00:00So what did you see a few weeks back when you launched a futures gold contract that made you think,
00:04okay, we're ready for silver?
00:05Yes, I mean, we have, over the past three weekends alone, we have traded over $200 million in notional value,
00:14especially coming from a lot of retail interests.
00:18So that got us to really think, okay, the market demand is here and the client have responded.
00:23So for us, it's a natural step to go for the silver, given that it's a very much of a
00:29similar product.
00:30How much of the demand that you're seeing out of the gate is actually sort of organic, really coming from
00:35that?
00:36And how much is that kind of liquidity being provided by the mechanisms?
00:40Yeah, I mean, for us, you know, we started with the crypto back in May.
00:44Gold was the second we introduced and then now with the silver really came from the client,
00:49especially on the retail front that tends to be self-directed, digital savvy, smaller wallet size.
00:55They really wanted a smaller contract size to be able to trade so that when you're waking up on Saturday
01:00morning
01:01and you want to have a directional view on that, those are the type of market participants that really demanded
01:05it.
01:05And, you know, we had a lot of retail support that coming from the day one.
01:10So you mentioned when markets move on Saturday or Sunday, which it has been these days,
01:15we see price gap and we have to wait until Monday.
01:17Is that what you're trying to eliminate, the weekend gap or the pricing gap?
01:21Yeah, I would say the more of the weekend gap and give the traders, especially on the retail front,
01:26giving them more of a, you know, you don't have to necessarily wait, right, to trade.
01:32And you can actually directionally click in a trade and have your view expressed on that.
01:36So this is really very much of a directed by that, yes, you know,
01:41you want to give that visibility and price discovery venue to the traders over the weekend.
01:46Well, so you have that now, or at least that's being built out.
01:49But what about on the collateral side?
01:51Because my general understanding is that you still more or less have to wait,
01:55correct me if I'm wrong, wait until Monday for all of that to actually be settled.
01:59Yes, correct.
02:00It's largely true for the institutional clients, for sure.
02:03But on the retail front, a lot of those are removed by, you know,
02:07client really having, have to have more of a money down in the upfront.
02:11And there is a protection mechanism that is done by our retail partners around that area.
02:16So, you know, there is a much less of concerns around that.
02:19Do you think 24-7 trading is becoming the norm?
02:22Because in crypto land, where I also sit sometimes, like Hyperliquid,
02:25they offer a lot of contracts when it comes to gold, silver, virtually almost everything you could think of.
02:30Yeah, I mean, I think that directionally longer term, maybe that is the world that we're going to be going.
02:34But, you know, as a CME group, we're very much driven by the client demand and, you know,
02:39where we are seeing more of that demand coming from definitely around the retail front, you know,
02:44that wanted to have that always on, you know, right size regulated product that is innovative.
02:50Can you give us any sense geographically where the demand is coming from, where the retail trade is?
02:56Are you seeing more of it coming from outside the U.S.?
02:58Are these primarily U.S.-based investors?
03:00Well, you know, in the metals front in general, metals as an asset class, the CME group is one of
03:05the most global asset class,
03:06where roughly about half of our trades comes from non-U.S. clients.
03:10In this case, particularly on the 24-7, I would say that is reflective of that for metals.
03:15So I would say that it's very much of widespread in terms of the client draw.
03:21I would say roughly about half of that come from the U.S.
03:23and then half of that, you know, come from non-U.S. client base.
03:26All right.
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