Greetings, ladies and gentlemen, and welcome to the Bolsa Mexicana de Valores Second Quarter 2022 Earnings Conference Call. At this time, all participants are on a listen only mode. A question -and- answer session will follow the formal presentation. If you would like to ask a question, please press star one on your telephone keypad. If anyone require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Ramón Güémez, Chief Financial Officer. Thank you. Please go ahead. Thank you. Good morning and welcome to Bolsa Mexicana de Valores Second Quarter 2022 Earnings Conference Call. Before proceeding, I'd like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management, as well as assumptions made and information currently available at Bolsa. Such statements reflect the views of Bolsa related to future events and are subject to risk, uncertainties and assumptions. Many factors could cause the current results, performance or achievements of Bolsa to be somewhat different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the general economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business. Such as changes in monetary policies, in inflation rates, in prices, in business strategy and various other factors. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, believed, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements. I would like to remind participants that today's call is being recorded and a replay of this call will be available online on July 22nd at Bolsa's corporate website, www.bmv.com.mx. During this call, all figures are in Mexican pesos and compared to the second quarter of 2021, unless stated otherwise. This call is intended for the financial community only and the floor will be open at the end to address any questions you may have. Joining us for today's call are José-Oriol Bosch, CEO. José Manuel Allende, Chief Capital Formation Markets and Information Services Officer. Claudio Vivian Gutiérrez, Chief Information Officer. Alfredo Guillén, Managing Director of Equity Markets. José Miguel de Dios, Managing Director of Derivatives Markets. Rosa Crespo, Managing Director of Human Resources. Luis René Ramón, Director of Industrial Relations and myself, Ramón Güémez Sarre, CFO. I would now like to turn the call over to José-Oriol Bosch. Thank you, Ramón Güémez, and good morning everyone. Thank you for joining us for the second quarter 2022 earnings conference call. In terms of today's format, I will go over the financial and operational results of each business line, then talk about our progress in BMV's project plan and finally open up the line for Q&A. As a reminder, if you want to ask a question, you need to dial in the number that was provided in the press release yesterday. With that, please turn to Slide 3. On the financial highlight for the second quarter 2022, we have achieved good results this quarter with revenue growth and cost control. Revenue was MXN 997 million, up MXN 32 million or 3% compared to the second quarter of 2021. Driven by a stronger performance in transactional businesses, equity derivatives and OTC trading, as well as information services. Expenses were MXN 447 million, up MXN 8 million or 2%, well below inflation and under control, mainly explained by higher personnel and building maintenance costs. Operating revenue and EBITDA increased at 5% and 4% respectively, and net income reached MXN 404 million for the quarter, showing a 15% growth compared to the second quarter of 2021. Please turn to Slide 4 to review these results. Regarding the key financial highlights for the first half of the year 2022, BMV Group's diversified business portfolio continues to make solid financial and operational progress. Revenue is up MXN 199 million or 10%, MXN 66 million recurring operations and MXN 133 million from extraordinary concept in the balance to cycle. Expenses are flat for the first six months of the year at MXN 896 million. EBITDA is up 17% to MXN 1.4 billion and EBITDA margin was recorded at 63%. Earnings per share were MXN 1.51, up 22% from MXN 1.24 per share. All in all, BMV Group has delivered a solid half-year result with good underlying performance across most divisions. On Slide 5 on the revenue by business line in the first six months of 2022. First, on transactional businesses, which consist of equity trading and clearing, derivatives trading and clearing, and OTC trading were up 8%, 9%, and 18% respectively. Once you exclude non-recurring tax reforms, OTC trading was up 7%. On information services, which is made up of data, analytics, indices, valuation, and financial risk management services, is up 14% driven by better understanding of customer needs and development of new products and services. The central securities depository is up 11% year-on-year. However, it is down 5% after excluding extraordinary items in the first quarter. Capital formation is flattish, down 1% due to fewer listings last year. BMV Group total revenue is up 10% in the first six months. We are well-diversified across the value chain with high recurring revenue in nature. On next slide, number six. On equity trading and clearing, cash equities trading revenue was 6% higher than the second quarter of 2022. The average daily traded value, the ADTV for the second quarter of 2022 was MXN 19.2 billion, up 10%. Investors in Mexico have the option of investing in over 140 local securities and over 3,000 foreign securities. The local market ADTV increased 21% and represented 51% of the total ADTV, where BMV had a 97% market share. Global market ADTV was flat and amounted to 49% of the total. BMV had an 87% market share. Both market shares have been consistent over time, proving our experience and reflecting the value customers place on the breadth and depth of BMV's liquidity. As for CCP clearing revenues increased MXN 3 million or 6% because of higher equity trading in the quarter. On slide number seven, on derivatives trading and clearing, the revenue in MexDer and Asigna was up 33% and 3% respectively due to higher trading of dollar futures and longer tenor traded