Broadridge at JPMorgan Conference: Strategic Growth Amid Market Uncertainty

On Wednesday, 14 May 2025, Broadridge Financial Solutions Inc. (NYSE:BR) presented at the 53rd Annual JPMorgan Global Technology, Media and Communications Conference. CEO Tim Gokey provided a strategic overview of Broadridge’s performance, emphasizing both its robust growth trajectory and challenges posed by market uncertainties. The company, a $28 billion fintech leader, highlighted its focus on capital markets, asset management, and wealth management, while addressing macroeconomic impacts on sales timing.

Key Takeaways

• Broadridge expects 7-9% recurring revenue growth and 8-12% adjusted earnings growth by June next year.
• The company plans to integrate AI across platforms to enhance value and reduce costs.
• Non-revenue generating equity positions have grown by 40%, potentially boosting core growth.
• Broadridge’s governance and digital communications businesses are experiencing significant growth.
• The company is navigating delays in sales closures due to macroeconomic uncertainties.

Financial Results

• Recurring revenue has consistently grown by 10% annually over the past decade.
• Earnings have seen a 13% annual growth rate in the same period.
• Broadridge has increased its dividend every year since going public, with double-digit growth for 13 years.
• The company maintains its three-year targets of 7-9% recurring revenue growth and 8-12% adjusted earnings growth.
• Non-revenue generating equity positions now account for 15% of total positions, offering a potential 1-2% growth tailwind.
• Sales closures have been delayed by three weeks due to macro uncertainty, potentially affecting growth by 10 basis points.

Operational Updates

• Broadridge processes $10 trillion in daily transactions and manages 800 million governance positions.
• The company sent 7 billion communications last year.
• Governance business is projected to grow in the mid-to-high single digits.
• Digital communications are expanding at a double-digit rate, with overall communications growth at 3%.
• Capital markets are expected to grow in the upper single to lower double digits.
• Wealth management is currently growing at a mid-single-digit rate, with expectations of high-single to low-double-digit growth in the future.
• The Canadian business, valued at $500 million, serves all major Canadian banks.
• Broadridge conducts over $100 billion daily in digital ledger repo transactions.

Future Outlook

• Broadridge aims to achieve its three-year growth targets by next June.
• The company plans to embed AI in all platforms to enhance value and cut internal costs by half within three to five years.
• Growth in tokenized securities is anticipated over the next decade.
• Continued focus on digitizing investor communications and enhancing investor engagement.

Q&A Highlights

• Non-revenue generating equity positions are seen as future growth contributors.
• Sales delays are attributed to timing issues, not cancellations.
• Trends such as democratization in regulatory business and modernization in wealth management are driving growth.
• The CEO reaffirmed the wealth management growth target of high-single to low-double digits.
• Broadridge’s AI strategy includes platform integration, new product development, and cost reduction.
• The company is engaging with the SEC and exploring opportunities in the crypto space, focusing on disclosure and market solutions.

Broadridge remains committed to delivering long-term value to shareholders. For more details, please refer to the full transcript below.

Full transcript - 53rd Annual JPMorgan Global Technology, Media and Communications Conference:

Operator: Morning.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: My name is Puneet from JPMorgan Payment Processing and IT Services team. Glad to have here with us Broadridge. We have Tim Gokey, CEO of the company. You all know him. We have Eddings and Sean from the investor relations team.

So the format of this presentation is going to be fireside chat. I’ll start with a few questions, and then we’ll open the floor from questions from audience. And for folks who are listening to it virtually, feel free to use this portal app to send questions our way. So Tim, welcome. Thanks for joining us.

And maybe for benefit of investors who might be new to the story, can you give us like a brief overview of the company?

Operator: Yeah. First of all, Puneet, thank you very much for having us here today. Thanks everyone for for joining. If if you are familiar with our story, my apologies for the next two minutes. But we’re a $28,000,000,000 fintech focused on the intersection of capital markets, asset management, wealth management, really creating industry level solutions for things that everyone has to do that are less differentiating for them.

