CME Group Inc.

Welcome to the CME Group second quarter 2020 earnings call. At this time, I would like to inform all participants that your lines have been placed on a listen-only mode until the question and answer session of today's conference. I would now like to turn the call over to Adam Minnick. Please go ahead.

Good morning. I hope you're all doing well today. We released our executive commentary earlier this morning, which provides extensive details on the second quarter 2024, which we will be discussing on this call. I'll start with the safe harbor language, and 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. I'm going to make a few brief comments about the quarter and the overall environment. Following that, Lynn will provide an overview of our second quarter financial results. In addition to Lynn, we have other members of our management team present to answer questions after the prepared remarks. Our strong second quarter results again reinforced how the need for risk management continues to grow. And CME Group is where market participants turn to manage that risk across the most diverse set of benchmark products. We delivered record quarterly revenue driven by year-over-year growth in both average daily volume and open interest across every single asset class. This is the first quarter with this broad-based growth since 2010. Second quarter average daily volume of 25.9 million contracts increased 14 percent and represented the highest Q2 ADV in our history, including a quarterly record for non-U.S. average daily volume of 7.8 million contracts or up 23 percent year over year. This robust activity drove record adjusted quarterly earnings, which Lynn will detail shortly. We delivered 16 percent year-over-year ADV growth across all our physical commodity products to 5.2 million contracts, which included double-digit year-over-year growth for both energy and metals products at 16 percent and 42 percent growth, respectively. Importantly, Our overall commodities portfolio has generated record revenue year-to-date in 2024, up 16 percent versus the first half of last year to over $836 million, representing 34 percent of our clearing and transaction fees revenue in the first half of the year. Turning to our financials, total ADV across the complex increased 13 percent from Q2 last year. including record Treasury ADV of 8.2 million contracts or up 36 percent. Our U.S. Treasuries set a new daily volume record of 34.4 million contracts during the quarter on May 28th. The continuing high levels of issuance and deficit financing are tailwinds, even in the absence of Fed rate changes. Also, foreign exchange second quarter ADV grew 20 percent versus Q2 last year. In addition to our impressive quarterly volume results, we continue to provide unmatched, and I'll say it again, unmatched capital efficiencies for our customers. Within interest rates alone, these efficiencies resulted in margin savings of nearly $20 billion per day for our clients through the unique combination of offsets with our rates futures and options franchise. Our one pot margining with CME cleared swaps and cross-margin offsets versus cash treasuries offers clients the efficiencies which no one else has the regulatory approval to provide. Coupled with 13 million interest rate futures and options traded at our exchange on a daily basis, the liquidity, depth of book, capital savings, and our interest rate complexes is unparalleled. While we are pleased with our quarterly results and our ability to consistently deliver quarterly earnings growth, we continue to innovate with an eye towards the long-term needs of our customers. Near the end of the quarter, we were particularly excited to announce a significant step forward in our partnership with Google Cloud. I have Ken Broman in the room with me who will provide more detail during the Q&A period on the integration. We plan to build a new private Google Cloud region and a co-location facility in Aurora, Illinois. designed to support global trading of our futures and options markets in the cloud with next generation cloud technology, ultra-low latency networking, and high performance computing. This next generation platform will build on the benefits we provide our clients today through a broader range of connectivity options and faster product development. In addition to our state-of-the-art trading infrastructure, Our clients will also be able to utilize Google's artificial intelligence and data capabilities to help develop, test, and implement trading strategies to manage their risk more efficiently. Finally, as we begin the second half of the year looking at the uncertainty around the U.S. political landscape, with the disparity of opinions and policies, the need to mitigate and manage risk has never been more paramount. On top of that, the ongoing uncertainty in the Middle East, coupled with unrest between Russia and Ukraine, are continuing issues with no end in sight that markets definitely need to manage. These are just a few of the geopolitical events that highlight the need for our risk management products. We look forward to working with our clients to make sure that they have the most liquid and efficient markets to manage these issues and all the others we encounter in this world. I'll now turn the call over to Lynn to review our Q2 financial results.