B3 Sa Brasil Unsp/Adr

Good morning, ladies and gentlemen, and welcome to the B3's earnings results presentation for the second quarter of 2025, where André Milanes, B3's CFO, will discuss the results along with Fernando Campos, Investor Relations Associate Director. We would like to inform you that all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question and answer section when further instructions will be given. As a reminder, this conference is being broadcasted live via webcast. The replay will be available after the event is concluded.

Hi, I'm Fernando Campos from B3's Investor Relations team, and welcome to another earnings event, where André Milanese, B3's CFO, and I will analyze the results of the second quarter of 2025. André, we will start by providing an overview of the quarter. André? Thank you, Fernando.

In a macro scenario without significant changes with high interest rates in Brazil and some isolated volatility events impacted by the political scenario, we were able to deliver again consistent results for another quarter thanks to our diversified business model. Our total revenue grew by 1% in comparison to the second quarter of 24, driven by the good performance in fixed income and technology, of setting a weaker performance of derivatives, which had, by the way, a tough comparison with the highest volume in history of B3, which took place in the second quarter of last year. Compared to the first quarter of this year, the growth was 3% with a better performance in equities. Net income reached 1.3 billion reais and earnings per share were 25 cents of Real, a 13% increase compared to the second quarter of 24, which reflect the execution of the company's buyback programs during that period. Fernando, we now talk a little bit more about the operational performance, and I will provide some additional financial highlights after that. Fernando?

Thank you, André. Starting with the market segment in derivatives, the ADV totaled 1.8 million contracts, a decrease of 3% compared to the second quarter of 2024, with lower activity in interest rates and indexes, and a stronger comp, as mentioned by André. It's worth mentioning that we reduced the size of the Bitcoin contract, which is why we see changes in the total ADV in the previous quarters. On the other hand, revenue per contract grew by 3% in line with the decrease of volumes. As for Bitcoin futures, they contributed 37 million reais in revenue and we made some collateral adjustments that impacted the volumes for the coming quarters. And for another quarter, we saw a strong performance in the OTC derivatives, with growth both in issuances and in outstanding balance. Revenue from derivatives totaled R$193 million, a decrease of 6% compared to the second quarter of 2024. Fixed income, which continues to perform well and once again presented double-digit growth in operational metrics when compared to the second quarter of 2024, reflecting a strong DCM activity and the surge for interest-linked assets in the current scenario, reinforce the defensive characteristics of this revenue group. Here, it's worth highlighting the 23% growth in the corporate debt outstanding balance. In cash equities, we saw an increase in the ADTV, a 90% increase in ADTV, which totaled R$26.1 billion, and an increase in the turnover velocity, which went from 136% in 2Q24 to 143% in 2Q25. Here, it's important to highlight once again the performance of other products such as BDRs, ETFs, and listed funds, which represented 15% of the total volume in the cash equity market. Regarding the fees, like we saw in the previous quarters, there was a mix that was significantly influenced by the volumes of indexes, options exercise, and market makers. So it is still a little low. So revenues from equities represented 21% of the total revenue for the quarter. In other segments, some highlights for other segments, capital market solutions. Worth highlighting the good performance from that data wise plus analytics to capital markets. In the data analytical solutions, it's worth noting that we had the impact of the disenrollment program in 2Q24, which affected the revenues from vehicles and real estate. Without that effect, we would see a growth in that line. In platforms and analytics, the revenue grew by 14%, mainly in the verticals of credit, loss prevention, and insurance. Technology and platforms growth in the fund industry with impacts both in the utilization, which impacts the technology line, and the registration custody of fund quotas, which impacts the market support services. Now, André will talk about B2B's financial performance and some strategic advances. Thanks, Fernando.