You know, the market for that, for just the things that we do, is about $60,000,000,000 Our fee revenue is about $4,500,000,000 so we think there’s a long revenue for growth. There’s a whole bunch of unvended stuff that’s on top of that, and there’s a switch in the market from in house to more vended, so there’s a nice growth path ahead. Over the past ten years, we have grown our recurring revenue 10% a year. We’ve grown our earnings 13% a year. We have grown our dividend every year since we’ve been a public company, growing to double digits 12 for the last thirteen years.

That’s an important part of our story. At our last Investor Day in 2023, we put out three year goals. We do that every three years, seven percent to 9% recurring revenue growth, eight to 12% adjusted earnings growth. We’re over halfway through that period, in fact almost two thirds of way through that period. And what we said on our last earnings call is we expect to meet those goals again in this three year period, which ends not this June but next June.

And when we do that, that will be the fifth three year period in a row that that we met our investor objectives. You know, we do that because we have a pretty unique position, as I said, serving all the largest financial institutions and at the intersection of capital markets, wealth management, and asset management. And, you know, the core of our business, we have a network that connects every brokerage firm to every asset manager to every individual investor and really is a utility for corporate governance. And from that, we’ve built a series of other businesses around that. We have a lot of scale in doing that.

We clear and settle $10,000,000,000,000 every day. We manage 800,000,000 positions in terms of governance activities. We sent 7,000,000,000 communications last year. And so we have a real reason to talk to every firm about some of their core activities. And based on the trust and the delivery on those activities, it allows us to talk to them about the next thing.

And that has provided a really nice growth path over time. It also gives us tremendous domain expertise. And again, people likely to come and talk to us if they have something new, we might be one of the people they call to talk about that. Our growth strategy, pretty simple, and many of you will have heard this before, but I’ll just, it’s democratizing and digitizing in governance. It’s simplifying and innovating in capital markets, modernizing wealth management.

And in each of those, there’s some nice growth vectors. The number of equity positions continues to grow. There’s some nice innovation around the governance activities. We’re moving people from print to digital and in omnichannel communications. That’s a double digit growing business.

And we’re really evolving how funds communicate with their clients. Nice evolution in all of those areas in terms of better connecting investors with both governance and communication activities. In capital markets, we’re helping people really simplify what they do in their front office area, what they do in their back office area with global multi asset class platforms. And we’re driving innovation with bringing AI, bringing digital ledger repo, and other innovative things there. And lastly, in wealth, we’re helping people, you know, we call it transform on your own terms, but it’s a modular solution that is an API driven approach to allow wealth managers to interconnect the various things that they do.

Most recently, we have grown with an acquisition in Canada, building out a nice market position we have there. And we just announced in this last quarter a nice sale of that wealth platform to one of the leading wealth management firms in The U. S. And showing good momentum there. So I’ll leave it with that.

We had a nice quarter we just announced, and I’m sure you have questions about that.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Yes. Of course. No, thanks for that. It was very comprehensive. So this last quarter, you talked about something we haven’t heard before as much, like the nonrevenue generating equity positions.

So talk to us like what were those, how big they are, and what’s the impact we should expect over the coming quarters from those?

Operator: Yeah, it’s an interesting one. So our basic model is on the governance side in around corporate elections, one of the main activities we do. We get paid per position and positions have been growing in sort of on the equity side, in sort of upper single digits, you know, over long, well mid single digits over long periods. But what we said going into this year was upper single digits. And the growth that has been driven by a little bit lower growth in individual accounts and then pretty rapid growth in managed accounts that create additional positions.

So that’s sort of where we were. We went into this year expecting sort of upper single digits. After the election, we saw an increase in that. And when we were on our first call in February, we were talking about, well, I think we see sort of low double digit positions based on the testing we had. And then when things came in for the quarter, what we actually saw was 15%, much higher than we expected.

