Abaxx Technologies (TSX:ABXX) Q2 2026 Earnings Call

0:00 Good day, and welcome to the Abaxx Technologies second quarter twenty twenty six earnings and business update call. All participants will be in listen only mode. For sell side equity analysts on the call with us today, there will be an opportunity to ask live questions following today's management presentation.

0:35 Please note that live questions will not be addressed until the Q and A portion of the call begins following prepared remarks. For those on the webcast, you may submit questions throughout the event by typing in the submit a questions box on your screen. Questions will be addressed after the formal presentation has ended. Please note that this event is being recorded. I would now like to turn the conference over to Tara Hayes, Director of Communications. Please go ahead. Thank you, operator. Good morning, afternoon or evening, depending on where you're dialing in from today. Thanks for joining us for our Q2 earnings and business update call. With us are Josh Crum, Founder and Chief Executive Officer Steve Frey, Chief Financial Officer David Greeley, Chief Strategy Officer Joe Reyes, Chief Commercial Officer

1:27 of ABX Exchange and Leah Wall, Digital Title Lead at ABX Technologies. The primary disclosure for today's call are our quarterly financial statements, MD and A and earnings announcement, which were released prior to this call and are available on our Investor Relations website at investors.abaxx.tech. This call is being webcast and an archived version along with the presentation will be available there shortly after the conclusion of today's event. Our discussion today includes forward looking statements, which are subject to various assumptions, risks and uncertainties and other factors that are difficult to predict and which could cause actual results to differ materially from those expressed or implied in the forward looking statements. Please find our full disclaimer and cautions regarding forward looking statements on the slide on screen. These statements are not guarantees of future performance and therefore undue reliance should be not placed upon them. We refer you to our earnings press release and SEDAR filings for a more detailed discussion of the risks and uncertainties that could impact the future operating results and financial condition of the company. We do not intend to update any forward looking statements made on this conference call to reflect events or circumstances after today or to reflect new information or the occurrence of unanticipated events, except as required by law. And with that, I'm going to turn the call over to David Greeley.

2:41 Thanks, Tara, and good morning, everyone. Thank you for joining us today. Abaxx Exchange celebrated its two year trading anniversary this quarter, and not coincidentally, it was the strongest quarter that Abaxx Technologies has reported to date. At its core, Abaxx is building one of the rarest assets in global finance, a fully licensed regulated exchange and clearinghouse designed to bridge physical commodity trading between East and West. Our operational execution remains at a high pace and multiple transformational milestones were completed during the second quarter that solidified the global foundations of our business, setting up years of scalable growth ahead. In Q2, we chose to accelerate our plans for scaling that growth towards our goal of $1,000,000 average daily volume in the next three to five years.

3:30 We raised capital and put it to work, expanding our sales team and building the initial liquidity in our markets that will attract commercial participants and as liquidity begets liquidity, will allow us over time to win these markets as the venue providing commercial participants with best execution on a number of global commodity benchmarks.

3:52 We can see the results of these efforts in our trading activity and financial results, which I will walk you through first, and again in the network building and commercial milestones, which I will review in our 2Q highlights. First, the results. Total volume reached 888,902 contracts and year to date trading volume surpassed 1,100,000 contracts in the second quarter, a sevenfold increase over the full year of 2025. Average daily volume reached 14,572 in Q2 and continued to grow into July, where it reached 34,136 contracts per day with single day volume on Abaxx Exchange surpassing 100,000 contracts for the first time on July 1.

4:42 Average daily open interest reached $6.41 in Q2 and continued to grow into July, reaching $11.19. And as we continue to advise investors to evaluate our trajectory on six month horizons, we're pleased to report our first half over half comparisons and daily trading commenced in mid-twenty twenty five, with a 613% increase in H1 twenty twenty six volume over H2 twenty twenty five. We expect this positive, though non linear growth to continue in H2 twenty twenty six. Looking ahead to 2027 and beyond, based on the continued expansion of our client network, new products, new markets, more trading hours and more trading regions, we remain confident in our trajectory to reaching our goal of 1,000,000 average daily volume over three to five years, which would imply maintaining 50% to 100% half over half growth.

5:40 Returning to our Q2 results, the increased trading activity generated $4,500,000 in transaction and clearing fees for Abaxx Exchange. These transaction and clearing fees covered the liquidity related credits to liquidity providers resulting in a small positive revenue.

5:59 However, this quarter's transaction revenue was not the goal. The goal remains to build the liquidity required for widespread commercial participation in our markets. As our transaction and clearing fees and liquidity related credits have grown into significant line items in our financial results, our CFO, Steve Frey, will be discussing how we are presenting these in our financial statements. Importantly, our deployment of these liquidity building programs, which are used at all exchanges, have worked as designed, deepening order books, establishing institutional scale liquidity for the first time in our markets, driving broader onboarding across clearing members, ISVs and brokers that will grow transaction and clearing fees from commercial participants.

6:47 In order to capitalize on this commercial interest and engagement and accelerate growth of commercial participation in our markets, we recruited to build out our sales team and scale our market development efforts. This increased our nat cash spend to $16,300,000 in 2Q compared to $12,300,000 in 1Q twenty twenty six and $13,200,000 in 4Q twenty twenty five and remain consistent with our steady long term trend of disciplined

7:17 budget expansion even as the company's trading and commercial activity scales more rapidly than our largely fixed cost base. Just as we continue just as we chose to increase spending this quarter, we retained the levers and flexibility to reduce cash spending in the future if required, including adjusting our spending plans for commercializing our MarketOS and ID plus plus technology and our exchange commercialization runways.

7:46 Including a non cash component of expenses of $12,400,000 the company reported a net loss of $28,800,000 for Q2 twenty twenty six compared to a net loss of $21,600,000 in Q1 twenty twenty six. We'd note that this noncash component includes an unrealized loss on derivatives of $6,100,000 caused by the effect of the decline in our share price on our outstanding convertible debentures. We raised capital, put it to work and are seeing results. Abaxx raised $69,000,000 during 2Q at a price of $54.25 per share. And as of 06/30/2026, Abaxx had $95,100,000 in cash and cash equivalents on its balance sheet, remaining a secure financial position to continue scaling our markets and completing a number of major milestones planned over the next four to six quarters of funded runway.

8:42 On our agenda. In the call today, we'll dig into our operational accomplishments and plans going forward. I'll review the key operational highlights from the quarter. Josh Crum and Steve Frey will then discuss our approach to capital allocation and how prioritizing investment to support commercial growth. Joe Ray and I will follow-up with an update on Abaxx Exchange, including the progress we're making in market development and participation. Finally, Leo Wald will discuss the commercialization of ID plus plus through MarketOS and milestones ahead.

9:14 Before discussing our second quarter highlights, I'll provide a brief update on the unfounded and meritless allegations advanced by Viceroy Research in a series of so called short reports issued between June eleven and thirty, twenty twenty six. Viceroy published these communications while disclosing a short position in Abaxx such that it stands to benefit from a decline in Abaxx's share price. The company has taken regulatory and legal action. We asked the Canadian Investment Regulatory Organization or CRO to investigate potentially manipulative or deceptive trading activity in Abaxx shares and we retained Paul, Weiss, Rifkin, Wharton and Garrison to investigate potential wrongdoing related to Viceroy's campaign and trading in the company shares and to assess all available legal remedies.