Other points to draw your attention to here. So first, in revenue deductions, we recognized a non-recurring impact this quarter that reduced this line by approximately 75 million reais, which is related to accumulated tax credits from peas and coffins that were recognized in the quarter. In expenses, the quarter was in line with our planning, with growth above inflation compared to the second quarter of 24%. Again, here, just important to emphasize that this was already according to our planning, which is mainly impacted by the data processing line. And it is reflecting a better, let's say, distribution and scheduling of our expenses throughout the quarters. And therefore, reduce volatility between the quarters and increase predictability of our expenses behavior. In personnel costs, the growth reflects, in addition to the collective bargaining agreement, some tax adjustments resulting from the merger of Newey and Neurotech, which were also expected. As a result of all of that, that we discussed both in terms of revenues and expenses, our recurring EBITDA totaled 1.7 billion reais this quarter, 3% lower than the second quarter of 24, but 4% higher than the first quarter of this year with a recurring EBITDA margin of almost 70%, 69.8% to be more precise. In financial results, it is important to highlight the impact of the monetary adjustment on the P&C tax credits that I mentioned during the beginning of my speech, which amounted to approximately 30 million reais during this quarter. And also talking about taxes, I think it is worth highlighting that this was the first quarter post-merger of Neway in Neurotech that we began to use the tax benefit generated by those transactions with a positive impact of around 41 million reais during the quarter. Regarding the return to our shareholders, we had a total return of approximately 580 million reais in the quarter with 202 million deployed in buybacks and 378 million in interest on capital. And finally, regarding our agenda of new products, I would like to highlight some products that were launched or announced during the quarter for different types of investors, for retail, for institutional investors, but reinforces what we have been discussing in previous calls about a much stronger pipeline and agenda of new products, which we will continue to see throughout the year. I would like to highlight the launch of new futures in the crypto family. We did have the launch of the Ethereum and the Solana futures. Also, derivatives linked to the AIBO Vespa B3BR+, which is an alternative version of our traditional AIBO Vespa index, such as the micro futures and the monthly and weekly options on this new index, and also the gold futures. We also had the futures on offshore interest rates, including Mexican interest rates, US interest rates, and European Union interest rates. As I said, the pipeline of new products will remain being one of our key priorities for this year. And you should expect to see that evolving continuously throughout the next quarters with a very robust pipeline of new products and between ensuring that we are bringing and meeting market demands and bringing innovations to our clients continuously going forward. Thank you again very much for your support.

Thank you. The floor is now open for questions. If you have questions, please press the raise hand button. You can also send written questions throughout the Q&A button. Our first question comes from Chito Labarta from Goldman Sachs. Please, Mr. Labarta, your microphone is open.

Hi, good morning, Andre, Fernando. Thank you for the call and taking my question. A couple of questions, I guess, if I can. Just on the new products, maybe first on the crypto assets, how are you seeing the for that or I guess an investor demand? I mean, do you think that's a big opportunity or are there any other products that you see that could contribute significantly in the coming years or what are you most excited about with these new products? And then second question, just if you can give an update on just what you're hearing on the competitive environment. There's several competitors that are talking about launching in the coming year or two. But just anything you're hearing on your side, I guess, particularly with potential competition on the clearing side of things, interoperability, just any update you have on that would be helpful. Thank you.

Hi Tito, thanks for your question. I'll try to answer here, because we might have missed the end of your last question. So I'm going to try to answer it. And if there is anything we did not cover, please feel free to let us know, OK? So regarding the products, I think Look, I think it is difficult to tell exactly which ones are going to be very successful. We are seeing demand for this kind of products, and that's the reason why we are launching. Whether they are going to get traction as fast as we have seen on the Bitcoin future is difficult to say. We are working with market participants, with our clients, with brokers, et cetera, to ensure that incentives are in place, that we have market makers. So everything that we can do in order to ensure the success of these products that we are doing and if we are seeing anything that we can do to improve, we will be working on that. But I think more than one individual product, I think the success here is to ensure that we are covering all that demand. I don't think all of them are going to be extremely successful, but if at least one of these products becomes extremely successful, that's already a significant return on the investment that was made, which was, I would say, marginal for the company. Regarding your second question, look, I think besides what we have been hearing on the news, in articles on newspapers and things like that, there's nothing really new in relation to the plans of those competitors. I think they continue to evolve on their journey, becoming ready, operationally speaking, working on their regulatory approvals, and I think that's that remains being the case. So I don't think there's anything significant to highlight in relation to that at this stage.