And what we saw was the typical positions that we normally see grew low double digits. And on top of that, there was a very rapid growth in fractional shares and in managed accounts with less than five positions per account. So the way we get compensated for the activities we do is it’s a regulated pricing, it’s per position. But about ten years ago the industry got together and there was a broker that was creating had a product that created lots of small accounts. And it was very costly for public companies.

And they said, hey, that doesn’t make sense. There’s agreement around that public companies are not charged for fractional shares and they’re not charged if it’s a managed account that has less than five shares. And we’ve been talking for a while about the growth of that and saying that we see a lot something in the future with direct indexing and model based investing. And what we see now is it’s really coming to begin to scale. A number of the wealth managers are promoting slices products, promoting tax efficient investing.

And so the number of those things grew a lot and more than we expected. It didn’t hit our revenue. It is the if you look at the total number of positions that are in these fractional and less than five, it’s almost 15% of total positions. So it’s actually getting to be substantial, and it went up almost 40%. So real growth in that.

That’s what created that dichotomy. We haven’t gotten far enough along to sort of see what’s the conversion of those things as people continue to put more a lot of this is a new investing style where you put in a certain dollars per month or per quarter. So how that will compound and how those will turn into revenue producing shares, don’t know yet. But our crack team is working on those analytics, so we might be able to talk about it in the future. But I’ve always talked about this as something that will be not necessarily change our growth trajectory, but that will provide a sort of a one to two point tailwind in that core growth.

So I’m not here saying I think it’s going be a new growth era, but I do think it supports the long term thesis of mid to high single digit growth for that business.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: So it basically captures like some of those accounts which are below that threshold now and the growth will come from as they add more positions in those accounts, like people buy more stocks instead of

Operator: Yeah, let’s say it picks up thing, I put $5,000 in it and I keep contributing at some point the number of shares then trips over and would become revenue.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: And that becomes like a source of one to 2% growth.

Operator: It Potentially. Potentially. Yeah. So I’ve been referring it to as our position backlog, but we’ll we’ll see if that comes out to be

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: true. No. That’s great. Let’s talk about closed sales like tied to backlog. So you lowered your guidance for closed sales last quarter.

So can you talk about like the delay and you blamed it on delays that you are seeing because of all that macro uncertainty. So talk to us like what drove those delays and what state of union now?

Operator: Yeah. And so then just as a reminder, when we talk about closed sales, what we’re talking about is the annual contract value of bookings that we make in that quarter. It typically takes anywhere from twelve to twenty four months for those to be onboarded because typically there’s a process of connecting all the technology and converting the data and things to bring things into revenue from sales. And when you look at our growth drivers, the biggest driver we have is revenue from sales, which is all the sales we did in the past that are now being onboarded onto our platform and creating revenue. So when you look at how our sales fall through the year, our fiscal year ends on June 30.

Our clients know that. Our sales teams know that. You know, there’s always an extra push near the end of the year. Not so much that we’re offering deals or things like that, but it’s we have good relations with our clients. There’s always a backlog of stuff in procurement and in legal, and people sort of move our stuff to the top of the pile.

And so we get a lot of sales closed in the last six weeks of the year. And in this circumstance, you know, if year ended in December, we would not have changed our sales guidance. Given that it ends in June and we do a lot of sales in June, if you have a three week delay, it’s hard to recover that. So I think we felt really good about our sales through the first nine months. Nine percent of last year, excluding a sort of a one off product called Tailored Shareholder Reports.

That was sort of an event last year. That would have put us right in the middle of our range. What we just saw in April was a lot of people sort of with pen hovering sort of one inch over the papers, just sort of, you know, waiting to see how the world evolved. And we’ll see how that, you know, seems a little calmer at 11:30 today. And we’ll, you know, we’ll see how that evolves over the next few hours.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Let’s hope it holds by the end of this conversation. So the important thing is it is just a timing thing. Like it’s not cancellation. Like it’s just delays by a few weeks.

