Hello, everyone. Thank you for joining us, and welcome to Marex's First Quarter 2026 Earnings Conference Call. Operator provided instructions on how to ask a question. I will now hand the conference over to Adam Strachan, Head of Investor Relations. Please go ahead.

Good morning, everyone, and thanks for joining us today for Marex's First Quarter 2026 Earnings Conference Call. Speaking today are Ian Lowitt, Group CEO; and Rob Irvin, Group CFO. After Ian and Rob have made their formal remarks, we will open the call to questions. Before we begin, I would like to remind everyone that certain matters discussed in today's conference call are forward-looking statements relating to future events, management's plans and objectives for the business and the future financial performance of the company that are subject to risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are referred to in Marex's press release issued today. The forward-looking statements made today are as of the date of this call, and Marex does not undertake any obligation to update them. Finally, the speakers may refer to certain adjusted or non-IFRS financial measures on this call. A reconciliation schedule of the non-IFRS financial measures to the most directly comparable IFRS measures is also available in Marex's earnings release issued today. A copy of today's release and investor presentation may be obtained by visiting the IR page of the website at marex.com. I'll now turn the call over to Ian.

Good morning, and welcome to our first quarter 2026 earnings call. Thank you all for joining us today. Q1 2026 was a record quarter for Marex, materially above our prior record in Q4 2025 and somewhat above the top end of the profit range we provided at our Investor Day on March 26. This was a quarter of high exchange volumes and extremely elevated volatility, an environment in which we performed very strongly. Our performance is a result of both a supportive market environment, albeit one with significant potential pitfalls and the ongoing structural growth of our franchise, evidenced by new client acquisitions, customer balance increases and share gains. As you see on Slide 4, first quarter revenues grew 48% from $467 million to $692 million and adjusted profit before tax increased 59% to $153 million. This record performance includes the impact of a client default in January that we described at our Investor Day and which Rob will cover in his comments. We grew EPS by 55% to $1.52 with trailing 12-month EPS of $4.66. Return on equity was very strong at 34.4%, up 570 basis points. Adjusted PBT margin was 22%, up on last year's 21%. Importantly, and consistent with prior quarters, this performance was broad-based with all our businesses contributing strongly. Clearing had an outstanding quarter with high levels of client activity and new client onboardings. Market Making benefited from the elevated volatility and performed strongly, particularly in metals and energy. Agency and Execution also delivered a strong quarter, driven by volatility across energy and financial markets. Prime saw some modest negative impact on client balances from lower equity markets in February, but it was still a strong quarter, up materially over last year's. Underlying client demand remains robust and Q2 balances are at record levels. Solutions had a record quarter, driven by high levels of client activity and the investments we made in technology and platform capabilities last year are now clearly bearing fruit. As we described on our last call and discussed at our Investor Day, Q1 was a challenging environment for managing credit exposure. The small number of clients we mentioned who were illiquid but not insolvent as a result of the elevated volatility and price movements have now resolved their situations. And aside from the loss in January, we have seen no further material credit issues. Our record performance in Q1 was a result of both the supportive market as well as structural franchise growth. First quarter exchange volumes are up a lot, up 32% on Q4 and 24% year-on-year. Cleared volumes in March were around 25% above the record levels in April 2025, evidencing the operational resilience of the firm and the scalability of our platform. Volatility, as measured by the VIX, increased by 15% to an average of 20% for the quarter and 26% on average in March. Commodities pricing was up on average 13% on the fourth quarter and was over 20% higher in March, remaining at these elevated levels