Patrick Moley: Yes, good morning. Thanks for taking my call. So, just, Doug, I had a question on internalization opportunities. I was wondering if you could maybe compare and contrast the opportunities you saw in the second quarter relative to the first quarter? And then just given the lower volatility environment we’re in, maybe what that means for those opportunities going forward? And maybe what that means for the normalized earnings power of the firm overall? Thanks.
Douglas Cifu: Yes. Good question and welcome to the call. As Rich’s successor, you got some very, very large shoes to fill. Good luck to you, and we look forward to working with you. So, to answer your question, look, we don’t disclose what our internalization rates are by our various groups, but it is, and I have mentioned it historically on hold, and it continues to be a key competitive advantage to this firm. Our rates were in line with what we thought opportunities were during the quarter. And so we were very, very pleased with what we’re doing. I mean, the examples, I’ve given before about options have hedging and the ETF desk, laying off risk on our single stock desk, et cetera, et cetera, down the line continues at pace.
I think that is part and parcel of the culture and equally important, the technological setup of Virtu in the sense that like a widget is a widget is a widget, and we don’t really have desk per se, so we’re very capable of doing that. One thing I will point out is that like our — for our at-the-money offering business Virtu Capital Markets, we have a — it’s at least double what we think other competitors can do in terms of crossing with internal Virtu flow. So, that’s a key selling point. We obviously don’t have research, capital and calendar. What we offer in that business is real alacrity around execution capabilities, both on a technological side, but also being able to internalize and offer a lot of the flow. And based on our understanding of what other desks do or other institutions do, we believe that our internalization rate, for example, on our ATM business is at least 2x what our competitors are offering, and that has resonated with clients and hopefully will resonate with more issuers in the future.
We continue to be very excited about that business in particular, Patrick.
Patrick Moley: All right. Thanks a lot.
Operator: Our next question today is from the line of Alex Blostein of Goldman Sachs. Alex, your line is now open.
Alex Blostein: Hey good morning guys. Thanks for the question. I was hoping we could spend a minute on balance sheet strategy from sort of two angles. I guess, on the one hand, hear you on opportunities in fixed income. So, to what extent do you think that might impact? How much capital you need to run the business with and what that means for sort of capital return framework down the road? And then secondly, if we look at the balance sheet leverage, that’s obviously been picking up with EBITDA coming down. So, just maybe a reminder what level of debt to EBITDA do you feel comfortable running with? And again, with higher leverage today, does that impact your capital return framework at all?
Joseph Molluso: No. Alex, it’s Joe. I’ll take that. There’s no change in that view. I mean, naturally, with a softer environment and reduced profitability, our returns are going to look lower on a trailing basis. But in terms of the amount of capital we need to run the firm, in terms of prudent buffers and meaningful or regulatory obligations, there’s no change. And the fixed income business is kind of planned for, right, within the amount of capital that we use today. And unsurprisingly, in a softer environment, we deploy less capital than we do in a more expansive environment, right? And so from slide six, when you look at those trailing invested capital numbers and our EBITDA and our return, I would say, one, it includes planning for fixed income, which is a little more capital intensive.
