Group 1 - Brown Brothers Harriman's BBH Select Series – Mid Cap ETF decreased by 3.9% in Q4 2025, underperforming the Russell Midcap Index which returned 0.2% [1] - The year 2025 was marked by the outperformance of unprofitable and highly volatile companies, with healthcare and materials being the top-performing sectors in Q4, while communication services and real estate sectors declined [1] - The firm anticipates a market shift back to financial fundamentals such as profitability and cash flow [1] Group 2 - Tradeweb Markets Inc. (NASDAQ:TW) was highlighted in the investor letter, showing a one-month return of 8.53% but a 52-week loss of 6.35%, with a market capitalization of $27.273 billion as of March 10, 2026 [2] - The company operates an electronic marketplace and trading platform, facilitating price discovery and automating execution and post-trade processing [3] - Tradeweb has pioneered electronic trading in U.S. Treasuries, with approximately 70% of U.S. Treasuries now traded electronically, up from about 40% a decade ago, and similar trends are observed in other asset classes [3]

Core Viewpoint - MarketAxess is enhancing its focus on AI integration and platform modernization in response to the ongoing digitization of fixed-income markets [4][21][22] Company Strategy - The appointment of William Quan as Chief Technology Officer emphasizes MarketAxess' commitment to advancing innovation and strengthening execution across its technology organization [1][2] - Quan's role includes embedding AI and advanced data capabilities into MarketAxess' pricing, execution, and workflow products [2][12] Leadership and Expertise - William Quan brings over two decades of experience in financial services, AI, and digital platform transformation, having previously served as CTO at Fleete Group and held senior roles at Amazon Web Services [5][6][7] - His background in electronic trading and AI initiatives is particularly relevant to MarketAxess' institutional client base, which includes around 2,100 firms [7][8] Technological Focus - MarketAxess aims to embed intelligence into workflows, utilizing AI-driven pricing engines and predictive liquidity models to enhance trade discovery in fragmented bond markets [11][12] - The company is also focused on enterprise modernization, reinforcing engineering standards and ensuring platform resilience as electronic trading volumes increase [14][18] Competitive Landscape - The electronic trading landscape is becoming increasingly competitive, with various platforms vying for institutional liquidity [16][21] - MarketAxess' ability to combine automated trading solutions with actionable data is central to its competitive positioning [17][18] Regulatory Considerations - Regulatory scrutiny emphasizes the need for transparency, best execution, and operational resilience, making robust data governance and explainable AI models crucial for maintaining client and regulator confidence [19][20]

Market Overview - In 2025, markets are experiencing high volatility, with NASDAQ and S&P 500 indices reaching all-time highs despite uncertain economic indicators [1][2] - Analysts anticipate clearer monetary and tariff policies in the second half of the year, along with solid earnings reports, particularly in the tech sector driven by AI [2] Company Insights - **CME Group**: - Operates the largest derivatives marketplace, benefiting from increased trading volumes in volatile markets [5] - Stock has risen over 40% in the last 12 months and over 18% in 2025, showing signs of recovery after a pullback [6][7] - **Goldman Sachs**: - A leading global investment bank that thrives in volatile markets, generating revenue from expanded bid-ask spreads and increased trading activity [9][10] - Stock is up 23.8% in 2025, with bullish momentum but potential for a short-term pullback [11] - **MarketAxess**: - Operates an electronic trading platform for corporate bonds, expected to benefit from increased trading volumes as credit market volatility rises [13][14] - Stock is down 1.5% in 2025 but has shown a 3.1% increase in the last three months, indicating a potential breakout [15][16]