Robin Vince: So look, CCM, Clearance and Collaborative Management, very big business for us. I would say a couple of things. A lot of volatility in the market this year, significant volumes, lots of treasury issuance. All of that is kind of helps that business. I think we continue to innovate as well internationally. And so, we spend a lot of time on the road with clients overseas because of our strength in the US, we feel that we have a lot of value to add in the international space. And so, we kind of look to build our international business from here. I think in the medium term we kind of still see that business continuing to grow given the level of treasury issuance and what’s happening in the market. So we kind of feel good about the underlying growth.
Also a lot of people might think of it as a kind of steady eddy type business, but I have to say the amount of innovation that we do under the hood in terms of serving our clients’ needs with new solutions and how they can optimize their respective balance sheets and fund it on our platform is very, very pleasing to see. So we feel very good about the state of the business and the trajectory from here.
Alex Blostein: Thanks very much.
Robin Vince: Thank you.
Operator: Our next question comes from the line of Brennan Hawken with UBS. Please go ahead.
Brennan Hawken: Good morning. Thank you for taking my questions. I’d love to start on Pershing. I’m curious if you could maybe give a little color on what drove the strength in Pershing revenues. I know you flagged higher fees on sweep balances, but we’re seeing other wealth management firms flagging headwinds there. So, curious about whether or not you can provide some color on that and what’s driving the resilience for Pershing? And then, I know that it’s going to be several quarters before we see the decommissioning that you referenced. Any sense you can give for size of that headwind that we should expect? Thanks.
Dermot McDonogh: So on the last question first, we don’t really give specific guidance on the deconversions, but as I said on an earlier question, we feel the underlying strength of the business, you’re always going to take your lumps and things that happened that you wouldn’t expect to happen. And we feel we have the ability and the confidence and the people and the strategy and the products to earn our way out of that. So Pershing is a very strong business for us. It’s in our most profitable segment, markets and wealth solutions, and we feel very good about the margin of that segment and of Pershing in particular. Just kind of double-clicking on your original question, there are many things that make up the fees that are coming into Pershing.
They’re transactional, which is kind of correlated to U.S. Exchange volumes, asset-based, based on equity market levels, and balance-based. And so, again, when you take the kind of portfolio approach that we have with our business and the different composition of the fees and then the amount of clients that were onboarding that kind of — that leads you to a nice good fee outcome for the business overall. And so, look, Pershing is market leading, we’re number one with broker dealers, we’re very important to the RIA community, we have a lot of excitement in the marketplace around our Wove product. And so we have — that’s attracting new clients to our system as well as existing clients who are excited about that product. And that gives us belief that by adding to our existing platform new products, we’ll be able to be a more meaningful player than we are today.
Robin Vince: And Brennan, I’ll just add one thing. You used the term underlying momentum, I think, and it’s very true in the business. If we had been on this call maybe a year ago, someone would probably have asked me, did I think that we could compete with the self-clearing changes that were going? I remember we had these conversations about the puts and takes of the various different flows in the market. Whereas this quarter, we announced Lincoln, who was self-clearing, joining our platform, because they just see the benefits of the economies of scale that we can provide, the capabilities that we have. And then, of course, with an eye to Wove and the opportunity to be able to really provide that advisor set of solutions in the same way as the classic Pershing platform provides the investor set of solutions.
So we feel quite good about the feedback that we’re getting. And remember as well that we have this relatively unconflicted business model in terms of the fact that we’re not running our own large RIA sales force next to our business and we think that some of our clients really appreciate that.
Brennan Hawken: Yep. That’s all very helpful color. Thank you for that. And then I’d like to ask a follow-up question on the noninterest bearing. So you flagged that there was some growth quarter to date. Is it possible to quantify or give us a rough idea about what kind of growth we’d be talking about? And are you also seeing corresponding growth in the overall deposit base along with the trend in the NIBs? Thanks.
Dermot McDonogh: So I think I used the words modest in my prepared remarks for September off the seasonal lows and I also used the word inflection point with the puts and takes between the level of activity as a result of March and the debt ceiling impasse. We kind of feel we’ve kind of reached a more natural level for deposits. And if you kind of go back to the remarks in January, we kind of went — decline in the deposit base of kind of mid-single digits from where we were at the beginning of the year. And so, that’s really largely how it’s played out with albeit a different zigzag to what we thought was going to be at the beginning of the year. And look, the important thing to walk away from the call with is, we feel confident with the outlook and the guidance that we’re given today of 20%.
And that’s made up of a ton of different factors, both on the deposit side and on the repricing on the asset side. So we kind of think of the two as very joined up and interlinked and don’t really want to get into specific numbers, but we feel pretty good about where we’re at.
Brennan Hawken: Okay. And are those trends applying to both the broad deposit base as well as the NIBs? Just…
Dermot McDonogh: Yes, I think it’s fair to say that. Yes.
Brennan Hawken: Great. Excellent. Thank you.
Operator: Our next question comes from the line of Rob Wildhack with Autonomous Research. Please go ahead.
