Kyle Voigt

Shoukry noted PE-backed roll-ups questioning sustainability of rising multiples that exceed public company valuations. Some firms taking breathers but 2-3 early-stage firms still keeping environment frothy. Tone from roll-up firms shifting from a year ago.

Shoukry acknowledged M&A-driven catalyst from industry consolidation but noted success is not concentrated in any single catalyst. Acceleration in pipeline and activity coming from a lot of different firms across affiliation options.

Oorlog advised looking at 6-month year-to-date comparison showing 5% growth, consistent with business growth, rather than quarter-to-quarter fluctuations in comp subcomponents.

Oorlog maintained $2.1B full-year non-comp guide citing typical fiscal year ramp-up in communications and IT. Long-term technology investment commitment unchanged by current volatility. Significant portion is revenue-variable.

Reilly noted 74.5% for FY2024 as better reference than any single quarter. Scale advantage as revenue grows faster than transition assistance amortization, but still recruiting heavily.

Reilly noted recruiting is lumpy. Strong Q4 joining burned off backlog making Q1 appear slower. Pipeline very strong with teams up to $20 billion in assets.

Reilly emphasized active deal pipeline review across all businesses. Conservative buyer that won't stretch on price but deals can cluster unpredictably.

Shoukry emphasized no duration bets or rate bets. Will let AFS securities run off to normalized 10-15% liquidity ratio, then maintain. Focus on balance sheet flexibility.

Milan said zero DTE percentages are roughly unchanged but S&P 500 zero DTE is very active. Single-stock zero DTE faces physical settlement complications and unexpected exercise/assignment risk.

Paul attributed the growth to a combination of new cash deposits and risk-off rebalancing, noting April was particularly strong from both new inflows and stock sales generating cash.

Management disclosed a clear dividend yield target of 0.5% to 1.0% of the stock price, providing a framework for future dividend decisions.

Milan explained exposure fees are more volatile than margin balances because they reflect options and futures positioning which clients reduce quickly in selloffs.

Milan expects expense growth to remain similar to 2024 levels, subject to inflation and talent competition, with Paul adding that increasing advertising spend will be a component.

Thomas confirmed any sales would be in block format and would occur only when the stock reaches what he considers the right price level.

Lynne noted Google spend down from $115M to $100M guidance through optimization. Professional fees dropped from $4-5M/quarter to ~$1M. Depreciation and occupancy also declining. Current year cost growth is low baseline for 2026.

Tim McCourt highlighted nearly 50 active entities including dozens of banks new to CME FX futures. Improved market quality in spot currencies where CME was previously not the leader.

Derek noted ag OI at records including 5.1 million options OI. Terry explained participants can't afford to deleverage with $38 trillion US debt and razor-thin margins.

Derek described 12-15 month secular trend of buy-side expansion into commodities. Headcount moving from bank trading desks to multi-strat funds building alternative income streams.

Lynne confirmed the 2-2.5% pre-tax figure is aggregate across transaction fees, market data increases, and collateral fee changes.

Mike highlighted 175-person global wealth team, 80+ distribution partnerships (up 33% YoY), over 1,300 new financial advisers in Q2 (up 200% YoY). Expected meaningful Japan flows in Q3.

Jarrod confirmed FP AUM decline was FX-driven. $7B fundraising expected near-term, mostly flowing immediately to FPAUM. Prior financial targets remain in line with first month results.

Mike highlighted incumbency advantage with two-thirds of deployment from existing sponsor relationships. Noted deployment growth not dependent on M&A activity.

Mike noted the capability matrix is nearly complete across corporate, real estate, and infrastructure in US, Europe, and Asia. Organic growth is the near-term priority over M&A.

Mike confirmed low penetration of PAL product suggesting significant upside. Interest rate swaps being used on PAL balances as additional flexibility tool for asset-liability management.

Mike detailed two hedging approaches: converting fixed-rate liabilities to float and fixing floating-rate lending coupons. Roughly one-third of downside rate risk now hedged.

Rick noted alts currently available to $5M+ clients with plans to expand as industry innovates products for broader investor base including ETF-like structures.

Mike acknowledged ongoing evaluation but emphasized reluctance to create headlines that could disrupt client trust, noting proceeds would likely fund supplemental paydown.

Rob highlighted: 24% multi-list share, 31% total options share. Key hires Meaghan Dugan and Gary Hunt with 50+ years combined experience. Working on market structure and pricing improvements. Chris noted tech resources now freed from integrations.

Craig acknowledged peers have effectively diversified revenues but said it's early in his tenure. Will be disciplined and conservative about inorganic growth. Great core business growing, in a strong position.

Jill explained: locked out until Feb 7 earnings, stock hit all-time high, will be opportunistic. Prioritize buybacks over delevering given 1.0x leverage and 2.8% fixed rates.