Financial Data and Key Metrics Changes - Revenues for Q3 2025 reached $509 million, up 13% year over year on a reported basis and 11% on a constant currency basis [26] - Year-to-date revenues increased by 21% or 17% organically, indicating strong growth momentum [4] - Adjusted EBITDA margin for the year to date was 54.2%, an increase of 90 basis points compared to the full year 2024 margins [27] Business Line Data and Key Metrics Changes - Rates business produced its second highest revenue quarter, driven by organic growth across swaps and global government bonds, while mortgages achieved record revenues [9] - Credit growth was led by strength in municipal bonds and European credit, with overall credit revenues showing low single-digit growth [19] - Money markets revenue growth was supported by the addition of ICD, which saw a 7% increase relative to the second quarter [9] - Equities posted strong growth with revenues up 17% year over year, driven by global ETFs and equity derivatives [9] Market Data and Key Metrics Changes - International revenues grew by 25% year over year, reflecting successful strategic initiatives in emerging markets and APAC [6] - U.S. Treasury revenues decreased slightly by 2% year over year, impacted by weaker wholesale trends [11] - Global swaps revenues grew over 30% year over year, with record revenues in emerging market and institutional dollar swaps [18] Company Strategy and Development Direction - The company is focused on expanding its electronic trading solutions to capture market share from traditional voice trading [55] - There is a strong emphasis on innovation in electronic solutions to enhance market efficiency and transparency [15] - The company aims to leverage its established presence in developed markets to drive growth in emerging markets, with significant revenue potential identified [24] Management's Comments on Operating Environment and Future Outlook - The current macro environment is characterized by low interest rate volatility and geopolitical uncertainty, which presents both challenges and opportunities [4] - Management believes that the setup heading into 2026 is constructive, with expectations for normalized volatility and increased client activity [38] - The company is optimistic about the long-term growth potential in swaps and fixed income markets, despite current low volatility [18] Other Important Information - The company reached an agreement to renew its market data contract with LSEG for three years, expected to increase in value by 9% annually [35] - The company holds approximately 1.7 billion Canton coins with a fair value of approximately $56 million, which is recorded on the balance sheet [28] Q&A Session Questions and Answers Question: What potential catalysts could spark volatility and improve activity? - Management noted that the lack of data due to the government shutdown has contributed to muted activity, but potential catalysts include upcoming midterm elections and geopolitical uncertainties [49][53] Question: What is driving the greater mix of voice trades in the Treasury market? - Management indicated that voice trading remains prevalent for complex multi-leg trades and larger notional transactions, but they expect electronic trading share to recover [58][64] Question: How does the outlook for lower rates impact trading volumes? - Management explained that lower rates can positively impact fee per million in swaps and cash credit, as well as encourage client-driven activity [90][92]

Financial Data and Key Metrics Changes - The company achieved record revenues of $513 million, representing a 26.7% year-over-year increase on a reported basis and a 24.7% increase on a constant currency basis [26][28] - Adjusted EBITDA margin increased by 83 basis points to 54.2% compared to the previous year [28] - Free cash flow reached approximately $952 million for the trailing twelve months [35] Business Line Data and Key Metrics Changes - The rates business produced record revenue driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenues increased significantly, with double-digit growth in credit derivatives and municipal bonds [15] - Equities revenue grew by 50% year-over-year, led by the global ETF and equity derivatives business [8] - Money markets revenue growth was supported by the addition of ICD and record quarterly revenues across global repos [8] Market Data and Key Metrics Changes - International business revenue grew by 41% year-over-year, with strong performance in emerging markets (EM) and Asia-Pacific (APAC) [7][21] - U.S. Treasury market share declined to 22% year-over-year, attributed to a shift towards voice-centric trades [12] - Global swaps revenues grew over 45% year-over-year, with international swaps achieving record revenues growing over 55% [21][23] Company Strategy and Development Direction - The company is focused on expanding its electronic trading capabilities and enhancing client engagement through innovative solutions [6][39] - Continued investment in digital assets and emerging markets credit is a strategic priority [20][36] - The company aims to deepen penetration in the U.S. credit market while expanding its international footprint [20][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth for 2025, driven by strong client engagement and market dynamics [5][35] - The company noted that recent market volatility has reinforced the value of electronic trading [24] - Management highlighted the importance of adapting to client needs and enhancing trading workflows [39][55] Other Important Information - The company declared a quarterly dividend of $0.12 per Class A and Class B shares, up 20% year-over-year [35] - Adjusted expenses increased by 24% on a reported basis, reflecting investments in technology and client relationship development [32] Q&A Session Summary Question: Market share trends in U.S. Treasuries - Management acknowledged a decline in market share due to a shift towards voice trading and highlighted efforts to address this through innovative protocols [43][49] Question: Client reaction to new buy-side fees in high yield - Management reported an increase in institutional high yield share post-implementation of buy-side fees, indicating positive client reception [61][64] Question: Progress in cross-selling additional products through ICD - Management noted high client retention and modest revenue growth, with ongoing efforts to expand product offerings and client reach [72][80] Question: Fee per million dynamics in the rates business - Management expressed optimism about maintaining or modestly growing fee per million in swaps, driven by higher-priced products and protocols [84][86] Question: Growth opportunities in international markets - Management highlighted strong growth in international revenue, particularly in Europe and Asia, with a focus on expanding product offerings [96][100] Question: Impact of stablecoins and digital assets on the market - Management is bullish on digital assets and sees stablecoins as potential game changers, exploring tokenized versions based on client demand [107]

