Cboe Global Markets, Inc. (CBOE) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the 23rd Annual Credit Suisse Financial Services Forum. This is Gautam Sawant from Credit Suisse, and it's my pleasure to introduce Brian Schell, Cboe's CFO and Treasurer; and Chris Isaacson, Cboe's COO. Cboe is a global securities and derivatives exchange operator and is expanding its services into new geographies and asset classes. Chris and Brian, it's great to have you both here in person.

Great to be here. Thank you.

Thank you.

Let's kick off with Cboe's recent announcement on organic Data and Access Solutions or D&A growth in the 7% to 10% range. Can you walk us through the tailwind Cboe's benefiting from?

Yes. I'll take that. I'll break that up and do a couple of parts there is all organic, but partly the organic that we're seeing today and then some of the organic efforts as a result of some of the inorganic activities that we had over the last couple of years. So I would say, I'd break it down into -- the primary driver is we're really expanding our team and -- pardon me, really expanding the sales team and the marketing effort around that for our entire data complex. And so that is happening full force, the team is ramping up, and so we're already seeing some fruitful efforts from that. We're seeing the pipeline expand, and it's building really nicely. I would say the second thing is, and we talked a little bit about this, is the cloud, right? So we have spent a lot of -- not a lot of, we spent an investment last year trying to build this out so that, again, how do we increase access to our markets to that data. And so that cloud delivery is enabling more and more clients to be able to connect and consume the data the way they've got their infrastructure to be able to consume it. I would say then the third is we're seeing an increased demand from the underlying markets, from the actual transaction elements of the markets that we have from the equity spot and the derivatives. So those are all really nice organic initiatives that we're seeing that's really helped drive some of that growth. And then the last, I'll close that out with, with the acquisitions we made in '20 and '21, we're seeing the build-out and the infrastructure build-out of what that's enabling us to do to really have a nice product set of the pre-trade, at-trade, post-trade market analytics. And so that build-out has continued to really help, like I said, build that pipeline, get us into see new clients. And then the last thing I would say is the -- again, building off the inorganic activity is the expansion of the international markets that we're now in. So all of those are really contributing to our targeted growth rate that we talked about.

And let's take that a step further, like how does Data and Access fit in with some of those initiatives on the transaction side? What incremental opportunities does your product expansion create?

Yes. I'll take that one. So when we think about our business and building the largest -- or the world's largest global securities and derivatives network, we start with the spot markets, the cash markets. And now with our expansion into APAC last year with the acquisition of Chi-X Asia, we have cash equity markets in all of the major regions around the world. Well, if you look at that benchmark underlying data, it creates data that needs to be consumed around the world. Brian mentioned some of the ways in which we're accessing new customers through new methods with that data. So you create a flywheel effect where you have spot data or spot markets that are growing, and we have a great position around the world. It creates data, both raw data as well as derived data, some of the acquisitions we did the last couple of years as well. And then we go into derivatives. So if you look at it, there is a flywheel effect where spot markets create raw data. We enhance that data, and then we have derivatives with new products and even indices. So it's a great effect that we're seeing now around the world. I'll highlight a little bit more on -- Cboe Global Cloud is a great example of that in that now we have this underlying equity data from all those regions that we can put on to this new way of getting -- communicating data to new users. We've already seen good uptake since November. And we just started with U.S. data, some futures data and indices data. We're going to add European data and APAC data to access new users with this new data.

And let's talk about Cboe's core offering. Options and cash equity volumes have grown tremendously. Can you talk about some of the tailwinds in the market right now? How durable is the current pace of activity? And how sustainable is retail participation?

Yes. I think some have estimated there's 150 million new retail accounts, which is quite astounding. We do think that new retail is a great tailwind, and we think it's durable. Will there be some accounts that eventually may go away? Maybe. But we have seen continued growth of those accounts, and they want to trade more and more different types of products. And that effect first hit the equities market and then now options. Multi-list options is seeing that as well. What we're most excited about, frankly, right now is that we're seeing the adoption by retail of our proprietary products as well. So that's grown SPXW growth, especially last year. And now we're launching Nanos upcoming next -- in March, next month. And we have 4 firms that are excited about joining us day 1 on there. So that's a durable tailwind, we believe, with those -- that many new accounts. And these -- I think there's a misnomer there that retail customers are somehow less sophisticated. Certainly, there is a range of sophistication of the retail customer. But the tools and the education that is available to these retail customers is more than one would imagine. And we, Cboe, are committed to educating this new wave of investors with the right tools.