10:02 The Board directed the Audit Committee, which is comprised of independent directors, to conduct an independent investigation into the allegations. The Audit Committee retained independent legal counsel and a major international public accounting firm to assist in the course of the investigation. As outlined in detail in our MD and A, that review has found no evidence supporting the allegations. The process requires a substantial amount of time and is ongoing, and we will provide an update when it is complete. Finally, the Board believes the current market price does not reflect the underlying value of the company and on July 22 authorized a normal course issuer bid and automatic securities purchase plan, both of which became effective July 24 and remain in place. Purchases under the plan are intended to protect shareholders and the company's cost of capital from the effects of potentially manipulative trading activity associated with the campaign.

10:59 With that update, I'll turn to our second quarter operational highlights. I'll move quickly to leave space for the rest of the team to discuss these in more detail and provide the context for what each means for our business. At Abaxx Exchange, broader connectivity and growing liquidity are increasing the relevance of our markets to commercial participants. MarketOS advanced towards commercial implementation at Abaxx Clearing and towards third party commercialization outside the exchange. Our shares began trading on the Toronto Stock Exchange on May 21 after Abaxx had grown to become the largest company by market capitalization on Cboe Canada. We welcomed Yunghand International Singapore as our first Mainland China backed clearing and trading member, providing institutional clients across Hong Kong and Asia with direct clearing access to Abaxx Exchange.

11:50 Abaxx Exchange market data is now available through LSIG and Bloomberg, expanding our reach across the institutional commodity markets and creating another potential source of recurring revenue as our markets scale. We also launched Silver Singapore futures and NWEX German solar futures, bringing the Exchange's product suite to 18 contracts. Joe will provide more detail on these developments during the market update. We entered into a commercial agreement with Alta, our first Singapore integration partner to advance the use of money market fund shares as yield bearing T plus zero margin collateral at Abaxx Clearing subject to all regulatory processes. As software increasingly acts on behalf of firms, we also formed Abaxx Labs and released Agents plus plus extending seven years of work on globally resolvable identity infrastructure from humans to AI agents, so they can operate as verifiable extensions of the people and institutions that authorize them.

12:48 Our exchange and clearinghouse gives market OS of direct pass into regulated markets. In turn, the technology is designed to participation in those markets more capital efficient, support broader participation and help accelerate our path to 1,000,000 ADV. MarketOS also creates opportunities beyond Abaxx Exchange. During the quarter, we signed an agreement to support development of the Cambodian National Futures Exchange, creating a path to deploy the technology with third parties and extend its revenue potential beyond our markets. Leo will provide more detail on these developments, including a look under the hood during the digital infrastructure update. Now I'll turn it over to Josh and Steve.

13:34 Thanks, David, and thanks everybody for joining us today. We have never been more confident in this business. Q2 gave us the clearest evidence yet that the infrastructure that we had spent seven years building is converting into commercial market activity. Our prices are now available on more than 400,000 institutional screens through Bloomberg and LSEG. Order book depth and trading activity increased and that activity is accelerating institutional onboarding and strategic discussions around new commodity benchmarks from both commercial participants and interested governments across multiple jurisdictions.

14:09 Our commercial and executive teams have always maintained unparalleled access to global commodity clients throughout our careers, but there is simply no substitute for a prospective new trader or clearing member than being able to pull a live time series of trading data off of the Bloomberg terminal, LSEG, TradingView or one of our many live ISVs to discover market arbitrage opportunities and execute in our order books.

14:33 Abaxx's strategic position as an independent commodity exchange and clearinghouse sitting between East and West is also becoming more relevant. Our conversations across Washington, China and The Middle East reinforce the demand for sovereign global trading venue engineered with modern technology and contract designs to eliminate a number of systemic basis risks plaguing today's physical commodity supply chains.

14:58 Seven years into our ten year plan, the commercial case for Abaxx is stronger than it has ever been. The activity we saw in Q2 gives us greater conviction in the value of the exchange network, the benchmark opportunity in our markets and the revenue potential that comes with scale. As we update our market on our growth and development path going forward, I want to start with what I what we have already built. The infrastructure in place today, looking at our business from a sum of the parts or from the top down, has substantial strategic and replacement value even today before assigning any value

15:31 from the commercial upside of our individual markets from the bottom up. We have already worked through seven of the nine hard cold start problems, which can be seen in the company's slides. That work has created an increasingly difficult to replicate exchange and clearing network, even though much of that value is not reflected directly in our balance sheet, numbers today.

15:54 It also explains why we continue to invest in liquidity building programs, which Dave will expand on our market update. Liquidity turns connectivity into functioning markets, supports best execution and benchmark status, and strengthens the broader exchange and clearing network as those markets develop. We like to say that liquidity is an asset and best execution of the product we sell from that asset base. Looking ahead, we are excited we're executing against a defined set of milestones through year end and early twenty twenty seven that would further strengthen the value and earnings capacity of the Exchange and Clearing network. Walk through a few of these as bullets. Extended trading hours, expanding operational trading hours to match ICE and CB global session schedules.

16:43 Product suite expansion. Following the trading hours extension, we plan to begin launching products largely already developed in our existing pipeline with the potential to more than double our current suite over the next four to six quarters, subject to regulatory requirements. New asset classes. The expansion would also take Abaxx Exchange into new markets, including potentially oil, base metals and agriculture, materially broadening the range of commodity risk managed on the exchange.

17:13 Tier one bank onboarding. Onboarding the first major global bank clearing member transforms the clearinghouse credit profile and supports larger institutional positions going forward. Critical mass of Chinese onboarding. Completing onboarding for a critical mass of Mainland China related FCMs and commercial trading desks, expanding participation and clearing access across the region.

17:36 Physical deliveries. Executing first physical deliveries across LNG, lithium and silver to join what we've already seen in gold and carbon, validating contract utility for commercial participants and supporting durable open interest. Active trading in wind and solar, bringing additional utilities and trading desk participants into our wind and solar markets this fall, supporting daily trading, initial market making and liquidity development.

18:04 Non cash collateral acceptance, beginning live acceptance of yield bearing money market fund shares and vaulted gold as T plus zero margin collateral at Abaxx clearing using MarketOS and ID plus plus We believe we are still a few quarters away from being able to project guidance and breakeven for each product individually and for the exchange collectively, but we believe these final key infrastructure completions will put us in that position well before we would seek new growth capital from strategic partners or the equity markets.

18:35 Looking at our individual markets from the bottom up, we continue to prioritize liquidity and commercial participation over near term net fee capture. Dave will walk through the economics of that investment in the market update. We expect growth to continue in the second half of twenty twenty six. As we've stated in the past, our business is best examined through a lens of half over half infrastructure development and onboarding, and our outlook remains intact for 50% to 100% half over half growth in trading volumes over an extended horizon, consistent with our three to five year goal of 1,000,000 ADV.

19:09 We are already seeing the return on that investment beginning to show up in our precious metals markets. Based on current trading activity and client engagement, we now see a path for that complex to reach standalone breakeven and potentially begin carrying the Exchange's baseline operational costs from 2028.