of TIIE swaps. The average margin deposits were MXN 33 billion in the second quarter, down 5% because of the new risk management methodology, which allows collateral and capital optimization, partially offset by higher trading in futures. Average margin deposits for the first six months of the year are down 14% to MXN 31.5 billion in line with our expectations. We continue working in finding new ways to grow the derivatives market. MexDer is in the authorization process to list options and futures of shadow-listed foreign securities in Mexico, given the success of the global market platform or SIC. On the OTC trading, SIF ICAP revenues, that's on slide number eight. SIF ICAP revenue was up MXN 24 million or 16% compared to the second quarter of 2021. SIF ICAP Mexico was down MXN 2 million due to lower trading of interest rate swaps. On the other hand, SIF ICAP Chile was up MXN 27 million. MXN 23 million due to robust trading activity and volatility because of political events and increments in the interest rates in an attempt to slow down inflation, and MXN 4 million due to non-recurring tax refunds. On Slide 9, regarding the capital formation business, listing revenue reached MXN 11 million, flat versus the second quarter of 2021. Regarding the debt market, 260 short-term debt issues were placed for an amount of MXN 37 billion, 6% lower versus the second quarter of 2021. 25 long-term issuers for an amount of MXN 53 billion, 52% higher than the second quarter of 2021. Three core clients listed ESG debt through BMV. One sustainable bond from BBVA Mexico for MXN 10 billion. One social bond from FEFA for MXN 3.3 billion, and two linked bonds from Grupo Herdez for MXN 3 billion. I am pleased to share with you that BMV has assisted companies in issuing over MXN 100 billion through ESG debt securities since 2016, an important milestone. In fact, today, 26% of all long-term debt issued in BMV have an ESG goal. Maintenance fees were down MXN 4 million due to lower listings in 2021. We expect annual revenue in this business line to be slightly below last year's figures. As debt listings slowly recover, we will see growth in maintenance revenue in the following year. On slide number 10, on our central securities depository, Indeval's revenue was MXN 296 million, down MXN 29 million or 9%. Assets under custody increased 4% and 2% in the local and global markets respectively. However, cross-border transactions for the global market were down, impacting revenue. It is important to mention that Indeval allows the electronic issuance of corporate debt security since February 2022 for the benefit of all participants in the Mexican financial market by reducing times, digitizing processes, and carrying out a faster settlement. This initiative allows us to start analyzing other processes that could be optimized with digital technology. On next slide, number 11, on information services. Information Services reported revenues of MXN 168 million in the second quarter of 2022, up MXN 20 million or 14%, mainly driven by the new business growth and high customer retention. Market data revenue increased 11% due to sales with the new international clients, growth in the number of terminals for retail investors, new services, and reference data products and fee increments. Valmer was up MXN 9 million due to valuation services and databases subscriptions. Continued acceleration in the revenue reflects our investment in broadening and deepening our information services offering and innovation in our delivery of this data and analytics. Let me now turn to operating expenses in Slide 12. Operating expenses for the first six months of 2022 were well under control, down 2% in the quarter and flat versus half year 2021. Personnel expenses were down MXN 7 million due to the corporate restructuring to optimize operations in June 2021 and job vacancies. Technology was down MXN 1 million due to the returned leased hardware whose original contracts had been extended to maximize the useful life of the equipment. Depreciation was flat, but we expect it to increase MXN 10 million in the last quarter of the year as we have started registering hardware leases to execute the segregation of post-trade infrastructure project. Rent maintenance were up MXN 3 million because of higher maintenance costs and as personnel returns to BMV's building. Consulting fees were up MXN 6 million because of information security services for the security operations center, the SOC, and the segregation of post-trade infrastructure. Both items are ongoing costs incurred from regulation and security in our business operations. CNBV fees are linked to inflation, and we continue executing with cost discipline towards increased operational leverage while investing for growth. Please turn to slide number 13 to review the status of our project plan. Direct custody, CCP for bonds, and accepting securities as margin deposits continues pending regulatory approval. In the first one, we want to provide access to the local CSD infrastructure. In the second one, we will provide clearing services for all on the run M bonos, M bonds. In the last one, we have proposed a model to accept securities as margin deposits in addition to cash. This initiative will increase liquidity in the formal derivatives market and increase margin deposits in Asigna. We continue pressing and following up with local regulators as well as showing the benefits that this initiative will bring to the Mexican financial market in order to accelerate its approval. Post-trade infrastructure segregation is on track to separate the technology infrastructure for Indeval, Asigna, and CCP. This initiative is part of our efforts to continue enhancing our resiliency for all market infrastructures. We will start registering hardware leases as depreciation in fourth quarter as we are reviewing open source licenses and performing the right sizing to minimize added costs. Regarding historical market data, we are a bit behind schedule, but we should start operations in September 2022. We are working with a