So I want to stay on the core derivative offering here. Service was expanded to include 24x5, and you recently announced plans to launch Tuesday and Thursday expirations for the SPX. Can you help us understand how that is translating into growth? Where you expect to see the most incremental demand for weekly options products?

Yes. So a couple of things there on 24x5 and then Tuesday, Thursday, weekly. So 24x5 launched in November, seeing real -- great growth. We went from about 11,000 contracts a day to 24,000 contracts a day when we turned it on. So more than doubling of that during the global trading hours, and we're continuing to see growth. It dovetails very nicely with what we're doing in APAC because we're -- during those trading hours, we're trading, and now we have product to sell into. And then on SPX Tuesday, Thursday expiries. So how do we get to Monday, Wednesday, Friday expiries? There was always a Friday expiry, Wednesday that we needed to have an expiry for, for VIX settlement. And then people said, well, let's have Monday. So it's very natural for the market to want Tuesday, Thursday. And we're going to be launching that very soon. And it's very little investment for us, frankly, to turn this on, but the demand is palpable. So we're very excited about organic growth initiatives like this.

And then next, can you please provide us an update just on the Nanos launch that's expected to go live next month? What has been the initial customer feedback? And what segment of the market does this product address?

Yes. Nanos, this is a more than year-long project that our product development team has been -- under Rob Hocking has been working on with our distribution team. And we see a need in the market for retail customers to be able to trade these options with a 1 multiplier that is very accessible to them with the complexity taken out of the product, so they understand exactly what they're getting after at a premium price that is very easy for them to access. We've done a ton of market research into what we think the retail customer wants and would like to trade with. And so March 14, we're launching. It is going after the new retail investors, those 150 million retail accounts, but with education and the right product. And we have 4 retail firms that have signed up, Interactive Brokers, Tradier, Webull and TradeStation. And we have demand from others that we think they are going to add this product to their platforms very quickly as well. So we think this is a durable trend that we need to add, not just greater trading hours but greater products, more products into that trend.

And I wanted to talk about some of the international initiatives that you have. Can you kind of walk us through what EuroCCP is and why you purchased that asset?

Yes. That was a great trade at the end of the day. And when you've looked at the results recently, you'll see that the volumes have just -- that entity has been able to really facilitate that growth in the overall European market. We had already owned 20% of it as part of the consortium, and we were really attracted for the opportunity to be able to buy the remaining stake. One, it was just, again, controlling that entity itself, and being able to deliver and enhance the services there was a tremendous value. But the real value that we were excited about was the ability to launch derivatives in Europe. And that focus really enabled -- that entity enabled us to be able to do that because that was really critical to do that. So when we made that acquisition, yes, we expect the continued growth in equities, which it has happened clearly, and then the launch of the derivatives. So we had to build out the derivatives exchange as well as the capability on the clearing side. So that build is going as expected. It's a long kind of runway to get there. But the entity itself has just been a home run as far as ROI perspective and what it's done, what it's enabled us to do and kind of bring a new offering to the market.

And as we kind of think about this, the build-out of pan-European derivatives exchange, you have a $25 million target. Can you walk us through the time line of that and how you expect to get to that and where you are currently in that process?

Sure. So we are -- that is -- we've always said that was going to be a longer runway, longer build. The -- with something like that, when you're starting a new market, it's going to take several years. And it is building just the way we thought, right? We had the market makers, we had the customers. You have the banks. You have everybody in there. You build the ecosystem. It doesn't all just happen overnight. People have their own tech spend. People have to get their funding. There's different things that need to happen, and that's occurring exactly on pace. We're continuing to see monthly volumes build month after month, so you continue to see that consecutive, again, starting off with a smaller base. So we put a target out there that we thought that EUR 25 million number after 3 years we thought was our target. And -- so we felt really good about being able to deliver on it. Again, that is enabled by EuroCCP. And again, to think about why that offering was attractive or why we think it's different, this is not a market share play. We are not trying to steal market share from the offering. This is more of introducing, I would say, more the traditional U.S. approach to derivatives trading so you have more of the on-screen liquidity versus just a reporting out. And we're really -- we think the big attraction that we're -- to customers -- again, this is a customer-led initiative as well of saying, please do this, please do this, please do this. And we think it's -- the main attraction there from a customer perspective is going to be the probably more than non-European firms who want exposure to those various countries. They don't necessarily need the exact benchmark to evaluate against maybe the portfolio or what they're trying to hedge that risk. So we think there's a really good market for it. So we're really excited about it, continuing to get the good feedback. The products are performing exactly the way they're looking to perform. And we're excited about being able to launch additional indices as well as single list. So again, going to plan. It's a multiyear build, but so far, so good.

