invest more. We're leaders in oil, right? That's shipping the next move. Again, thanks to our market share and critical size, we match in roughly all the shipping routes in the world, but we can grow more, definitely. again thanks to our market share and critical size we match in roughly all the shipping routes in the world but we can grow more definitely We have OTC shipping business. we have otc shipping business That's Poten, which is the leading in this segment, but we can grow larger. that's poten which is the leading in this segment but we can grow larger Now with the war, the conflict, we have different routes in the shipping business. now with the war the conflict we have different routes in the shipping business Again, that's where we have to invest more. again that's where we have to invest more We're leaders in oil, right? we're leaders in oil right That's shipping the next move. that's shipping the next move

Speaker 4: Got it. All right. Earlier we had Yuval Rooz up here from Digital Asset. They're working with the DTCC on tokenizing Treasuries on Canton, which is the network that they use. One of the things he said was that banks and financial institutions, through tokenization, collateral mobility, increased collateral efficiency, could see 50%+ improvement in balance sheet efficiency. There's a thought out there that this is going to lead to volumes, especially among large financial institutions, just given the fact that they have these efficiency improvements. We're going to see a huge boost in volumes. How do you think about that as an inter-dealer broker, where you sit? Are you paying attention to that? Do you view it as a tailwind of the business? Is there anything maybe related to tokenization that you guys would be looking at or you think could benefit the business? Got it. got it All right. all right Earlier we had Yuval Rooz up here from Digital Asset. earlier we had yuval rooz up here from digital asset They're working with the DTCC on tokenizing Treasuries on Canton, which is the network that they use. they're working with the dtcc on tokenizing treasuries on canton which is the network that they use One of the things he said was that banks and financial institutions, through tokenization, collateral mobility, increased collateral efficiency, could see 50%+ improvement in balance sheet efficiency. one of the things he said was that banks and financial institutions through tokenization collateral mobility increased collateral efficiency could see 50%+ improvement in balance sheet efficiency There's a thought out there that this is going to lead to volumes, especially among large financial institutions, just given the fact that they have these efficiency improvements. there's a thought out there that this is going to lead to volumes especially among large financial institutions just given the fact that they have these efficiency improvements We're going to see a huge boost in volumes. we're going to see a huge boost in volumes How do you think about that as an inter-dealer broker, where you sit? how do you think about that as an inter-dealer broker where you sit Are you paying attention to that? are you paying attention to that Do you view it as a tailwind of the business? do you view it as a tailwind of the business Is there anything maybe related to tokenization that you guys would be looking at or you think could benefit the business? is there anything maybe related to tokenization that you guys would be looking at or you think could benefit the business

Speaker 2: I suppose it depends for us on which part of the business you're talking about. Certainly when we look at tokenization, the same conversations are happening from BGC that you just referenced before, whether it's a DTCC or not. Remember, we also have the aspect of FMX and looking at it from that perspective. Our view on it is not dissimilar to what you said, which is it might have the benefit of greater volumes. I think what we try to do is prepare the business in the event that that won't happen. If it becomes a tailwind for us, great. I suppose it depends for us on which part of the business you're talking about. i suppose it depends for us on which part of the business you're talking about Certainly when we look at tokenization, the same conversations are happening from BGC that you just referenced before, whether it's a DTCC or not. certainly when we look at tokenization the same conversations are happening from bgc that you just referenced before whether it's a dtcc or not Remember, we also have the aspect of FMX and looking at it from that perspective. remember we also have the aspect of fmx and looking at it from that perspective Our view on it is not dissimilar to what you said, which is it might have the benefit of greater volumes. our view on it is not dissimilar to what you said which is it might have the benefit of greater volumes I think what we try to do is prepare the business in the event that that won't happen. i think what we try to do is prepare the business in the event that that won't happen If it becomes a tailwind for us, great. if it becomes a tailwind for us great

Speaker 4: Okay. Let's talk about non-bank liquidity. We have Joseph Mecane from Citadel coming up here later this afternoon. Citadel's been pushing harder into credit, harder rate liquidity. How do some of these alternative liquidity providers coming into the rates and fixed income space affect the competitive picture for BGC? Do you view them as a partner, competitor, both? Okay. okay Let's talk about non-bank liquidity. let's talk about non-bank liquidity We have Joseph Mecane from Citadel coming up here later this afternoon. we have joseph mecane from citadel coming up here later this afternoon Citadel's been pushing harder into credit, harder rate liquidity. citadel's been pushing harder into credit harder rate liquidity How do some of these alternative liquidity providers coming into the rates and fixed income space affect the competitive picture for BGC? how do some of these alternative liquidity providers coming into the rates and fixed income space affect the competitive picture for bgc Do you view them as a partner, competitor, both? do you view them as a partner competitor both

Speaker 2: For Citadel, we view them as an essential partner. For Citadel, we view them as an essential partner. for citadel we view them as an essential partner