19:27 Client conversations across The U. S, London and Asia were also reinforcing Singapore's role as a neutral precious metals hub. We continue to see major benchmark opportunities in LNG, lithium and VC carbon, as we've developed over the years, but precious metals can now become a core asset for Abaxx rather than a niche market share.

19:48 Our precious metals opportunity also gives you a good example of operating leverage in the exchange model. As much of this opportunity is a welcome upside surprise against our initial expectations for this segment. Our baseline operating costs across personnel, clearing, operations, regulatory compliance and cloud infrastructure are relatively fixed.

20:09 As trading volumes scale through the second half of twenty twenty six and first half of twenty twenty seven, incremental exchange fee revenue will be reinvested in liquidity provider programs and deeper order books. Investors should therefore not expect rising trading volume to flow directly to our net margin or bottom line over the next three to four quarters. We intend to deploy growth in transaction and clearing fees back into liquidity across our developing markets and we'll continue to update investors each quarter on the economics we're seeing.

20:39 As that investment drives liquidity, network growth and connectivity towards critical mass, we expect net fee capture per contract to inflect sharply positive, which we now believe should begin by the end of our funded runway. Even after completing a transformational financing in Q2, we continue to manage our runway against market conditions and the next stage of growth.

21:01 Management continues to have a significant ownership stake in this business. And with an owner operator culture, we have a long track record of disciplined budgeting, tight dilution and maintaining multiple paths to additional capitalization alongside a deep strategic investor base supporting this growth and vision.

21:21 Frankly speaking, we believe we should be investing much more in developing new products, growing contract liquidity and growing our valuable financial network into very large addressable markets across Asia and beyond on top of the infrastructure that we've already proven out and that is now scaling. Ultimately, our investment pace remains tied to our cost of capital and we will maintain the strict dilution constraints we have always imposed on ourselves.

21:46 For now, that means trading some speed for patients, including moderating the expansion we had planned for MarketOS go to market this fall. We will continue to assess the trade off between growth and dilution with our technology expansion budget remaining a lever to extend runway as our exchange breakeven horizon begins to emerge. And finally, I have one additional comment to share with you today. I'm pleased to update that Joe Ray has been appointed President of Abaxx Exchange. Joe is supported by Chief Business Development Officer, Russell Robinson and five new specialized commercial sales lead hires covering energy, metals and environmental markets across Houston, London, Singapore and Asia.

22:26 With that, I'll hand over, to Steve Frey to walk through a few notable detailed financial disclosures this quarter.

22:34 Thank you, Josh. This quarter, we completed our accounting assessment of payments issued under the market maker and liquidity provider programs at Abaxx Exchange, which are relatively new. That assessment resulted in two determinations affecting the presentation of our financial statement. First, we determined that the liquidity related credits to market makers and liquidity providers constitute consideration payable to customers under IFRS 15 and we recognize and should be recognized as a reduction of related fee income. As a result, we're presenting the payments we received as transaction and clearance fees and we are presenting the liquidity related credits paid to market makers and liquidity providers as a separate line item that is deducted from these fees before stating our revenue.

23:23 These liquidity related credits were previously presented within our operating expenses under travel, marketing and promotion. Secondly, we determined that delays in when market makers and liquidity providers were invoiced in the company for payments earned under those programs could result in the related payments being recognized in a subsequent period to the underlying program activity. As a result, these payment these program payments are now being recognized in the quarter in which they were earned rather than when we received and paid the invoice. In our financial statements and MD and A, we provided a table to clarify the impact of these determinations in the previously reported issued on audited income statement for the three months ended 03/31/2026.

24:11 As shown in that table, dollars 543,000 of program payments previously presented within the travel, marketing and promotion expense would instead be presented as a reduction in transaction and clearing revenue.

24:24 In addition, 1,300,000 of program payments relating to March 2026 would have been recognized in Q1 twenty twenty six rather than when invoices were subsequently received and paid. These changes had no impact on cash and cash equivalents or total assets. As of 03/31/2026, total liabilities increased and shareholders' equity decreased by 1,300,000 For the three months ended 03/31/2026, revenue decreased by $1,400,000 operating expenses decreased by $112,000 and net loss increased by $1,300,000 Because these programs are relatively new and there would be no significant change to prior quarters.

25:10 Regrettably, there are written errors made when incorporating these changes into our unaudited financial statements and MD and A. This resulted in Q2 twenty twenty six operating expenses being overstated by $1,300,000 As corrected, Q2 twenty twenty six operating expenses were $19,200,000 when compared with restated operating expense of $15,000,000 in Q1 twenty twenty six. This makes the actual growth in operating expenses $4,200,000 or up 28% from Q1 twenty twenty six.

25:46 The balance sheet was accurate as presented for Q1 twenty twenty six and Q2 twenty twenty six. The income statement was accurate as presented for H1 twenty twenty six, but not for the individual quarters. We have reviewed our processes and controls and have made changes to prevent a recurrence. These errors were corrected over the weekend before the markets opened, reviewed by external auditors and we

26:14 refiled our financial statements and MD and A for Q2 twenty twenty six. These are available on SEDAR and on our website at investors.abaxx.tech.

26:29 Thank you, Steve. Before we move on, I want to acknowledge that as CEO, those errors are ultimately on me. Our shareholders are entitled to accurate disclosures and the controls, change Steve outlined is designed to prevent a reoccurrence.

26:45 We also want to thank the team and the Board. The last two months have been demanding and the team continued to build relentlessly. We have enormous talent and experience across the company and a team that understands both the opportunity in front of us and the work required to capture it. I'll hand it over to Dave to begin walking through what that work looks like.

27:07 Thank you, Josh. In our 4Q twenty twenty five earnings call on April nineteen of this year, I discussed how we look to capture generational opportunity to build the new commodity benchmarks for the next decade and beyond. Two years after the launch of Abaxx Exchange, we're a good way down the road. We built the exchange in clearinghouse, launched 18 products and we have connected a robust network of clearing firms, ISVs, data distributors, brokers and traders. And while we continue to connect and onboard

27:39 new partners, we are focused on driving volumes and liquidity in our individual product markets up the S curve from being new to mature markets. The nature of a market is that it is the network and so it becomes more useful to each trader as more traders participate. The first participants in a market are taking real risk, but they will not be able to enter and exit trading positions. The solution to this problem adopted by exchanges has long been to compensate the early participants

28:11 who take this risk, the liquidity providers, who provide the initial liquidity that enables commercial participants to trade. And so what we typically see as trading activity and participation moves up the S curve is that the revenue per contract, the transaction and clearing fees less the compensation to these liquidity providers often begins low or negative, then climbs up over time on an S curve of its own.

28:38 It's important to note that the liquidity of an exchange's markets is an important competitive advantage. A bad liquid contract will often beat a good illiquid one. And so it's important to not view liquidity programs as a necessary evil, but as a tool for developing and retaining a competitive advantage. We see this today at other exchanges. On May 29, ICE, the Intercontinental Exchange launched a new liquidity provider program to make their CORSEA Phase one market more competitive. And the Hong Kong Exchange introduced a new liquidity provider program as it seeks to revive its gold futures market in Hong Kong. Consequently, while we expect fee revenue from commercial participants to lift our revenue per contract up its S Serve over time, we expect these programs to continue because we see these programs as an investment, an investment in the liquidity and competitiveness of our markets, not an expense to try to drive to zero.