Great. No, that's helpful. Thanks, Andre. Just a follow-up on that. Anything that you're hearing from the regulator in terms of interoperability for a central counterparty? And also, I guess, on the internalization of orders, is there any update you have on that from the regulatory side of things?

Not at this stage, Tito. So this is not a conversation that we are having in terms of those requirements for interoperability. And in relation to internalization, the regulator remains evaluating all the responses that it received last year as part of their request for further information. and I think they will continue to work and digest all of that information throughout the second half of this year.

Okay, great. Thank you, Andre.

Our next question comes from Renato Meloni from Autonomous Research. Please, Mr. Meloni, your microphone is open.

Hi, everyone. Thanks here for the space to ask questions. With the looming changes in taxation for the taxes and notes, right, to be effective at the end of 3Q, I'm wondering if you're already seeing some volumes moving forward, and if that was a factor here in 2Q. But I also want to understand if you expect this to help and give maybe a lift on 3Q results. Thanks.

Thank you, Renat, for your question.

I don't... Ladies and gentlemen, please hold on while we reconnect our speaker.

You're back. Yes, yes. Thank you.

Sorry, I'm back here. So I don't think that has had an effect on the volumes on the second quarter. Whether this is going to help to maybe anticipate some volumes of transactions, I think that's a possibility, even though I think it is too early to say whether this is already happening or not. This is also a possibility. I don't think it changes the dynamic that we are seeing in this market, it might move transactions that would happen maybe later in the year or beginning of next year, and people wanting to anticipate a little bit of that. But I don't think that changes significantly the dynamic that we should expect for that market during this year. It remains being a very attractive and a very active market, which is also helping the results of the company here.

Thanks. Thanks. That's scary. If you would just allow me for a follow-up. When we're talking to banks, we see this general deceleration in growth that's expected. And of course, that will generate less demand for funding. And I wonder if you're expecting anything on that and also impacting volumes for you guys.

Sorry, can you repeat? I just missed the beginning of your question here.

Yeah, so just thinking generally for the banking sector, right, there's a large expectation of slow downing growth for the rest of the year. And that leads to less demand for funding as well. I'm wondering if you're already seeing some of that dynamics and what expectations do you have here for references that would affect you guys?

Look, I think if you look at the trend that we have seen so far, volumes are still very healthy. So maybe in terms of total volume of new issuances this year, we might be 5% to 10% below what we have seen last year. Much more transactions, so the number of offers this year has been much higher than the number of offers last year, which means that we are seeing smaller size transactions this year. But it remains a very healthy and active market. So we have to remember the last year was an all time high record in terms of issuances and volumes. We might not break that record again this year, but we still have a volume that is significantly higher than the average of the last few years. So far, I think we remain seeing a positive trend here, even though we might not see that increasing on top of what has already been a very successful year, which was last year.

That's clear. Thanks very much.

Our next question comes from Daniel Vaz from Safra. Please, Mr. Vaz, your microphone is open.

Hi, everyone. Good morning and congrats on the results. You have been doing a very good job on diversifying revenues recently and making the business less dependent on cash equities, right? So in the past years, that was a focus, especially with a prolonged high interest environment. So as this story seems to have progressed, largely played out right so what what should be we looking at this next strategic growth lever um that management we're going to focus, right? So is it more products or pricing strategies or cost efficiency? So I wanted to touch base on that priorities right now for management, especially as we move to a more competitive environment going forward, right? So good to hear about that and try to understand if the company wants to tap in into new revenue pools or defend the current ones. So that's it. Thank you.

