MKTX

• Execution of long-term strategy in Q1 with strong financial results.
• Enhanced market access advantage by expanding global network, enhancing liquidity, and using AI on proprietary data and analytics.
• Rollout of new enhanced X-Pro front end changing client experience.
• Continued investment in technology modernization, including hiring Chief Technology Officer Will Kwan.
• Strong progress in new initiatives across three strategic channels, including record credit automation trading volume, growth in block trading, portfolio trading, and dealer-initiated trading.

Total revenue grew by 12% to a record $233 million. Product areas outside U.S. credit had very strong 20% growth. Services revenue grew 10%. Emerging markets franchise generated $20 million in incremental revenue over the trailing 12 months, representing 68% of total credit incremental variable commission revenue. In the first quarter, EM franchise expanded its global client network to a record 1,547 active client firms and 3,410 international active client traders, with total trading volumes up 30% to record levels, hard currency revenue up 15%, local markets revenue up 56%.

Q: Talked about competition in non-U.S. business and momentum.

A: International business driven by emerging market and Euro bond business, block volume up in EM and Eurobond, portfolio trading up in Eurobond, dealer business up in Eurobond; EM has little competition on electronic trading side except Bloomberg, Eurobond has Bloomberg and TradeWeb as competition.

Q: Digged into April commentary.

A: April saw slowdown due to holidays, geopolitical activity leading to volatility drop, return to new issue market with high new issuance; saw return of high activity at month end, broke high yield PT records, and launching new issue solution pilot in May.

Q: Elaborated on new issue trading solution.

A: Partnered with Directbooks, pilot in late May, provides access to new issue calendar, pricing info, allows clients to submit indications of interest, and will have streamlined single two-way pricing in second half; closing auction launched late 2025, saw over $11B in auction orders, 12 active buy-side clients and 4 active dealers.

Q: Expanded on success of new initiatives in European and international markets and U.S. application.

A: International markets still early in electronification, block trading in EM smashed records, dealer business up in EM; in U.S., block trading and PT volume growing, Mid-X dealer solution launched earlier in Europe and EM, seeing growth in U.S.

Q: Expanded on leveraging AI.

A: Have best source data in fixed income, not selling good data, investing in AI for real-time data, product and execution solutions, portfolio optimization, protocol suggestion, and tech modernization, with CTO bringing cloud and AI experience