Brian Bedell

Schlossberg framed the outflows as non-recurring institutional mandates and tied recovery to market demand for active equities without committing to a timeline.

Dukes redirected from the total expense guide to the comp-to-revenue relationship, explaining the Q1 dollar guide was issued because of the sharp AUM move.

Andrew noted institutional ownership growing globally with UCITS version and Asian market listings. Different price points not possible in ETF format but available through separate accounts. QQQ ecosystem totals approximately $550 billion AUM worldwide.

Allison confirmed 22-23% third-party/management fee ratio holds going forward. Q1 had $11M reduction from Intelliflo sale in service and distribution fees. Marketing budget remains $60-100M range, fully in run rate, with significant international allocation.

Andrew noted more traction in U.K. and Europe than U.S. for private markets in DC, viewing it as a multi-geography opportunity that LGT partnership will help address given their institutional market reputation.

Allison confirmed $3.2B is correct starting point but with QQQ marketing budget ($60-100M range, near midpoint) as a notable addition not present in 2025. Final 2026 expenses expected somewhat above $3.2B but with higher revenue as well.

Allison confirmed India $15 billion comes out of China JV and India category. QQQ conversion would happen effectively the next day after shareholder meeting if quorum and vote are achieved.

Andrew expects growth across ETF, SMA, and model portfolio wrappers spanning all investment capabilities. Fixed income ETFs have led growth so far, with equity expected to pick up pace.

Allison confirmed all 14 bps (NASDAQ licensing + Bank of New York custody + discretionary marketing) go to third-party distribution expense, leaving clean 4 bps net revenue improvement.

Andrew noted regulatory and litigation relief needed first, but Invesco has trust company and collective trust wrapper capabilities plus multi-asset expertise to serve DC plans when market develops.

Andrew noted markets outside US showing better flow resiliency than US in the short run. Diversity across $550B non-US AUM is a key differentiator.

Andrew confirmed Invesco is distributor and product operator. Revenue sharing terms not disclosed. Too early to estimate growth potential.

Andrew outlined multiple paths: conversions, cloning, and potential ETF share classes. Cloning sounds elegant but is not always simplest; core focus remains on high-quality investment results.

Allison noted comp-to-revenue at 43% in 2024, targeting return toward 42% range with strong revenue growth. Longer-term target remains 38-42%.

Terry addressed all parts: swap classification, no need for a separate clearing entity, S&P index exclusivity, and equity-perp systemic risk.

Lynne disclosed April cash balances up to $153B from $149B Q1 average at steady 33bps. Noncash balances also up slightly to $174B from $171B at 10bps. Both trending positively.

Tim McCourt said there is customer interest but regulatory clarity is needed on security vs commodity classification. No imminent plans or path forward yet, stay tuned.

Tim McCourt described robust pipeline with 120-130 retail partners working to connect. Terry clarified CME would list larger political contracts and will participate in sports events as long as CFTC deems them legal swaps.

Terry confirmed all FCMs can offer event contracts. Lynne clarified DCM and DCO fees are consistent for all participants. FanDuel FCM is one of many; economics with FanDuel involve non-clearing FCM ownership.

Terry noted NCA up 56% is unprecedented. Julie detailed fifth consecutive quarter of double-digit NCA growth, Micro Bitcoin up 94%, Micro Ether up 212%. Tim cited crypto ADV of 190,000 contracts up 130% YoY.

Terry denied basis trade was the impetus for BrokerTec Chicago. Lynne noted Aastra contributed $89M in 2024 earnings, typically $20-22M per quarter. Collateral spread 35bp on cash, 10bp on non-cash.

Julie and Terry explained retail trades full-size gold and crypto contracts too. Tiering is per-asset-class, intentionally incenting velocity at high-volume periods. Micro gold pricing was increased Feb 1.

Julie declined to disclose total retail revenue share but reiterated two-thirds of $1 billion NCA revenue over five years comes from retail.

Lynne provided specific figures: Q4 $75B cash average, Q1 QTD $77B. Non-cash collateral $178B in Q4, $175B QTD. Collateral surcharge doesn't take effect until April.

Terry clarified the blurring is retail vs institutional, not within retail segments. Julie noted non-professional device usage increased almost 40% from Q3 to Q4.

Craig said the SEC process is going smoothly with a comment period ending the following Wednesday; Rob said KPI pricing will align with other event-contract markets. Direct.

Craig and Rob gave a detailed view: early-stage but large opportunity, leading with securities-based XSP binary options and exploring KPI contracts.

