We have returned a total of $474 million to investors, through $360 million of share repurchases, and $114 million in dividends. In addition to establishing our three-year plan, we announced an enhanced capital return plan of $400 million, including a $300 million ASR. We just completed the ASR earlier this week with the final delivery of 360,000 shares. Through the completion of the ASR, we have now retired 1.7 million shares to date. In summary, I'm encouraged by the significant product deliveries that we ...

Financial Data and Key Metrics Changes - Revenue for the third quarter was $209 million, reflecting a slight increase from the prior year, with a 1% growth overall [5][18] - Revenue growth outside of U.S. credit was strong at 10% [5] - Diluted earnings per share were reported at $1.84 [18] - Total commission revenue remained flat compared to the prior year, while services revenue increased by 9% to a record $29 million [18][19] - Total expenses increased by 3%, driven mainly by higher employee compensation and technology costs [21][22] Business Line Data and Key Metrics Changes - Total credit commission revenue was $165 million, down 2% year-over-year, with a 9% decline in U.S. high-grade and flat growth in U.S. high-yield [20] - Block trading ADV across U.S. credit, emerging markets, and Eurobonds increased by 10% in Q3 and 21% in October [7][8] - Portfolio trading ADV increased by 20%, with a record in U.S. high-yield ADV [8][12] - Dealer-initiated ADV was $1.7 billion year-to-date, representing a 34% increase [12] Market Data and Key Metrics Changes - 36% of global credit trading volume is now driven by clients outside of North America, up from 29% in 2020 [10] - U.S. high-yield ADV growth in October was strong, up 9% [9] - The average size of non-block trades is decreasing, while the average block size is increasing, with blocks greater than or equal to $5 million representing approximately 45% of trade volume in U.S. high-grade [13][14] Company Strategy and Development Direction - The company is focused on providing a protocol-agnostic platform that utilizes data and analytics to assist clients in choosing the appropriate trading protocol [5][6] - Investments are being made in technology transformation and new protocols to address competitive challenges, particularly in U.S. credit [17][35] - The launch of a new protocol for closing auctions in the fixed income market is aimed at providing an end-of-day liquidity solution [8][9][44] Management's Comments on Operating Environment and Future Outlook - Management noted a return to more challenging market conditions and historic levels of new issues in September, impacting revenue growth in U.S. credit [5][6] - There is optimism about the potential for higher levels of revenue growth in the coming quarters due to ongoing investments in technology and new initiatives [17][25] - The current macro environment shows signs of increased volatility, which could enhance the attractiveness of the company's all-to-all liquidity solutions [62] Other Important Information - The company generated $385 million in free cash flow over the trailing 12 months and repurchased 595,000 shares year-to-date for a total of $120 million [23] - The effective tax rate increased to 27.1%, reflecting an increased accrual for uncertain tax positions [19] Q&A Session Summary Question: On the MIDEX U.S. launch and overall share gains - Management discussed the early success of the MIDEX launch and plans to increase the number of sessions, emphasizing the importance of dealer relationships [28][30] - Concerns about overall growth and market share in U.S. credit were acknowledged, with a focus on technology investments to address competitive dynamics [33][34] Question: About the closing auctions and market share - Management highlighted the significant investment in the closing auction project, which aims to support the growing indexation of the fixed income market [41][42] - The closing auction is designed to provide a clearing price for trades, differentiating it from existing mid-market matching sessions [43][44] Question: On U.S. block trading and dealer liquidity - Management expressed optimism about block trading as a major opportunity, noting growth rates and upcoming changes to enhance dealer liquidity [52][54] Question: On the macro environment and growth potential - Management acknowledged the challenges posed by lower credit spreads and volatility but noted recent signs of increased activity and potential for growth [59][61] Question: On the mix of volumes in credit and trade sizes - Management explained the trends of increasing block sizes and decreasing smaller trades, attributing this to portfolio trading and SMA growth [76][78]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $209 million, reflecting a slight increase from the prior year, with a 1% growth overall [16] - Total commission revenue remained flat compared to the prior year, while services revenue increased by 9% to a record $29 million [16][17] - The effective tax rate rose to 27.1%, up from 23% in the prior year, due to increased accrual for uncertain tax positions [17] Business Line Data and Key Metrics Changes - U.S. credit commission revenue decreased by 2% to $165 million, with strong growth in emerging markets (11%) and Eurobonds (9%) offsetting declines in U.S. high-grade (9%) and flat growth in U.S. high-yield [18] - Block trading ADV across U.S. credit, emerging markets, and Eurobonds increased by 23% year-to-date, with cumulative block trading volume reaching approximately $12 billion [11] - Portfolio trading ADV year-to-date is running 50% above the prior year, with U.S. credit portfolio trading market share over 18%, up 210 basis points [11] Market Data and Key Metrics Changes - 36% of global credit trading volume is now driven by clients outside of North America, up from 29% in 2020 [9] - In October, U.S. high-yield ADV growth was strong at 9%, despite a tough comparison to the prior year due to heightened activity before the U.S. presidential election [8] - The average size of non-block trades is decreasing, while the average block size is increasing, with blocks greater than or equal to $5 million representing approximately 45% of trade volume in U.S. high-grade [12] Company Strategy and Development Direction - The company is focused on providing a protocol-agnostic platform that utilizes data and analytics to assist clients in choosing the appropriate trading protocol [4][5] - Investments are being made in technology transformation, portfolio trading, dealer-to-dealer business, and automation tools to enhance competitive positioning [27][28] - The introduction of closing auctions to the fixed income market is aimed at providing an end-of-day liquidity solution and improving market organization [6][7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by limited volatility and tight spreads, impacting revenue growth in U.S. credit [5][15] - There is optimism regarding the potential for higher revenue growth in the coming quarters due to ongoing investments and technology enhancements [16][21] - The current market environment is showing signs of increased volatility, which could enhance the attractiveness of the company's all-to-all liquidity solutions [45][46] Other Important Information - The company generated $385 million in free cash flow over the trailing 12 months and repurchased 595,000 shares year-to-date for a total of $120 million [20] - Total operating expenses increased by only 3%, driven by higher employee compensation and technology costs, while headcount rose by 2% [19] Q&A Session Summary Question: Can you talk about the pipeline to add additional dealers for MIDEX and how it's interacting with portfolio trading? - The MIDEX solution is seeing good early volumes, and plans are in place to increase the number of sessions to enhance dealer participation [24][25] Question: What actions are being taken to deliver faster technology enhancements and address competition? - The company is investing in multiple technology areas to address competitive dynamics and enhance overall service offerings [27][28] Question: Can you provide insights on the closing auctions and their potential impact on market share? - The closing auction is designed to support the growing indexation of the fixed income market, with significant partnerships established to enhance liquidity [33][34] Question: How does the company plan to grow in a low-volatility environment? - The strategy includes focusing on portfolio trading and dealer-to-dealer initiatives, which are expected to perform well even in low-volatility conditions [50][51] Question: What are the expectations for the block trading market and its growth? - The block market is seen as a significant opportunity, with recent growth rates indicating positive momentum, particularly in U.S. investment-grade [41][42]