Thank you for your question, Daniel. Look, I don't think it changes significantly our strategy. I think our strategy remains being to continuously increase the offering that we have on our corporate business, making it bigger and stronger, and also to continue to selectively diversify into areas adjacent to our core business, such as data and technology. I think we also need to be prepared either in terms of capacity, quality and product and the suite of products to be able to capture further growth that we will continue to see as the market continues to evolve and to become more sophisticated. So I don't think it changes significantly our strategy. I think it was, as you said, an important factor in the recent years that we believe will continue to drive to drive the company growth in the future. I think looking at what we have been discussing, there are areas within the core business where we are, I would say, excited about the potential for future growth, such as the fixed income market. So the changes that we are seeing in that market becoming much more relevant for the country and, you know, opening new opportunities that we can for new markets that will become realities such as the receivable market. But all of that are within our already core business, right? And we will continue to also to expand in that core business and capture new opportunities there.

thank you and maybe a quick follow-up on on costs right so your expenses um seem controlled but it when when when we hear banks and especially the incumbents talking about um at some point reducing the the efficiency ratio in a higher extent so i wanted to get like a sense from you if when we look at your expenses here, like data processing or revenue linked expenses, these are growing at a fast pace still, so promotion, like marketing and stuff. How do you expect your expenses to be in the next year, for example, when you're still growing at a high pace in some points?

Thank you. OK, thank you for your question again. Look, in terms of expenses, I think it is worth noting first that the pace of the growth of our expenses this quarter does not reflect the pace of the growth that we are expecting for the year. The main reason is we are having a different, let's say, distribution of the expenses this year. So you can expect, you should expect, our expenses to be less volatile between quarters. Our overall goal in relation to expenses remains to ensure that our costs are growing much more in line with inflation and making sure that we are continuously finding efficiencies to fund additional costs and additional investment in new products and new services that we will continue to expand. So that's our ambition and our goal here is to ensure that our cost base remains growing much more in line with inflation and ensuring that we are continuously finding additional opportunities for further efficiency here.

Okay, thank you.

Our next question comes from Ernon Shirazi from Citi. Please, Mr. Shirazi, your microphone is open.

Hi, all. Good morning. Thanks for the opportunity here. My question is related to the use of AI, especially on expenses. What are the opportunities that B3 sees in the future if we can expect a huge improvement in efficiency or even some gains in revenue come from it? Thank you.

Thank you for the question, Arnold. this is already a reality here for the company. I think the full potential of all these opportunities are still not fully captured and reflected. I think looking at, you know, revenues, the more clear opportunity that we are seeing today is on data. So I think AI has already been part of some of our data initiative here and becomes even more powerful with the adoption of Gen A AI. And that is an agenda that we'll continue to pursue. We're already doing that and we'll continue to increase the use of AI on those solutions. And it is also an important tool that will help us linking to my previous comments on expenses, that will help us to continue to find efficiency opportunities, doing things more efficiently and in a faster way. And this is already being used in several initiatives throughout the company. mainly to increase the efficiency of our teams. How much of that we represent in terms of efficiency, this is something that we are not ready yet to disclose at this stage. But this is definitely something important in that journey of increasing the value of the solutions that we are offering to our clients, but also to increase the level of efficiency in our operation.

Great, thank you. And if I may, I put follow-up on part decisions.

What are your expectations? Thank you.

Sorry, I didn't, I missed your question.

No problem. And part-related decisions. if there's any update on it.

Update on what? Sorry. It's really bad, the audio here.

Carve decisions, the tax dispute.

Okay, sorry. No, there's no significant development there. As we discussed, I think we are expecting... no further reductions in our cases because we are we are seeking to reduce the amount of of fine uh similarly to what happened in our first case where there was a reduction in the amounts under dispute because parts of the fines were were extinct we are trying to achieve the same results for the second case both of them as you recall are already being discussed at the judicial system. Three and four are the cases that we want, so they are out of the way. And we are still with the fifth case at CARF. And with that case, there hasn't been any significant developments in the last two months, of course. But of course, if there are some developments, we will keep you guys in the market aware of that.

Great, thank you.

Our next question comes from Caio Prato from UBS. Please, Mr. Prato, your microphone is open.

Hey, everyone. Good morning. I have two on my side, please. The first one, if I may, is a quick follow-up on expenses. André, you mentioned about a reduced volatility throughout the year. But if you can talk a little bit about how do you see the trajectory to year end and how it fits into your guidance, if this should be closer to the up or the lower range of the guidance for the year. This is the first one. And the second is on the financial results. except from the non-recurring event related to physical things that we saw, still revenues were quite strong, financial revenues as well. So just wondering if you can share a little bit more details about that and if this should be the more recurrent level going forward, having said that Selic should remain at high levels.

