Lynn Martin: Hi, Kyle, this is Lynn Martin. Thanks for the question. So on the elongated sales cycle, if you look at the Fixed Income and Data Services business, we’re definitely seeing it abate when you look at the other data services line. As Warren mentioned in his prepared remarks, we’ve actually been able to take share from some of the larger incumbents as a result of the significant amount of investment that we’ve made over the past few years in the delivery, in modernizing the tech stack associated with that business. So you’re definitely seeing the elongated sales cycle abate there, given the share we’re taking. On the fixed income data and analytics side of the business, we still see some of the effects of the elongated sales cycle.
But importantly, what you’re seeing is we are taking share in our End of Day Pricing business. We’re continuing to take share there. We’re continuing to see good growth in some of the smaller line items that make up that overall line item, including the Index business, which, as Warren said in his prepared remarks, is now about $526 billion in AUM benchmarked against it and some of the products that really go along with the trend of automation. So let me just unpack that a little bit. If you look at the big buzz word of the year in the industry, it’s really been around the development and implementation of large language models. We’re seeing good demand for, and as Warren mentioned in his prepared remarks, the adoption of our proprietary large language models.
And you’re seeing the effects of that come through in not just our other data services line and the revenue attributed to that line, but you’re also starting to see that in other parts of our segments, including the energy trading side of our segment. Additionally, those large language models in a different asset class are what feeds things around fixed income automation, which is a trend that we continue to be uniquely positioned to capitalize on. So products like continuous evaluated pricing, smaller line item but it continues to see outsized growth relative to the other portions of the fixed income data and analytics side of the business. And because of the strength in that part of the business, you’re seeing that bleed into the ICE bond execution side of the business, which outpaced the industry in spite of muted volatility in our core muni markets because of share gains due to that automation, the transparency provided by our data as well as the adoption of institutional customers for these services across not just our muni products but also our REITs, our money market products and importantly, starting to see it in our credit products.
So overall, we feel really good about how we’re positioned. We’re not seeing anything in terms of share erosion. On the contrary, we’re continuing to see share gains in our core business, but we still are seeing the effects of the elongated sales cycle really in the End of Day Pricing business, which is causing slightly slower growth.
Operator: Thank you. The next question comes from the line of Craig Siegenthaler from Bank of America. Please go ahead, Craig. Your line is now up.
Craig Siegenthaler: Hey, good morning everyone. My question is on the Fixed Income business. So given the higher interest rate backdrop, many are predicting large bond reallocations over the next few years. So I wanted to see if you could walk us through your Fixed Income and Data Services business and provide your perspective on how this reallocation could impact the growth trajectories of the verticals inside this business.
Lynn Martin: Hi. This is Lynn again. That’s a great question. So a couple of areas as you think about where the yield profile continues to lead. Obviously, the attractive yields in treasuries more recently is what has really driven some of the outsized gains that I just mentioned on the execution side of the business for the treasury execution business and the money market products that we have. The contrary to that you’ve seen is on the fixed income index business, where our capture rate, as we talked about on some of the previous calls, tends to be lower on our treasury index business. So AUM continues to grow, but it doesn’t have a direct correlation to the revenue growth. It’s not a one-to-one relationship. As you’re starting to see the issuance profile start to return to normal, you will see that in a reallocation of assets under management to the higher capture indices, that being our credit indices, the muni indices and obviously, with the equity markets doing well, our equity indices.
