Tradeweb(TW)2025-02-06 21:05Financial Data and Key Metrics Changes - Tradeweb Markets Inc. reported record revenues of 809 million for the trailing twelve months [58] Business Line Data and Key Metrics Changes - The rates business achieved record revenue driven by organic growth across swaps, global government bonds, and mortgages, supplemented by acquisitions [10] - Credit revenue growth was led by strength in US and European corporate bonds, achieving the second-highest quarterly market share across fully electronic US high grade and record market share across fully electronic high yield [10] - Money markets saw record quarterly revenues across global repos, aided by the addition of ICD [11] - Equities posted double-digit revenue growth, particularly in global ETF and equity derivatives [11] Market Data and Key Metrics Changes - International revenues accounted for approximately 40% of Q4 revenues, with average annual growth of 20% since 2016 [48][16] - The Asia Pacific (APAC) business saw volumes more than double year-over-year, with strong active client growth across APAC products [17] Company Strategy and Development Direction - The company aims to expand its presence across the fixed income ecosystem and deepen client relationships through strategic acquisitions [8][7] - Tradeweb is focused on innovation and technology investments, having invested over 0.12 per Class A and Class B shares, up 20% year-over-year [58] - The company expects adjusted expenses for 2025 to range from 1.03 billion, reflecting a 15% year-over-year increase [59] Q&A Session Summary Question: Discussion on interest rate swaps and current market conditions - Management noted that the current macro environment is conducive for risk-on trading, with active users up 15% year-over-year and total swap revenue increasing by 30% in January [84][88] Question: Inquiry about digital assets and blockchain technology - Management emphasized a focus on adding value through technology, particularly in trusted shareable data, smart contracts, and tokenization [99][100] Question: Guidance on operating leverage amid uncertain revenue growth - Management highlighted significant operating leverage within the business, with 50% of the expense base being variable or discretionary, allowing for flexibility in different revenue environments [111][112] Question: Impact of looser regulations on electronification trends - Management expressed confidence that the trend towards electronification will continue, regardless of regulatory changes, as efficiency remains a priority for banks [120][123] Question: Streaming and session trading volumes in US treasuries - Management reported a 35% year-over-year increase in wholesale streaming average daily volume and a 25% increase in wholesale sessions business [133][134] Question: Focus on credit and market share growth - Management reiterated a strong focus on credit as a significant growth opportunity, with plans to enhance competitiveness and market share [138][140]