Great. Next, let's zero in on the opportunity to explain global cash equity competition with BIDS technology. What's in the playbook to repeat the success of BIDS in Europe and replicate that in Canada, Australia and Japan? And maybe let's just circle back to how the Chi-X acquisition fits into this overall strategy.

Yes. Great question. So we're very excited about BIDS, closing that transaction at the end of 2020. In fact, 2 weeks ago, we just launched BIDS in Canada. As part of the migration of MATCHNow, the largest ATS in Canada, we also launched BIDS there, and we've seen good buy-side uptake and sell-side uptake of BIDS already in Canada. That's the playbook here. So we -- BIDS obviously started in the U.S. We brought BIDS to Europe in 2016. And now on any given month, it's -- Cboe BIDS in Europe is the largest dark pool or block trading network in Europe. We hope to build that in Canada. And then we'll be bringing that to -- we already announced, we'll be bringing that to Australia in the first half of '23 as we migrate Chi-X Australia to Cboe technology. We said that will be February 27 of '23. And then the second half of '23, we'll be migrating Chi-X Japan, now Cboe Japan to Cboe technology, and launching Cboe BIDS Japan as well. So this is all part of building that, the world's largest global securities and derivatives network. BIDS offers this unique block trading network, a way to bring together buy side, sell side without necessarily disintermediating the sell side and lower frequency but higher ticket size trading in a very, very low impact way. There's palpable demand there. In every region that we operate in, U.S. equities franchise, there is demand for BIDS.

And I just want to stay on the strategic initiatives here. I wanted to unpack the digital asset opportunity ahead. I know it's early days as the transaction hasn't closed. But how does Cboe digital assets differentiate from the market?

Yes. Great question. So a little bit of history might be helpful here in that we did have a cash-settled bitcoin future back in -- a few years ago, 2016, 2017, which we took down because it wasn't quite the right product. And frankly, we were the first with it, but we didn't think it met the needs of the market. But with our planned acquisition of ErisX, we get all in one transaction. We get a spot cryptocurrency exchange that produces data, that has derivatives, cash-settled futures and then physically settled futures, and also has its own clearing entity. That's a designated clearing organization with the CFTC. That's one transaction. If you think about our flywheel, where you have spot markets, data, derivatives and then like Brian said in Europe, where we have clearing, it matches all of those in one transaction. I will mention specifically clearing is very unique here. There's, as far as we can tell, not a place where there's a clearing entity that allows for the clearing of both spot transactions and derivative transactions to allow capital efficiency over the long term. We think that's competitively unique.

And given the level of competition in the digital asset space, ErisX has offered derivatives [ element ] into bitcoin and other digital assets different from incumbents. How important is this offering from cash-settled derivatives?

Yes. That's a great question. So what the market has been asking for is margin on physically settled or on futures that settle into the underlying. And that -- there's regulatory hurdles to get that done. But we and others are working with the CFTC in order to allow that to happen, to allow margin to be offered and then for them to settle into the physical. That's what the market wants. That's what's available in other asset classes. It reduces basis risk. And we think that will be unique offering that has enabled us, again, as I'll mention, because of the clearing entity we have with ErisX.

I want to talk about your other strategic initiatives. In U.S. fixed income, you're expected to launch in 2Q 2022. Can you talk about how you can leverage the full amount FX protocol in the space and how that offering can kind of compete with incumbents?

Yes. So as we think about the treasuries market, we didn't want to bring a me-too offering to the market. We want to bring something that's novel for U.S. treasuries. And if you look at what we've done in FX, one of the fastest-growing parts of our FX business has been the full amount trading mechanism that allows for much larger size trades with very low impact to be basically all or none done at large -- very large clips. It's been growing very, very, very well, both in the U.S. and in Europe. And we looked at the U.S. treasuries market, and there was a gap there from a product offering perspective. So for those that are FICC members, we'll be offering this by the end of the second quarter, we hope, subject to regulatory approvals. We think it brings an unique offering to a part of the market that doesn't exist today.