Thank you. Thanks for the question, Caio. Regarding the expenses, look, as we always say, the second half of the year tends to be a period where you have some pressure on the cost, primarily because of the adjustment to our salary expenses, which usually takes place around August. So it is typically where you see an increase to the cost base as a result of that adjustment. But as I mentioned, we have been working to ensure, let's say, less volatility between the quarters and a better schedule of spending, both in terms of our projects and other initiatives of the company. So that means that you can expect the pace of growth in relation to last year to decelerate a lot during the second half of the year. We are still on track to deliver our guidance of expenses. At this point, I think it's still a little bit early to tell you whether this is going to be more towards the lower band or the upper band. Of course, we will work to ensure that the lower band is our final result. But at this stage, I think it is still a little early to give you more color on that. The only thing I can confirm at this stage is that you know, our ability to deliver the expenses this year within the guidance is confirmed. So we're still very much on track to deliver the guidance for expenses. In relation to the financial results, look, I don't think besides the non-recurring items, and I think, you know, In terms of comparison with the first quarter, you have to remember that during the first quarter, we also had some non-recurring items. I think that there was nothing really different there. So you can expect that to be a pattern for the following quarters. The only thing that is difficult to control there the level of third-party cash that we carry and that can vary significantly because it depends on external parties putting collateral in cash. We can have some volatility coming from those balances. And of course, the higher those balances are, the higher the financial income that the company captures on those balances.

Okay, got it. Thank you very much.

Our next question comes from Pedro Leducchi from Itaú BBA. Please, Mr. Leducchi, your microphone is open.

Good morning, everybody. Thank you so much for taking the question and the call. And it comes in regards to equity margins. This quarter, they increased a bit, 2.6 bps Q&Q, even though we had much higher volumes. So maybe you can talk to us a bit about what drove that slight improvement, maybe makes, but wondering if there's a little bit more regarding that. And also, if I compare it year over year, it's down, but I understand there's been some changes. But you can review with us a little bit on how margins and equities are behaving, how you're thinking about it for the second half of the year. Thank you.

Thank you. Thanks for the question, Pedro. Fernando here. So basically on the quarter, it was basically the mix. So compared to the first quarter, we saw a lower volume of options, index options exercise, and a little less activity from market makers. So those are the volumes that there are partially or basically there's no tariff on it. The trends that we've seen for the future, we just implemented some changes on our pricing schedule, regarding the ones that we announced last year, so they are valid now in August. Like we said in the past, we didn't expect any meaningful impact on it, but I think it's something that we should look on for the next quarters. So, but basically it was mixed and we expect that to kind of sustain throughout the year because that mix is being impacted by the macro scenario where we are not seeing what basically natural demand. So those guys gain a little bit of importance from the breakdown of the economy.

That's great that you remind us as well about the new pricing scheme coming in in 3Q, so we shouldn't expect any level change here in these margins as this gets implemented, right?

No, the idea is that we don't have any meaningful impact when we run the backtest, so there wasn't any kind of meaningful impact on the revenues.

Amazing. Thank you, guys.

Thank you.

Our next question comes from Antonio Ruetti from Bank of America. Please, Mr. Ruetti, your microphone is open.

Hey, Fernando. Thank you for your time and thank you for taking my question. So my question goes on products. If you look at exchanges globally and compare it to B3, which revenue source, revenue driver would you consider that you are missing that you can still implement into B3? So in terms of data, markets, or any other solutions, which key product is missing to B3 at this point? Thank you.

Thank you, Antonio, for the question.

