Intercontinental Exchange Reports January 2024 Statistics

Rhea-AI Summary

Intercontinental Exchange, Inc. (NYSE:ICE) reported January 2024 trading volume and revenue statistics, with a 30% increase in total average daily volume (ADV) and record options of 1.6M lots. Energy ADV saw a 33% increase, with record open interest (OI) of 56.3M lots. Total Oil ADV increased by 31%, and Brent ADV increased by 14%. Gasoil ADV saw a 49% increase, and total natural gas ADV increased by 39%. North American gas ADV increased by 38%, and TTF gas ADV increased by 44%. Record Cocoa ADV increased by 54%, and SONIA ADV increased by 61%.

Insights

Market Research Analyst

The reported increase in average daily volume (ADV) and open interest (OI) across various commodities and options by Intercontinental Exchange, Inc. (ICE) indicates a significant uptick in trading activity. This surge, particularly in energy commodities such as oil and natural gas, can be attributed to several factors such as geopolitical events, changes in supply and demand dynamics and macroeconomic trends influencing market volatility. The record levels in OI suggest a growing interest and a potential increase in hedging activities as traders seek to mitigate risks associated with price fluctuations in these commodities.

From an investment perspective, the growth in ADV and OI might signal strong revenue prospects for ICE, given that higher trading volumes typically translate to increased transaction-based revenues. This could potentially have positive implications for ICE's financial performance, making it an area of interest for shareholders and potential investors. However, it's important to monitor whether this increased activity is sustainable or merely a response to short-term market conditions.

Financial Analyst

Intercontinental Exchange's report of a 30% year-over-year increase in ADV, with significant jumps in energy products such as WTI and Gasoil, is noteworthy. The data suggests a robust trading environment which can lead to higher earnings from trading fees, a core revenue stream for exchanges like ICE. The substantial increase in OI, especially in TTF gas and other crude products, reflects heightened market engagement and the potential for ICE to lock in future revenue through clearing and settlement services.

Investors should consider the impact of these statistics on ICE's market share and competitive positioning within the exchange sector. The growth in environmental products trading also aligns with global trends towards sustainability and the transition to green energy, which could offer long-term growth opportunities for ICE. Caution should be exercised, as trading volumes can be volatile and sensitive to market disruptions. Continuous monitoring of subsequent months' data will be essential to determine if this is part of a longer-term trend.

Commodities Analyst

The detailed breakdown of ADV and OI increases in commodities such as Brent, WTI and natural gas provides insights into specific market segments that are experiencing heightened activity. The 59% year-over-year increase in WTI ADV and the 50% increase in OI indicate a particularly strong interest in this benchmark for crude oil, possibly driven by market reactions to shifts in energy policy or international supply concerns. The record OI in TTF gas, which nearly doubled year-over-year, suggests a significant shift in the European energy market, likely influenced by the ongoing transition to more diverse gas supply sources and the integration of liquefied natural gas (LNG) markets.

Understanding the factors driving these increases is crucial for stakeholders in the energy sector, including producers, consumers and investors. The data reflects not just trading for speculative purposes but also the strategic positioning of market participants in anticipation of future price movements. The implications of these shifts for global energy prices and the broader economy warrant close attention, as they can affect inflation rates, consumer spending and industrial production costs.

Record ADV across commodities, energy and total options

ATLANTA & NEW YORK--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today reported January 2024 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.

January highlights include:

• Total average daily volume (ADV) up 30% y/y, including record options of 1.6M lots; open interest (OI) up 20% y/y, including record OI of 87.3M lots on January 25
• Record Energy ADV up 33% y/y; OI up 22% y/y, including record OI of 56.3M lots on January 25
  • Total Oil ADV up 31% y/y; OI up 25% y/y
    • Brent ADV up 14% y/y; OI up 6% y/y
    • WTI ADV up 59% y/y; OI up 50% y/y
    • Gasoil ADV up 49% y/y; OI up 50% y/y
    • Record Other Crude & Refined products ADV up 50% y/y; OI up 36% y/y
  • Total Natural gas ADV up 39% y/y, including record options of 646k lots; OI up 26% y/y, including record OI of 37.5M lots on January 25
    • North American gas ADV up 38% y/y; OI up 21% y/y
    • TTF gas ADV up 44% y/y; OI up 97% y/y, including record OI of 3.7M lots on January 25
    • Asia gas ADV up 76% y/y; OI up 33% y/y
  • Total Environmentals ADV up 9% y/y
• Total Ags & Metals ADV up 8% y/y; OI up 23% y/y, including record OI of 5.4M lots on January 31
  • Sugar OI up 13% y/y
  • Record Cocoa ADV up 54% y/y; OI up 68% y/y, including record OI of 1.8M lots on January 31
  • Coffee OI up 7% y/y
• Total Financials ADV up 29% y/y; OI up 14% y/y
  • Total Interest Rates ADV up 38% y/y; OI up 20% y/y
    • Record SONIA ADV up 61% y/y; OI up 108% y/y
    • Euribor ADV up 31% y/y; OI up 5% 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, 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/20240205952226/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 ticker symbol for Intercontinental Exchange, Inc.?

The ticker symbol for Intercontinental Exchange, Inc. is ICE.

What were the highlights of Intercontinental Exchange, Inc.'s January 2024 trading volume and revenue statistics?

The highlights include a 30% increase in total average daily volume (ADV) and record options of 1.6M lots. Energy ADV saw a 33% increase, with record open interest (OI) of 56.3M lots.

How much did the total Oil ADV and Brent ADV increase year over year?

The total Oil ADV increased by 31%, and Brent ADV increased by 14%.

What was the percentage increase in total natural gas ADV year over year?

The total natural gas ADV increased by 39%.

What was the percentage increase in SONIA ADV year over year?

SONIA ADV increased by 61%.

Where can the January 2024 trading volume and revenue statistics be viewed?

The January 2024 trading volume and revenue statistics can be viewed on the company's investor relations website at https://ir.theice.com/ir-resources/supplemental-information.