"Rules: - Identify speakers: begin each speaking turn with the speaker's name and role when they are stated on the call (e.g. "John Smith (CFO):").

When the operator introduces the next caller by name and firm, or hands the call to a named person ("I will now turn the call over to Jane Doe, CFO"), use that identity for the immediately following turn. Reuse exactly the same label whenever the same voice returns.

- Every paragraph must begin with a speaker label, including the operator's opening and the first prepared remarks. Never output an unlabeled paragraph.

- Use "Operator:" for the conference operator. When a voice cannot be identified, keep distinct voices separate as "Unidentified Speaker 1:", "Unidentified Speaker 2:", etc.; reuse the same number for the same voice.

Never guess an identity solely from a roster. - Normalize punctuation and capitalization into clean, readable sentences, but keep the spoken words verbatim.

Do not paraphrase, summarize, shorten, or fix grammar. - Preserve all numbers exactly as spoken.

Write monetary amounts and percentages with digits and symbols (e.g. $55 million, 44.3%, 64 cents).

- Mark uncertain speech: if a word or short passage is hard to hear, wrap your best guess in [brackets?] ; if it is unintelligible, write [unclear].

Output format: plain text, one paragraph per speaker turn, each starting with "Speaker Name: ". No timestamps, no headers, no commentary, no markdown."

1. Ed - introduced in text or first speaker?

In the audio, the first speaker says: "building a one-of-a-kind global equity block trading network. In our Global FX business..."

Then Ed says: "With that, I will turn it over to Jill." Jill says: "Ed, thank you for that kind introduction."

Ed is Ed. Is his last name / role stated on the call?

No, but let's check: "Ed:". Wait, Jill: "Jill:" or "Jill Gdetzel"?

Her full name/role is not stated, she's called "Jill". So "Jill:".

Then "Ed:" Then "Ken:" (Ed says "I'll now pass it back to Ken for instructions on the Q&A portion of the call.") -> "Ken:" Then "Operator:" Then "Ben Budish (Barclays):" (introduced by Operator: "Ben Budish with Barclays") Then "Ed:" Then "Dave:" or "Dave Howson:"?

In the first answer, Ed says: "What we're most excited about, and I'll turn over to Dave..." -> Dave speaks.

Later, Dave says: "It's Dave Howson here." His name is Dave Howson / Dave.

Should we use "Dave Howson:" or "Dave:"? Let's check rule: "begin each speaking turn with the speaker's name and role when they are stated on the call (e.g.

"John Smith (CFO):"). When the operator introduces the next caller by name and firm, or hands the call to a named person ("I will now turn the call over to Jane Doe, CFO"), use that identity for the immediately following turn.

Reuse exactly the same label whenever the same voice returns." If he introduces himself as "Dave Howson here", we can use "Dave Howson:" consistently.

Wait, what about Ed? Ed is referred to as "Ed".

What about Jill? Jill is referred to as "Jill".

What about Ken? Ken is referred to as "Ken".

What about John? "Andrew, this is John."

-> "John:". What about Chris?

Ed says: "So Chris, maybe some comments..." , Chris says: "Brian, this is Chris."

-> "Chris:". - "Ben Budish with Barclays" -> "Ben Budish (Barclays):" - "Alex Kramm with UBS" -> "Alex Kramm (UBS):" - "Ken Worthington with J.P.

Morgan" (or "JP Morgan") -> "Ken Worthington (J.P. Morgan):" - "Patrick Moley with Piper Sandler" -> "Patrick Moley (Piper Sandler):" - "Ryan Bailey with Deutsche Bank" / "Brian Bedell with Deutsche Bank" -> Operator says "Brian Bedell with Deutsche Bank" -> "Brian Bedell (Deutsche Bank):" - "Michael Cyprys with Morgan Stanley" -> "Michael Cyprys (Morgan Stanley):" - "Kyle Voigt with KBW" -> "Kyle Voigt (KBW):" - "Andrew Bond with Rosenblatt Securities" -> "Andrew Bond (Rosenblatt Securities):" Let's double-check all words carefully across each speaking turn: Ed: [Starts with "...ing a one-of-a-kind"] -> "...building of a one-of-a-kind global equity block trading network.

In our Global FX business, net revenues were up 7% year-over-year in the second quarter as the business expanded spot market share to a record 19.5%, up from 17% a year ago. Our NDF offering, which trades on Cboe SEF, our swap execution facility, continued to see strong results with volumes increasing 23% during the second quarter with ADV of $937 million.