Operator: Puneet, thank you for bringing It is, no one has told us they’re not doing anything. We have a very robust pipeline. You know, if this delays, whether something closes in June or closes in July, it really doesn’t affect our revenue. When you look at the quantum of midpoint of our previous guidance to the midpoint of this year’s guide of the new guidance, even you said those things never came, which I’m not saying, but even you said they never came, and you looked at the percent of what would that be onboarded next year, it would make like a 10 basis point difference in our overall growth rate.

So it’s really not material in terms of our near term growth and I think not in our long term growth either because of the fact that these are all deals that will happen at some point.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: And by long term, like in a very bad case scenario, you will know that this is coming. You can take actions next year and whenever to offset the impact potentially. Got it. So let’s talk about margins. So we have gotten so many questions on margins, the underlying margins.

What’s the right way to look at it? So talk to us like the levers in the model. Like in the past, customer communications, for example, drove margins higher. So as we think next three years, like on underlying basis, excluding distribution and all that stuff, what will drive margins higher for the next three years?

Operator: Yeah. So our model is when we talk about 7% to 9% revenue growth, but eight to 12% earnings growth, obviously earnings is higher than revenue. And that’s really because of the scale of being a technology company. We have fixed costs. And as we add new volume through that, that gives us natural lift in margins.

In the past, we’ve always talked about a 50 basis point sort of average increase in margins per year. That’s a little bit of a math in terms of what’s the revenue growth, what’s the earnings growth, and it was 50 basis points. Over the last couple of years, that’s been complicated because there have been big postal increases, which are just pure pass throughs. Interest rates are volatile, which also largely we’re balanced on that. So now you’ve heard us talking about core margins, which is when you abstract from that.

And we’ve been talking about over time, we still continue to expect 50 basis points. What I would say Puneet is the important thing is the earnings growth, 8% to 12% earnings growth, and sort of 10% at the midpoint. We have a stack of really good investments that we think are great for our shareholders around some of the innovation and governance in other areas. And so when we start to see earnings going over that, we sort of crank up some of those projects. And there’s always a trade off in terms of making sure we’re delivering good near term earnings growth for our shareholders, but also investing in things that we think are really nice long term returns.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Got it. And in your overview, you talked about like the trends like democratization as well as modernization and wealth management. So can you talk like so if you think like, again, thinking about, say, next three years or five years, whatever, trends so over the next three years, like what trends will drive growth, like underlying trends like will drive growth, like how much opportunity there is, let’s say, in the regulatory business through democratization or in wealth management, which is like a relatively still like an investment phase. I believe so, like, which businesses should grow faster? And how should we think about growth next three to five years?

Operator: Yep. Well, think the, I would probably say capital markets will grow fastest. The governance business will continue to have sort of the biggest quantum of growth. And I think with governance you’ll see mid to high single digits. There’s a lot of opportunity out there.

We have the underlying position growth. We also have a lot of sort of new product areas that we’re growing there. I think the headline numbers are a little bit muted from the customer communications business, where for those that follow us, you’ll know there’s a substitution going on from print to digital. And the digital business is growing double digits. The print business is growing, but the addition of those things is probably, call it, a 3% growth business sort of as we look forward.

But with the economics of digital is a higher margin business. So from an earnings perspective, that business is growing earnings very nicely, but it mutes the overall governance. So I think you have core regulatory growing nicely in mid to high single digits. You have other add on products that are growing faster. You have customer communications growing slower for the governance side.

Capital markets growing upper single, lower double digits based on all the innovation in both front office and back office, and things like digital ledger repo. Wealth management, that should be a high single, low double digit growing business. It’s not right now. There’s a lot of noise this year because of the merger of Morgan Stanley and ETRADE and also the acquisition of SIS in So you sort of wash all that out in sort of mid single digit organic this year. I think that will grow to high single, low double digit organic a few years from now.

