Intercontinental Exchange Reports December, Fourth Quarter and Full Year 2023 Statistics

Rhea-AI Summary

Intercontinental Exchange, Inc. (NYSE:ICE) reports a 39% year-over-year increase in total futures and options average daily volume (ADV) in December, with a 10% year-over-year increase in 2023. The company achieved record annual trading volume across Brent, WTI, and TTF gas. The press release highlights a strong performance across various asset classes, with significant increases in open interest (OI) and ADV for energy, oil, natural gas, environmentals, ags & metals, and financials. The company's President, Ben Jackson, emphasizes ICE's role in helping its global customer base manage risk in complex supply chain dynamics.

Insights

Market Research Analyst

The reported increase in average daily volume (ADV) and open interest (OI) across various commodities and financial instruments signals a significant uptick in trading activity and market participation. This growth reflects heightened volatility and a dynamic trading environment, which can be attributed to various macroeconomic factors, geopolitical tensions and changes in supply chain dynamics. The substantial rise in trading volumes, particularly in energy and agricultural markets, indicates that these commodities are being closely watched by investors for hedging and speculative purposes.

Moreover, the record levels of trading activity in Brent and WTI crude oil contracts, as well as TTF gas, underscore the pivotal role of energy markets in the global economy. The increased activity in these markets may have been driven by fluctuating oil prices, shifts in energy policy and the ongoing transition to renewable energy sources. For stakeholders, the increased liquidity and OI could lead to more efficient price discovery and better risk management opportunities.

It is also noteworthy that the environmental markets are experiencing growth, albeit at a slower pace, which could signal a rising interest in sustainable investing and carbon credit trading as the world grapples with climate change issues. The growth in financial instruments, such as interest rates and equity options, reflects a market adapting to changing monetary policies and interest rate environments.

Financial Analyst

The reported data from Intercontinental Exchange, Inc. provides crucial insights into the financial health and trajectory of the company. The substantial year-over-year growth in ADV and OI across multiple segments suggests a robust revenue-generating potential, given that higher trading volumes typically translate into increased transaction-based revenues. This performance may positively influence investor sentiment and could be reflected in the company's stock valuation.

Investors should consider the implications of these statistics on the company's future earnings potential. The diverse growth across commodities, natural gas and financial instruments indicates a diversified revenue stream, which can be a buffer against market volatility in any single asset class. Additionally, the rise in trading volumes of interest rate products like SONIA indicates a market response to changes in monetary policy, which could have implications for the company's fixed income trading segment.

It is important for investors to monitor the sustainability of these growth rates, as they may impact future profit margins. The competitive landscape of exchanges and the potential for regulatory changes could also affect the company's performance in the long term.

Commodities Trading Specialist

The unprecedented growth in ADV and OI for Brent, WTI and TTF gas contracts indicates a highly volatile period for the energy sector, with traders and investors actively seeking to manage their risk exposure. The sharp increase in WTI OI and ADV is particularly telling of market participants' focus on the American oil benchmark, likely due to shifting supply dynamics and the strategic importance of U.S. oil production.

The significant increase in TTF gas OI and ADV highlights the European gas market's response to the changing landscape of energy supply, especially in the context of recent geopolitical events that have impacted gas flows and pricing. The dramatic rise in trading activity in these markets may have provided additional hedging tools for companies and traders to navigate the uncertain energy environment.

From a trading perspective, the increased liquidity in these markets can lead to tighter bid-ask spreads and potentially lower trading costs, benefiting market participants. However, the increased volumes also point to potentially higher systemic risk, should there be abrupt market moves, underscoring the importance of robust risk management practices.

Total Futures & Options ADV +39% y/y in December; +10% y/y in 2023

Record annual volume across Brent, WTI and TTF gas

ATLANTA & NEW YORK--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology and market infrastructure, today reported December, Fourth Quarter, and Full Year 2023 trading volume and related revenue statistics, which can be viewed on the company’s investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.

“ICE began investing in the globalization of commodity markets decades ago, and our record performance through 2023 shows the value customers find in our global platform underpinned by deeply liquid benchmarks across asset classes,” said Ben Jackson, President of ICE. “ICE’s commodity and energy complex reached volume and open interest records throughout the year, with our Brent, WTI, TTF, and agricultural markets each trading at record levels in 2023, reflecting the core role ICE’s derivative markets play in helping our global customer base manage their risk in the face of ever more complex supply chain dynamics.”