29:36 That said, let's discuss the nature of the investment we are making in building liquidity in our markets and how by overcoming the cold start problem, we expect to create a return on that investment. As you'll see on the slide, it all begins with building network connectivity for traders through their clearing firms, brokers and ISVs, and then using market making and liquidity provider programs to build that initial liquidity in markets. Then the wheels begin turning. Liquidity begets liquidity as more trading participants are attracted to the market by those already trading. The trading activity creates business opportunities for more clearing firms, brokers and ISVs leading them to connect to our exchange.

30:24 Their increased connectivity provides access to more traders who can enter the market creating more liquidity and trading activity and those two mutually reinforcing cycles drive the market up the S curve to maturity. While the liquidity programs require funding, this investment ultimately generates returns through three channels. The trading activity generates transaction and clearing fees for the exchange. The increased connectivity raises the network value of the exchange and clearinghouse. And the trading activity creates valuable market data, including pricing benchmarks from which the exchange can earn market data fees. One item I haven't discussed is the role of margin financing, which can be a very important means of helping commercial hedgers to use the exchange.

31:15 While I won't go into detail here, I will note that our work on the technology side to advance the use of digital collateral performs effectively the same role, lowering the cost of collateral and helping to drive commercial participation. And with that, I'll turn it over to Joe to update you on how these dynamics are playing out in our markets. Over to you, Joe. Thanks, Dave. This next slide shows how much our connectivity network has expanded over the past year. As we talked about earlier and a year ago, much of our work was focused on establishing those core connections. In fact, the Bloomberg and LSEGrefinitive connectivity took almost two years of hard work from the Abaxx data and ops team. Today, Abaxx Exchange is connected to seven clearing firms, over 20 interdealer brokers, five licensed data distributors, including the leading global providers, five exchange ISVs, two settlement banks and more than 100 trading firms.

32:16 We made several important additions to that network during the quarter. With LSEG Refinitiv and Bloomberg now distributing our market data, Abaxx prices are available across all major global commodity futures, ISVs and data distributors. And in early July, we went live with our carbon and LNG markets on mStream, a boutique OTC broker electronic platform that has an incredibly dedicated following of commercial firms. Several firms have already asked to onboard as a result of the Abaxx liquidity shown on that screen. Again, as we keep saying, market maker liquidity attracts commercial requests for access with those commercial firms paying full rack rate of exchange fees. As Dave and Josh both mentioned, we also added Yong'an Singapore as our first, but not last, Mainland China backed clearing and trading member, expanding direct clearing access to ABX Exchange for clients across Hong Kong and Asia.

33:13 That access is particularly relevant in LNG and lithium and gold and silver, where Yangon is seeing client interest as China's commodity markets become more accessible to both Mainland China and its international participants. I would strongly encourage shareholders to listen to Dave Greeley's August 8, Smarter Markets interview with Young Singapore CEO, Josh Shao, for a direct perspective on why they chose Abaxx Exchange. An additional note on Yong'an, they executed and cleared for their first trade, our GKS gold market trade at the end of last week. With the commercial team expanding during the quarter, we are increasing our coverage across key regions to continue adding clearing and brokerage access globally so that our growing network of global customers can better manage their market risk with our rapidly expanding product suite.

34:03 India continues to be a fantastic source of new liquidity for us, and we have been paying particular attention to developing those key relationships in that important region as their percentage of volume continues to grow. This next slide does give a great visual on the growth of the Abaxx overall market liquidity. In Q2, as we talked about earlier, total volume reached 888,902 contracts, up 276% from Q1. To put that in perspective, volume in Q2 alone exceeded our total volume for all of 2025 by more than 450%. Average daily volume reached 14,500 contracts per day, nearly four times the Q1 level, and then ADV increased to 34,136 contracts per day in July.

34:56 Average daily open interest increased from two eighty contracts in Q1 up to six forty one in Q2 and then again to eleven ninety nine contracts in July. Certainly, interest does capture positions that remain outstanding rather than simple contracts trading during the session. And commercial firms consistently tell us that sustained open interest is one of the metrics they watch when deciding when to participate more actively in a market. These commercial firms also equate equally focused are equally focused on market liquidity, which they say the FX markets clearly are showing growing. July total exchange volume just for the month of July reached 785,129 contracts, more than double the June volume.

35:42 But markets are cyclical, so we don't expect activity to increase in a straight line every month. July was incredibly strong, but our focus remains on building sustained liquidity and commercial participation over time. Our new physically deliverable silver contract, the first of its kind in the region, only launched on May 22, but traded a total of 107,477 contracts before the end of Q2. We designed the contract around 4.9 Silver, the high purity silver required for industrial manufacturing. Based on feedback from commercial customers in the region and initial performance certainly reinforces our conviction in that design as silver volume alone increased another 80% in July over Q1 volumes.

36:28 Participation in our gold futures markets also continued to build. Q2 volume reached 630,000 contracts, up 287% from Q1, and July volume increased another 188% from June. As our Gold Singapore market has gained traction, we've seen the broader regional market moving in the same direction with established Asian exchanges renewing their focus on regional gold benchmarks. That renewed focus is opening new opportunities to trade basis and arbitrage across regional gold markets, while further validating the market need we identified when we launched GKS. In our global LNG benchmarks, combined Gulf Of Mexico and NPA volume reached 121,000 contracts in Q2, up 102% from Q1.

37:20 In April, trading represented the equivalent of more than 110 full physical LNG cargoes. And NPA, our Asia contract, at one point represented more than 40% of the JKM volume. In September, Abaxx will be the sole exchange sponsor at the annual GasTech Global Gas Conference in Bangkok, also hosting an LNG Japan Energy Leadership Roundtable with some elite senior LNG market trading firms and NGO and government entities. There are over 50,000 people that annually attend GasStack, and Abaxx will be represented and play a prominent role again at that conference. Straightforward recently highlighted Gulf Of Mexico as a new FOB benchmark independently reinforcing the market need for a transparent LNG price anchored directly to the point of The U. S. Export.

38:13 And speaking of TradeBoard, as of early July, there were over 20 specific commercial firms and over 75 individual traders that had requested access specifically to Abaxx Markets on the Trayport Jewel platform. These firms include large bank trading desks, European utilities and merchant energy firms. And also just today, we had another request to forgo live access for one of those large European merchant trading firms. It proves the point again fully that liquidity begets liquidity and that market making programs attract commercial firms, which generally pay full rack rate and exchange fees. Our pipeline of new products includes innovative contracts across energy, environmental markets, agriculture, base metals and precious metals developed around specific risk management needs we hear directly from commercial participants.

39:04 The investment in our team, our data distribution, execution, clearing, brokerage, trading relationships and initial liquidity Josh and Dave outlined compound with each new contract launch. Each addition to our product suite supports the contracts already trading, while each new product makes the network more usable more useful to participants. Our oldest contracts are only two years old, within the three to five development periods we've outlined. Those investments are delivering the market development we expected and derisking the path to our target of 1,000,000 ADV. We have launched 18 net new contracts in two years, and the network we've built gives the next products more clearing access, distribution and trading relationships as they come to market.