Speaker 4: Sure Sure sure

Speaker 2: To what we do across asset classes and across FMX. They've been a great partner, continue to be a great partner. As they disrupt and we try to disrupt, I'm sure there are many more things that we can talk about and hopefully do together. We try to view innovation and disruptors as partners in these businesses and see where we can provide a certain element that perhaps aids what they're trying to do and vice versa. To what we do across asset classes and across FMX. to what we do across asset classes and across fmx They've been a great partner, continue to be a great partner. they've been a great partner continue to be a great partner As they disrupt and we try to disrupt, I'm sure there are many more things that we can talk about and hopefully do together. as they disrupt and we try to disrupt i'm sure there are many more things that we can talk about and hopefully do together We try to view innovation and disruptors as partners in these businesses and see where we can provide a certain element that perhaps aids what they're trying to do and vice versa. we try to view innovation and disruptors as partners in these businesses and see where we can provide a certain element that perhaps aids what they're trying to do and vice versa

Speaker 4: Sure. Sure. sure

Speaker 2: No, we very much see them as a partner. No, we very much see them as a partner. no we very much see them as a partner

Speaker 4: All right. Maybe just finishing off, if we look ahead three years from now, where do you see BGC as a company? What are the milestones investors should be paying attention to? Really, what are the things that you're most excited about in your business specifically as we look out over the next three to five years? All right. all right Maybe just finishing off, if we look ahead three years from now, where do you see BGC as a company? maybe just finishing off if we look ahead three years from now where do you see bgc as a company What are the milestones investors should be paying attention to? what are the milestones investors should be paying attention to Really, what are the things that you're most excited about in your business specifically as we look out over the next three to five years? really what are the things that you're most excited about in your business specifically as we look out over the next three to five years

Speaker 3: Let's start to go back to the three parts of our business. You've got the traditional IDB voice hybrid business. Round about three years ago, after zero interest rates, we said that the company is a growth company again. We've grown 13%, 12%, 30%, and then another 22% for the half of this year. I think that is because we have interest rates again. Remember, think about us as an exchange for everything that doesn't trade on an exchange. Right? From 2008 to 2022 with zero interest rates, people were trading less. The business that exists today, where we're at in 2026, excluding our acquisition, really is almost where we were back in 2008, for all the things that we now own. For us, I think you'll see continued growth, significant growth within the ECS space. Let's start to go back to the three parts of our business. let's start to go back to the three parts of our business You've got the traditional IDB voice hybrid business. you've got the traditional idb voice hybrid business Round about three years ago, after zero interest rates, we said that the company is a growth company again. round about three years ago after zero interest rates we said that the company is a growth company again We've grown 13%, 12%, 30%, and then another 22% for the half of this year. we've grown 13% 12% 30% and then another 22% for the half of this year I think that is because we have interest rates again. i think that is because we have interest rates again Remember, think about us as an exchange for everything that doesn't trade on an exchange. remember think about us as an exchange for everything that doesn't trade on an exchange Right? right From 2008 to 2022 with zero interest rates, people were trading less. from 2008 to 2022 with zero interest rates people were trading less The business that exists today, where we're at in 2026, excluding our acquisition, really is almost where we were back in 2008, for all the things that we now own. the business that exists today where we're at in 2026 excluding our acquisition really is almost where we were back in 2008 for all the things that we now own For us, I think you'll see continued growth, significant growth within the ECS space. for us i think you'll see continued growth significant growth within the ecs space You'll see market share gains in terms of rates. When it comes to credit, you'll see movements in credit. John has spoken significantly on various calls about the movement away from what I would say traditional IDB credit into the PortfolioMatch, into the electronic trading, and that side of it within terms of the credit space. You've already heard the bifurcated market that exists in the ECS space. There's three or four main players in the other asset classes. There are still plenty of players in ECS. What we've started in terms of consolidation will continue. By the way, we haven't even spoken there in FMX, right? You'll see market share gains in terms of rates. you'll see market share gains in terms of rates When it comes to credit, you'll see movements in credit. when it comes to credit you'll see movements in credit John has spoken significantly on various calls about the movement away from what I would say traditional IDB credit into the PortfolioM atch, into the electronic trading, and that side of it within terms of the credit space. john has spoken significantly on various calls about the movement away from what i would say traditional idb credit into the portfoliom atch into the electronic trading and that side of it within terms of the credit space You've already heard the bifurcated market that exists in the ECS space. you've already heard the bifurcated market that exists in the ecs space There's three or four main players in the other asset classes. there's three or four main players in the other asset classes There are still plenty of players in ECS. there are still plenty of players in ecs What we've started in terms of consolidation will continue. what we've started in terms of consolidation will continue By the way, we haven't even spoken there in FMX, right? by the way we haven't even spoken there in fmx right

