00:00We're very excited. The one area that has surprised us a little bit is, and honestly this is pretty recent,
00:08we're seeing a massive uptick of SMB. Like small businesses basically looking to do hedges. And I think it's honestly,
00:16it's interesting. It's not these things usually happen that way.
00:19So I've seen some of these. There's the Jeffrey bar right down the street. A very popular Bloomberg bar actually.
00:26But a lot of these hedging use cases that we've seen have been very promotional. So Jeffrey put out a
00:32promotion around the NBA championships and they said, if the Knicks win, your tab is up to $100 on us.
00:38There's been a lot of other, there's a pizza joint, there's you name it.
00:42What hedging use cases that are economically driven versus a lot of those are examples, I would say, of promotions.
00:50And it is generating business for them. But outside of sporting events, are you seeing other hedging use cases?
00:59First of all, I completely disagree it's not economic. I mean, this is the very definition of economic, right? Like
01:04the guy ran a promo. He took a risk. Fundamental, actual risk. He had volatility to this event. They won.
01:14He had to give out 30% off the first time. And he's like, crap, like, I'm underwater now. Like,
01:21he took a risk and he, you know, and so he's like, well, how about I upload that risk?
01:24Like, that's what he did. He was like, oh, well, there's a Stinkalshi, you know, he got in front of
01:30us and he's like, look, can I do this? How does it work? And he's like, yeah, oh, actually, it's
01:33perfect for me.
01:34That is the very definition of a hedge. Like, that is precisely what a hedge, exactly how a hedge should
01:39work, which is like, I have certain level of exposure, dollar exposure to this event that I can quantify. Sometimes
01:44it's a bit harder to quantify.
01:46And then I'm going to hedge it and like, I'm going to offload it. So I'm not taking that risk
01:50and I pay a small premium for it. And you're seeing that across the board.
01:53I think the sports is basically very topical because, you know, there's the finals and now the World Cup and
01:57you're seeing all these kind of hedges.
01:59But, you know, the other example. Yeah, I think the hurt. So the so the stuff around hurricanes, I think,
02:04has been sort of like we've always seen organic demand over the last few years.
02:09I think we're starting to have no more focused effort around servicing that demand that we saw.
02:14So I think things around hurricanes, like hurricanes, especially in Florida, because they're like insurance is pulled out and the
02:21insurance premiums are getting crazy or not available.
02:24Yeah, we're seeing like a bunch of like contracts. Yeah, straight up people that have home in the keys.
02:28They basically like come inside like, hey, can I get paid immediately if a hurricane hits the region?
02:33And I don't want to worry about premiums. And I actually can't even buy hurricane insurance or insurance right now.
02:37It's getting very difficult. And they basically put on the put on the hedge.
02:41Obviously, like a lot of economic indicators like inflation, GDP, those some of those usually go on block trades.
02:46Right. And then, you know, I think we are starting to see quite a bit of demand around like company
02:53KPIs, like the liquidity.
02:55We have to do work on liquidity still there. And I think our offering is not as comprehensive as it
02:59should be.
03:00So there's work to do. But I think that like, yeah, people that, for example, own the stock and they're
03:05worried about like an underperformance of a specific KPI,
03:07like number of deliveries, for example, Tesla deliveries on the month, like, you know, if that sort of underperforms, that
03:13will basically impact my stock.
03:14But I don't want to sell the stock before the earnings. I want to keep the stock, but I'm hedging
03:19that specific sort of portion.
03:21So, yeah, I think we're seeing basically a bunch of these use cases. We're very focused on sports right now
03:25because I think it's so topical.
03:27Like, so I think we're going to see a lot more. But, you know, I think we're already seeing like
03:30we've basically in this week alone,
03:32we've seen like hundreds of businesses basically put on hedges. It's like amazing.
03:35These small businesses. Yeah, it's kind of starting to get a bit bigger.
03:39Like, I think it's starting to get into sort of like the millions of dollars.
03:43So some of them like to talk about it, some of them don't.
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