Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on the current market environment and client balances, given the strong third quarter results and guidance for a seasonal slowdown in Q4? A: Ian Lowitt, CEO: The updated guidance reflects a stronger-than-anticipated third quarter, driven by a healthy market environment and robust exchange volumes. While Q4 is typically slower, current exchange volumes remain strong, and recent market activity has resulted in record days for volumes on our platform.
Q: How should we think about the cadence of new investments following the recent acquisitions, and what is the outlook for future investments? A: Ian Lowitt, CEO: The recent flurry of activity was unusual, partly due to the IPO focus earlier in the year. We expect future investments to be more evenly spread out, with a historical average of three to four acquisitions per year, depending on the opportunities available.
Q: What is the expected impact of the recent debt issuance on your funding mix and the growth of the structured notes business? A: Ian Lowitt, CEO: The debt issuance is part of our strategy to diversify funding sources, not to replace structured notes. We see continued growth opportunities in structured notes and expect the funding mix to gradually shift towards more public offerings while still supporting structured notes growth.
Q: Can you provide more details on the performance and future prospects of the Cowen acquisition? A: Ian Lowitt, CEO: The Cowen acquisition is crucial for expanding our securities capabilities. While integration has been slower than anticipated, it remains a key growth driver for 2025 and beyond. The business is performing well, with improved run rates expected in Q4 and beyond.
Q: How do you view the potential impact of regulatory changes on banks' participation in your business, particularly in clearing? A: Ian Lowitt, CEO: We believe the shift of opportunities to firms like ours is driven more by scale and investment willingness than regulatory changes. We don't expect banks to re-enter clearing significantly, as they are likely to focus on areas closer to their core competencies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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