Q – Unidentified Analyst: I’m on for Puneet. Jane, by the way, of course, from JP Morgan. So can for all the updates on wealth, it’s been really cool, I’ve been following the stock to wash so like the J curve on your investments in the platform unfold on the free cash flow generation. So that’s exciting to see. Quickly on cap markets kind of bouncing off this last question. It seems like it was a great quarter in capital markets. Could you just give us a quick update on the state of the market in that business? And then maybe like a technical question quickly on AI, I — can I ask a question. For the OpsGPT and BondGPT’s are products that you guys are rolling out, I understand you have access to like tons of incredible data. Is that data just kind of data that’s in your custody? Or is it data that you own?
Tim Gokey: Yes. So let me just start with the last one and then come back to the broader capital market because I’m pleased to be able to talk about AI. It is an area that we’re investing in, as I talked about earlier, we expect to be a leader in our space, and it is a real natural place for mutualization where — because we’re doing this for many clients, a particular activity and because really getting value out of this often depends on the nuances of a specific activity. we can invest more than it makes sense for any one client to invest, and we can have better data than any one client would have. So it’s a really nice opportunity for a mutualized benefit and to — and for the benefit of our clients. Now in terms specifically of the data, we obviously — we do house lots of data across clients.
We are being very careful on this in terms of how we leverage our models that we are at this point, doing that client by client. It is — we are — it is — that data is owned by our clients and we’re extremely careful about that. Could there be a longer opportunity with client permission to have across those pools, that could be possible in the future, but it is would be specifically with our clients’ permission. When we look at things like OpsGPT, today, when there’s, say, a fail, there’s a whole research process that it kicks off and you have knowledgeable and fairly expensive ops people looking up in this database and then that database and then cross referencing it. And by working out what’s the reason for the fail and then contacting the other party about it?
That sort of research process can be easily automated here. And it is not that sort of looking at the Internet of things like that, it’s using AI to write SQL queries to real databases to get real data to put that together and join it and be able to present an answer to an ops professional who can quickly validate it and really cut out tons of time. And this is just — we’re just scratching the surface in terms of what will be possible. But I think our clients are very excited about it and very excited about the idea that we’d be taking on this investment really on behalf of the industry to really help drive a lot of efficiency. And remember, we’re a technology company, not so much a people company. So as we make things more efficient, that’s not coming out of our personnel that’s really helping our clients save money.
So that’s AI, and I’m sure we’ll be talking about it a lot more. The other part was just the state of the market on capital markets?
Edmund Reese: For the drivers of growth in capital markets, and I’d probably hit 3 things, and thanks for asking the question, Brendan, because it does allow me to come back to an item that Patrick mentioned. But there are probably 3 things that I’d point out there. One is the continued double-digit growth in our front office capabilities as we brought on BTCS, we just continue, as Tim talked about earlier, to see strength in that business. Two, and this is the case across each of our different business units is our ability to be able to convert the revenue backlog into revenue, particularly given the investments that we have been making in our post-trade solutions. We continue to see strength in our capital markets post-trade solutions converting new clients into revenue.
That is a strong boost for that business. And the third, and this is a point that Patrick mentioned, we did see strength in some of the trading volumes in the quarter. We go into our planning cycles not expecting significant growth from trading volumes almost assuming flat. But as I mentioned, the fixed income trading, in particular, has continued to have strong growth over the past couple of quarters, and that is also driving a boost in capital markets. And again, most importantly, having us very confident that, that business, along with wealth will be within our 5% to 8% objective here.
Tim Gokey: And I’m sorry, I have to just add one other thing, which is — when you take our capital markets — capital margin is a very esoteric business. You take our capital markets team put in front of any even very top tier client. And it is a very impressive team. And the — you see that in the innovation with digital ledger repo, with LTX, with AI across all those areas that are at the leading edge of where capital markets are going, front to back, we are showing real thought leadership and having great conversations with clients.
Operator: And ladies and gentlemen, with that, we’ll be concluding today’s question-and-answer session. I’d like to turn the floor back over to management for any closing remarks.
Tim Gokey : Jamie, thank you very much, and thank all of you for joining us this morning. As I hope you heard, we see a long runway for growth ahead. And as we enter our seasonally larger second half, we are on track to deliver another strong year and to continue to make a difference for investors everywhere and for our clients, our associates and our shareholders. Thank you very much for your interest this morning.
Operator: Ladies and gentlemen, with that, we’ll conclude today’s conference call and presentation. We thank you for joining. You may now disconnect your lines.