through April. This was a period of extremely elevated volatility within certain asset classes. In natural gas, at the end of January, we saw multiple days of 2 or 3 standard deviation price moves, which together represented a 1-in-35-year event with prices experiencing one of the largest 5-day rallies on record. We also saw significant volatility in oil markets through March with crude prices increasing by around 70% to well above $100 per barrel, which we navigated without any material client events. This backdrop is supportive for the business overall, driving higher activity in clearing, agency and execution brokerage and match principal as well as market making and solutions. Equity markets were softer in February, which impacted prime client balances, although overall markets remained strong over the quarter. Interest rates also remained supportive. Against that backdrop, we grew adjusted PBT 59% year-on-year and 33% on Q4, demonstrating that we are growing faster than our underlying markets. One of the clearest indications of structural franchise growth is in our clearing client balances, which I'll cover on the next slide. Clearing client balances grew to an average of $16 billion in the first quarter, up from $14 billion in Q4, and our run rate at the end of the quarter was above the average. This growth is a result of 3 effects. First, exchange margin requirements have risen to reflect the higher volatility and that increases balances. Second, we continue to win new larger clients. We are already ahead of our annual target for net new balances and our pipeline of large client opportunities for the rest of the year remains strong. And third, some of our larger trading clients are taking advantage of the current environment and increasing their margin balances with us. We expect balances to continue to increase, although the pace will likely moderate. Turning to Winterflood, which is included in our numbers for a full quarter for the first time within Market Making this Q1. The business has started strongly ahead of our prior expectations, and we see opportunity for margin expansion as we scale the business. Regulatory approval for the sale of Winterflood's custody business has been received, and we expect closing in the second quarter. Under the terms of the transaction, this will generate around $40 million of capital benefit. This will increase reported earnings for Q2 and creates equity, which will be deployed for growth. This is another example of our disciplined approach to M&A as we will have acquired Winterflood's market-making capability, which is performing strongly on the Marex platform at a material discount to tangible book value. We also completed a successful $500 million senior unsecured debt issuance priced 50 basis points tighter than our previous deal, and the deal was highly oversubscribed. We are becoming a regular established issuer in the U.S., and this further diversifies our funding while reinforcing the strength of our balance sheet. We continue to make progress with our proposed redomiciling to Bermuda, which we expect to implement in the second half of 2026. The proposal is subject to shareholder approval at our AGM on May 21 and subject also to regulatory approvals. To recap what I said at Investor Day, we believe this is the right structure for the next phase of our growth, aligning the group more closely with how the business is managed and enabling us to scale more effectively across regions. This also helps simplify the unintended complexity that comes from being a U.K. incorporated company, which is U.S. listed. We're very mindful of preserving shareholder rights and protections in the new structure. And critically, there will be no change to the underlying business model or operations. I'm pleased to share that April has continued the momentum we experienced in Q1. It is tracking above last year's April, which was a very strong month given last year's volatility and volume spikes. We are running above February's level of $38 million, but below March's exceptional $78 million. Turning to the outlook for the full year. While individual quarters are hard to forecast, our underlying trajectory, balanced growth, client wins, platform scaling is very positive, and we've had a very strong start to the year. As a signal of the Board's ongoing confidence in our growth outlook, we have announced an increased first quarter dividend of $0.16 per share. Now I'll pass over to Rob to go through the financials.

