Simon Clinch: Okay, thanks. And then just secondarily in terms, when we think about the comments about market share so far in April for U.S. high grade being you’re back above Q1 levels. I was wondering if you could perhaps put it in terms of the market share. If you adjust out the sort of distress bonds that sort of distorted everything, has the market share been pretty stable after you adjust for that in March through to April? Or has there been a pickup even relative to that sort of adjusted level?
Chris Gerosa: So there’s – I appreciate the question. There’s three important days left in the month. Obviously, it’s month end. So we certainly enjoy higher levels of activity around month end and we’ll be putting out our monthly volumes and market share next week. So it’s just a little bit too early to predict where our market share levels are going to end up. But as I mentioned in the open remarks, we are seeing market share in high grade above Q1.
Simon Clinch: All right. Thank you.
Chris Gerosa: Thanks.
Operator: Thank you. We go next now to Michael Cyprys of Morgan Stanley.
Michael Cyprys: Great, thank you for taking the question. Maybe just continue with the theme just on April, maybe you could just comment a little bit of what you’re seeing around pricing trends on the fee per million side so far in April. How’s that sort of stack up versus the first quarter? And then if maybe you could elaborate on some of the moving pieces around the IG versus high yield fee capture in the first quarter?
Chris Concannon: Yes, I’ll take this one. I made comments in my prepared remarks that with respect to the high grade fee capture, we’ve seen stability and it’s very indicative of the Bloomberg Duration index that’s out there for everybody to monitor. And there’s a lot of factors that contribute to our fee capture. You have the product mix, you have the protocol mix across our Q1 open trading, and so it really depends month to month on what mix of product is coming through. And I’ll point to where we saw upside in historical quarters was we saw a heavier mix of high yield, which is our highest fee product in the product set. And in this month we’re seeing elevated volumes with Eurobonds relative to the market volumes that we’re seeing sequentially, which is one of the lower fee capture products. So really goes down to what’s the product mix because we’re not seeing the same impact that we saw with the high grade duration compressing our fee capture year-over-year.
Michael Cyprys: Okay, great. And then just a follow up question, as you guys have more and more success with open trading that does, I believe, tie up more working capital for clearing of those trades, because you’re self clear. So maybe you can just remind us how much of the balance sheet resources are being used to support the clearing of customer trades, and if open trading volumes were to say double, how should we think about that translating into incremental balance sheet resources being used to help support that? And then how do you think about driving more balance sheet efficiency for that over time?
Chris Concannon: Yes, so in a peak of March, we had enough capital residing within our two clearing broker dealers to support the elevated trading volumes that we were seeing in light of it contributing to increased fails and increased deposit requirements. So of the $330 million of cash that you saw at the end of March, roughly $200 million of that was residing within the two clearing entities to support open trading. So as we think about our balance sheet today, we feel very comfortable with the amount of capital residing in the company to support our business and not seen on the balance sheet. We didn’t have any outstanding debt at quarter end, but we do have access to $750 million of borrowing facilities, a secured facility at the holding company and $250 million unsecured facility at the holding company and $250 million of secured to broker dealers, which we have not had to borrow on late, but we do have the ability to secure additional funds if we need to.
Chris Gerosa: I would just point out a growth in open trading and particularly a doubling of open trading will produce additional cash to our balance sheet pretty dramatically given our current corporate margins. So that’s a healthy problem to have as you grow open trading to produce more cash into the balance sheet. So again, Chris mentioned spikes in open trading. We have plenty of capital to support open trading spikes and open trading growth as it stands today.
Michael Cyprys: Great. Thank you.
Operator: We go next now to Patrick O’Shaughnessy of Raymond James.
Patrick O’Shaughnessy: Hey, good morning. Can you provide an update on the current competitive dynamics in the recently issued component of the corporate bond market and how much a total market volume does that segment represent?
Chris Concannon: So the competitive dynamic of corporate bond market?
Patrick O’Shaughnessy: The recently issued component,
Chris Concannon: So Patrick, I’ll jump in here, but as you know, following us for a long time, those numbers ebb and flow with the calendar. So the newly issued bonds and peak periods can get up to 12% 13% of TRACE in the short-term. And they average something lower than that, probably more like 7%. So it ebbs and flows with the calendar, but quite honestly, I don’t think the dynamic has changed in terms of the competitive landscape around new issues.
Patrick O’Shaughnessy: Got it. Thank you. And then can you provide an update on what you’re seeing in terms of client interest in your portfolio trading solution?
Chris Concannon: Sure. Our portfolio trading solution had record volume in Q1. It’s grown substantially year-over-year. We have obviously been delivering numerous features and functionality to clients throughout the course of 2022 and even today we’re constantly delivering functionality. So the reception is in the numbers given the records that we’ve seen in portfolio trading. I do think portfolio trading particularly in March and part of the first quarter is a little bit challenged to provide portfolio trading during more volatile times. But portfolio trading is an important part of the market and we’ll continue to be here as a workflow solution for clients and we continue to deliver high value tool for clients to manage their portfolio.
I think the next step in portfolio trading is really building the analytics to decide what to portfolio and what not to put in your portfolio trading. Which is really what we’re hearing from our clients in terms of demand, they want to understand analytics around the portfolio to adjust their portfolio, either pull bonds out or put bonds in to improve the pricing of a portfolio. But certainly very pleased with our performance in the portfolio trading landscape.
Patrick O’Shaughnessy: Great. Thank you.
Operator: Thank you. And it appears we have no further questions this morning. I would like to turn the conference back to the company.
Chris Concannon: Thank you all for your time today and we look forward to talking to you in the next quarter.
Operator: Thank you, sir. Ladies and gentlemen, that will conclude the MarketAxess first quarter 2023 earnings conference call. Would like to thank you all so much for joining us and wish you all a great day. Goodbye.
