Kyle Voigt: Very clear. Thank you.
Operator: Our next question comes from Andrew Bond with Rosenblatt Securities. Your line is open.
Andrew Bond: Hey, good morning. Just want to get your thoughts on SEC’s latest market structure proposal, it looks to ban volume-based pricing to exchanges. Can you walk us through maybe why providing the tiers is important for liquidity provisioning? And how does it impact competition not just with other exchanges, but off exchange markets and the broker internalization?
Fred Tomczyk: Thanks very much. Good question there. Yes, the rule proposal that looks to folks on rebate tiers, not rebates alone, the rebate tiers for that agency flow. As a general principle there we don’t support government impose the price controls. In particular, in highly competitive markets as you mentioned. We’ve been – the minister told it maybe use to help us drive competition between the trading venues. And so, that utility there is really important for us to be able to have that and couldn’t even result in higher costs to the end users. Those costs will likely end up being passed back up the food chain. So for us, we really like to focus on competing on a level playing field. Some of the prior proposals coming in the back end of massive focused on leveling that playing field and this one, this potential folks here looks to going somewhat against that.
So all being engaging with it with common mechanism with the SEC and the industry participants to make sure that we have a, you know harm approach and actually think about the listing market structure first, because what’s better for any investors is better for the market and we look to enjoy competing within those constraints.
Andrew Bond: Okay. Thanks.
Operator: Our next question comes from Michael Cyprys with Morgan Stanley. Your line is open.
Michael Cyprys: Hi, good morning. And thanks for taking the question. Wanted to ask on the index options suite with the SPX dailies. You now have SPX going out 30 days, but maybe you can just remind us on the SPX. expiries, what do you have the on 30 days? And to what extent might there be any sort of innovation opportunities to fill out more maturities to allow more precise hedging with longer duration? And potentially expand the user base even more? I guess in another way, why not have daily is going out 365 days instead of just 30 days?
David Howson: Yeah, great question, great. So we all see the last steamer continually thinking about how we can innovate around our volatility [Indiscernible]. There you saw the dispersion index. You saw the credit mix indices come out, as well. But purely on SPX, we’ve got five weeks of SPX weekly expiries going out now,for customers, we have to be able to utilize those. As we’ve go on striking expiries, and we always manage that find balance between liquidity provision and be able to manage the number of strikes and number of series that the market has to manage and digest and really conscious about adding value where it comes through. And in terms of longer data I would mention that Cboe is the pioneer, the leads options as longer dated options going out most full year.
That’s a great utility for some of these, say insurers and other asset managers out there and other buy side funds to really gain some real value there. So we’ve got a broad range of strikes and expiries now, Really, we’ll be customer-led. We want to give our end-customers and investors what they need. And also what the liquidity provided rates to support in a reliable and consistent manner. So, think about ways in which more may come through that.
John Deters : Mike, I just mentioned that we – so, we had Tuesday, Thursdays, about a year and a half ago, but we added the fifth, the fifth week of dailies, the Tuesdays Thursdays, in the last few months and that was based on customer demand. So as Dave said, his customers demand more and we think we have appropriate liquidity provision. We’ll continue to add strikes if the market wants.
Michael Cyprys: Okay. Thank you.
Operator: Our final question is a follow-up from Owen Lau with Oppenheimer. Your line is open.
Owen Lau: Hey. Thank you for taking my follow up. So, – recently launched a crypto futures trading together with their smart trading. Could you please talk about how Cboe Digital will compete in this space and the value proposition? And I guess more importantly, given the low trading volume for the industry, how do you think about the investments in this space longer term? Thanks a lot.
Fred Tomczyk: Thanks Owen. As we’ve been talking about, we’re really excited about the launch of our margin futures product in early 2024 that great engagement from customers and SCMs as we build out that project. As following that we do have further derivatives products in the pipeline. The thing that’s unique about Cboe Digital once we have that launched is that the spot and the margin futures will be on the same technology platform underneath the same regulatory umbrella. So, over the same APIs, over the same connections, you can trade both the spot and those physically and cash settle or cash settled margin futures all on the same platform there. So, real unique value being added to that. And then when we think about the prognosis for the future, we think about the – hopeful approval of those spot if and spot Bitcoin ETFs, which we will know more about in the New Year.
At Cboe, we’re supporting eight issuers of those ETS with five data sharing agreements in place. And so when they come to market, not only do we get to list of products and have to trading, but actually the ecosystem that we have there with that US-based regulated exchange and clearing house to support those authorized participants and market makers who will be supporting and needing to manage their exposure in those products. A good ecosystem benefit is coming there. And then when you look at the regulatory direction, although it may have slowed it’s certainly coming in Cboe’s direction where we run a transparent, regulated, customer first, intermediate-driven model.
Owen Lau: Got it. Thanks a lot.
Operator: There are no further questions at this time. I will now turn the call back to the management team for any closing remarks.
Fred Tomczyk: Thank you and thanks everyone for joining us this morning. I wish you all a good weekend and look forward to seeing you all in the future in person as I start to get out from the office. Take care.
Operator: This concludes today’s conference call. Thank you for joining us. You may now disconnect.