39:50 Our commitment to solving hard problems in commodity markets continues to attract new talent to our product development team in Q2, including professionals from CME and commercial energy firms, expanding both our market expertise and our capacity to translate those needs and turn them into new contracts and markets. Now I'll hand it over to Leah for an update on digital infrastructure. Over to you, Leah. Thanks, Joe. Everything in a clearinghouse is an identity question. Who authorized this trade? Who holds this collateral? Who's entitled to act right now? Each one is slow and expensive to answer today, and that cost often shows up as collateral sitting idle. Abaxx started there seven years ago, building ID plus plus to give people and institutions control over their identity, permissions and data.

40:42 MarketOS is the application suite on top of it and every application on that page inherits the same identity layer, which is why each one is stronger and cheaper to build than the last. We also have something most technology financial technology companies don't, our own regulated exchange and clearinghouse. So we build to specification rather than guessing at what a central counterparty clearing needs. We've been working hard building and shipping. This quarter, Verifier shipped new releases in both app stores and we completed important work on Abaxx One, which is designed to connect a firm's existing enterprise identity environment to ID plus plus We work from a simple commercial premise, which is that firms shouldn't have to replace the systems their people already use to adopt ours.

41:32 Identity should travel to where the work already happens, not the other way around. For the time we have left today, I'm going to focus on our tech work in real time collateral, because it shows most directly how MarketOS improves the economics of trading in Abaxx's markets. Now let's walk through this backdrop. Cash margin is a solved problem. A call goes out, the clearing firm collects clearinghouse can recognize it immediately. Before a clearinghouse can recognize non cash collateral margin, it needs current evidence of ownership, eligibility and control. Today, that information sits across fund administrators, custodians, transfer agents and other third parties, each one operating on a different system and a different timeline.

42:17 Members compensate by holding more cash, that cash earns a negotiated rate at the FCM and that's fine as far as it goes, but it isn't the return on the asset the member would rather be holding. The member gives up that difference every day across very large collateral balances because the collateral cannot be recognized fast enough. And that's the cost we're going after. IB plus plus proves the cryptographic controls behind MarketOS, which connects to the existing systems of records and captures the state changes the clearinghouse needs to see in real time. So rather than each party learning about a change at a different moment, they all see the same event at once, signed, attributable and independently verifiable. The adage I grew up with in this space was don't trust, verify.

43:04 Trust isn't something you ask for at the start. It's what you're left with once everyone can verify for themselves. We've been deliberate about what we didn't want to build. Clariant firms are comfortable with their customers' credit. Otherwise, they wouldn't be customers. But we didn't build a credit tool. We built an evidence tool. And real time evidence is what can allow Clearinghouse to recognize collateral without waiting to be told what's true. The popular version of trying to solve this problem has been to tokenize the asset itself, turn it into a bearer instrument and move it onto a blockchain. That creates two problems for a risk manager. First, a bearer instrument means whoever holds the keys holds the asset. And most of the largest losses in digital assets this year have been key custody failing, not cryptography failing.

43:54 When a key goes, so does the asset. Second, the legal question. And this isn't just us saying it. The SEC and the IMF have both flagged the same gap this year, that in many jurisdictions, a token is a claim on the issuer rather than on the asset, which can leave you as an unsecured creditor in a bankruptcy. Both point to the same fix, legal certainty harmonized across jurisdictions. There's been real work done here and I don't want to dismiss it. It may well get there. We just don't think clearinghouse should have to wait and we don't require any of it. We've built MarketOS to work with the existing system of record. So the same infrastructure can support a money market fund share, vaulted gold or commodity in transit. Each has different custody, title and settlement mechanics.

44:40 Each requires current verifiable evidence of ownership control and status. Each additional asset class draws on the same infrastructure, which is powerful because it then becomes a distribution question. And Dave mentioned Agents plus plus which extends that same identity and permission framework to software agents. Via Abaxx One, it has a path into the fuller MarketOS suite, so a firm coming to us for collateral efficiency can make progress on AgenTic automation too. We're continuing to develop our MarketOS work into the three commercial applications we isolated as having the most potential and supporting our clearing business: money market fund collateral at Abaxx Clearing, stored commodities and commodities in transit.

45:26 First, we're working to establish money market fund shares as tZERO collateral at Abaxx Clearing. Alta is appointed fund manager of the Singaporean BCC with a money market fund sub fund and Abaxx Clearing aims to accept those shares in that fund as eligible margin subject to completing the applicable regulatory processes made possible by Digital Title. Second, stored commodities. We have demonstrated in our previous pilot that vaulted gold can serve as collateral while remaining in existing custody. That can reduce the cost and operational complexity of transferring physical inventory and put more of the asset to work. We are now validating that structure with bullion banks and commodity lenders with the same approach applicable to other stored commodities.

46:14 Third, commodities in transit. When lenders can't independently verify what their financing, credit tightens and financing costs rise. Digital Title is designed to give traders and lenders a current verifiable record of the cargo, including changes in ownership and control. That gives lenders better visibility into the asset they are financing and gives traders stronger evidence to support access to credit. Minehub is our partner in taking that application to market, and we're working towards validation with commodity market participants and ultimately live institutional use. Collateral friction is a key reason firms stay with incumbent venues and every piece of it we take out improves the economics of moving to Abaxx and supports the smarter markets vision Josh described.

47:03 Across our industry, exchange groups are spending billions of dollars buying their way into technology and infrastructure. And capital can buy a platform, but it can't compress the seven years we've spent solving the identity verification problem to bring MarketOS to market. MarketOS gives us a capital efficiency advantage in our own markets and a commercial opportunity beyond them. And with that, I'm going to hand it over to the operator, so we can start the question and answer. We will now begin the sell side question and answer session. To withdraw your question, please press star and then 2.

47:49 For those on the webcast, you may submit questions by typing in the submit a questions box on your screen. At this time, we will pause momentarily to assemble our roster. Our first question comes from Itian Ricard with BMO. Please go ahead. Okay. Thank you and good morning. On the liquidity provider programs, I understand the rationale for the payments and the need to build liquidity. Josh, I heard you say you will continue to support these programs for at least the next three to four quarters. Now we've seen similar programs typically last two to three years at other exchanges.

48:36 So assuming volume activity continues to build, is this also a reasonable time line for Abaxx's exchange as well? And I mean, in other words, how fast and how meaningfully should we see the net revenue capture rate improve from here? Yes. So thanks, Etienne. Nice to hear from you. So I'll take it first and then hand it over to Dave. I think one thing that's important when we're comparing, us to other venues, while the contract at the like I said, so from the bottom up perspective, looking at each contract, we're not going to be any different than other exchanges. I think the one difference you have to remember in our market is that we're building a new clearinghouse at the same time as building individual contracts, right? So and that's it's a good thing, because even if we don't even if that revenue doesn't hit, our net capture, our ecosystem is profiting, right? Our clearing members are still collecting their portion of the trade.

49:39 Our ISVs are still collecting their portion of the trade, interdealer brokers and so forth. So the economic activity is increasing in our network. And as you can see, we're not spending anything additional, in our OpEx, in our fixed OpEx, but really just, that we agree recirculating that revenue. So yes, this is a point that I think sometimes gets lost is that, we're building our clearinghouse at the same time as the individual products, But it is growing and it is working. Dave, do you want to talk a little about the time horizons? Sure. Happy to do that. And then I might flip it to Joe because at the beginning of your question, you remarked about the length of programs at other exchanges and I think Joe could have some valuable insights into that piece as well.