To meet this increased customer demand, we launched a new London matching engine for Cboe SEF during the second quarter. With Asia currency pairs accounting for a significant portion of Cboe SEF volumes, this new matching engine is expected to enhance our service to customers based in Asia and Europe, further diversify our order flow on the platform, and create greater matching opportunities for our clients.

In summary, Cboe delivered another solid quarter, building on our record first-quarter results. With our strong foundation of derivatives, cash, and spot markets coupled with our data and access solutions, we have the ability to continue to harness the power of these markets to create new products and services that deliver innovative products to our customers.

We will continue to plant the seeds of opportunity that will help allow us to harvest investments across all seasons to drive consistent growth and value for our shareholders. With that, I will turn it over to Jill."

Jill:

"Ed, thank you for that kind introduction. I couldn't be more excited to build on the strong momentum at Cboe today.

As Ed highlighted, Cboe posted a strong second quarter with adjusted diluted earnings per share up 7% on a year-over-year basis to $1.78. The performance was led by continued strength from our derivatives franchise as well as a steady contribution from our Data and Access Solutions business.

As we have done in prior quarters, we look to maximize long-term shareholder value through monetizing today's opportunities while investing in future growth initiatives. I want to highlight some high-level takeaways from the strong second-quarter performance before providing a more detailed assessment of our segments.

Our second-quarter net revenue increased 10% to finish at $467 million, driven by the strength of our Derivatives Markets category and the solid results from our Data and Access Solutions business. Specifically, Derivatives Markets produced 21% year-over-year organic net revenue growth in the second quarter as the market continued to find increasing utility in our toolkit of proprietary products.

Data and Access Solutions net revenues increased 9.4%, up 7.4% on an organic basis during the quarter. We are pleased with the sequential organic revenue improvement in the second quarter and remain excited by the catalysts we continue to see in the second half of the year.

Cash and Spot Markets net revenues decreased 11% during the quarter, or 12% on an organic basis, as the trading environment remained muted across the globe. Adjusted operating expenses increased 22% to $192 million and adjusted EBITDA of $293 million grew a solid 7% versus the second quarter of '22.

Turning to the key drivers by segment, our press release and the appendix of our slide deck include information detailing the key metrics for each of our business segments, I'll provide some summary thoughts. The performance of our Options segment was again very robust, delivering the highest growth of any segment for the quarter with net revenue increasing 20%.

The results were driven by strong volumes in our index business and favorable revenue per contract, or RPC, trends given the mix shift to index options. Total options ADV was up 10% as our higher-priced index options ADV increased 38% over 2Q '22 levels.

RPC moved 16% higher given a continued positive contribution of higher-capture index products. Market data and access capacity fees were up 11% and 5%, respectively, as compared to 2Q '22.

North American Equities net revenue was down 2% on a year-over-year basis. Results benefited from NEO, which was acquired in June of '22, contributing $3.6 million in inorganic net revenue during the quarter.

In addition, access and capacity fees increased 6% as compared to 2Q '22, and market data increased 1% as proprietary market data growth outpaced a decline in SIP revenues. Net transaction fees were down 13% given softer industry volumes and market share in our US businesses.

While our US on-exchange market share has trended lower on an absolute basis, our share has remained relatively constant when adjusting for the increase in off-exchange market volume and auction activity seen during the second quarter. The Europe and APAC segment reported a 5% year-over-year decline in net revenue, impacted largely by softer industry volumes in Europe.

The lower activity levels were partially offset by a nearly 1 percentage point increase in market share on a year-over-year basis. Cboe Clear Europe also grew market share during the quarter, from 31% to 34%.

Second-quarter net revenue was down 1% in the Futures segment as a 3% decrease in net transaction fees was partially offset by an increase in access and capacity fees. Lower volumes were the primary driver of the decline in net transaction fees, falling 11% during the quarter.

The decline in activity was partially offset by a 9% increase in RPC, helped by pricing tweaks we made in the VIX complex in April of this year. On the non-transaction side, access and capacity fees continued to perform well, up 6% versus the second quarter of last year.

Finally, net revenue in the FX segment was up a solid 7% as compared to last year, marking the ninth straight quarter of year-over-year net revenue gains. Net transaction fees revenue was up 6% as average daily notional value increased by 7%, and market share hit another record at 19.5% for the quarter.

