Intercontinental Exchange Reports June and Second Quarter 2024 Statistics

Rhea-AI Summary

Intercontinental Exchange (ICE) reported record trading volumes and financial statistics for June 2024 and the second quarter of 2024. Key metrics include a 30% year-over-year increase in total average daily volume (ADV) and a 21% year-over-year rise in open interest (OI). Energy ADV grew 30% y/y, with natural gas ADV up 41% y/y and oil ADV up 24% y/y. Financial ADV surged 39% y/y, and interest rate ADV jumped 52% y/y. Notably, record volumes were seen in various categories, including energy, natural gas, and interest rates futures. These figures reflect enhanced customer confidence and the growing demand for ICE's diversified commodity and financial markets.

Positive

• Total ADV up 32% y/y in Q2 2024
• Energy ADV up 31% y/y in Q2 2024
• Record WTI ADV up 65% y/y in Q2 2024
• Total Oil ADV up 28% y/y in Q2 2024
• Total Financials ADV up 43% y/y in Q2 2024
• Interest Rates ADV up 52% y/y in June 2024
• Natural Gas ADV up 41% y/y in June 2024
• Total Environmentals ADV up 49% y/y in June 2024

Negative

• None.

Insights

Financial Analyst

The reported June and Q2 2024 trading volume show significant growth in several key areas, such as Energy and Interest Rates futures, which indicates increased market activity and potentially higher revenue for Intercontinental Exchange (ICE). A notable highlight is the 30% year-over-year increase in Total Average Daily Volume (ADV), which reflects higher customer engagement and trading activity on the ICE platform.

From a financial perspective, these figures suggest that ICE is effectively capitalizing on market demand for risk management and hedging solutions. The record open interest (OI) figures across various products, such as Brent and WTI crude and natural gas, show strong confidence in ICE's offerings. This could positively impact ICE's revenue streams, as higher trading volumes typically lead to increased transaction fees.

The substantial increases in Interest Rates Futures (ADV up 52% y/y) align with a heightened focus on interest rate hedging amidst global economic uncertainties. This diversification across multiple products and regions enhances ICE's resilience to market fluctuations, offering a stable revenue base. Retail investors should consider how this broad market engagement may sustain ICE's revenue growth over the long term, despite potential short-term volatility in individual markets.

Market Research Analyst

The diversification of ICE's trading platforms, highlighted by record ADV figures across various commodity and financial markets, demonstrates the company's strategic positioning to address multiple markets simultaneously. This ability to cater to a broad range of asset classes provides a robust hedge against sector-specific downturns.

What stands out is the regional diversity in trading volumes, with significant growth in Asian Gas ADV (up 75% y/y) and North American Gas ADV (up 63% y/y). This suggests that ICE's global strategy is yielding results, allowing the company to tap into different geographic markets and reduce dependency on any particular region.

For retail investors, it's important to understand that such diversification can mitigate risks associated with regional economic and political changes. Moreover, the increase in environmental product trading volumes underscores a growing trend towards sustainability and carbon trading, areas where ICE appears to be gaining traction, potentially offering new growth avenues.

Energy Market Expert

ICE's record figures in Energy futures, with a notable 30% year-over-year increase in Energy ADV, indicate a strong demand for energy hedging instruments. This trend suggests that market participants are actively engaging in risk management amid volatile energy prices. Particularly, the West Texas Intermediate (WTI) and Brent crude futures have shown substantial growth, reflecting these benchmarks' critical roles in global energy trading.

The record open interest in products like Midland WTI and significant ADV upticks in natural gas products point to a robust underlying market. This is important for retail investors to note as it demonstrates the stability and reliability of ICE's energy trading platform. With the ongoing transition to cleaner energy sources, ICE's increasing volumes in natural gas trading also highlight the shift towards less carbon-intensive fuels.

Investors should consider how these dynamics might affect ICE's market position and long-term revenue potential, given the evolving energy landscape. As companies and countries strive to meet emissions targets, the demand for such hedging products is likely to grow.

Record Q2 Energy and Interest Rates Futures ADV

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

“Our focus in creating a truly global platform over the last 20 years means that trading the ICE network today is not tied to any single product or limited to any one region. Instead, we have built diversified commodity and financial markets to provide risk management solutions and capital efficiencies across a range of liquid benchmarks,” said Benjamin Jackson, President at ICE. “The record traded volume across total futures and options contracts in the second quarter of 2024, surpassing the previous quarterly record in 2020, is a testament to our customers' continued confidence in ICE as a global energy hedging venue of choice.”