As we look ahead to 2022, you provided expense guidance of $617 million to $625 million, which is the mid to high teens growth rate and an incremental $36 million to $42 million to account for the ErisX and NEO opportunities. Can you update us on where you're investing for the business and give us some of the puts and takes that will hit the earnings line?

Yes. So I would say that as we break down those categories, and part of that growth is obviously is a little bit of the run rate of Chi-X and having that full year operations on board that weren't in the prior year. So that explains some chunk. We do have a, I'll call it, our core set of operating expenses, maybe a little bit on the higher side this year than traditional years, with a little bit of wages and things that we're seeing in the markets and making sure that the talent is retained. And we're doing the things that we need to do there from a comp perspective and as far as the employee base and what we're doing around everything else. The other elements, I think, that are important to remember are, as we -- the first part of that is, we'll call it, more of an infrastructure build. There is -- and the team does this pretty regularly, is they look at what is going on around the world in capacity and what is needed, whether that comes from ensuring your cyber defenses are up, ensuring you have the right amount of kit and technology, ensuring that you have the right resources. And again, this is across the globe. It's very difficult to say, well, it's [indiscernible] that. Like, that's the whole infrastructure play. And so our readiness and our ability in being a trusted trading environment, that reliability is critical to being an exchange. So that continuing investment allows us to be able to facilitate those big monster days that we've seen more frequently than not. But that requires investment. So this is stepping ahead and getting ready to the next series of those so that we're ready, so that this exchange can then take advantage and being able to facilitate those volumes. So that infrastructure is very important that we always want to be conscious of. It just happened to be a little bit bigger, a little bit more this year as we continue to broaden that -- our footprint. The other part is we broke these up separately to, I'll call it, revenue initiatives. And we're very excited about those already. You've mentioned several already, and Chris has talked about with respect to 24x5. That would not have been possible with -- unless we made those investments in '21. We're seeing the fruits already in '22. Some of those investments are cloud, ability to deliver cloud. We had to make some investments to be able to do that. So '21, we're already seeing an incredibly high ROI on those investments for '21. So we wanted to lay that out for '22 as well, as far as what else are we doing around derivatives and what else are we doing around D&A. Again, a very similar theme as what you saw in '21, we're doing the exact same things in '22. So we wanted to lay that out, again, how do we continue to ramp up the D&A effort. You've asked that earlier on about how are we doing that and what does that look like? Why are you confident in that growth rate? And some of that is the investment behind it. And so that is reflective of that '22 number. And then the same thing on derivatives, right? As we talked about the Nanos launch. We talked about continuing expansion of 24x5, we talk about what we're doing -- everything around there from a core perspective. So we're really excited. These are high-conviction, high-margin opportunities that will have a very high ROIs at the end of the day.

Got it. And we can open it up to audience questions here. If you have a question, just please, notify the moderator and they'll bring a mic over and you can ask it. And while we're waiting for that to get taken care of, what are your capital deployment priorities for 2022? How do you think about the mix of organic growth, M&A, repurchases and growing the dividend here?

Yes. So the '22 will also reflect, I would say, the closing of the 2 transactions with NEO And ErisX. So the capital will be deployed there, obviously, to make that happen. And so we will have a little bit of a spike in our leverage ratio, but that's to be expected. We'll say that those are cash transactions, and we'll probably hit the markets to be able to fund those to some extent. And some of that cash preservation you saw at the end of last year as well that we are leading into that. So we were a little lighter on our share repurchase activity in '21 than we have been historically in '19 and '20. We expect to see more of a balance going into '22 with -- obviously, with the funding of the 2 transactions. We're going to see -- obviously, the dividend will continue to stay there. That's still very important for us to have a growth rate in our annual dividend. We do anticipate more share repurchase activity. And -- but you saw from our expense guidance, our #1 priority in deployment of capital is the organic growth. But again, we think we've laid that out in some of the expense guidance. It's a fairly consistent CapEx, call it, $40 million to $50 million range, and we've been that way for a while, and we don't necessarily see that changing. And so the investment a lot of times just come from that OpEx line and what we're building.

And I just want to touch upon like market structure with cash equities. We've seen the competition grow from a lot of new entrants. Some of them are looking to charge for market data now. Can you walk us through how that backdrop has kind of evolved over time?