Thanks, Ian, and good morning, everyone. First quarter revenue grew by 48% to $692 million with growth across all of our business segments, driven by higher client activity and a supportive market environment. Total expenses increased by 44%, reflecting the higher revenues as well as ongoing investment to support growth, including the impact of acquisitions completed since the first quarter of 2025. As we've said before, our cost base remains highly flexible with around 55% of expenses variable and linked to performance. Adjusted PBT margin expanded to 22.1%, delivering a 59% growth in adjusted PBT to $153 million. Our adjusted return on equity remained very strong at 37.4%, and we grew basic EPS to $1.52 per share, up 55% on last year's Q1. This is an excellent start to the year. Looking at each business segment in turn, starting with clearing on Slide 9. Clearing revenues increased by 15% to $137 million, driven by record client balances and an increase in contracts cleared with heightened client activity throughout the quarter. Net commission income increased 30% to $88 million, reflecting higher client activity in a volatile market as well as our broadened product offering across the regions. Average clearing client balances increased to $16 billion from $12 billion in the first quarter of last year and up from $14 billion in the fourth quarter. This reflects higher margin requirements, new client wins and an increased activity from some of our larger trading clients, as Ian has already discussed. The material growth in balances drove an increase in net interest income to $68 million, more than offsetting the 70 basis points reduction in average Fed funds rates year-on-year. These revenue increases were partially offset by the natural gas client default Ian mentioned, which resulted in a total loss of $34 million in clearing. This included trading losses of approximately $28 million, driving trading revenue to negative $18 million and a credit loss provision of approximately $6 million. These were partially offset by lower variable compensation, around 20% within clearing and another 20% in control and support. Despite this loss, our strong underlying performance meant that adjusted profit before tax still grew 2% to $58 million, reflecting continued franchise growth, including new client onboarding and strong balance growth. Turning now to Agency and Execution. Revenue increased 35% to $322 million, driven by broad-based revenue growth across both securities and energy. Securities revenues increased by 42% to $214 million driven by market share gains in equities, increased client activities in rates and continued momentum in FX following the integration of Hamilton Court, which is performing very well and adding new clients. Prime revenue grew 41% year-on-year, reflecting the continued strong client demand for our services, although Prime revenue was down on the back of a very strong fourth quarter. This reflected more mixed equity markets in February, as Ian mentioned. However, our pipeline remains strong. Energy revenue increased 20% to $106 million, reflecting strong growth across the business. Performance benefited from weather-related disruption in the U.S. in January and heightened volatility following the conflict in the Middle East in March, both of which contributed to record energy revenues for the quarter. Overall, adjusted profit before tax increased 61% to $91 million, with margins expanding to 28%, reflecting growth in higher-margin activities, particularly Prime. Market Making revenue grew 164% to $140 million, driven by an exceptional performance across the business, particularly in Metals and Energy. Metals had a record quarter with revenue more than doubling to $65 million, driven by increased volatility and strong client activity. Energy revenue increased more than 3x to $32 million, reflecting elevated hedging activity from clients, driven by volatility from the conflict in the Middle East. Securities revenue also increased 127% to $33 million, reflecting the inclusion of Winterflood following its completion in December with the business performing strongly. Adjusted profit before tax increased to $56 million with margins expanding to 40% as strong revenue growth more than offset higher front office compensation and the additional headcount following the Winterflood acquisition. Finally, Solutions, which delivered another record quarter in Q1. Revenue more than doubled to $93 million, reflecting growth across both financial products and hedging solutions. Hedging Solutions revenue increased to $36 million, driven by higher client demand for hedging products across both commodities and FX amid the high volatility in the market. Financial products revenue also increased to $58 million, reflecting continued strong structural products issuance volumes, supported by the rollout of our new technology platform last year. Adjusted profit before tax increased nearly threefold to $33 million as margins improved significantly to 35%, reflecting strong operating leverage in the business. Turning now to net interest income at the group level. First quarter 2026 NII was $41 million compared to $53 million in Q1 2025 as higher interest expense more than offset the growth in interest income. Interest income grew by $17 million, reflecting materially higher average balances of $22 billion, which more than offset a 70 basis point reduction in the average Fed funds rate. However, higher interest expense related to the group's $500 million senior debt issuance in May 2025 and structured note issuance in solutions brought net interest income down overall. As we've said previously, we continue to hold significant liquidity headroom. Whilst this creates a modest near-term headwind to group NII, it is a deliberate choice that we view as an insurance cost that strengthens the balance sheet and positions us to support clients and pursue future growth opportunities. NII increased by $15 million compared to the fourth quarter, predominantly due to the $2 billion of growth in clearing client balances in the first quarter. Looking now to our balance sheet, which I covered in detail at our recent Investor Day. As you remember, one of the distinguishing features of our firm is that around 80% of our balance sheet is directly driven by client activity, which is highly liquid and essentially self-funded. This quarter, total assets increased to $36.5 billion at the end of March, driven by growth in clearing client balances. After netting client assets and liabilities, the remaining residual balance sheet primarily consists of corporate cash and other assets totaling $7.5 billion against group liabilities of $6.2 billion, including our structured notes and senior notes issuance. Turning now to capital and liquidity. We continue to manage capital and liquidity prudently, maintaining substantial headroom above regulatory requirements to ensure resilience across market environments. At the end of March 2026, regulatory capital was $1 billion against a requirement of $403 million, representing a capital ratio of 253%. This provides a substantial buffer and supports our investment-grade credit ratings. Total corporate funding increased to $6.7 billion, up from $6.2 billion at year-end 2025, and we maintained significant liquidity headroom of approximately $1.4 billion. As Ian mentioned, we announced an increase in quarterly dividend to $0.16 per share for the first quarter to be paid to shareholders on the 3rd of June. Finally, closing with risk management. Average daily VaR increased to $5 million in the first quarter, reflecting the extreme levels of volatilities in the commodities market and set against a trading profile that included a higher number of days generating over $2 million of revenue with only 6 negative trading days. This remains at a very low level relative to the performance delivered by Market Making this quarter, reflecting the client flow-driven nature of our business. In terms of credit risk, we had no realized credit losses in the quarter. Now I'll hand you back to Ian.

