CME Group Inc.

Greetings and welcome to the CME Group second quarter 2023 earnings conference call. During this presentation, participants are in a listen-only mode. Afterwards, we'll conduct a question and answer session. At that time, if you have a question, press the 1 followed by the 4 on your telephone. If at any time during this conference you need to reach an operator, press star 0. It's my pleasure to turn the conference over to Adam Minnick. Please go ahead.

Good morning. I hope you're all doing well today. We will be discussing CME Group's second quarter 2023 financial results. I'll start with the safe harbor language, then I'll turn it over to Terry. 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. As Adam said, we released our executive commentary earlier today, which provides details on the second quarter of 2023. I will make a few brief comments on the quarter and current outlook, and Lynn will summarize our financial results. In addition to Lynn, we have other members of our management team present to answer questions after the prepared remarks. As we mentioned last quarter, 2023 is setting up to be an extremely favorable backdrop for risk management. The continued geopolitical uncertainty and the increasing cost of capital for businesses are just a couple of the things that have helped us deliver our financial results for the quarter. The benefit of CME Group's diverse product portfolio spanning six asset classes was on display. ADV across our commodities asset classes increased 20%, with 34% growth in agricultural products, 27% growth in metals, and 9% in energy. Interest rates, average daily volume of $11.3 million, was up 6% for the quarter and is up 11% compared with the first half of 2022. Despite a substantial decline in equity market volatility, our equity class growth delivered average daily volume of 6.2 million contracts during Q2. Our non-US ADV was 6.3 million contracts for the quarter, including double-digit year-over-year growth in ags, metals, and energy. Options, again, played a critical role in Q2, with ADV growth of 20% to 4.7 million contracts including the highest quarterly agricultural options ADB on record, up 32% from Q2 last year. Our product innovation in this area has driven strong growth with new participants and more product choice to more precisely match risk as clients continue to look for ways to protect their portfolios in these uncertain times. As it relates to our rates market, expectations of short-term rate changes up or down and the divergent economic data continue to drive risk management. As we saw with the recent resolution of the debt ceiling, the Treasury bill issues increased dramatically. Over time, we expect that more coupon issuance and ongoing debt financing will contribute to greater hedging needs for years to come. On the commodity side, exports are increasing the demand for risk management using our benchmark agriculture and energy products. With this favorable backdrop, we will continue to focus on opportunities to accelerate growth, including our recent announcement with DTCC to increase cross-margining opportunities for the Treasury markets. Additionally, our ongoing focus on product innovation and data services continues to enhance trading opportunities for our clients. We believe the strong underlying environment combined with our strategic execution across growth initiatives positions us for accelerated growth in coming years. With that, I'll turn the call over to Lynn for the second quarter financial results.