50:29 But really, it really goes back to that three step chart that we've shown on a couple of quarterly earnings call now of going from new market to critical mass to a mature market. And really in the beginning, as we said in a new market period, it's primarily the early movers, the market makers, liquidity providers and what we've seen, some of the early commercial adopters, the merchant trading shops. And what you expect to see over time is that as the commercials come in and as Joe said, as they're paying the full rate on the contracts without any liquidity provision payment that will start to pull up the average revenue per contract across all of the trading.

51:19 So it's really a question of having those commercial participants come in. As they're generating liquidity through their own trading, it can allow you to pull back a little bit on some of the liquidity provider programs, but they still remain important. So I would say, it's difficult to say when does the RPC go to a certain point as it is to say when does commercial participation hit a certain point. So I think we'll keep doing what we always do, which is look to the step ahead. Right now, we're seeing, as Joe said, much more commercial engagement in a reaction to that initial liquidity we've built. And as those come in, they that trading would naturally pull up the RPC numbers and that's how we will progress. And Joe, do you want to comment on how those programs are used at other exchanges in terms of the length or duration of those programs?

52:13 Yes. Sure, Dave. I mean, having been involved directly with them at the NYMEX back in the day, if you look on their simply and even on their fee schedule, you'll see programs that have been existing since I was there in 2003. I launched the Brent market making program in 2003, and it's still in existence. So they don't it depends on how it becomes retooled or adjusted depending on where the needs are. They're absolutely necessary for all markets, even as Dave said, where you have exchanges that have long term long standing clearinghouse development and relationships, we're starting from a cold start, and we obviously needed to build liquidity. So I wouldn't say two to three years is the normal lifespan. As I said, there are many that have been existing for many, many years. And again, you just need to adjust them as the marketplace develops and as you start bringing in, commercial firms. I would make an important note that when you look at the other existing exchanges, their mix of market makers versus commercials is always, exist you can look at their RPC and how their RPC goes up and down over the years. And but generally, it doesn't go below 45%, 50% of the market maker. So that just points out how important they are.

53:40 Okay. So if I understand correctly, the net revenue per contract should remain near current levels probably for next year and then hopefully it improves from there. Is that fair? Well, think we would expect it to be improving over the course of the year as the commercial Yes, sorry, maybe we're blending a couple of things. We might be blending a couple of concepts here. So like on our precious metals general, again, as the commercial activities come in, like on an individual basis, we don't necessarily need to then start increasing spending to drive to zero, right? So we on an individual contract basis that revenue capture can grow.

54:30 I'm just saying from a business perspective, we should expect to continue investing, but this is very much cost of capital dependent, right? If the market wants us focused on breakeven and cut more investments or reinvestments, absolutely. And that was true to what my comment was on. We're seeing signs that we think that the precious metals business alone, the products we've launched and ones in our pipeline, can be in a position to carry the freight of our fixed operating costs in 2028. And that will be more clear over coming quarters. That's an early assessment of the data we're seeing in our market and conversations we're having. But again, we don't have to reinvest everything to net to zero at my point.

55:18 So Josh, on capital allocation, you have about $100,000,000 in cash after the capital raise. Now expense growth has increased a little bit this past quarter. In what areas of the business are you seeing the strongest return potential to grow the exchange business? And as a follow-up, how do you think about your ability to reach breakeven levels without the need to raise more capital? Yes, sure. So first on cost side. So on the cost side, it has jumped in Q2 over Q1. But if you that's why we're showing the Q4 as well. There's a little bit of volatility, in the timing of some of these costs.

56:07 As we mentioned, we did do a big, ramp up of some key executives in the commercial team. But we actually think where Q3 and Q4 are tracking, you're not going to keep seeing those sequential jumps. So I think we are closer to a run rate this year after our capital raise, after some new expansions. And so we should have a pretty consistent operating cost base through the remainder of the year, again, unless something changes significantly in our cost of capital. And then, yes, so as far as the runway, I guess that's back to my comments. Look, we're taking this on a sort of a quarter by quarter basis. We're very disciplined with our dilution. And so we will go slower, if the cost of capital sort of dictates that.

56:56 And so there are some levers we can pull here, but we do not see a significant cost increase, while we will continue to see again that what we believe is that sort of 50% half over half growth in activity in markets. Thank you very much. And the next question comes from Aravinda Galappatthige with Canaccord. Please go ahead. Thanks for taking my question. Just following up from there, I mean that was very useful. With respect to so it's really about sort of the timing of the commercial participants becoming more evident. Maybe just help us sort of with what we should look for as we track that? I mean, there a recognition? I mean, the open interest has already increased a little bit.

57:55 I mean, there's obviously room to grow more. In terms of your conversations with them, what else are they looking for? Is it more clearing members to sign on? Maybe just help us with those sort of guideposts. David, do want to that one, Joe? Yes. Sorry, was on mute. Sorry. The a regulated exchange, we don't obviously put out the specific names of firms that trade our markets. Open interest is certainly a good indicator. And as you mentioned, Aravinda, we have seen a nice growth in our open interest. I think the liquidity is helpful too. So as I mentioned in my remarks, open interest is a great balancing point, but the actual activity in markets and deep liquidity in markets is equally important.

58:50 Market traders say they like open interest, but they also want to be able to get in and out of contract. So that's an important guidepost for us and also for the marketplace. I would say that we're lucky now that most trading firms have more than one clearing relationship and some of the non bank clearing firms that are already connected to Abaxx, are seeing a lot of moveovers from some very significant firms to them, for existing for new trading excuse me, new clearing relationships. So that's helped us quite a bit in the expansion of our markets, particularly in India, where a lot of the trading firms that are coming on board there use some of the existing clearing firms of Abaxx. So that's been a big help for us. But I think in general, just the growth in volume is a good guidepost as far as, not only how market makers and liquidity providers are joining us, but also as commercial firms are also.

59:51 I should also probably note, beyond looking for increased commercial open interest deliveries, these types of indicators, Having a Tier one bank, in our clearinghouse as well, because remember, we don't have retail trading here. So the cold start is really large lot commercials. And even the increasing credit profile of the clearinghouse with more clearing members and stronger clearing members, including Tier one banks does help, the confidence in positions as well as the physical delivery underwriting. So yes, that's the other key one to unlock more open interest and liquidity throughout the year. Thanks, Josh. And then just moving on to MarketOS, again, some helpful comments. I just wanted to make sure I understood a comment you had made earlier, Josh, about sort of the time to deployment.

1:00:49 Are you sort of is that sort of something that will perhaps take a little bit more time than originally expected or did I sort of not hear that correctly? So within our own clearing system and our own network, we're still on track. We're still pushing everything. It's more of the expansion of the sales and the tech team, for more third party, that's where we're kind of remaining a little bit more on hold. We made some internal changes to move some folks over to Abaxx Labs and focus on the AgenTek opportunity. And then we've very, very much focused the team on the internal collateral use case to support the exchange.