Yes. U.S. cash equities, obviously, has been very competitive for a long time. There's been some recent new entrants that are subsidizing their growth with inverted pricing schemes and whatnot, which is a play that's been run a few times before. We've said many times in investor settings and elsewhere that we're optimizing for net revenue for the long term in a durable business. And our U.S. equities revenues have grown. If you look at the combination of transaction and nontransaction revenue, Brian spoke about all the capacity that customers are needing given the continued volatility and messaging growth in the market, we're seeing that. And we've seen our market share increase at the start of 2022 as well as we made some pricing changes. So we plan to remain competitive here, but we're really focused on product innovation as well. We brought our retail priority a little over a year ago. That's been a huge spur of growth there. It was how we benefited there from the growth in retail. We'll be launching periodic auctions here. We've had periodic auctions in Europe for quite some time, by far the largest periodic auctions operator in Europe, bringing that to the U.S. here at the end of February. And we're just very excited about other initiatives we have to bring innovation to the U.S. equities market, which is very competitive. But it's a bedrock or foundational part of our business. If you think about that flywheel again, you have cash markets, spot markets, producing data and then derivatives. And so we really like the market and plan to remain competitive.

I just wanted to touch upon here on your cloud initiatives. Can you walk us through what those are and how those can create expense savings in the future?

Yes. When we think about our cloud initiatives, it's not really necessarily about expense savings. There may be some that come there. It's about accessing more customers with more products. Increasing access and distribution is the key when we think about cloud. And then also further enabling or growing our functionality. So that's where the cloud, we believe, is ready for greater access and distribution of data and the clearing. So if you think about our ErisX acquisition, well, there's a clearing entity there. It already runs in the cloud on AWS. So it's ready for those sorts of use cases. And we'll also be using the cloud for things as it relates to our security posture, some of the investments that Brian mentioned. So it's really about feature functionality, growing access and distribution. And there may be some cost savings in the long term. But we want to be more agile, even more agile than we have been as a company, to access more customers.

And like is there any benefit or desire to kind of push any transactional systems into the cloud over time? How do you deal with some of the issues like latency and matching engines in the cloud, like -- and I guess durability and staying online?

Yes. I think over time, there'll be a trend there. If there's some proof of concepts that are going on, we are looking at this as well, the transactional side of matching in buyers and sellers in the cloud. Our customers care deeply about microseconds, nanoseconds, the determinism of the way in which they trade. And today, that's not currently available in the cloud. That likely will be eventually over the next few years. And when that's ready, when our customers say, "I want you to be there," we'll be there. We have good relationships with all the cloud providers. But we're a customer-driven business. Part -- one of our core principles is that we deliver client-driven solutions. And so we're not going to use the technology for technology's sake. We're going to apply it appropriately to satisfy customer demand.

We have a question in the audience.

Marcelo Telles, Credit Suisse. I cover LatAm exchanges. My question is with regards to your international expansion. What are the markets that you are currently not in that you'd like to be? And I ask this question also in the context of the recent investment you've done in Brazil. I think there was a small stake that you purchased at CSD, a registration platform in Brazil. So is Brazil a potential market for you in the future? And if so, which markets would be like -- would be more attractive to you if that was the case?

Yes. Great question. So if you think about, again, that flywheel and the cash markets, we want to be in those markets where competition is welcomed. And we're in most of those markets today with North America, Europe and now APAC with Australia and Japan. But we are open to further markets, and we did make a small investment in Brazil. Currently, there's not open to a tremendous amount of competition in Brazil given what's transpired over the last few years, but we think there may be an opportunity in the future, and we want to be -- potentially be part of that if the opportunity arises. But as we look around the globe, again, we want to be in anything -- any place where there's an openness to genuine competition that will allow us to have that foundational cash market then to start the flywheel in that region or country.

And I think that key to that filter there is not only an openness, but there's a customer need and demand. You could have incredibly competitive markets that maybe not looking for another entrant or we're not just necessarily trying to sell, to use an old expression, a better mouse trap. We're actually trying to meet the customer demand. So this investment reflects what a group of people are trying to do there that are inviting and trying to do something new as far as to be able to facilitate that incremental competition.

Yes. Brian makes a great point that they came to us saying, we would like you to be the exchange operator part of this effort. So that's the -- that was the rationale there.

Can we just talk about global regulation and how that could be a tailwind and maybe Australia and Japan to push additional competition? And then once we talk about that, let's circle back to just regulation in the U.S. and how that's kind of developing and changing.

