CME Group Inc.

Greetings and welcome to the CME Group fourth quarter and year-end 2022 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we'll conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, this conference is being recorded Wednesday, February 8, 2023. I would now like to turn the conference over to Adam Minnick. Please go ahead.

Good morning, and I hope you're all doing well today. We will be discussing CME Group's fourth quarter and full year 2022 financial results. I will start with the safe harbor language, then I'll turn it over to Terry and team for brief remarks, followed by your questions. Other members of our management team will also participate in the Q&A session. Statements made on this call and in the other reference documents on our website that are not historical facts are forward-looking statements. These statements are not guarantees of future performance. They involve risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any statement. Detailed information about factors that may affect our performance can be found in the filings with the SEC, which are on our website. Lastly, on the final page of the earnings release, you will see a reconciliation between GAAP and non-GAAP measures. With that, I'll turn the call over to Terry.

Thank you, Adam, and thank you all for joining us this morning. We released our executive commentary earlier today, which provided extensive details on the fourth quarter of 2022. I'm going to start with just a few high-level comments regarding the year, and then John will summarize our financial results, and Lynn will speak to our expense guidance for 23. In addition to John and Lynn, as Adam said, we have other members of our management team present to answer questions after the prepared remarks. 2022 was the best year in CME Group's history, with record average daily volume of 23.3 million contracts, up 19% from 21. The growth was led by our financial products, which finished the year up 25% to a record average daily volume of 19.5 million contracts. Options average daily volume across all asset classes also set a record with ADV of 4.1 million contracts, up 23% versus last year. And finally, our non-U.S. ADV increased to a record 6.3 million contracts. Throughout 2022, we continued our efforts on the LIBOR transition. We collaborated with the industry and the market participants to shift trading behavior, order flow, and open interest to SOFR. And as a result, we are beginning 2023 with the SOFR's futures and options as the leading tools for hedging short-term interest rates, with deep liquidity supporting a wide range of strategies across the forward curve. Customer demand continued to drive our industry-leading products and services innovation throughout the year. We enhanced our micro-product suite with additional contracts and an aggregate of The micros contributed nearly 3.5 million contracts of ADV to the overall record activity. During the year, we further invested in our S&P Dow Jones Indices joint venture to expand its offerings to include leading fixed income and credit indices. Our joint ventures and investments continue to produce meaningful results for CME Group. For 2022, on an adjusted basis, these investments have contributed nearly $350 million to or 9% of our pre-tax income. 2022 also was a fundamental year for our Google partnership. We built out the cloud platform and successfully migrated some early application. 23 will be about accelerating our application migration, including launching data products in the cloud. We have an aggressive migration plan for 23 and look forward to reporting our accomplishments throughout the year. Risk management will continue to be critical for our customers as we move into 2023, with higher cost of doing business in general and uncertainty persisting across all of our asset classes. We continue to focus on what we can control, innovating and offering market participants meaningful capital and operational efficiencies across a diverse and global relevant product set. So far this year, volume is averaging approximately 23 million contracts per day near the average for all of 2022. And our focus will continue to be on growing in the short term while also positioning the business for long-term sustained growth. With that, I'll turn it over to John, and we look forward to your questions.