1:01:34 Other things we kind of had in the works around Messenger and others, I would say a little bit more on hold. And in fact, we've even had some cost savings. We've always maintained a couple of outsourced development software development shops because that allows us the flexibility with budgets that we've kind of monitor on it quarter over quarter basis. But of course, AI is now doing a lot of the work that people firms used to use, with third party development hours. So I think the efficiency of AI combined with a little bit more focus in the two sectors, we can actually reduce some of our cost spending. But again, we're also just staying very focused on those two areas rather than a broader technology expansion.

1:02:24 Sounds good. Thank you. I'll pass the line. Thanks, Arvinda. And the next question comes from Martin Toner with ATB Cormark. Please go ahead. Thanks so much for taking my questions and congrats on results. Sounds like you're pretty encouraged by some of the trading in metals contracts. Can you talk about if some of those contracts are now kind of reaching the point of liquidity? Yes, sure. Could take that. The yes, we they are. That's a simple answer to that, Martin. Thanks for the question. I think though, when you compare it against other markets, certainly, we have our aspirations to grow even further, particularly in the expansion in the region and the need for these contracts as a Singapore listed contract.

1:03:24 Certainly, with the addition of Yang An, as a clearing member and the great start on our silver contract, we're looking to other contracts that firms have been asking us for in the region that can help bring additional liquidity to those markets and also new volume and revenue for us. So yes, we're excited about the growth of gold and silver, but we know that the use of the clearinghouse is important for other markets, too, that we'll look forward to be launching. And just to add on to Joe's piece sorry, I just wanted to add on quickly. I think in terms of like what we're seeing is what commercial participants want to be seeing, right?

1:04:10 So in terms of is it liquid, it's really liquid enough for what? Is it liquid enough for commercial participation? A lot of the feedback we get is they want to see the volume, they want to see the open interest, they want to see narrower bid ask spreads, they want to see depth in the order book. And when you look across those markets now, they're able to see those things. And so that's why we're getting the higher level of requests to start going live than we have previously. That's great. Thank you. How focused do you think investors should be on, the change in open interest across your contracts? Think it's one of the important milepost or guidelines for futures exchanges, but it's not the only one.

1:05:03 I'd use an example a lot in discussions with customers where one exchange had several thousand lots of open interest in one of their battery metals contracts, but yet they hadn't traded that contract in months or weeks. And so the argument is how would a trader get out of that position even if he had open interest if there was no liquidity. So I think, as Dave said, with a deep bid ask spread and daily liquidity, it's obviously equally important to open interest. And so you have to really balance that and bring in firms that will not only hold open interest, but also, again, the liquidity providers that will allow a trading firm to get in and out of their position. One other of related point that I think is actually very critical to understand about our markets versus others.

1:05:55 So of course, there's well, essentially almost a duopoly in these energy and metal markets out there. And so often firms will block trade open interest against a market, even if there's no real volume. And a lot of that is because these are very specifically, PRA survey sort of assessment type markets. So this isn't necessarily a central limit order book activity. This is a block trade just because they're utilizing one of the handful of clearinghouses. With our products, so the question could ultimately be, what's the endpoint? Can't they just spend more on liquidity and be more liquid? The endpoint is you've got to have the contract that is best execution. So if you look at, again, our battery metals contracts in comparison, we believe that that's best better execution than a PRA sort of cash settled index.

1:06:49 So our liquidity can naturally drive more trading, than somebody that's trading against a PRA. And so yes, so while they may have high open interest, low liquidity, right now we've got low liquidity, sorry, high liquidity open interest. We do believe that open interest is an endpoint for us, if that makes sense. Yes, that's great. Thanks, Josh. Can you talk a little bit about the pipeline for new products and contracts going forward? I think for competitive reasons, Martin, we don't and also from a regulatory perspective, we don't put out the specific pipeline. But as the slide pointed out during the presentation, we have quite a few new contracts in various asset classes that we are looking at that we'll be rolling out here over the next few months. So stay tuned to that. We have a lot of requests from clearing firms and trading firms for new markets.

1:07:53 I think after the summer here, we'll have a few that will be coming out in various markets. But that's why I did give you probably a good idea of what asset classes we'll be looking at. That's great. Last one from me. Was the accounting change your call? Was there or was there something else? And like what triggered the change? Steve, are you still on for this one? Yes, I'm here. I was just coming off mute. Thanks for your question. We work closely with our auditors as part of the quarterly review. And there wasn't a specific trigger. As we go through our review, we will always assess the application of IFRS, which is actually quite complicated.

1:08:47 And as understanding evolves and matures, the newness of the program was always going to be assessed. And that was just one of the things that happened during Q2 and reported within Q2. Yes. Remember, this is sort of, again, an oddity of our market. Remember, almost all of our comps are either U. S. Reporting under U. S. GAAP or Chinese. So there's actually not a lot of commodity, IFRS, out there. So and as Steve mentioned, there are some real nuances, particularly given that we invoice through our clearing members, not directly through the customers. So anyways, it's more complicated than it should be.

1:09:36 That's very helpful. Thanks a lot guys. That's all for me. And the next question comes from Puneet Singh with Cantor Fitzgerald. Please go ahead. Hey, thanks guys. Just going back to the top of the call on the incentives. Josh, you mentioned how the precious metals contracts could carry you through and you spoke about maybe pulling back in other areas. I just wanted to understand if I got that like what that means. So would you pull back on liquidity programs in relation to newer contracts? Or just trying to understand that point. Again, like this is the classic battle for a company that understands sort of the endpoint and the scale of the markets that we're building.

1:10:25 But investing in network growth versus investing in towards breakeven, that's always going be a push pull. It's no different than probably any tech VC company or anyone else that's got a network business. And so we're just taking it day by day, right, sort of quarter by quarter. What we're seeing, should we hyper focus on one or two products to break even? Or should we be investing at the scale? Of course, my bias is, I think, shows out clearly, that with a better cost of capital, we should be investing at the scale of our opportunity. And frankly, I think one of my favorite comments from the critics is how can this be real with the budget they spend? But look, we are absolutely competing against companies 100 times our size with a much, much smaller budget.

1:11:19 So yes, mean, it's really the markets, acceptance of those milestones. And again, we've got a TAM of commodity market development and basis risk, gas to power, power to intelligence that spans the largest market in the world across Southeast Asia and China. We have a massive TAM beyond just the products we've already gone after. So I think investing more should be the case, but we're only going to invest of course what the market can bear. And so given the sharp share price decline, We just want to be clear with our investors that we watch this stuff closely and we want to control dilution.

1:12:12 Okay. Thanks, Josh. Joe, you were mentioning Yong'an conducted their first trade last week. I did listen to that podcast that the CEO did with Dave there. That was good. Just want to understand, though, given that they have a big client base, when do you actually expect more material volumes to come from them? How does that trajectory look over the coming quarter? Yes, that's a great question, Puneet. And we're really excited about the Young An relationship and that creates a lot of FOMO within the country. And again, the CEO, Josh Shao, was very specific about the products that their customers were asking him for, and the type of customers that they have.

