Lynne Fitzpatrick: Sure, Chris. Happy to. So if you look at quarter three, the average cash balances were $91 billion. The yield on that averaged 36 basis points. For non-cash, we averaged $137 billion, yielding 7 basis points. If you look at October to-date, the cash balance has trended down. We’re seeing average cash balances of $71 billion and a shift into the non-cash collateral, which is up to $152 billion. I would point out that on the non-cash collateral side, we did announce a fee change that takes effect in January where the charge on the non-cash collateral will be increasing from a blended 7 basis points up to 10 basis points. Just to give that a little sizing, if you apply that change to this quarter’s average volume, that would have added $10 million to the revenue associated with the non-cash collateral, which rolls through other revenue.
Chris Allen: Great. Thanks. Get back in queue.
Terrence Duffy: Thanks.
Operator: Thank you. Our next question is from the line of Ken Worthington with JPMorgan. Please go ahead. Your line is open.
Ken Worthington: Hi. Good morning. Thanks for taking the question. As you go into year end, maybe could you talk about how you’re thinking about price increases in data and trading for 2024, particularly in the context of the fairly sizable changes you made in 2023?
Terrence Duffy: Okay. Ken, thank you. I’m going to ask Lynne to start and then Julie Winkler, who heads up our data organization as our Chief Commercial Officer, will participate as well. So Lynne?
Lynne Fitzpatrick: Yes. So as you know, on the clearing and transaction fee side, we typically announce any changes there later in the year. It’s typically around the late November timeframe. Our approach is the same as it’s always been. It will be a bottoms-up approach, looking at all the different markets, looking at health of the market, the value we’ve created, the health of our customers and the total cost of trade, including not only clearing and transaction fees, market data fees, but also the cost of collateral and making sure that we don’t do anything from a fee perspective that would impact volume or liquidity, given our high incremental margin. So as I mentioned, we have increased that non-cash collateral fee effective in January that runs through other revenue. And Julie has announced some market data fee changes, which take effect in January as well. Julie, do you want to walk through those?
Julie Winkler: Yes. I mean, Q3 was another record quarter of $167 million in data revenue, so up another 9% year-on-year. And I think the strong growth also is something that as we look into 2024, yes, there will be some fee adjustments, but we also are looking for continued new product development, active sales efforts, continued education and also our enforcement efforts. So it should be noted even in this quarter, we saw about $4.9 million in non-recurring revenue that was reflective of both those prior period activities from subscriber adjustments as well as that audit revenue that we sometimes talk about. And so similarly with the transactions business that Lynne just referenced, we’re continually evaluating the pricing of these data offerings.
We have a very large and diverse set of offerings. So it’s difficult to really specify a specific increase to forecast for 2024. Many of our data products, however, will see price increases next year ranging from 3% to 5% kind of reflecting that price-to-value approach. However, again, this is dependent on both subscribers as well as that non-recurring revenue that occurs in most quarters. So I hope that’s helpful.
Ken Worthington: That was great. Thank you very much.
Terrence Duffy: Thanks, Ken.
Operator: Thank you. Our next question is from the line of Alex Blostein with Goldman Sachs. Please go ahead. Your line is open.
Alex Blostein: Hi. Good morning, everyone. Thanks for taking the questions. I was hoping you can opine on some of the potential new competitive dynamics and developments and interest rate futures markets with FMX Futures potentially entering the space and partnering with LCH. Now we’ve seen this movie before, right, multiple times, and all these kind of attempts have been unsuccessful. So wonder whether or not this might feel different given LCH position as the largest pool of clearing in the swaps market. Maybe just a reminder of sort of the benefits that customers get by keeping everything in futures and the savings across the portfolio they can get versus the alternative of trying to kind of cross margin between futures and swaps? Thanks.
Terrence Duffy: Thanks, Alex. And I’m going to ask Tim and maybe so many of my other colleagues around the table to comment as well. But when we’re looking at the FMX proposal, it’s — we haven’t seen all their details. And I think it’s really hard to comment on exactly what the competitive offering is going to be other than what you just referenced. I understand what you said. I think with the announcement of DTCC and the offsets that we are going to be able to supply to the users is going to be an extremely powerful benefit to the participants of the marketplace. And you also have to remember that FMX is coming from a position of zero futures trading today. And where we are sitting on, as Tim has referenced, record open interest in treasury complex listing new products and listing the benefits thereof.