Yes. Regulation around the world, we have 18 regulators today around the world. So there's a lot going on. But there is a lot going on in APAC, especially. I'll start with Australia where ASX has had a -- not a monopoly, but has been very dominant, and then Chi-X Australia grew up to 18% to 20% of the market there. However, during major market outages, ASX -- that ASX has had, market participants have not shown the capability, at least all of them, to be able to route to Chi-X Australia and Cboe Australia. Well, ASIC, the regulator there, came out and said, "You need to connect to alternative markets, which would include Cboe Australia." And so customers are going to be required to do that over the coming months and years. And that will, hopefully, be part of our migration efforts to Cboe technology that people will be just connecting to that new entity, the new platform on February 27. So that's certainly a regulatory tailwind for us there to connect alternative markets. Then in Japan, there's a major initiative regarding the evaluation of best execution rules in Japan. I think in Japan, they tend to move at a measured pace, I'll say. But now that is on the tape that this is being evaluated, and it's not a matter of if, it's a matter of when. And we think those rules, putting more teeth into best execution, will definitely help our Chi-X Japan franchise. I'll also say that, in the meantime, we're not just waiting for regulatory tailwinds to actually take effect. We're putting in market-making programs both in Australia and in Japan. We've seen market share growth since we purchased both of those entities. We plan to be very aggressive and growing market share and our position there. Because as we enter new markets, we don't want to just be competitive. We want to get to scale quickly, which is what we've done in every other market. We did it in Europe. We started organically. Then we purchased Chi-X of Europe to get to scale. If you look at what we're doing in Canada now, we started with MATCHNow, made an acquisition, just did the migration. We're going to close NEO. That will get us to scale. Rounding out your question about U.S. regulation, there is a lot going on right now. There was ATSG, which was almost 700 pages that was just dropped by the SEC. There is a lot of discussion likewise going on about crypto regulation and what's a security or not, what is not a security. So it's -- probably don't have time in this forum to go over all the regulatory happenings in the U.S., but you can rest assure that we're deeply involved with those discussions, where it matters to us and, frankly, to the end customer. We want to run and create trusted marketplaces for all the customers for a sustainable financial future. And that's what we are. We're regulatory first. We want appropriate regulation where it makes sense. And that's why we have a great relationships with all those 18 regulators.

Yes. And I think just to follow up on the last part about the U.S., and it's not uncommon to see with a change of the head of any regulatory body, a focus. For example, I know there was a lot of focus around market data fees, SIP governance enhancements, the latter still on the agenda. But you haven't heard as much around the market data focus, particularly around the exchange side. And here, the new set of commissioners are focused on -- they have a slightly different agenda on what they want to focus on, which, again, is not uncommon. So that's something we also have to be very aware of and that we try to stay in step with to make sure that we're working with them and understanding where -- how to facilitate again to the long-term goal of efficient markets.

As you look ahead this year, what are you most excited about for 2022?

There's a lot going on at Cboe. Brian mentioned some of the investments we've made over the last couple of years, both organically and inorganically, that are now starting to bear fruit. If you think about all the investments we made in Data and Access Solutions, they're starting to bear fruit. We saw a lot of fruit in '21. We expect more in '22. I'd also mention, we have more going on, more organic initiatives regarding our prop products than we've had since I've been at Cboe when I joined 5 years ago. With a combination of 24x5, Nanos, SPX, W, Tuesdays and Thursdays, we have a lot going on to grow organically our prop product complex. In addition, all the global expansion we're doing, we have a truly global company. It's a -- this company is different than it was 5 years ago. We were operating on a global scale with, I think, unrivaled efficiency. And so those investments that we've made over the last couple of years during the pandemic are here to bear fruit.

Yes. I would echo that. And I know that some of -- I will make sure that investors understand that our approach is, while there is a lot going on, it's really coming down to the same strategy of what we're doing in replicating the model, what's been successful. Again, we're going to keep coming back with that flywheel about that, call it, spot markets, the data and the derivatives. We happen to be replicating that in different geographies, but it's the exact same model. Our focus and what we're seeing is the importance of that spot equity markets. But if you look at the leading initiatives, and Chris mentioned it, the 2 big drivers that you're seeing, it continues to be around derivatives and it continues to be around data. And that's where we think a lot of growth is coming from. That's where you've seen a lot of our incremental investments are coming on. And then with the addition of ErisX as far as that digital platform, again, it's the exact same replication of that. So again, there is a lot going on, but our focus is actually very narrow on those 2 items.

Got it. And with that, I think it's a good place to stop. Thank you for joining us today.

Thank you for having us.