Turning now to Cboe's Data and Access Solutions business, net revenues were up a solid 9.4% in the second quarter, up 7.4% on an organic basis. Net revenue growth continued to be driven by additional subscriptions and units, accounting for 77% of organic access fee growth and 63% of organic market data growth in the second quarter.

We are pleased with the sequential acceleration in organic net revenue growth and remain confident in our ability to hit our full-year guidance range of 7% to 10%. Over the second half of the year, we expect solid contributions from proprietary data sales, benefiting from the sustained growth across our derivatives complex.

We also anticipate solid trends from Cboe Global Indices, with good momentum around index licensing. In Australia, we saw a solid uptick in data sales and access since the migration, in line with what we have witnessed following past technology migrations.

We expect that momentum to continue, adding to the enhanced distribution capabilities that Cboe Global Cloud presents, providing incremental sales potential for our suite of data products. We also expect to make modest pricing increases in areas where our pricing has been consistent for many years, but the utility being offered has increased dramatically.

Following the selective enhancements, our products are expected to remain competitively priced relative to our peers, and we remain focused on the value proposition for our customers. Turning to expenses, total adjusted operating expenses were approximately $192 million for the quarter, up 22% compared to last year.

Excluding the impact of acquisitions owned less than a year, adjusted operating expenses were up 19%, or $30 million, for the quarter, largely reflecting higher headcount as compared to the second quarter of last year, and increased travel and promotional spend given our 50th-anniversary celebration, and increased corporate brand and marketing costs. The second quarter also included a one-time $5 million true-up in June to reclassify certain capitalized charges to operating expenses in the technology support services line.

Note that we do not expect any further adjustments for previously capitalized charges to impact our expense or capitalized charges moving forward. Moving to our expense guidance, we are lowering our full-year 2023 expense guidance range to $766 to $774 million from $769 to $779 million.

The three basic components of the year-over-year increase are outlined on slide 18 of our earnings presentation: expenses from 2022 acquisitions, growth investments, and core expense growth. Looking at the details of our three categories, we expect the two 2022 acquisitions to add approximately $30 to $31 million in incremental expenses for '23, below our previously expected range of $33 to $35 million as hiring slowed in our digital business in part due to ongoing regulatory uncertainty.

While we are still incredibly committed to the digital business, we continue to watch the regulatory landscape closely and adjust our spending to match the revenue environment. Moving on to growth-generating investments, we anticipate that the investments we are making in the business to help drive incremental revenue to our bottom line will be in the range of $25 to $27 million.

Our new range is roughly $3 million lower than our prior range, but we remain committed to investing in high- return areas like D&A expansion, a more aggressive marketing campaign, and targeted products and services R&D efforts across our ecosystem. The last component is our core expense growth, totaling approximately $59 to $64 million.

As a reminder, this includes our expectations for CAT project costs in '23, investments in infrastructure, and inflationary factors on our business. Our updated estimates factor in an incremental $5 million for CAT expenses, as well as the one-time reclassification of certain capitalized charges to operating expenses of $5 million.

These higher charges were partially offset by lower expected depreciation and amortization expenses. Moving forward, we will continue to put capital to work in value-enhancing ways across our ecosystem while striving to strike the right balance between the revenue opportunity available and the expense outlay required to enhance value for shareholders.

Looking at our full-year guidance more broadly on the next slide, we are making some positive revisions to reflect our solid year-to-date performance and our constructive forward outlook across our businesses. At a high level, we are reaffirming our organic total net revenue growth range of 7% to 9% for 2023, but we now expect to finish at the higher end of the range for the year.

This remains above our medium-term guidance of 5% to 7% introduced at our Investor Day a year and a half ago, a function of the meaningful engagement we have seen across the toolkit of products at Cboe. As mentioned earlier, we are reaffirming our D&A organic net revenue growth rate of 7% to 10% for '23, in line with our medium-term expectations.

Given the company's positive marks on its investment in the 7RIDGE fund, which owns Trading Technologies, we now expect the other income benefit from minority investments to be in the range of $34 to $40 million, up from our prior guidance calling for $27 to $33 million. We are lowering our full-year guidance on depreciation and amortization to $40 to $44 million from $48 to $52 million, and we expect the effective tax rate on adjusted earnings under the current tax laws to come in at 28.5% to 30.5% in 2023, unchanged from our previous guidance.

Outside of our annual guidance, net interest expense for the second quarter of '23 was $13.9 million. For 3Q, we expect net interest expense to be in the range of $12 to $13 million.

