Ken Worthington: Hi, good morning. Thanks for squeezing me in here. As we look back to 2022, we saw a noticeable acceleration in the migration of fixed income investing from active to passive similar to what we’ve seen in equities over the last decade. As we think about Tradeweb, from both a credit and rate perspective, is this transition from active to passive a tailwind or a headwind from both an activity perspective and an revenue perspective for the company? And where is the ongoing transition from active to passive maybe most impactful to your business?
Billy Hult: Hey, Ken, thanks for the question. I guess I’ll start. The trend to passive investing has been well documented and continues to grow. We have a significant and growing ETF business that includes both equities and fixed income ETFs, the growth rate has been quite strong, and some of the market forecasts for the forwards over the next decade are also quite strong. So we are well-positioned to capitalize on that by expanding, continuing to expand our ETF business. I think this kind of highlights the diversity of our offerings across various liquidity pools, various asset classes, various channels. And as passive continues to grow, I think we will continue to benefit from that as it’s a huge area of focus for us.
Sara Furber: I completely agree. I mean, I think we’re particularly excited as we think about the fixed income ETF portion, which historically has been a little bit behind and those growth rates even outpacing the equity ETFs. So there are a couple of trends within there that I think we’re quite excited about.
Ken Worthington: Okay. But I think about sort of your fixed income or your rates business and credit business, they’re flow-through back to those businesses as well? And is it positive or negative?
Billy Hult: Yes. I mean, certainly positive, right. So if the active investing continues, we’re already in all those businesses in a big way and as the ETFs continue to grow, we’re in rates and credit and equity ETFs and well-positioned to capitalize on that growth.
Ken Worthington: Great. Thank you.
Sara Furber: Thanks.
Operator: Thank you. One moment while we prepare for the next question. And next question is coming from Craig Siegenthaler of Bank of America. Your line is open.
Unidentified Analyst: Hi, good morning, everyone. This is just filling in for Craig. I was wondering to what extent you think the reduction in dealer liquidity has impacted credit RFQ volumes in 2022. In particular, on a year-over-year basis, are you seeing a meaningful reduction in the size of dealer responses or reduction in the average number of responses per RFQ? If liquidity improves, I’m trying to think about how much of acceleration we could see in those volumes? Thanks.
Billy Hult: It’s been a part of the story of 2022. It’s a great question, Eli. There’s no question that all-to-all trading in credit is a sort of table stakes protocol and a very important of how that market has developed electronically. My general feeling is while there is some ebb and flow to where the dealers are in terms of their liquidity. They’ve really made a strong investment in protocol innovations that we’ve talked about, like portfolio trading. And my feeling is that there’s a sort of a relevance or an attachment to that protocol, that’s extremely sticky. My instinct is we’ve gotten on the other side around a little bit of that kind of liquidity concern in credit. And I do think we’re going to see a rise of principal market making as we get into 2023.
And we’re going to see that play through the dynamic of response rates to your point in traditional RFQs. And also the pricing and the aggressive pricing around portfolio trading. I think the marketplace learned a pretty interesting lesson around the rise of all-to-all trading. My general feeling and I’ll say this pretty strongly is the dealers want to play a significant role in the evolution of electronic credit trading, and they will. And so, I’ll kind of answer your excellent question that way, Eli.. And thank you.
Thomas Pluta: I guess the thing I would add to that is, as some of the innovations that we’ve introduced, like AiEX give clients the ability to trade on an automated basis. That is actually sort of increase the number of trades and reduced the average trade side size and certain asset classes. And that’s just a function of the way the trades are executed and really given clients control over how and when they want to execute.
Unidentified Analyst: Thank you.
Operator: Thank you. That concludes today’s Q&A session. I would like to turn the call back over to Billy Hult for closing remarks.
Billy Hult: So thank you everyone for joining us this morning. If you have any follow up questions, feel free to reach out to Ashley, Sameer and the team. I hope everyone has a great day and thank you very much.
Operator: This concludes today’s conference call. You all may disconnect and please enjoy the rest of your day.