Thanks, Rob. In closing, we are 2 years into life as a public company and have consistently delivered. Every quarter has been ahead of the same quarter in the prior year with growth averaging well above our stated long-term guidance. Quarterly earnings have increased from around $55 million pre-IPO to over $150 million in the first quarter of 2026. The opportunity ahead remains substantial and exciting. High barriers to entry, structural shifts in bank focus and the increased demand for our services create a long runway for growth, and we are better positioned to capture it today than at any point in our history. On margins, the combination of AI-driven productivity, a growing proportion of earnings from high infrastructure businesses like clearing and Prime and the operating leverage of the platform gives us confidence in continued margin expansion over the medium term. The consistent growth we are delivering is not a function of any single market environment. It is the result of the platform we have built, the clients we serve and the organization we have built over many years. 2026 has started extremely well, and we're excited about our prospects for the rest of the year and the future. With that, I'll hand it over to the operator to open the line for questions.

Operator provided instructions on how to ask a question. Your first question comes from the line of Chris Allen with KBW.

I wanted to start with April and the commentary that it's tracking above last year. Could you help us understand what April looks like from an organic perspective, since last year's comps weren't easy? And what's the incremental impact from inorganic activity or from building out different capabilities and segments?

Sure, Chris. Thanks. So look, as we mentioned, we did have a strong April. The backdrop here is, as you'll be familiar with, exchange volumes were down on March as well as the first quarter. So no sense in which those extremely elevated exchange volumes have maintained themselves nor would we really expect that. But notwithstanding that, we do have an April which is stronger than last year and it has been a strong month. The opportunities in market making are probably somewhat lower just as the market is pausing some amount. But what we are seeing is real interest in Prime. The clearing volumes are up and the clearing balances are up. Essentially, the diversified platform is working out. We are seeing nice contributions from some of the acquisitions that we closed last year. So Hamilton Court, in particular, has had a very strong April. The business is performing as we would hope, not at the levels of March, which I think were somewhat unsustainable over the longer term, but certainly very strong performance in April. And that gives us confidence for the second quarter as well as for the rest of the year.

Got it. And just as a follow-up, maybe we could dig into financial products a little bit more. Obviously, you've seen a really nice growth trajectory here. You know the impact of the new tech platform. Maybe you can just discuss whether there's specific client opportunities here, regional opportunities. Any additional color would be helpful.

Yes. No, certainly. Look, as you mentioned, we did invest a lot last year in upgrading our technology and infrastructure platform, which enabled us to support a much larger number of products and be able to bring products to market more swiftly. In addition, we've been consistently investing in building out some of the regions. Certainly, with financial products, there's been a lot of take-up in Asia. And then although it's very early days, we've been investing in the U.S. markets. While those are not really relevant in the first quarter numbers or even in April, we actually have a lot of confidence that that's going to deliver. So what's really going on, I think, is just the output of a lot of effort to invest. Undoubtedly, the market environment in the first quarter was helpful for that particular business. But I think that most of what it represents is just the ongoing investments that we've been making in the product. It's going to be hard to maintain the growth rate that we saw in the first quarter, but we still see it as likely to perform very strongly through the rest of the year.

Your next question comes from the line of Alexander Blostein with Goldman Sachs.

I wanted to start with a question around operating leverage, really strong margin, 22% in the quarter. Obviously, the revenue environment was very helpful and the sources of revenue growth have contributed to that. But curious if you could expand on ability to sustain these type of margins for the rest of the year as the environment perhaps kind of normalizes a bit? And then ultimately, as you look forward, what the scope is for incremental margin expansion over the next couple of years?

Yes. Look, I think that as we indicated at Investor Day, we do think that the way in which we're growing is likely to increase the margins. We expect that our growth will be differentially in infrastructure-intensive businesses like Prime and Clearing and those, I think, to naturally increase margins. Over time, I think that we will start to see more economies of scale. At the moment, as we've grown, we've grown to diversify by adding new products and new geographies. Over time, I think more of the growth will be by getting bigger in things we're already in rather than simply adding new things. That lends itself to higher margins. And then although it is not reflected in the numbers at the moment, I think over a period of time the potential for AI to enable us to do functions better and more efficiently, and potentially reduce some costs, feels like it's very early in a long game. The combination of all those things puts us in a position where we're pretty confident that over a 3-year horizon the margins are likely to be in the mid-20s, somewhere in and around there. As we look at this year, we think that continuing to operate at these margin levels is quite plausible and feasible. Again, first quarter was not a quarter where we had particularly strong Prime versus Q4, and for the rest of the year we actually anticipate that Prime, which is a very high-margin business for us, will be growing. So I think maintaining the margins at these levels and then seeing them grow over the next 3 years to something like mid-20s is a sensible expectation.

Great, super helpful. For a follow-up, I wanted to ask about the corporate actions you announced. First, are there any business implications from redomiciling, such as incremental operational efficiencies or capital benefits? And second, with your authorization and the share buyback coming up in May, how are you thinking about using buybacks as part of the company's overall growth strategy going forward?