On the capital front, our focus has been and remains maximizing long-term shareholder value through the effective use of our capital. In the second quarter, we returned a total of $61 million to shareholders in the form of a 50 cents per share quarterly dividend and $8 million in the form of share repurchases.

Our leverage ratio declined slightly to 1.4 times from 1.5 times in the prior quarter as we paid down $140 million on our term loan facility that matures in December of this year. We remain comfortable with our debt profile, having locked in low, medium to longer-term fixed rates, averaging below 3% on nearly 90% of our total debt.

In summary, the second quarter of '23 was another solid quarter at Cboe. I could not be more excited about the outlook for the company, and I look forward to delivering solid returns for shareholders in the quarters ahead.

Now I'd like to turn it back over to Ed for some closing comments before we open it up to Q&A."

Thanks, Jill. As you can see, it has been a busy first half of the year, and I want to thank the entire Cboe team for their hard work and consistently delivering outstanding results.

We head into the final half of the year on stronger footing than ever, and we look forward to continuing to execute on the growth opportunities ahead. I'll now pass it back to Ken for instructions on the Q&A portion of the call.

At this point, we'd be happy to take questions. We ask that you please limit your questions to one per person to allow time to get to everyone.

Feel free to get back in the queue and if time permits, we'll take a second question.

Hi, good morning, and thanks for taking the question. Ed, I was hoping you could unpack a comment you made earlier about the evolution of how customers trade, as you were talking about the growth in SPX volumes.

Wondering if you could unpack that a bit in terms of where do you think the next sort of legs of growth come from? Is it more adoption of shorter-dated contracts?

Is it more customer types? Is it more kind of global adoption of SPX?

Where do you see that coming from in the next 12 to 18 months?

Thanks, Ben. That's been pretty remarkable, and we can look at this from the institutional perspective or the customer perspective.

We do see the continuation of retail who have primarily been introduced to this market in a time of pandemic. That was incredible growth.

Now with the transition through education and the benefits of a sustained investment that allows for not being perfect. That means adding derivatives exposure to a portfolio either to hedge or to initiate a position with limited risk.

We think and expect that continuation to move forward, and that's in both the multi-list area and our proprietary products. What we're most excited about, and I'll turn over to Dave, is the change in margin treatment in our XSP contract, which we think is very retail friendly with a lot of benefits of the SPX, but with a much smaller wallet size built for retail.

Then the institutional side we continue to see growth in third Friday exposures for the SPX, that is the typical trade for institutions in the SPX, but interest being drawn into those very, very short-dated contracts like we see coming from retail platforms. That change and exposure is underway, and we think that's going to continue in the quarters to come.

We're going to keep you up to date on that because it's so exciting, but it really is a completely new exposure, and it's additive to what we've seen the growth over the years, and in particular, as I say, since the pandemic. Dave, I think the real retail shift and what we're optimistic about is the adoption of and the change in margin treatment in XSP and what that allows for individual retail investors, including shorter-dated options.

Absolutely, Ed. It's been really encouraging to hear from our customers on calls like these about the increased projections for engagement in the options market in general.

Here at Cboe, we've got a whole toolkit of products that we see as complementary to each other that might either be used together or in isolation to manage risk and hedge exposure throughout any market environment. As part of that toolkit, we see the XSP product, and a little reminder on what it is for those of you out there: the XSP product is a 1/10th size SPX contract.

It's very much the cash-settled index options contract for the SPY user. You can deploy all of the strategies that you employ in SPX also in XSP.

XSP has three defining categories, and that fourth kicker that Ed just mentioned. The first of those is that the XSP contract is a cash-settled, broad-based index contract, you don't have a chance of being physically delivered or needing to physically deliver the underlying.

The end of day, at the expiry, you move cash. The second point is that it's European exercise, there's no opportunity to be exercised or assigned early before expiry.

The third point there is the potential for beneficial tax treatment, that potential for 60/40 long-term, short-term capital gains treatment. Then we come to the evolution that we're looking at as we await the final regulatory approvals required to access that ability for cash-settled index options written, read XSP, written against ETFs, read SPY, that track the same underlying option.

There, you can see the opportunity for margin offsets for hedging. For example, when you overwrite a long SPY position with a short XSP position, you can get that margin treatment there.

What we expect from that is a good deal of increased activity there, and certainly encouraging for us to hear that retail brokerage platforms are looking to onboard cash-settled index options in the future.