That's an interesting one, Antonio. I honestly don't think that there is any significant areas that we are not already exploring or starting to explore, but it's definitely much room for increase in some of those areas. I think rather than looking at that as a comparison with the other exchanges, I think some of that has also to do with the level of development of our market in comparison to some of those markets. Taking, for instance, fixed income as an example, right? In other markets, it is a much more developed market. We are finally seeing some of that movement happening here in Brazil with the sophistication of that market. New revenue opportunities becoming reality. So secondary market of fixed income, data initiative, pricing solution. I think some of those opportunities, more than not being properly explored by the exchange, also have to do with the age of maturity of our market. I do believe that some of those opportunities, we also have a role in helping to develop that market. and this is what we will continue to pursue and explore over the next few years.

Yeah, that's an interesting point, Milanese. If you could explore a little bit more on this side of fixed income, particularly considering your two trademates, what do you think it's missing for a trademate to pick up, to gain and share in terms of total treasury trading volumes and also maybe an expansion into also with trademate on private securities?

Thank you. Thank you, Antonio. Look, I think we could spend a lot of time discussing that here. I mean, it is something that will take a while, but we already seen some of those results. So the level of electronic trading taking place through the platform today, particularly for government bonds, is already increasing. I can try to explain to you describing this as kind of a virtual cycle, right? So you need to gradually increase liquidity that will in its turn attract more clients interested in trading, which in its turn increase liquidity and better prices, which again will attract more players. So that will It's already starting to spin, but it takes some time for that to continue to spin in high velocity. Let's put it this way. So part of that movement has already started, but it takes some time for that level of liquidity to increase. Something similar will happen for the private fixed income market. The strategy, not necessarily exactly the same, but it goes to the same, let's say, fundamentals here. Liquidity, more players, market makers, and this sort of thing.

Okay, thank you for your time.

Our next question comes from Carlos Gomez from HSBC. Please, Mr. Gomez, your microphone's open.

Hello, good morning, and thank you for taking my questions. In particular, you mentioned the merger of Neurotech. I wanted to ask if you could give us an assessment about your investment in data analytics, your conclusion after a few years about what you need to do in this space, whether you need to acquire more, whether you want to stay in this business, and what we could expect for it. Second, I want to know if you have seen or you expect to see any impact from the approval of crypto legislation in the US and how can that affect you either positively or negatively in the future?

Thank you. Thanks for the question, Carlos. Look, regarding the data business, I think we, as we said, I think those were the two acquisitions that we had mapped and identified that were important to our strategy and data. Those acquisitions were made. I think we more recently were able to capture part of the synergies from those acquisitions with the merger of them. So primarily at this stage, the tech synergy, which is significant, we are already starting to capture. There might be room for a small add-on here and there, but nothing of the size of what these two companies were. And I think the biggest focus now is on the execution, on extracting the synergies, especially on the revenue side, on product and clients, and to continue to grow that business So it becomes more and more relevant as part of our revenue pie. So that's the focus now, the main focus is going to be on execution from now on. Regarding your second question on the crypto legislation, I don't think that has a direct impact as of now, but I think, you know, it helps i mean we have already been uh exploring those those those products uh in the past uh we were one of the first changes uh to launch etfs on on crypto and and things like that so i think that that just uh reinforces our also agenda here on continue to improve the offerings that we have for this market as well. So I think too soon to call at this stage, but I don't think it has a direct impact. But if there is one, I think it is positive to us.

And do you feel that there's a need in Brazil for legislative changes that would allow the development of this marketplace?

I think there are already discussions underway in relation to the regulation on that market. I think it will help. Regulation will help the development of that market, but that's already being discussed with the central bank and other regulators. We just need to keep monitoring that.

But there's nothing in particular that you feel that you need to see change either at the regulatory level or at the legislative level which you think is urgent?

No, not at this stage. No, Carlos.

Very clear. Thank you.

Our next question comes from Ericito from Bradescu BBI. Please, Mr. Ito, your microphone's open.

Hi guys. Hi, Andrea and Fernando. Thanks for the call. I take my question and congrats on the results. I have only one here, a quick follow up on derivatives, especially on the future of crypto assets. I think it's a line that came from particularly zero revenues to almost 40 million in the recent quarters. But this quarter, I think we saw a relevant contraction in the RPC and we saw also the acceleration in volumes. I just want to understand if you could give us some color on how does the mix here works, why we saw such a deceleration, such a contraction in the average RPC. I don't know if that's related to the product that you launched, maybe Solana and Ethereum. And just to understand how this should evolve going forward as well. Thank you.