June highlights include:

• Total average daily volume (ADV) up 30% y/y; open interest (OI) up 21% y/y, including record OI of 98.4M lots on June 13
• Record Energy ADV up 30% y/y; OI up 25% y/y, including record OI of 63.6M lots on June 24
  • Total Oil ADV up 24% y/y; OI up 22% y/y, including record futures OI of 9.4M lots on June 27
    • Brent ADV up 12% y/y; OI up 14% y/y
    • Record WTI ADV up 55% y/y; OI up 32% y/y
      • Record Midland WTI ADV of 30k lots; Record OI of 158k lots on June 13
    • Gasoil ADV up 28% y/y; OI up 54% y/y, including record OI of 1.2M lots on June 27
    • Record Other Crude & Refined products ADV up 51% y/y; OI up 24% y/y
      • Dubai ADV up 20% y/y; OI up 3% y/y
      • Record Murban ADV of 31k lots
  • Total Natural Gas ADV up 41% y/y; OI up 28% y/y, including record OI of 42.8M lots on June 24
    • North American Gas ADV up 63% y/y; OI up 25% y/y, including record OI of 37.3M lots on June 24
    • TTF Gas OI up 61% y/y, including record OI of 4.6M lots on June 25
    • Asia Gas ADV up 75% y/y; OI up 54% y/y, including record OI of 139k lots on June 13
  • Total Environmentals ADV up 49% y/y; OI up 37% y/y
• Cotton ADV up 13% y/y
• Total Financials ADV up 39% y/y; OI up 19% y/y
  • Total Interest Rates ADV up 52% y/y; OI up 25% y/y
    • SONIA ADV up 41% y/y; OI up 108% y/y, including record futures OI of 2.3M lots on June 11
    • Euribor ADV up 53% y/y; OI up 4% y/y
    • Gilts ADV up 36% y/y; OI up 40% y/y
• NYSE Cash Equities ADV up 8% y/y
• NYSE Equity Options ADV up 26% y/y

Second quarter highlights include:

• Total ADV up 32% y/y
• Energy ADV up 31% y/y, including record futures of 3.6M lots
  • Total Oil ADV up 28% y/y, including record options of 257k lots
    • Brent ADV up 16% y/y, including record options of 215k lots
    • Record WTI ADV up 65% y/y
      • Record Midland WTI ADV of 25k lots
    • Gasoil ADV up 27% y/y
    • Other Crude & Refined products ADV up 49% y/y
      • Dubai ADV up 36% y/y
      • Murban ADV up 199% y/y
  • Total Natural Gas ADV up 36% y/y
    • North American Gas ADV up 38% y/y
    • Record TTF Gas ADV up 29% y/y
    • Asia Gas ADV up 57% y/y
  • Total Environmentals ADV up 61% y/y
• Coffee ADV up 24% y/y
• Cotton ADV up 18% y/y
• Total Financials ADV up 43% y/y,
  • Total Interest Rates ADV up 53% y/y, including record futures of 2.3M lots
    • Record SONIA ADV up 77% y/y
    • Euribor ADV up 43% y/y
    • Gilts ADV up 33% y/y
• NYSE Cash Equities ADV up 15% y/y
• NYSE Equity Options ADV up 22% 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: Corporate

SOURCE: Intercontinental Exchange

ICE-CORP

View source version on businesswire.com: https://www.businesswire.com/news/home/20240703207331/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 were ICE's total average daily volumes for June 2024?

ICE reported a 30% year-over-year increase in total average daily volumes (ADV) for June 2024.

How did ICE's energy futures perform in the second quarter of 2024?

Energy futures at ICE saw a record average daily volume (ADV) increase of 31% year-over-year in the second quarter of 2024.

What record statistics did ICE report for WTI in Q2 2024?

ICE reported record West Texas Intermediate (WTI) average daily volume (ADV) up 65% year-over-year in Q2 2024.

How did ICE's financial futures perform in June 2024?

Financial futures at ICE saw a 39% year-over-year increase in average daily volumes (ADV) in June 2024.

What was the performance of ICE's natural gas ADV in June 2024?

ICE's natural gas average daily volume (ADV) increased by 41% year-over-year in June 2024.

How did ICE's interest rate futures perform in June 2024?

Interest rate futures at ICE saw a 52% increase in average daily volumes (ADV) year-over-year in June 2024.

What was the total environmental ADV growth for ICE in June 2024?

ICE reported a 49% year-over-year increase in total environmental average daily volumes (ADV) in June 2024.