But even when we make the sales like this sale we announced, it takes some time for that to onboard. So that’s more of a still an emerging story, but a nice growth story in the meantime.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: And so let me follow-up on that wealth management, about your Canadian business. So how big is like the overall business in Canada? And how’s SIS performing? Like how’s that acquisition coming versus your plan?

Operator: Yeah. So our Canadian business is about a $500,000,000 business. And when you look at that, we have a very strong position in the sort of back office platforms. We serve six of the six top Canadian banks. Then there’s a tier firms below that.

But it’s much more concentrated in Canada than it is here in terms of what those banks do relative to others. So we serve all six. And then there’s a tier firms below that, and we serve many of them as well. So we have a very, very unique position being sort of the back office for Canada. The SIS acquisition, so we serve six zero six now.

Previously we served four zero six. SIS, was formerly part of IBM and then part of Kindle, was sort of separate. We’ve talked to IBM for the last two decades about acquiring And when it was part of IBM, they never wanted to do it. When IBM and Kindle split, Kindle just didn’t see it as a good strategic fit for them. So great strategic fit for us.

We are bringing a lot of the wealth platform components that I talked about to Canada, and we’re leveraging those components across the SIS platform plus the platforms we already had. Acquisition is going very well. I think it’s going allow us to really bring some nice solutions to the Canadian market, we’re excited about it.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: And is there like opportunity like say for wealth management like to replicate like what you’re doing in Canada, like what you have with UBS at other clients like or in other regions?

Operator: I think what we are first of all, let’s take the other regions. I think our wealth business is largely it’s a North American business. Our capital markets technology business is a global business, because capital markets is a global business. And the things that one has to do in terms of local regulation is much, much simpler in capital markets than it is in wealth management. So wealth management technology tends to be more of a country by country basis for technology.

It’s hard to make money unless you’re working in sort

Unidentified speaker: of

Operator: large countries. So it’s going be a North American offer. I think in terms of what we’re doing in Canada with bringing really the technology that we created for UBS to those platforms, opening them up to be API driven, common data ontology, common user interface, it allows us to innovate much more rapidly and I think more deeply penetrate that set of clients with other things that we don’t currently do for them today, but we’d like to.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Got it. At this point, like, are there any questions from people in the room? I can keep going then. Let’s talk about AI. Like, it’s a TMC conference.

It’s mandatory. I have to ask a question on AI, but I’ll my bonus. So AI, like, it it is disrupting a lot of industries, like, lot of processes, platforms are being infused with AI. Talk to us like the relevance of AI for what you offer to your customers. You talked about in the past Bond, GPT, ops.

GPT? GPT. Yeah. I imagine AI would have like high applications in your data services, data products that you offer. So talk to us like your AI strategy and how you are infusing AI in your services offerings.

Operator: Yeah. So we offer a broad set of products to our clients and largely pretty complex technology products that are highly networked. So when we think about our AI strategy, it has multiple components. And job one is infusing AI into all of those platforms. It makes a lot more sense for us to do that than for each of our clients to sort of reinvent how AI would apply to clearance and settlement of fixed income.

So we’re going to do that. We’re bringing AI to all of those platforms to increase their value. And it’s just part of being relevant and modern for our clients. Separately, and I think that’s going to be a bit commoditized actually. I think that pretty much in the future all technology is going have a certain level of AI that just comes with it.

That’s our assumption. Where we have unique data, that’s where we think we can introduce new products that people will pay us for on top of what we’re getting already. And we do have a lot of unique data around especially who holds what and who’s buying what and how all those flows. So it’s our data and analytics business that is already really a leading provider to asset managers if they’re trying to do product planning, figure out to pay their sales force, figure where their wholesalers should go. And adding AI to that is a big opportunity.

We have something called the global demand model that takes all of that institutional retail by product, by channel, by asset class, and is able you know, gives people visibility on what’s selling, but is now becoming predictive into saying what you know, given macroeconomic circumstances, we’ll sell. 13 asset managers have signed up for that so far, so we’re excited about that one. That’s probably the one commercially that’s furthest along. Bond GPT allows people to use natural language queries to better understand the bond market. Ops GPT, again, use natural language queries to clear complex fails.