Ben, a long answer to what we see coming at us, but I think the excitement that you hear from us is really the attention that the zero days to expiry have in the marketplace, and it really is the cash settlement around the buzz and the ease of trading in and out with cash-settled options. I'll remind you that not all retail platforms allow for cash-settled contracts at this point.

We're really keen to see those that still have not offered that to their customers, think Robinhood, offering that sometime next year. Exciting that we think the breath is increasing, and certainly, we'll be there with education and all the tools to help those early movers.

Got it. Appreciate the very thorough answer.

Thanks.

Yes. Hey, good morning, everyone.

I want to ask another question on the 0DTE, favorite topic of everyone. I think there's an expectation from some investors that, let's call it phenomenon, is going to expand into other areas, and obviously, other exchanges are talking about it.

I'm particularly curious as that happens also into single-stock options, etc. Two things.

One, what's your roadmap from your perspective and what is the expectation? Then secondarily, is there a risk that as that 0DTE phenomenon goes into other areas, that it potentially takes away from what you've seen and benefited from on the index side?

I guess what I'm trying to say is there's only limited attention, limited capital that people can put to use, and if some of those trading strategies gravitate elsewhere, maybe you actually end up losing out. Sorry for the lengthy question.

Hopefully makes sense.

No, Alex. It's a really good question.

We really stressed the cash settlement for a reason. From a retail platform perspective, think of the tail risk, the risk after expiring on physical settlement versus cash.

That's the obstacle that other exchanges are trying to solve for, and really, the roadblock to instantly offering zero-day exposure in single name. At the end of the day, the assignment risk, that means I take physical delivery at the end of the day, I may have a naked long position overnight, and I'm subject to some gap risk the next day.

Now, the alternative would be I can offer a zero-day single-name exposure, but require that to be closed out at the end of the day. What cash settlement allows for is you can take the position into close, and as Dave said, you settle in cash.

There is no risk or exposure the next morning. That's a really, really big difference.

Until the Street figures out how to intraday margin and/or offset the risk going into expiring and physical, I just don't know how quickly those can come to market. Do I think it takes away from the end of the day?

I don't. There are individual retail investors who look for exposure in single-name stocks.

We think that's a good thing. At the end of the day, the macro hedging or the broad market, the US market exposure, is best represented with the products at Cboe.

No, if the entire environment is growing, we think that's good. We have a tool and exposure for all portfolios at any time of the day, and any growth in the industry is good growth in the industry.

Very good. Thanks, guys.

Hi, good morning. Thanks for taking my question.

Maybe changing gears. Can you talk about the outlook for a spot Bitcoin ETF in the US?

It seems like a crypto ETF would touch a number of businesses at Cboe. What might broad-based approval for a spot ETF mean for the company?

Hi, Ken. It's Dave Howson here.

Absolutely, obviously, subject matter for the news headlines there recently. As you may know, we've put forward applications for spot Bitcoin ETFs on behalf of five issuers so far.

We have a number of surveillance sharing agreements in place with a number of trading platforms. Should these get approved, we think this is a good progress for the broader industry and investors alike who want to gain exposure to this asset class in familiar and regulated wrappers.

This would be clearly a good thing for the industry. Overall, for the underlying digital crypto market in general, the market makers involved in those ETFs and in the create-redeem process are going to need somewhere to hedge that potential exposure.

They'll look to a spot and futures market in order to do that. In this quarter, we were very pleased to receive our approval for margin futures from the CFTC, and we're working together with our customers and FCMs to build out and looking to launch that for the end of the year.

Broadly there, Ken, we think it's good for investors, good for the industry, and also good for regulated platforms such as Cboe Digital that have the regulated exchange, clearinghouse, and ability to do spot and margined, cash, and physically settled futures all on one platform, which is unique within the United States.

Great. Thank you very much.

Good morning. Thanks for taking my question.

Congrats on a strong quarter, and Jill, congrats on the new role. It hasn't even been a month, and you're already bringing expense guidance down, we like to see that.

I was hoping maybe Jill could just talk a little bit about how she's approaching the role and maybe the ways that she might differ from her predecessor and I guess specifically as that relates to expense management. Thanks.

You bet. Thank you for the question.

I'll say just as I step into the new role looking back at the things that we're doing very well is we've done a really good job investing behind opportunities where we see high returns. Definitely want to continue to do that.