Highlights include:

• Total open interest (OI) up 18% y/y, including record OI of 86.5M lots on December 14; average daily volume (ADV) up 39% y/y in December, up 26% y/y in 4Q23 and up 10% y/y in 2023
• Energy OI up 21% y/y, including record OI of 53.7M lots on December 22; ADV up 38% y/y in December, up 35% y/y in 4Q23 and record ADV in 2023 up 18% y/y
  • Total Oil OI up 28% y/y; ADV up 31% y/y in December, up 32% y/y in 4Q23 and record ADV in 2023 up 19% y/y
    • Brent OI up 13% y/y; ADV up 20% y/y in December, up 27% y/y in 4Q23 and record ADV in 2023 up 16% y/y
    • WTI OI up 53% y/y; ADV up 49% y/y in December, up 55% y/y in 4Q23 and record ADV in 2023 up 27% y/y
    • Gasoil OI up 38% y/y; ADV up 33% y/y in December, up 30% y/y in 4Q23 and up 20% y/y in 2023
    • Other crude and refined products OI up 35% y/y; ADV up 51% y/y in December, up 46% y/y in 4Q23 and up 35% y/y in 2023
  • Total natural gas OI up 23% y/y, including record futures OI of 20.6M lots on December 22; ADV up 48% y/y in December, up 41% y/y in 4Q23 and up 17% y/y in 2023
    • North American gas OI up 19% y/y, including record futures OI of 18.2M lots on December 22; ADV up 40% y/y in December, up 28% y/y in 4Q23 and up 7% y/y in 2023
    • TTF gas OI up 89% y/y; ADV up 97% y/y in December, record ADV in 4Q23 up 116% y/y and record 2023 ADV up 66% y/y
    • Asia gas OI up 20% y/y; ADV up 65% y/y in December, up 51% y/y in 4Q23 and up 17% y/y in 2023
  • Total environmentals ADV up 29% y/y in December, up 20% y/y in 4Q23 and up 2% y/y in 2023
• Total Ags & Metals OI up 25% y/y; ADV up 59% y/y in December, up 13% y/y in 4Q23 and record 2023 ADV up 16% y/y
  • Sugar OI up 17% y/y; ADV up 96% y/y in December, up 16% y/y in 4Q23 and record 2023 ADV up 21% y/y
  • Cocoa OI up 74% y/y; ADV up 23% y/y in December, up 7% y/y in 4Q23 and record ADV in 2023 up 14% y/y
  • Coffee OI up 13% y/y; ADV up 53% y/y in December, up 16% y/y in 4Q23 and up 9% y/y in 2023
• Total Financials OI up 10% y/y; ADV up 39% y/y in December and up 17% y/y in 4Q23
  • Total interest rates OI up 15% y/y; ADV up 56% y/y in December, up 26% y/y in 4Q23 and up 4% y/y in 2023
    • SONIA OI up 90% y/y; ADV up 115% y/y in December, up 60% y/y in 4Q23 and record 2023 ADV up 29% y/y
    • Euribor OI up 3% y/y; ADV up 48% y/y in December and up 18% y/y in 4Q23
• NYSE equity options ADV up 14% y/y in December, up 3% y/y in 4Q23 and up 4% y/y in 2023

• NYSE cash equities ADV up 19% y/y in December

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, 2022, as filed with the SEC on February 2, 2023.

Category: Corporate

SOURCE: Intercontinental Exchange

ICE-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20240104784971/en/

ICE Investor Relations Contact:

Katia Gonzalez

+1 678 981 3882

katia.gonzalez@ice.com

investors@ice.com

ICE Media Contact:

Josh King

+1 212 656 2490

josh.king@ice.com

media@ice.com

Source: Intercontinental Exchange

FAQ

What is the company name and ticker symbol mentioned in the press release?

The company mentioned in the press release is Intercontinental Exchange, Inc. and its ticker symbol is NYSE:ICE.

What was the year-over-year increase in total futures and options ADV in December?

The year-over-year increase in total futures and options ADV in December was 39%.

Which asset classes showed significant increases in open interest and ADV according to the press release?

According to the press release, energy, oil, natural gas, environmentals, ags & metals, and financials showed significant increases in open interest and ADV.

Who is the President of ICE mentioned in the press release?

The President of ICE mentioned in the press release is Ben Jackson.

Where can the detailed trading volume and revenue statistics be viewed?

The detailed trading volume and revenue statistics can be viewed on the company’s investor relations website at https://ir.theice.com/ir-resources/supplemental-information in the Monthly Statistics Tracking spreadsheet.