Sure. With regard to the redomiciling, we're very explicit that it's not changing the operating model. It's really about the location of the holding company. It will mean that we will have four regional holdcos, and I think that will promote the right longer-term structure and focus for us. It is not likely to be motivated by capturing capital efficiencies. While I think there will be some operational efficiencies, we expect them to be relatively modest. They will mostly arise as a result of the complexity of operating as a U.K. domiciled company with a U.S. listing. That complicates a variety of matters, including compensation and other things, and typically involves a lot of legal work to ensure that arrangements meet various requirements. So I think we expect relatively modest improvements in operations. We're not doing this for tax reasons. We remain U.K. tax domiciled. We don't anticipate capital advantages, but it is consistent with where we're looking to evolve the firm, and there will be some limited cost savings as a result of it. On share buybacks, I think people are aware that we don't have an authorization currently. We want the ability to buy back our stock if it's sensible for us to do so. Particularly when we saw the stock drop last year, the question was whether we should have been able to buy back our stock. This doesn't represent a shift in our view of our capital allocation priorities, which remain ensuring we can maintain our investment-grade rating, maintaining the dividend and using excess for acquisitions. As long as we're seeing acquisitions at attractive prices, we think that's the best way to create value for shareholders. But operating in a world where you don't even have that authorization seems to us to be an error. We're hoping to get authorization from our shareholders to enable us to buy back stock if it is necessary or the Board feels it is sensible to do so.

Your next question comes from the line of Bill Katz with TD Cowen.

Just coming back, I just want to make sure I understand the April framework. I was wondering if you could unpack that a little bit. I joined a moment late, so I apologize if you covered this busy morning. I heard that April is looking somewhere between February and March. I was wondering if you might be able to unpack that a little bit further. Obviously, a pretty wide spectrum underneath that. And maybe what you're seeing just in terms of client behavior, client margin balances and within that, any sort of shift in risk just given the loss in the January month?

Okay. So look, I think that as you point out, the range between February and March is quite large. To give everybody a sense of where within that range we are: if we were able to continue the rest of the quarter at the level of April, I think we'd be in and around what we did for the first quarter in aggregate. What's underpinning that strong performance is client balances have been very strong, supporting our clearing businesses. We've seen a great deal of interest in the Prime product, and that's certainly been helpful. There is retrenchment in the marketplace generally from some market makers in certain commodity products. While spreads remain quite wide, volumes are somewhat lower there. So while revenues are quite strong, they're not at the levels that we saw in March. We're certainly not seeing increases in risk. We're not seeing concerns with credit; as I indicated in the remarks, those situations have essentially resolved. So it is indicative of ongoing strength in the franchise and the progress we're making with clients.

It was one long question, just following my peers. Second question for you is just on deals. At the Investor Day, I think you had mentioned that the pipeline is pretty robust. I was wondering if you could give us an update on maybe how that pipeline has progressed since the Investor Day and maybe frame out the size of opportunities and what specifically you might be looking at?

Sure. Since the Investor Day, some of the companies we've been talking with have progressed positively. We're closer to reaching terms on those or completing diligence. That feels like we're making good progress. We expect to be able to deliver very comparable levels of acquisitions in aggregate as we did last year. Acquisitions in the clearing space and in market making are likely to complete this year. In aggregate, it's likely to have a very comparable impact to what we saw in 2025, maybe somewhat more. We're pleased with how that is progressing. We're able to increase diversification, particularly geographically. One of the acquisitions we're looking at is in Asia, one is in Brazil, and some are across regions. They're probably focused on clearing bolt-ons like the Aarna acquisition, but it's essentially a range of acquisitions which will strengthen all parts of our business.

Your next question comes from the line of Alex Kramm with UBS.

Just digging a little bit deeper in, I think, the first answer you just gave to Bill and specifically on the energy trading environment. We know that it's a little bit softer. And this is not just a Marex, but also an industry question. So I think you mentioned market makers maybe a little bit less active. There were some well-documented losses in the space, not the one that impacted you, but just in general, some of the larger trading houses and macro funds. So just wondering what you're seeing out there? Anything that makes you worry a little bit more than usual after these kind of volatile quarters? And maybe any expectations when you think things will be ramping again and even any signs of things ramping already again?