Also do though want to be diligent as we manage the core expense growth going forward. I think the last two years have obviously seen a noticeable uptick as we did work to lay that foundation, integrate acquisitions, really build a nice scale, but going forward, really want to focus on the productivity of the expanded global team that we have set forward.

All right. Great.

Thanks. I'll hop back in the queue.

Great. Thanks.

Good morning, and thanks, and welcome Jill, as well. Actually, just following on to that question, the prior one.

As we think about the M&A strategy, obviously, you've built a substantially large global exchange through a series of acquisitions. As we move into next year, should we be thinking about the focus on product introduction as opposed to more deals?

If we can think about how or if you can describe how the incremental margins may be favorable in product launches versus acquisitions? What I'm trying to get at is, at what point do you think we can swing back to positive operating leverage as early as next year?

That's really great. Let me take the first part of the question, and then I'll turn over to Jill and to Dave.

We've always gone and looked at the approach to growth in two ways, and nothing more positive, nothing more rewarding than answering the questions from customers on how we can standardize some exposure, some risk that they have in their portfolio, whether locally in the US or globally. We start here in our labs with solutions for customers at all times, and we announced today a dispersion contract as an example of continuing to look to the marketplace and offering solutions for investors with different exposures.

We'll always do that. They are incredibly high margin.

You look at the Tuesday, Thursday rounding out a daily offering. There's not a whole lot of investment in that.

It's really listening to customers and delivering to the market what customers are asking for. That is always going to be an approach, and our labs are here to bring solutions to customers.

As for M&A, we do always keep an eye out for jurisdictions that are open for competition in major marketplaces. You've seen us do that.

We'll always have our eye out on what can be next and making sure that we're in scale. There is nothing that we think we need to do at any given time, especially right now.

Our eyes are wide open. I think, Jill, just the flexibility in the way you see our capital use and the balance sheet at this point, what that allows us to do, and then the philosophy going forward.

You bet. Just from the capital allocation perspective, our strategy will remain consistent.

The various levers or valves that we have to inform that, obviously, is investment in our business. That can either be organic, inorganic.

We also have, over time, really grown the steady dividend rate. We'd expect that to go as well going forward.

Then finally, share repurchases are a tool that we've utilized as well. Going back to the inorganic growth, we have for certain acquisitions basically financed those.

As you saw during the second quarter, really did start to delever on the term loan that matures in December of this year. Do have the leverage ratio down to a very comfortable 1.4 times there.

Again, just really wouldn't see any noticeable changes to the capital allocation approach. It's really a balance of those factors over time, depending upon what the environment is.

That's great color. Thank you.

Go ahead.

Great. Thanks.

Good morning. Wanted to circle back to some of the commentary on pricing increases.

Hoping you could talk about which parts of the business are you contemplating making pricing adjustments? What's been done so far?

I think you mentioned VIX back in April. How does this sort of compare to what you guys have done in the past?

Thank you. Thanks,

Michael. It's Dave Howson here.

During the quarter, actually, more philosophically, we look at both our transaction businesses and our data and access solutions businesses a little bit differently. On the transaction side, we continuously review our pricing to make sure we maintain a competitive stance and to ensure that we're reflecting the value of our offerings and also looking for where perhaps over time, maybe the usage patterns of our products and some of the price schedules there has changed over time and requires changing.

Also we use it to try and encourage a greater diversity of flows. You saw that certainly through the second quarter.

More broadly on the transaction businesses, if you look at multi-list options or US equities, we constantly look to optimize for market share, market quality, revenue capture, and overall maximizing revenues across the franchise there. Then when we come to data and access solutions, we had a 67-- 77% came from new users and, Chris, would you help me?

One second. I'll come back to the percentage, but that 75% from new units and subscribers there.

On the pricing point, we generally look to see periodically where perhaps we've had our prices remain consistent for a while and look to review those to make sure that they remain competitive, but also remain in line with the general movement through time there. Going forward as we look at the D&A group, we think there will be about a third of the growth there coming from pricing changes.

Great. Thank you.

Hi. Good morning.

I think later this quarter, there will likely be some new competition in the multi-list options space. That's been an area where I'd say the competitive trends have been a bit more stable since the BATS deal.

Your fee capture has been very stable for the last five years, as well. Just given it's not an area where we've really been focused much on recently from an investor standpoint, just wondering if you could give us an update on the strategy there, if there's a certain amount of market share that you want to defend there to support data or other fees, and also if you could just remind us how much of the volume is on price-time priority, where there could be more direct competition.