1:13:01 And so for us, we feel that like any large clearing firm, once they open the access to our markets for their clients, you can never we don't have an expectation on specific volumes, but we know from large clearing firms, and are Young Ann is probably equal to the size of one of the large U. S. Banks or international banks, that there's a very good opportunity for them to trade with us, to manage their risk, and to grow our volume. So there's a big partnership with them. We'll be doing events with them, co marketing events with them. We'll be at GasTech with them. We're really looking forward to the expansion of the relationship, and we do think it will create FOMO within the region, and we'll see further, onboarding requests for other FCMs within China.

1:13:58 Okay. So maybe I'll flip it a little bit, Joe, just based on other clients, right? Like does it take you something like six months before you really see more volumes to come from them, if they have interest and it looks like they do or? I would say it's probably less than that. We don't like to give horizons on volumes and But once the clearing firm does connect and opens up the opportunity for all of their clients, then that theoretically, that could start quite quickly. So we're hoping that, that will it is summertime. We do think that, that will start once they've gotten they did get their first trade in. It was in the gold markets, and we're excited about that. And I think that, that mostly clearing firms like to put a trade on to make sure that the pipes work and everything works well. And then hopefully, we'll see a quick ramp up.

1:14:56 Okay. Thank you. And then just last one, just gold versus silver. So your gold contract took about, if I'm correct, about nine months before it started seeing larger volumes. And silver has been different. It took about a month. Is that because a silver contract is being used by the same clients as your gold contract, I. E, already onboarded? Part of it is that, I would say, sorry, broke up there. But part of it is that there is familiarity with the clients that are trading our gold contract. So but also the region had a real pent up demand. We had met specifically with one of our clearing firms last fall.

1:15:41 And when we were talking about new products, they said, your gold contract is doing great, but you need to look at silver next. And a lot of people were kind of some folks from London were like, well, maybe you don't maybe that won't succeed out there. But we know our clearing firms, hear their requests from their customers. And so we kind of listen to them pretty intently as far as where new markets and new opportunities lie. And this was a good one. And we, again, felt that not only the trading firms, but the clearing firms that we have connected with us were then, allowing access to their client base, again, some of those, to your point, that were already connected with us, which caused that ramp up to happen a lot faster. So having launched so many contracts over my years at the exchanges, to look at a contract that starts on May 22 and is trading active as actively as our silver contract is now is quite a is quite even for me, is highly impressive I'm very impressed by it.

1:16:42 Okay. Thanks, Joe. Those were all my questions. Thank We will now begin the question and answer session. I would like to turn the conference over to Abaxx Chief Strategy Officer, David Greeley to moderate this session. Thank you, Dave, and thank you everyone who's been on the call asking questions, and staying with us. I know it's we're well past the allotted hour, not unusual for one of our earnings calls every quarter. We try to make it shorter, But I think the value of the transparency and the interaction with clients is something that we value and are proud of. So I do want to take some of the questions. Thank you to those who have submitted. You can continue to submit them. Many of them, as I scan through, have already been answered. So I'm going to try to take some that are a little different from the questions that have been asked so far.

1:17:33 And the first one, I'll start. I think it's important, and then maybe I'll flip it to Josh. We had a question on with Joe's promotion, what is the status of Nancy? Just want to say, Joe's not going anywhere. So we're very proud of Joe and the work he's doing and terrific to have him as President of the Exchange. He's going to keep on doing what he's doing and really help our biz dev team that's growing and scaling, hit the ground running. Just as Joe isn't going anywhere, Nancy isn't going anywhere. Nancy remains CEO of Abaxx Exchange. So, no change in Nancy's role, and we're very appreciative of that. Don't know if you want to add anything on to that, Josh. No. Other than that, we just really have such an amazing team across the board.

1:18:24 Of course, the President of Product and the CEO of our Clearinghouse, Dan McAleaf as well. We've got a number of people that ultimately have tremendous experience. And yes, look, I think it's just sometimes we get accused of, doing too much, too many things. But I think it's that the focus and the specialization of each one of these leaders. And again, Joe's leadership over the commercial business and representing the exchange around the world as the President is very important. And of course, the job is earned as kind of one of the co founders since the beginning.

1:19:10 So yes, I mean, look, we would just and look, that's going be emerging in our tech business as well. I think that's the key thing is, everyone in our company is very focused, even though we're doing so many things as each quarter shows. Thanks, Josh. I'm going to come back to you with another question because one of the items in our financials this quarter was the iPodshpull investment. And the question is, can this be viewed akin to the relationship history with Minehub vis a vis the strategic context? Yes, absolutely. Look, again, we had the CEO on one of the podcasts. I'd encourage everyone to listen to that. This is a very, very smart team that really knows the trading desk, really knows both the IT and the plumbing systems and frankly, the history of the trading desk.

1:20:09 And so it's really a natural place, just like Minehub as really being infrastructure for physical commodity transit data. This is a team that really knows what's happening, from data, ISVs, messaging systems, and we think is a huge value add, particularly down the road with our data business and with our messaging and AI businesses. Thanks, Josh. Joe, we've had a number of questions coming in, basically asking if you could shed some light on the status of our Northwest Europe LNG market. Yes, it's a great question, Dave. So we delisted the contract last fall.

1:20:58 The reason for that was the change in what they call remit, which is a European specific reporting requirement for specifically for physical power and gas markets. And we had to make some changes internally to allow for that reporting. We have we're at the very end stage of getting that ready to be added to our product and reporting across all of our products if necessary. So no specific date on the contract yet, but just I just say stay tuned to everybody and that should be coming out shortly. Thanks, Joe. There also had a question, I think this could be a good one for Leah.

1:21:46 We've had a question saying, is our full digital title, private digital title software custodian agnostic in contrast to, for example, the Canton network only having one approved custodian? So I think there's also a question related to the ability to work across platforms. Oh, sorry. Not sure if you're on mute, Leah. Well, maybe we'll circle back. Not sure if we have a connection issue. I have another question in the meantime for you, Joe.

1:22:34 That is I'm here. Glad you're here. What is the feedback from majors and trading houses around transitioning OTC bilateral cargo hedging onto cleared block trades or screen trade liquidity via the ABX LNG contracts? Yes. It's a great question. And we constantly are interacting with the commercial market on the value of the contract's liquidity into and translating that into actual trades, whether it's on block trades or even on central limit order book trades. I think that we had great interaction and participation on the two LNG workshops that we had, before the summer.

1:23:22 And, we had 70 something firms in London, 50 firms or 40 firms in Houston. The GasTech Conference coming up, is another great opportunity for that education. And it really is an education point of explaining firms how our delivery works, how to make sure they're comfortable being able to get in and out of contracts. We're onboarding firms that want to trade. I think the trade board request by some of the trading firms on there is specific to LNG. And so I think just watch the space. We'll see some hopefully some good things coming in the fall here on firms that will want to that will be going live and that will potentially will want to go to delivery.

1:24:13 But it is an education thing for sure. Thank you, Joe. And with that, I know we're well past the time. So I think it would be good at this point to conclude our question and answer session. Really want to thank everybody for joining the call today and for your interest in building smarter markets with us. A recording of this webcast will be available this afternoon on our Investor Relations website at investors.abex.tech. If you have a question that was not answered, please feel free to send it through to our Investor Relations team. And I'll pass it back over to our call operator to end today's event. This concludes our question and answer session. The conference has now concluded.

1:24:59 Thank you for attending today's presentation. You may now disconnect.