It’s part of the everyone is looking at, in their back office operation, how do they take heads out in the future. We do have about 50 clients, 40 clients, where we have a back we’re doing the people as well as the technology for that. We have an internal goal of how do we take half of the cost of that over the next three to five years. And we’re applying AI to do that, which brings me to the third leg. So leg one is bringing AI to all our products.

Leg two is what are the products we’re going to sell. Leg three is how do we use it to reduce our own internal costs, which everyone is doing. We’re doing it certainly in development with Copilot, certainly in our operations area. And the way we’re doing that is with a common AI platform that we’ve built that goes across our enterprise that connects to all the large language models, that builds a compliance layer. You know, it’s a regulated industry.

First conversation client always has is where is this data going, how do we know it’s compliant, how does all that work. So building a common compliance layer so that as we add to that across all of our businesses, it adds into one compliance layer. And then our product teams connect into that.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Speaking of regulated industry, let’s talk about like how like this current administration’s policies, not just policies, priorities impact progress. Like is that like deregulations and the things that we hear, like are they good for Broadridge or can that be a headwind?

Operator: Yeah. So I think the, you know, when you look at the big things the administration is focused on, trade, tariffs, cultural issues, they don’t really affect us. They do create volatility, which can be a tailwind on the trading side. Now if you take it down a level into sort of the SEC and the areas that are more sort of specifically relevant to our business, there I think, you know, the SEC is an area where Paul Atkins is someone that has been an SEC commissioner before, highly knowledgeable, is a real expert. So that’s a little bit unlike some of the other areas.

So I think we feel really good about that. Some of the key priorities there that touch on us where we think we can be helpful. So obviously, there’s a lot of talk about crypto, there will be a crypto bill, and there will be a lot of movement on crypto. One of the big debates on that is what level of disclosure should there be. And within the industry themselves, there’s sort of let’s keep it cheap and no disclosure to, well, other asset classes when they’ve had good disclosure, it’s really helped them grow.

If you think about the rapid rise of ETFs, they were able to leverage the disclosure regime of funds, and it really enabled the growth of asset class. So there’s a little bit of a debate inside there. It won’t surprise you that we have what we think is a great product that would help people with disclosure. Should it go that way? And we certainly believe that good disclosure would help the asset class grow.

So that’s sort of the crypto side of things, which leads to tokenization a little bit. Let me circle back to that. Another big area is investor engagement. There’s a lot of concern on the Republican side around how much influence the large passive asset managers have and around the influence that Glass Lewis and ISS have. And again, think there are market and there will be probably movement on those topics.

We think we can bring market and technology solutions to help with that. We’re working with all the large passive asset managers on pass through voting to allow them to give those voting rights to underlying shareholders. Easier on the institutional side than on the retail side, but there’s a fair bit of this that is on the institutional side. And then also creating an institutional voting platform to allow people to use data and again, we’re not going be a proxy advisor, but to use a data driven sort of rules based approach to supplement ISS and Glass Lewis. So we think that’s a positive in terms of how we can help.

And then the last area is around continued digitization of investor communications. You know, it’s about almost 90% today is digital in terms of the regulatory communications. The statements is more like 50. There’s discussion about how do we should we, today the default is you get it by paper unless you choose to get it digitally. You could change the default, make it, you get it digitally, but you can choose paper.

And we’re supporting that. And the real thing there is ensuring that the digital communications are really engaging. You know, it’s easy for something to sound good, but then you get into it and it’s like 10 clicks in before you actually get to see anything. And we have some innovation that we’ll be bringing out that we think will really make those communications more engaging and be really good for markets. So those are all things that we think are ways that we can help and that we’re positioning ourselves to be aligned with the direction the SEC is going.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Let me quickly ask one question on crypto and then we’ll give another chance for two people in the room. So for crypto, I understand like it’s not revenue generating right now, but like with potentially disclosure requirements and all that. Who will be your client in that ecosystem? Will it be the same as what it’s for equity? Because you service broker dealers, but you also have network with corporates and everybody.