Thanks, Kyle. As you rightly point out, there's new venues coming to the multi-list options space in the coming months.

Really what we look at there is, again, the balance between market share, market quality, and revenue capture there, the RPC. We see ourselves coming into this period with around about 27% market share, a solid position there.

The new entrants so far are looking at, as you mentioned, that price-time make-or-taker portion of the market, which today represents around about 20% of the overall market. Certainly, if the past is anything to go by, the pricing schedules there will be highly aggressive and really going for that lower-margin type of business within that frame.

Oh, thanks. Good morning.

Can you expand upon the opportunity for corporate listings, and specifically if Cboe plans to build out a team to compete with the likes of Nasdaq and the NYSE for corporate listings, or will the focus be on the international markets and the potential for dual listing in the US? Thanks.

Absolutely. Thanks for the question, Andrew.

We're not going to be going for the big blue-chip listings that Nasdaq and NYSE have as their core business. That's absolutely what we're not doing.

What are we doing? We're using the existing infrastructure that we've built up over inorganic and organic initiatives over the years.

We're using that footprint across five exchanges with the regulatory environment, the people, the processes, and the capabilities around the world there. We're leveraging off the back of our existing ETP listings business.

That is an ETP listings business which puts us at number two today in the United States. What are we doing in the corporate end of the spectrum?

Through marginal incremental investment there, we're able to leverage our platform, and that's across the trading, the market data, the indexing, the derivatives expertise to engage with customers and issuers from a niche, underserved portion of the market in that $50 to $500 million market cap range. These companies, we're terming, are the purpose-driven innovation companies.

These are companies driven by technology, driven by research, and driven by the key drivers of the new world and the new economy that we see before us. That includes companies like cleantech, fintech, critical minerals.

In particular, if you take the example of critical minerals, we've got issuers in Australia who are interested in those investors who have an interest in critical minerals companies in Canada. That's a great opportunity for us to be able to give access to that global capital to those companies interested in global investors in partnership with our global liquidity providers and legal capabilities and common technology platform.

Really enabling us to, once again, use that global securities network we've built out to build with an unrivaled growth trajectory.

Andrew, this is John. Just one point to follow on that last item that Dave mentioned strategically.

This is really what we mean when we talk about building one of the world's largest derivatives and securities networks to drive growth and value creation. Now that we've touched seven of 10 largest markets, almost 80% of the world's GDP, the opportunity to create services and offerings that bind all that together, that add value for our global customers and that drive revenue growth is substantial, and this is a great example of that.

Thanks, guys.

Great. Thanks for taking my follow-up.

Actually, on that last theme on the global footprint that you've developed, would you say you're in early innings in terms of being able to create a global product that can be used for global customers? I don't know if that's quantifiable yet.

Maybe it's too early. Then just a couple clean-up questions.

Are you going to be done with the CAT builds this year, or is that going to move in to next year? Then also on the 1/3 pricing increase, or the DNA growth that you said is attributable to pricing, Was there any pricing in DNA that is helping this year's growth rate?

Sorry for the multi-parts.

Let's take these in reverse. Chris, maybe some comments on what we see and the process that you're aware of on the entire CAT exposure and build, and then Jill, maybe you can come in on the costs and how we see that.

It's not totally transparent, we'll say that up front, and then we'll get into the other two questions, Brian, if that's okay.

Yep, great. Thank you.

Hey,

good morning, Brian. On the CAT build, our visibility, as we've mentioned, is quite limited.

We have some visibility, but it's limited, we can't really say exactly when it's going to end. Jill can advise here on what she knows and what we know, but unfortunately our visibility is limited there.

Just from a cost perspective, what we've included in our forward-looking estimates indicate our best expectation at this time. They do fluctuate, and we'll look to continue to refine those in the future as we get more information.

I think, Dave, if you could walk down the difference between a global product perhaps, and then the network effect and the data that comes off of these exchanges, and how we've already tried to offer access to data and the differences in our data, and then, of course, the BIDS network, which has its latest roll-out expected in November, and we can talk a little bit about that. Then let me say up front, while you're getting your thoughts together, that what we recognize in the beauty of operating in different jurisdictions, our liquidity providers, our biggest sources of global liquidity, are in each and every one of the jurisdictions that we operate.