Financial Data and Key Metrics Changes - The company achieved record revenues of $510 million, representing a 24.7% year-over-year increase on a reported basis and a 25.8% increase on a constant currency basis [27][28] - Adjusted EBITDA margin increased by 125 basis points compared to the previous year [32] - Variable revenues increased by 27%, while total trading revenues rose by 24% [28][29] Business Line Data and Key Metrics Changes - The rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages [8] - Credit revenue growth was led by strong performance in municipal bonds and credit derivatives, with high single-digit growth overall [14] - Equities saw double-digit revenue growth, particularly in global ETFs and equity derivatives [8] - Market data revenues increased due to growth in LSEG market data contracts and proprietary data products [8] Market Data and Key Metrics Changes - The U.S. Treasury market experienced significant volatility, with daily yield movements exceeding historical averages [10] - The company's market share in institutional U.S. Treasuries reached over 50% for the fourth consecutive quarter [11] - Emerging markets credit revenues grew nearly 20% year-over-year, indicating strong momentum [21] Company Strategy and Development Direction - The company aims to transition more voice and paper markets to transparent electronic markets, focusing on organic growth and potential M&A opportunities [37] - There is a strong emphasis on automation and enhancing client relationships to drive future growth [7][20] - The company is prioritizing the onboarding of more liquidity providers and enhancing liquidity pools in its wholesale business [12][21] Management's Comments on Operating Environment and Future Outlook - Management noted that macro uncertainty and geopolitical risks have created a dynamic trading environment, but client engagement remains strong [7][38] - The company is confident in its long-term growth outlook, supported by a diverse global multi-asset footprint [39][106] - Management highlighted the importance of maintaining a resilient electronic trading ecosystem amid market volatility [38] Other Important Information - The company ended the quarter with $1.3 billion in cash and cash equivalents, and free cash flow reached approximately $834 million for the trailing twelve months [33] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase year-over-year [34] Q&A Session Summary Question: Can you provide insights on the rate market's health and customer positioning? - Management discussed unprecedented volatility in the rates market, with significant moves in treasury yields and high yield spreads [46][49] - They emphasized the resilience of market function and the importance of platform reliability during periods of stress [50][51] Question: What is the status of the transition from variable to fixed pricing in the credit market? - Management indicated that the transition is ongoing, with expectations for fixed revenues to increase significantly in the coming quarters [62][64] Question: How does the recent Citadel announcement impact Tradeweb's credit business? - Management expressed confidence that Citadel's entry into the credit space would enhance market velocity and benefit Tradeweb's business [75][76] Question: What are the implications of potential regulatory changes on the treasury market? - Management highlighted that loosening capital requirements could improve liquidity and turnover in the treasury market, benefiting Tradeweb [96][97] Question: How does the perception of U.S. exceptionalism affect Tradeweb's business? - Management noted that while there are concerns about the U.S. brand, the company's diverse business model and international revenue growth provide a buffer against potential risks [105][106]

Financial Data and Key Metrics Changes - The company achieved record revenues of $510 million, representing a 24.7% year-over-year increase on a reported basis and a 25.8% increase on a constant currency basis [26] - Adjusted EBITDA margin increased by 125 basis points compared to the full year margins of 2024, reaching 54.6% [28] - Variable revenues increased by 27%, while total trading revenues rose by 24% [27] Business Line Data and Key Metrics Changes - The rates business produced record revenues driven by organic growth across swaps, global government bonds, and mortgages [7] - Credit revenue growth was led by strong performance in municipal bonds and credit derivatives, with overall high single-digit growth [13] - Equities experienced double-digit revenue growth, particularly in the global ETF and equity derivatives business [8] - Market data revenues grew due to increased demand for LSEG market data contracts and proprietary data products [8] Market Data and Key Metrics Changes - The U.S. Treasury market saw significant volatility, with over 25 trading days experiencing yield movements twice the historical average [9] - The company's market share in U.S. Treasuries reached 23%, with record revenues up 13% year-over-year [9] - Institutional U.S. Treasuries market share exceeded 50% for the fourth consecutive quarter [10] Company Strategy and Development Direction - The company aims to transition more voice and paper markets to transparent electronic markets and is focused on organic growth and potential M&A opportunities [36] - There is a strong emphasis on automation and enhancing client relationships to drive future growth [6][20] - The company is prioritizing the onboarding of liquidity providers and expanding its liquidity pools in the wholesale market [11] Management's Comments on Operating Environment and Future Outlook - Management noted that macro uncertainty and geopolitical risks have created a dynamic trading environment, but client engagement remains strong [6][37] - The company is optimistic about long-term growth, citing a diverse revenue base and strong international presence [38][95] - Management highlighted the importance of maintaining a resilient electronic trading ecosystem amid market volatility [37] Other Important Information - The company ended the quarter with $1.3 billion in cash and cash equivalents, and free cash flow reached approximately $834 million for the trailing twelve months [33] - A quarterly dividend of $0.12 per share was declared, representing a 20% increase year-over-year [34] Q&A Session Summary Question: Can you provide insights on the rate market's health and customer positioning? - Management discussed unprecedented volatility in the rates market, with significant yield movements and a resilient market function [44][49] Question: What is the status of the transition from variable to fixed pricing in the credit market? - Management indicated a gradual shift towards fixed pricing, with expectations for recurring revenues to increase significantly in the upcoming quarters [59][60] Question: How does the recent Citadel announcement impact Tradeweb's credit trading? - Management expressed confidence that Citadel's moves could enhance market liquidity and create opportunities for Tradeweb [66][68] Question: What are the implications of potential regulatory changes on capital requirements for holding treasuries? - Management believes that loosening banking regulations could enhance liquidity and turnover in the treasury market, benefiting Tradeweb [87][88] Question: How does the perception of U.S. exceptionalism affect Tradeweb's business? - Management emphasized the strength of their diversified business model and international presence, which mitigates risks associated with U.S. market fluctuations [95][96]