Rob confirmed Q2 launch is all-or-none style intertwined with SPX spreads, starting with index. Traditional event contracts to follow as market adoption grows. Jill confirmed small revenue contribution in 2026 guide, expects ramp over time. Canada/Australia still in revenue guide since still operating.

Prashant outlined financial/economic event contracts focus. Rob noted $18B daily SPX premium vs <$50M in prediction markets - opportunity to bring existing liquidity pools. JJ brings 4 decades retail experience.

Craig confirmed US/Europe focus for operations. Chris added FX remains global, European equities in 5th straight quarter as top grower. Jill clarified 3% revenue/8-10% expense figures are aggregate across all actions including Japan.

Craig said retail is structural not cyclical. Exchange companies have become diverse portfolios. Looking at digitization, tokenization, prediction markets as relevant to the evolving landscape. Wants to ensure Cboe competes.

Dave acknowledged good ACV growth (47% up, off 18% in 2024) but noted uncertainty in macro setup. Constructive outlook with guides to be updated quarterly.

Vlad deferred on CBOE-style KPI contracts given the securities regime; Shiv confirmed a good portion of event flow should migrate to Rothera.

Vlad emphasized the Gold attach rate jump to 40% driving multiproduct adoption. Banking and credit card as daily-use products create engagement beyond trading cycles.

Vlad confirmed strong interest but noted regulatory ambiguity, some financial KPI contracts could fall under securities-based swaps and SEC jurisdiction. Currently have Tesla deliveries contracts. Shiv confirmed Rothera targeting mid-2026 launch.

Vlad confirmed over 1,000 live event contracts with new entertainment and culture categories. Adoption strong from existing traders plus new customers joining specifically for prediction markets. Jason added relatively small portion of customers participating so far, suggesting significant room for growth with UI and discoverability improvements.

Jason listed TradePMR, Bitstamp, prediction markets, index options, Gold card, and Legend as businesses scaling toward $100M revenue. Did not provide specific timeline for staking or stock tokens.

Jason confirmed strong sequential growth in Legend volumes with vast majority incremental. Did not update $50M ARR figure. Vlad outlined futures on Legend and live streaming improvements as roadmap.

Jason confirmed strong week-over-week growth rates for all three products and expressed optimism about market share gains. Vlad noted products are compounding on each other.

Adena gave a detailed view on Reg NMS/order protection rule reform, seeing room to innovate on market models while preserving resiliency and the NBBO.

Friedman outlined four demand vectors from always-on transition: surveillance for international hours trading, Eclipse trading platform for markets extending hours, Calypso collateral management across all markets and clearing houses, and trade management services colocation for 23/5 support.

Friedman declined specific 2026 outlook but emphasized strong pipeline engagement across all FinTech subdivisions globally. Cautioned Q4 is cyclically largest sales quarter. Innovation at scale continuing as core strategy.

Friedman confirmed 30 cross-sells since Adenza close with 15% pipeline persistence. AI capabilities including GenAI upsells acting as catalyst for cross-sell and upsell activity, giving increased confidence in $100M run rate target by end of 2027.

Friedman maintained general consistency on outlook despite Q2 strength, and confirmed crypto institutionalization was not part of original Adenza thesis but represents upside opportunity.

Friedman highlighted global diversification across 100+ regulators, Basel III timing shifts, and crypto as a growth driver for surveillance, Calypso, and Verafin if regulated.

Friedman confirmed Q4 is seasonal high for sales but noted strong trends carrying into 2025 with excellent client engagement.

Gray expressed confidence in continued fundraising growth across institutional, insurance, and wealth channels, aided by an eventually more settled rate backdrop.

Gray noted redemptions driven by fewer large investors averaging double the typical investor size, same pattern as BREIT. Expects competitive shakeout to benefit BX market share as weaker competitors diminish.

Chae confirmed strong multi-year outlook with 2027 benefiting from full-year drawdown fund contributions, infrastructure three-year incentive fee, and operating leverage. Declined to specify FRE margin ceiling.

Gray said bank competition is a constant but rising deal volumes help supply-demand balance. Insurance momentum is exceptional with open architecture model as a key differentiator.

Gray said no material pullback from global clients or private wealth, and BX has benefited from currency strengthening in the U.K., Europe, and yen.

Chae outlined 10% base management fee growth as a starting point, with OpEx growth at 11%, and noted FRPR carries higher incremental margins.