Yes. I think what we're seeing is less activity from pure traders and some market makers and ongoing engagement from participants that are buyers or consumers of the commodity itself. In these environments, margins on transactions tend to be higher but volumes lower. When those market makers or speculative capital return to the marketplace, I couldn't really say when. But those participants who are buyers or consumers are quite active in hedging in an environment with this much volatility and uncertainty. That's what we're seeing. It's most pronounced in energy, with some impact in metals as well. So somewhat less activity, but spreads are wider, which helps offset the impact of lower volumes.

Okay. Very good. And then maybe more in terms of growing the franchise with new client onboarding. You made some comments already. Maybe you can be a little bit more specific. I think at the time of the Investor Day, there was a really big pipeline of some, I think, near-term large onboarding. So just wondering, have a lot of those now happened? And then with maybe that behind us, how would you describe the kind of pipeline over the next couple of quarters? Any specific comments around clearing and prime where it matters the most?

I think the good news is we did onboard some of those larger mandates. The pipeline remains quite robust over the next several quarters. The clearing pipeline has a great deal of visibility because people work on these arrangements for many months, sometimes quarters, so you have a rich sense of it. The good news is it's being realized about as we would expect. Over the subsequent quarters, there are still a number of interesting clients that should come onto the platform. Customer balances being up about $2 billion reflects both existing clients increasing balances and new clients. We expect that level of activity to increase over the course of the year, albeit perhaps not at the same rate. With regard to Prime, there was a dip in February as the market dipped, but that business is now operating at record levels and has a robust pipeline for the rest of the year. It offers diversification when exchange volumes come down, as we saw in Q3 last year. We're seeing the positive impact of Prime in April and expect that to continue into Q2 and beyond.

Your next question comes from the line of Dan Fannon with Jefferies.

Just wanted to talk about some of the recent acquisitions and their contribution that you mentioned, Hamilton Court and Winterflood. Can you talk about how those have tracked as they've been onboarded versus expectations? And then remind us if there are any cost benefits that maybe still could come through to think about margin enhancement as those businesses continue to scale?

Sure. Hamilton Court is performing very strongly; it may actually operate at a level almost double what it was prior to acquisition. We're really pleased with how Hamilton Court is operating. It's an example of taking a strong business and putting it on the Marex platform where it benefits in terms of hedging, terms of trade with counterparties, ability to generate liquidity, and client comfort. That has created considerable scope for growth. With regard to Winterflood, it closed in December. The sale of the custody business to Epiris, now that regulatory approval has been obtained, will be happening this quarter. The revenue performance of that business is strong and ahead of what it was prior to acquisition. We need to complete the splitting of the business into the market-making piece and the custody piece and complete the Epiris sale. At that point, we believe there will be some opportunity for margin expansion. We indicated that we thought Winterflood would get to 20% margin; it's operating below that. So there is some scope for margin expansion within Winterflood as we change the support model and capture synergies available through Marex.

Understood. Okay. And then following up on some earlier comments, just on the hedging and investment solutions business, which continues to be on a really robust growth rate. Can you just maybe frame what is the best backdrop for those products to be sold and adoption? Clearly, we've been in a volatile one. I just want to make sure I understand kind of the macro components that increase or drive demand or we shouldn't think of it that way? It's just more of what you guys are doing in the blocking and tackling and executing.

I think it's a combination of those two things. The business comprises two elements: OTC hedges for clients and structured financial products. The more volatile environment creates more requirement for people to hedge commodities exposures, which helps the hedging business. For financial products, higher volatility and increasing or stable equity prices are a helpful backdrop. The improvement quarter-on-quarter and year-on-year in that business is a function of both a supportive environment and structural improvements we made in the business. The investments in infrastructure last year are significant. They free up senior management bandwidth and allow us to offer more products and bring them to market more swiftly with confidence around controls. Investments in staff and broadening geographically, particularly in Asia, have all contributed to a very strong quarter in that business.

We have reached the end of the question-and-answer session. I will now turn the call back to Ian Lowitt, CEO, for closing remarks.

Well, thanks, everybody, for joining us. Another really strong quarter for the firm, a record by some margin. It's obviously partly a function of an environment that was supportive for our business but it also reflects the ongoing improvements we make quarter-to-quarter, just improving how we operate, and that combination has delivered the record results. We're obviously pleased with how the business has performed in April, which is a less supportive environment, but one which we continue to perform strongly. And that gives us confidence for the second quarter, and it also gives us a lot of confidence for the rest of the year and beyond. So it's great to be able to continually come and describe record quarters to you all. And hopefully, we'll be able to continue to do that. Thanks, everybody.

This concludes today's call. Thank you for attending. You may now disconnect.