Adena Friedman: Great. Well, generally, we do see the — I think it’s somewhere in the range like 40% of bookings occurs in the fourth quarter for our Anti-Financial Crime business and we would say that, that’s generally what we’re seeing. And so we — now the difference, though is that if we, when we do upsell to the largest banks, there’s a little bit of that’s not necessarily seasonal, and we don’t have as much experience there. So we’re not seeing — that’s not something that every single fourth quarter, we’re going to see something different. But certainly with the small and medium banks, which is the core business of the anti-fin crime business so far, the fourth quarter is a big sales quarter. And that’s actually the case for Adenza as well, kind of 40% to 45% of bookings tend to come in the fourth quarter.
In terms of just the general growth characteristics of the anti-fin crime business, we’re very pleased with the progress. We continue to see good opportunity to continue to grow in that 18% to 23% growth rate that we’ve been experiencing.
Brian Bedell: No. Good to see the progress there. And then, Adena, maybe if you could just update us on the status of the SEC market structure proposals. I know it’s a big debate in the industry and there’s a lot of back and forth on that. But do you see anything being potentially implemented in 2024 or do you think it’s — the debate will sort of linger on at least into ’25?
Adena Friedman: I think that on the four proposals that the SEC has proposed, I would expect that we’ll see something come out to be — to start to get implemented as we go through 2024. We don’t know what that’s going to look like yet. I think they’ve had a lot of comments on the proposals. And I think that in general, the two that seem very — that feel a little bit more certain are the tick sizes and the 605. Those two proposals feel quite certain. I think that on the best decks and the order competition rule, those are ones that have engendered a lot more debate within the industry. So we don’t know exactly how that’s going to turn out.
Brian Bedell: Okay. Great color. Thank you.
Operator: Thank you. And I show our next question comes from the line of Simon Clinch from Redburn Atlantic. Please go ahead.
Simon Clinch: Hi, Adena. Hi. Thanks for taking my call. I was wondering if we jump back to Adenza again and just your comments about your preparations for integration. Obviously, this is a large transaction, and it’s one that you’re actually going to be fully integrating to the business. I was wondering, if you could give us an update on, I guess, what the puts and takes are to this plan, and ultimately, how to think about the technology stack and what that — what the integration of that of Adenza into your existing cloud infrastructure really means for the expense base and margins of that business going forward?
Adena Friedman: Great. Thanks. Well, I can say that Tal and the entire team has been extremely focused on building out a very robust integration plan. We’ve been engaged with the Adenza team now for several months, and we’re having regular engagement with them to develop those plans and make sure that we feel really good about how we’re going to kick off the integration on day one. And we built a lot more granularity to the plan and we still obviously don’t own them. So once we own them and we’re able to meet more people and really understand the operations, we’ll be able to flesh that out into a great amount of detail. But we’re extremely committed to achieving the integration, our expectations that we delivered to you all at the announcement.
We also definitely see benefit in the cloud infrastructure that we have. That’s actually part of our integration. We have not done a lot of detailed work yet on that because we don’t own them. We have a lot of, in my opinion, proprietary IP when it comes to our cloud capabilities and our cloud team. So we want to make sure that we own them before we go into really, really deep dives on the technical infrastructure. But our relationship with AWS, we think will be a benefit. I think the expertise that we have in creating very efficient cloud infrastructure, particularly from a data ingress/egress (ph) perspective, I think it’s going to be very helpful. And so we look forward to really working with them to continue to develop this cloud capabilities.
I have a great view of — in five years, like how do we want these services to be delivered, how much do we want to have a single-tenant, multi-tenant capabilities, what kind of overall or overarching environment do we want to create for our clients so they see us as a strategic partner across risk management, reg tech, anti-fin crime, capital markets? There’s a lot that we can do there, but we have to get in there, we have to own them. We have to kind of get really engage with them so that we can give you a better answer to that in the coming months and quarters.
Simon Clinch: That’s great. Thanks, Adena. I guess just a second question here and just changing tack a little bit. Just on the cash equities business, I’ve noticed that the revenue capture has been rising quite substantially while the sort of market volumes have stagnated have fallen. And I know some of this has to do with mix, but I was wondering, if you could expand a little bit on sort of what the dynamics are there. And is this a deliberate sort of management on your part to, I guess, smooth out revenue by taking a bit more pricing when times slow down or how should we think about that strategy going forward?
Adena Friedman: Well, I think one of the things we’ve always said is that we like to make sure that we have a good balance between share and capture. And one of the things we’ve been focused on is, what is our share of available liquidity? And Ann mentioned before, we’ve been able to manage to a pretty stable share of available liquidity and what do we mean by that? In times when volatility goes down, there tends to be more trading that occurs off exchange. So the off-exchange trading percentage tends to go up. So then we look at it and say, well, what can we actually achieve and bring into the exchange and how are we competing with other exchanges? And there, we look at what we call available liquidity. And I think we’ve maintained a pretty stable share of about 30%.
And then within that, we then said, hey, what kind of volumes are we trying to attract into our solution? We want to attract volumes that are additive to overall volumes in the platform. So one, certain orders that come into the market feed other orders, and we’re going to work hard to get those orders in. The other thing is we provide a lot of really interesting, as we mentioned, specialized order types that also allow us to charge different rates for these services because they’re specialized execution capabilities, and that allows us to have a higher capture. But the one thing we don’t do is just chase share that just is fleeting, that if you chase that share, you can really have a significant negative impact on capture, and frankly, not get share that’s additive to the NBBO (ph) not get share that brings other on their volume in.