global third-party provider to deliver agile and high-precision data to perform in-depth analysis. Backtesting of very large amount of data with the goal of attracting quants and algo trading. As for the minimum viable product for securities lending, the new platform will allow our clients to negotiate transactions and keep records in an easier and user-friendly manner. The expected release date is the fourth quarter of 2022. On next slide, number 14 on the summary, the Mexican Stock Exchange at the center of Mexican financial markets is a vital institution that serves as an engine in the Mexican economy's transition towards sustainable development. This year, Bolsa was included in local and regional ESG indices due to our efforts to run a sustainable company and promote environmental, social, and governance practices across the market. As part of the BMV Group ESG strategy, we published a carbon neutral guide. The main goal is to provide a practical path to help listed and non-listed companies to design a strategy towards net zero carbon emissions. Furthermore, it is the first year that BMV Group has released a TCFD report, Task Force on Climate-related Financial Disclosure, showing the company's climate risk and opportunities. The report can be consulted in our website, www.bmv.com.mx. Furthermore, we have doubled down in our efforts to promote financial awareness in Mexico by releasing a mobile app targeted for the local retail investors, which you may download under the name of BOLSAPP. This initiative is a joint effort and is being carried out with companies listed in the BMV, brokerage houses and fund managers. Regarding financial results, we have delivered a good set of numbers in the second quarter and half year of 2022, and we are well-positioned across the financial market value chain to continue delivering high quality recurring revenues and strong results for all stakeholders. I am convinced that further technological integration will enhance our product offerings and simplify our operations. Our capital expenditures are being invested to run, grow, and transform the company as we implement efficient, scalable, and seamless platforms. With that, I thank you for your time, and together with my colleagues, we will gladly answer any questions you might have. Thank you very much. On the last slide you have, our contact information for whatever you need. Thank you very much. Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to ask a question, please press star one on your telephone keypad at this time. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Once again, that is star one to register questions at this time. The first question is coming from Ernesto Gabilondo of Bank of America. Please go ahead. Hi, good morning, José-Oriol, Ramón, and team, and good morning, everyone. I have a couple of questions from my side. On the first one, how do you see the cash equities trading activity for Bolsa considering the expectations of interest rates heading to above 9%? On my second question is, we have seen your revenues diversification towards a potential economic recession. Given your experience in the past crisis or recessions, what do you think will be Bolsa's most defensive revenues, and what will be the weakest ones? Thank you. Hi, Ernesto. How are you? Thank you very much for your question. Regarding the first one on the interest rate expectations going to 9%, I would say that most of the increases in interest rates across the world and the monetary policy actions that some central banks have already taken and that are expected to take, I would say that this is mostly priced in the market. Unless we see a surprise much higher or much lower than the expectations, we are not expecting a big impact in the market. On the second one. Good morning, Ernesto. In terms of a recession, I would say our diversified business model helps us. Which would be more impacted. Well, you could see more impact on the trading revenues on the side of the business that's affected by trading, which is you could get some impact on listing as well. But we also have strong sense of a strong base of recurring revenues that are very less likely to be affected by. By a potential recession. We also have a large number of institutional investors participating, or let's say the majority of our participants are institutional investors, which are less affected by a recession than a retail market. Perfect. Thank you very much, Oriol and Ramón. Thank you. Thank you. The next question is coming from Alonso Garcia of Credit Suisse. Please go ahead. Good morning, everyone. Thank you for taking my question. My question is, if you could provide or you have any sense on the potential boost to revenues from the different ongoing projects that you mentioned in Slide 13. I mean, compared to the 3% growth in recurring revenues that we have seen over the first six months of this year, what's the potential revenue growth that you could experience from all these projects? If you have any call on the potential timing for direct custody of the margin deposits, I mean, if this is something that we should expect still this year or do you think that's something more for 2023? Thank you. On the direct custody, we believe that we would be able to get part of the project approved this year. We are splitting it in two, and part of that should be approved in this quarter. On the M Bonos clearinghouse, I think that is a project that might take longer because a lot of the changes that are required, not only on the central counterparty, but on the trading side. We do not foresee any revenue for this year. We would expect that should come, or start working, generating trading, on the first semester the following year. On the alternatives for pension funds, that discussion has taken several alternatives and such, and we hope that structure could be approved this year. We have taken that. Yesterday and this day we've had another conversation with Afores. Afores do believe that it would provide them a great benefit to manage better their positions. In