Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: On costs, it seems like you are on track to beat your cost guidance for the year. Why are you maintaining your guidance now? Should we expect a step-up in the costs in the second half? A: Giorgio Modica, CFO: We maintain the EUR625 million guidance because we have a EUR10 million envelope dedicated to growth projects, which will be used mostly in the second part of the year. Combining the current trajectory of costs with this envelope aligns with our cost guidance.
Q: How should we think about NTI going forward, especially with the clearing migration revenues? A: Giorgio Modica, CFO: For the next quarter, expect no major changes in our P&L. After Q3, there will be a shift, with NTI increasing by around EUR4-5 million, while clearing revenues will reduce by the same amount due to the retrocession of NTI from LCH SA.
Q: Can you give an update on the proportion of volumes retained from LCH after the clearing migration? A: Anthony Attia, Global Head of Primary Markets and Post Trade: We have retained a very strong market share in cash equity clearing post-migration. For listed derivatives, we capture 100% of flows from Euronext markets, and we plan to grow this through new product launches.
Q: Can you provide more details on the microwave technology and its market potential? A: Nicolas Rivard, Global Head of Cash Equity and Data Services: The microwave technology reduces latency between London and Bergamo by almost 4 milliseconds. It's unique because it democratizes access, is Plug & Play, and fully redundant. We have clients like Goldman Sachs and Morgan Stanley already connected.
Q: With the T+1 settlement coming, do you see an opportunity to increase pricing power with clients? A: Anthony Attia, Global Head of Primary Markets and Post Trade: It's too early to determine if T+1 settlement will provide pricing power. We are working with the market and authorities to ensure readiness and will have more insights next year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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