Giving them, through the technology migrations that Chris and the team have been rolling out, and again, we look to complete that in November in Japan, is a constant, repeatable expectation on how to view and interface Cboe and then global customers. In various stages of a global offering, and we can walk through a little bit, as I say, the data and access, but really from a liquidity provider, we want to be where they are, where their exposures are.

Global products, that's a little bit different. Go ahead, Dave.

Absolutely. It's it is early stages for us, as well, as Ed mentioned there, with the pending replatforming of the Japanese exchange in in November there.

What we get from that, starting from a not necessarily a tradeable product, but as Ed said, a uniformity and interaction point of view, is that uniformity of the trading systems, that familiarity with how the systems work, and the ability to be able to ingest data in a in a common format for for our customers around the world. What does that mean?

That means a low low incremental effort for our customers to deliver new capabilities to their own customers. I'll give you a couple of examples.

Thinking about periodic auctions moving from Europe in equities to US, the USA in equities. That whole toolkit of the capability of the equities functionality we've got is now going to be available in Australia, it would be available in Japan in November.

With that comes the data and analytics capability that we can bring and then bring that incremental value to our customers. As Ed mentioned, part of that network build-out is the BIDS network.

Great traction, early traction from BIDS Australia, with the addition of the buy-side interaction coming in September of this year, and BIDS will also be part of that November migration in Japan. Then the 26 markets around the world are from that network pushing out data.

That day raw data can be delivered in multiple forms to customers, either as a service or with the cloud. We saw 75% of our incremental revenue in cloud coming internationally from outside the United States, a great utility being seen there.

Then from that data, we can create proprietary data sets. We launched a short volume short equity volume report this quarter, which gained really rapid early traction on the back of that open and close data that we saw for the SPX there.

As we see that network build-out, we can really see the capability to bring functionality across the glue globe on the basis of that uniform uniform platform. Then when you think about us moving up the value ladder, we can then think about tradeable products which are of interest globally.

Already actually, we've got our tradeable products from our toolkit available on a 24/5 basis to customers around the world to trade during their trading hours.

Super helpful. Thank you so much.

Brian, this is Chris. I think we have one more D&A question to answer regarding pricing, but this is Chris.

On the global front, we've mentioned this, we've already seen immediate access and data growth post the Australia migration. We expect something similar in Japan when that comes in in November.

Then Dave mentioned BIDS, where we have in September adding the buy-side interactions, as well. There's immediate improvements we get from platform migrations, but then there's also durable improvements and functionality that we get over the coming quarters as customers adjust and really plug in and dive in to the new platform that's uniform with what they're expecting around the world.

The network effect is quite durable. Dave, maybe back to you on the D&A question.

Thanks, Chris. We mentioned it in an earlier answer there that we made some changes at the early part of this quarter.

We expect about a third of incremental growth across D&A to come from pricing increases.

That's relatively new, correct? In other words, it wasn't really in the legacy numbers in terms of the price increases?

There were always a portion of price increases there. It's a slight increase potentially there to the proportions, but it's not really a change in full philosophy or approach.

Great. Thanks so much for the detailed answers for the questions.

Great. Thanks for taking the follow-up.

Wanted to come back to the Cboe indices comment you mentioned about seeing good momentum there. I was hoping you could maybe elaborate a bit more on the momentum that you're seeing across Cboe indices.

Which of the indices are you most excited about, and can you talk about some of the initiatives to accelerate growth there?

Absolutely. A couple of channels I would speak about there.

One is the Cboe Global Indices feeds themselves, and then also the Cboe Global Indices business. At the feeds, we began the exclusive distribution of Morningstar Indices in this quarter and seen some good enterprise sales there and see some good forward-looking pipeline there, as well.

Also, we've built out a common APIs to allow us to onboard new data sets from new customers very, very quickly there. For low incremental lift, we can add that distribution as a service for data providers and index providers alike.

In terms of the indices where we see great traction is really in the derivative overlay benchmarks, and this is an area where we see a beautiful flywheel effect. The derivative overlay indices forming those defined-outcome products, which you see really coming strongly to market in the United States and now globally.

That's where the flywheel comes in: the ability for us to calculate these indices and then list the products that are benchmarked against those indices and then enjoy trading revenues and market data revenues off the back of that. I would really point to that defined outcomes space in particular for the derivative overlay benchmarks.

Indeed, this quarter, we also began to calculate our own indices for our European index platform.

Great. Thank you.

Thanks. That completes our call for today.

Thank you so much for your time and interest in the company, and have a great weekend, everyone.