ICE Reports Record Trading Activity Across Total Futures and Options with Record Volumes Across Global Energy Markets

Rhea-AI Summary

Intercontinental Exchange (NYSE:ICE) reported record trading activity in Q3 2024, with 517 million contracts traded across total futures and options markets. This includes a record 276 million energy futures and options. Notable achievements include:

- Record 173.3 million oil futures and options traded
- ICE Brent reached record 93.4 million futures and options traded
- Brent options hit record open interest of 3.77 million on October 11, 2024
- ICE Gasoil saw record trading in options with 344,000 contracts traded in Q3
- Gasoil futures and options hit record open interest of 1.3 million contracts on October 3, 2024

Other benchmarks also achieved record highs, including WTI, Midland WTI, and Murban futures. ICE's natural gas and environmental markets also saw significant growth, with EU Carbon Allowance futures and options volumes up over 40% year-over-year.

Positive

• Record total trading activity of 517 million contracts in Q3 2024
• Record 276 million energy futures and options traded
• ICE Brent reached record 93.4 million futures and options traded
• Brent options hit record open interest of 3.77 million contracts
• Gasoil futures and options hit record open interest of 1.3 million contracts, up 60% year-over-year
• WTI, Midland WTI, and Murban futures reached record highs
• Natural gas benchmarks open interest up 24% year-over-year
• EU Carbon Allowance futures and options volumes up over 40% year-over-year
• North American environmental complex saw record trading of 1.47 million contracts in Q3 2024

Negative

• None.

Insights

Financial Analyst

The record trading activity reported by ICE in Q3 2024 is a significant positive indicator for the company's financial performance. With 517 million contracts traded, including 276 million energy futures and options, ICE demonstrates robust market engagement and liquidity across its platforms. The 20% year-over-year increase in Brent futures and options open interest to 6 million contracts suggests growing market participation and potential for increased transaction revenues.

Notably, the record volumes in key benchmarks like Brent crude and Gasoil, along with substantial growth in environmental markets (42% year-to-date increase in trading activity), indicate ICE's strong positioning in both traditional and emerging market segments. This diversification could contribute to more stable revenue streams and potentially higher profit margins. The 60% year-over-year increase in Gasoil futures and options open interest is particularly impressive, pointing to expanding market share in refined products trading.

These trends suggest ICE is likely to report strong financial results for Q3 2024, with potential for increased transaction fees and market data revenues. Investors should watch for the impact on ICE's bottom line and any guidance on sustained trading volume growth in upcoming earnings reports.

Market Research Analyst

The record trading volumes across ICE's futures and options markets, particularly in energy and environmental products, reflect significant market volatility and increased hedging activity. The record 93.4 million Brent futures and options traded in Q3, with 1.5 million average daily volume, indicates heightened concerns about global oil supply and demand dynamics. This surge in trading activity suggests market participants are actively managing risk in an uncertain geopolitical and economic environment.

The substantial growth in environmental markets, with a 42% year-to-date increase in trading activity and 35% year-over-year increase in open interest, underscores the rising importance of carbon pricing and climate-related financial instruments. This trend aligns with global efforts to address climate change and presents a significant growth opportunity for ICE in the coming years.

The diversification of ICE's energy portfolio, including record volumes in WTI, Midland WTI and Murban futures, demonstrates the exchange's ability to capture market share across various regional benchmarks. This positions ICE well to benefit from shifts in global energy trade flows and regional price disparities. Investors should consider these factors as indicators of ICE's strong market position and potential for continued growth in an evolving energy landscape.

Brent and Gasoil Reach New Volume Highs

LONDON & NEW YORK & AMSTERDAM--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that its total futures and options markets reached record trading activity during Q3 2024 with 517 million contracts traded during the quarter, including a record 276 million energy futures and options.

“The development of ICE’s commodity and energy markets began over 20 years ago, allowing us to offer customers a truly global and interconnected platform of markets and data across asset classes, all designed with liquidity, precision and flexibility for managing and identifying risk,” said Trabue Bland, SVP of Futures Markets at ICE.

Record trading during Q3 2024 includes a record 173.3 million oil futures and options, the highest volume traded since Q1 2020. ICE Brent traded at record quantities during the quarter with a record 93.4 million futures and options traded, hitting record average daily volume (ADV) of 1.5 million during Q3 2024. In addition, Brent options hit record open interest of 3.77 million on October 11, 2024. Open interest across Brent futures and options is up 20% year-over-year (y/y) at 6 million contracts.

Meanwhile, ICE Gasoil, which sits at the center of middle distillates trading as the global benchmark for refined oil products, saw record trading in options during Q3 2024 with approximately 344,000 contracts traded. Gasoil futures and options hit record open interest of 1.3 million contracts on October 3, 2024, up over 60% y/y.

ICE is home to over 800 oil futures and options contracts underpinned by the global benchmarks Brent and Gasoil. Other ICE oil benchmarks which hit record highs during the third quarter include ICE WTI futures and options with 23.7 million contracts traded, ICE Midland WTI (HOU) futures which traded a record 1.6 million and ICE Murban futures which traded a record 1.9 million contracts.

ICE’s energy markets include the broadest range of natural gas benchmarks to support globalization of the fuel. These include the global benchmark TTF, U.S. benchmark Henry Hub, Canadian benchmark AECO, U.K. benchmark NBP, and the benchmark for North-East Asia, ICE JKM LNG (Platts). Open interest across the complex is up 24% y/y, with TTF futures and options hitting record ADV of over 400,000 contracts during September 2024, up 30% y/y.

Sitting alongside ICE’s energy markets are the most liquid markets to trade environmental products, including EU Carbon Allowance (EUA) futures and options, the world’s most liquid carbon market, with volumes up over 40% y/y. Meanwhile, in Q3 2024, ICE’s North American environmental complex saw record trading of 1.47 million contracts. Trading activity across global environmental markets is up 42% year-to-date and open interest is up 35% y/y.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.

Category: EXCHANGES

ICE-CORP

Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20241015354981/en/

ICE Media:

Jess Tatham

jess.tatham@ice.com

+44 7377 947136



ICE Investor Relations:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

What was ICE's total futures and options trading volume in Q3 2024?

ICE reported a record 517 million contracts traded across total futures and options markets in Q3 2024.

How many energy futures and options contracts did ICE trade in Q3 2024?

ICE traded a record 276 million energy futures and options contracts in Q3 2024.

What was the record volume for ICE Brent futures and options in Q3 2024?

ICE Brent reached a record 93.4 million futures and options traded in Q3 2024.

How much did ICE Gasoil options trading increase in Q3 2024?

ICE Gasoil saw record trading in options with approximately 344,000 contracts traded in Q3 2024.

What was the year-over-year increase in ICE's EU Carbon Allowance futures and options volumes?

ICE's EU Carbon Allowance futures and options volumes were up over 40% year-over-year in Q3 2024.