In crypto world, like will it be different actors that you’ll have to engage with?

Operator: Yeah. Well, this is one of the things that people are trying to figure out. Right now for that disclosure product that we have is the exchanges and we have a couple of exchanges that have signed up for it and are piloting it. I think it could ultimately also be a broker if people are buying things through a broker. My advice to wealth management firms, a lot of wealth management firms as you know are saying this stuff is not a good asset class.

It’s going to blow up. We’re not going to do it. And I think the problem with that is it sort of forces people outside their financial advisor, and then they start doing stuff on their own without advice. My advice to wealth managers is, look, you should offer this. You should train your financial advisors on it and train them to say, yeah, whatever money you want to lose, put in here.

But make sure it’s not 1% of your portfolio and have it be balanced inside your portfolio. So if people pursue that, then they’re certainly going to want to disclose it in a big way. And so the brokers will have a good desire to have disclosure as well. But it is tricky to know who will be the person paying. While we’re on crypto, just wanna mention because it sort of flows into they get a little confused with each other.

But there’s crypto as an asset class and there’s tokenized securities, which is, you know, a separate thing. Said about token, you know, token using DLT technology a different way to settle and clear and settle, you know, real securities and with real underlying assets. Those those are different things. And, know, so we are doing a lot of, two thirds of fixed income is on our technology platform. As I mentioned, we clear and settle $10,000,000,000,000 a day.

A lot of that is in repos because they roll over every night. And we’re doing a lot of that now on digital ledger repo. We’re doing over $100,000,000,000 a day today. When you look at the size of the crypto market and you exclude Tether, we’re doing more repos every day than the whole crypto market put together. So it is and that’s something that, you know, there’s a lot of potential to for that to scale over time.

So I think the the growth of tokenized securities is something that we should expect to see. You know, it’ll be a ten year thing. It was not gonna be overnight, but that’s something that we should expect to see.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Two minutes left. Any last questions from folks in?

Unidentified speaker: Thank you. Maybe you could just remind us the why the growth rate for your wealth management business is as high as it is? Why it should be a sort of high single, low doubles? Just what the sort of drivers are.

Operator: Yeah. I think it’s really revenue from sales. So it’s a $500,000,000 business. When we look at what our new sales will be this year and translate that into what the revenues will be a couple of years from now, it would be a there’s a little bit of sort of position growth inside there as well, but it’s largely revenue from new sales. So first of all, they never said there was a delay.

No one has come to us and said, oh, we’re slowing things down. It’s just, know, you’re turning a red light. 80% of these things are in in, you know, advanced negotiations. So it’s just, you know, does it come back tomorrow or does it come back next week? You know, it’s it’s it’s pretty amorphous.

And so they haven’t told us it’s slowing down. They haven’t told us it’s speeding up. And we’re continuing to push. And every hour of calmness that goes on is a good thing. I think the other thing inside that I did get, and I see our time is up, but just last week I was at the CIFMA, that’s the Securities Industry Association Operations Conference.

It’s the biggest conference we go to, because we sell a lot to the heads of operations. And one of the things that they were all talking about is just they’re complimenting themselves, which is on how smoothly markets have performed. Volumes in April were like the mean stock period. It was like off the charts. And so people at our clients were extremely busy just keeping the lights on and keeping things flowing well.

And they did, and feeling really good about that because they just moved from t plus two to t plus one. So t plus one, massive volumes, everything worked, which is great. So I don’t know if the explanation is volatility in the market or the explanation is just that people are really busy. And I think we’ll see you over the next few weeks.

Puneet, JPMorgan Payment Processing and IT Services team, JPMorgan: Appreciate it. Thank you so much. Great, thank you.

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