Speaker 2: Yeah, for me, it's just the ecosystem that we're creating. I hate that word, so I apologize for it. If we think about the pieces that we're bringing together and what the electronification of our world, particularly with AI coming in, could look like. You're talking about API connectivity coming in. The data that we're capturing on fully electronic trading coming in on this side. You sit there, you're the exchange. The exchange spills off that data. Again, you are now doing a lot more with that data than what we've traditionally done, which is just basically sell the exhaust of our exchange to a client base. Now you're actually doing derived data products and being able to pair that, and then you're selling that data back to the client base over here. Yeah, for me, it's just the ecosystem that we're creating. yeah for me it's just the ecosystem that we're creating I hate that word, so I apologize for it. i hate that word so i apologize for it If we think about the pieces that we're bringing together and what the electronification of our world, particularly with AI coming in, could look like. if we think about the pieces that we're bringing together and what the electronification of our world particularly with ai coming in could look like You're talking about API connectivity coming in. you're talking about api connectivity coming in The data that we're capturing on fully electronic trading coming in on this side. the data that we're capturing on fully electronic trading coming in on this side You sit there, you're the exchange. you sit there you're the exchange The exchange spills off that data. the exchange spills off that data Again, you are now doing a lot more with that data than what we've traditionally done, which is just basically sell the exhaust of our exchange to a client base. again you are now doing a lot more with that data than what we've traditionally done which is just basically sell the exhaust of our exchange to a client base Now you're actually doing derived data products and being able to pair that, and then you're selling that data back to the client base over here. now you're actually doing derived data products and being able to pair that and then you're selling that data back to the client base over here It's almost, if you've got a piece of paper in your hand, just folding back then. You're sitting there saying, no, you own front to back of that market. As you gain greater access to new client bases, and what we've seen thus far in terms of deployment, we internally use Claude, but it could be a different animal in six months, who knows? What we're able to do in terms of consumption of large amounts of data, and what we've got in terms of 15 years of verifiable bids, offers, and trades sitting there that we're now able to consume and use, it's incredibly exciting, and I think we've got the pieces to do something different with BGC than hopefully, I think you said two to three years. Hopefully in two to three years, we won't be sitting here talking about an interdealer broker. It's almost, if you've got a piece of paper in your hand, just folding back then. it's almost if you've got a piece of paper in your hand just folding back then You're sitting there saying, no, you own front to back of that market. you're sitting there saying no you own front to back of that market As you gain greater access to new client bases, and what we've seen thus far in terms of deployment, we internally use Claude, but it could be a different animal in six months, who knows? as you gain greater access to new client bases and what we've seen thus far in terms of deployment we internally use claude but it could be a different animal in six months who knows What we're able to do in terms of consumption of large amounts of data, and what we've got in terms of 15 years of verifiable bids, offers, and trades sitting there that we're now able to consume and use, it's incredibly exciting, and I think we've got the pieces to do something different with BGC than hopefully, I think you said two to three years. what we're able to do in terms of consumption of large amounts of data and what we've got in terms of 15 years of verifiable bids offers and trades sitting there that we're now able to consume and use it's incredibly exciting and i think we've got the pieces to do something different with bgc than hopefully i think you said two to three years Hopefully in two to three years, we won't be sitting here talking about an interdealer broker. hopefully in two to three years we won't be sitting here talking about an interdealer broker

Speaker 4: Sure. Sure. sure

Speaker 2: Something significantly more. Something significantly more. something significantly more

Speaker 4: Sure. I think that's an interesting point, too, because there's a lot of exchanges who the data business has been almost a drag recently, but in your business, in the OTC markets, it's still a relatively untapped opportunity. What is it? Less than 5% of revenues today comes from data, probably? Sure. sure I think that's an interesting point, too, because there's a lot of exchanges who the data business has been almost a drag recently, but in your business, in the OTC markets, it's still a relatively untapped opportunity. i think that's an interesting point too because there's a lot of exchanges who the data business has been almost a drag recently but in your business in the otc markets it's still a relatively untapped opportunity What is it? what is it Less than 5% of revenues today comes from data, probably? less than 5% of revenues today comes from data probably

Speaker 2: That's right. Yeah. That's right. that's right Yeah. yeah

Speaker 3: Yep. Yep. yep

Speaker 4: The rule of thumb on other exchanges is 15%-20%, so a lot of runway there. Gentlemen, I think we're out of time, but thanks so much for joining us. The rule of thumb on other exchanges is 15%-20%, so a lot of runway there. the rule of thumb on other exchanges is 15%-20% so a lot of runway there Gentlemen, I think we're out of time, but thanks so much for joining us. gentlemen i think we're out of time but thanks so much for joining us

Speaker 3: Thank you very much. Thank you very much. thank you very much

Speaker 2: My pleasure. Thanks for having us. My pleasure. my pleasure Thanks for having us. thanks for having us

Speaker 1: Thank you. Thank you. thank you