summary, direct custody, we would expect some revenue this year. For the other two, it might be either for the end of the year, alternatively, the first semester of the following year. Perfect. You have a sense on the potential boost, for instance, in direct custody for Indeval and on your derivatives business if these projects are approved and implemented? We are still running the numbers, so it would really depend on how the structure for derivatives is approved. That would be the one that could impact stronger in the shorter term. Again, we still need. We have a lot of discussions because we need some adjustments on secondary regulation. At this point, I think that we can work out the numbers with the in order to provide a more accurate figure. Got it. Thank you very much. Thank you. Once again, that is star one if you would like to register a question at this time. The next question is coming from Edson Murguía of Summa Cap. Please go ahead. Hi. Good morning. Thank you for taking my questions. I have two of them. The first one is related to this securities lending that you are trying to provide to the market in the new platform. Could you give us a little bit more insight of what type of securities are gonna be part of this securities lending? And the second one is regarding on derivatives. Could you give us a little bit more of characteristics of these new derivatives? Because if I remember correctly, at some point, the Bolsa was trying to develop an energy derivative regarding electricity, but of course with these administrations, it's kind of difficult. Could you give us a little bit more color about that? Thank you. Well, on securities lending, basically we've had this platform back before the last 20 years and such. For different reasons, we didn't invest much on it. We've saw. We've seen other platforms in the market being more active. We also have been talking with the foreign investors and also with pension funds that are interested in having a more friendly and active platform, and also looking at the M Bonos potential trading, electronic trading, that would be relevant for the market. Basically it would be an enhancement of the platform that we already have. The intention, we have some of or most of the lending for equity is done through our platform today, but for bonds, we participate with a very small size exposure. The intention is to have a more flexible, more aggressive and more easy to manage platform so that we can put all the pension funds and some international portfolios available for traders. We want to attack the bond piece and also to have more capacity to get not only for fixed income transactions and equities, but also for securities lending. For derivatives. Could you repeat the question about derivatives, please? Yes. If you can give us a little bit more color about what type of new derivatives are you developing, and if you can give us a little bit of more information about their characteristics? Well, we are working with the authorities to list new products as the futures and options of the SIC stocks. We believe that the growth that the cash market has been reflecting during the last years, we can copy this growing to the derivatives market. We can offer this product to the retail customers. We are working with authorities to deliver a cross-currency swap between the SOFR rates and the TIIE 28 interest rates. These are the two more important products that we are working to list in the next months. Okay. Crystal clear. Thank you, Mike. Last question. José-Oriol mentioned about the new platform, Bolsapp. I was wondering if this app at some point will evolve through the other app that is on the platform or on a mobile app. Meaning there is a SiBolsa app with information from the Bolsa Mexicana, the Mexican Stock Exchange. At some point, there's gonna be only one platform, or there are two different goals for each one? No. They're very different apps. One is SiBolsa, which is information-based, and this other one's more, let me say, focused for the local retail investors and has information on issuers and funds. It's more of a get to know the market kind of app for retail, local retail investors. It's more of an education kind of app, I would say. No, we don't plan to merge the two. Okay. Thank you so much. Thank you. The next question is coming from Gilberto Garcia of Barclays. Please go ahead. Hi. Good morning. Thank you for the call. I was wondering if you could comment on the, excuse me, decline in custody revenue. You mentioned that it had to do with the lower international activity. Was this more of a one-off this quarter, or do you believe that this could impact the next quarters as well? Thank you. Well, with that custody revenue was a little bit up, but certainly we would see some impact of the solution in the markets. I think that the revenue that was down versus last quarter was all the activity related to the exchanges or the conversions between when you buy certificates in the U.S. and you bring it to Mexico or from Mexico and you deliver them to the U.S. You see the numbers are similar to previous quarters. Last one was a particular good one. This activity, the conversion, the international certificates trading activity is very linked also to the arbitrage and to the volatility and the peso/dollar. It's what I would say it's normal standards, but above last quarter that was a particularly good quarter. That piece of the revenue depends more on the volatility and the trading volumes that we might see on the following quarters, no? Thank you. Thank you. At this time, I'd like to turn the floor back over to Mr. Bosch for any closing comments. Okay. Thank you very much to all of you for participating in this call, and thank you very much for the, for the questions you had. If there's something else we can do for you have, you all have our contact information. Thank you very much, and bye. Ladies and gentlemen, thank you for your participation. You may disconnect your lines or log off the webcast at this time, and enjoy the rest of your day.