Thank you, Eric, for your question. Regarding the volume, There was some deceleration on the volume that had to do with the margin requirements on that product that have increased. This was also introduced in connection with the revision of the size of the contract. But the increasing margin requirements for that product has had an impact on volumes, which helps to explain some of the deceleration that you are seeing on the volume. Relation to the RPC behavior, I'll hand over here to Fernando to discuss that.

Actually, RPC increased this quarter. Yeah, but it's what Andre mentioned about the volume. So there's an increase in the collateral requirements, which impacted a bit of the volumes, but we saw actually an increase in collateral. And as far as the other critical futures, they are still recent. So they are performing in line with the expectations of the company, which we knew that wouldn't be as high as in the future. So they are in line, but they are performing relatively well. But the main impact on the crypto was given that change in the collateral requirements.

Okay. Thank you.

Very clear. Our next question comes from Henrique Navarro from Santander. Please, Mr. Navarro, your microphone is open.

Hi, good morning, everyone. B3 has been very active on the buybacks. That's a compliment. Can you please comment on, just remember us, how much of the regional plan was already executed and what are the plans for the future?

Thank you for the question, Navarro. When we announced the buyback program for this year, at the end of last year, you have to remember that our share price was much lower than the current one. At that stage, I think there was the expectation that we would be executing the full size of the program, given that the share price has reacted a little bit. We probably will not execute the full program. As of today, I think we have already executed around 25, 30% of the, around 20% of the program. but we'll continue to execute that throughout the year. As we always say, we will scale more towards buyback or dividends depending on market behavior, on the share price behavior. So that means that if we see share prices coming down, it is more likely to see the proportion of buyback as part of the total distributions of the company increasing and the opposite as if we see market price appreciating. But so far, it's between 15% to 20% the total execution. This is disclosed in our in our website and our investor relations material.

Okay, thank you.

Our next question comes in written form from Anthony Cracchiolo from Soapstone Capital. Can you explain why derivatives revenue declined at 6% while ADV was minus 3% and RPC plus 3%?

So the main factor here was the number of business days. So in the second quarter of 2024, there were two more business days, which makes a meaningful difference on that line.

And a next question from Anthony. What will the impact to B3 be from the recent provisional measure which increases the CSLL tax rate? How much should this increase your total tax rate and how likely is that this measure is or not is adopted?

So in relation to the question about the social contribution tax rate, the provisional measure increases our social contribution rate from 9% today to 15%.

This increase is applicable as from the 1st of October this year, but

if the provisional measure is not approved by Congress or converted into law, it loses its validity. At this stage, I would say there is a, it's not 100% sure that this will become, that it will be approved. So I think there is a chance that this is not approved by Congress and therefore that would not ultimately result in an increase for our social contribution. But this is something that we need to continue to monitor very closely here.

And a last question from Anthony. How do you expect recent volatility from tariff discussion to impact your business?

Volatility, I think it is something that ultimately benefits our business. I think a lot of volatility from a very long time is not healthy, but some volatility always helps boost volumes and helps a little bit. I don't think that has been So far, a significant factor in terms of the performance of our volumes here, maybe for particular stocks, but not necessarily for the whole market. Yeah, at the end of the day, in summary, some volatility is not bad for the business here.

Thank you. This does conclude today's question and answer section. I would like to invite André Milanes to proceed with his closing statements. Please go ahead, sir.

Thank you very much. I just wanted to thank everyone for joining our call. Thanks. It's been another quarter where we saw... the relevance of our business strategy in diversifying our revenue streams and our business play an important part in the results that were delivered. I would like to thank everyone that has been working hard on the preparation of all these materials for the release of our results, our shareholders and all the community for the support. Have a nice Friday and a good weekend ahead of us. Thank you very much. Until the next quarter. Thank you.

That thus concludes B3's presentation for today. Thank you very much for your participation and have a wonderful day.