Intercontinental Exchange Inc
For the period ended Jun 30, 2024. Filed Aug 1, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 1, 2024
ICE$172.27-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-02.
0001571949-24-000011
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001571949-24-000014
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 275 previous paragraphs and 283 current paragraphs.
188 unchanged; 84 reworded; 9 added; 3 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 17 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (9)
Current report
•EU DORA Regulation. The Digital Operational Resilience Act, or DORA, is an EU regulation that establishes an information and communication technology risk management framework for the EU financial sector. DORA establishes technical standards that financial entities and their critical third-party technology service providers must implement by January 2025 and imposes requirements relating to risk management, reporting, and information and communications technology service provider oversight. Some of our businesses are likely to be impacted by DORA as EU financial entities or critical third-party service providers to EU financial entities.
Current report
•Regulation of ESG Data and Ratings. Many jurisdictions have adopted or are proposing or considering proposals to regulate environmental, social or governance, or ESG, data providers, as well as ESG ratings. In April 2024, the EU adopted a regulation on the transparency and integrity of ESG rating activities which aims to enhance the integrity, transparency, governance, and independence of ESG ratings provided in the EU. The regulation will impact certain ICE Data Service offerings and may require authorization and supervision by the European Securities and Markets Authority.
Current report
(4)Percentage changes in the table above deemed "n/a" are not meaningful.
Current report
–Total oil futures and options volume increased 26% and 30% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, in part due to ongoing geopolitical issues in the Middle East as well as supply/demand dynamics.
Current report
•Agricultural and Metals Futures and Options: Total volumes in our agricultural and metals futures and options markets increased 1% for the six months ended June 30, 2024 and decreased 6% for the three months ended June 30, 2024 from the comparable periods in 2023 and revenues decreased 3% and 8% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. The overall decrease in agricultural volumes for the three months ended June 30, 2024 was primarily driven by lower commodity price volatility than in the prior year period.
Current report
For the three months ended June 30, 2024, the increase was primarily due to $5 million attributable to Black Knight, $30 million of expense for valid claims made following an equity trading issue at NYSE that occurred in June 2024 and increases in other underlying costs, including customer acquisition costs from higher IPO activity, travel and entertainment, partially offset by lower credit losses.
Current report
On May 13, 2024, we issued $750 million in aggregate principal amount of 5.25% senior notes due 2031, or the 2031 Notes. We intend to use $500 million of the net proceeds from the offering of the 2031 Notes to repay a portion of the aggregate principal amount of the senior notes maturing in May 2025, or the 2025 Notes. The net proceeds intended to repay the 2025 Notes have been invested and recorded as short-term restricted investments in our consolidated balance sheet as of June 30, 2024. We used the remaining net proceeds to assist with the repayments of the outstanding borrowings under the Term Loan.
Current report
Other adjustments not considered to be a part of our core business operations include:
Current report
•During the six months ended June 30, 2024, $30 million of expense for valid claims made following an equity trading issue at NYSE that occurred in June 2024.
Removed paragraphs (3)
Previous report
–Total oil futures and options volume increased 21% for the three months ended March 31, 2024 from the comparable period in 2023, driven, in part, by elevated levels of price uncertainty related to oil supply/demand dynamics and geopolitical risk.
Previous report
•Agricultural and Metals Futures and Options: Total volumes in our agricultural and metals futures and options markets increased 9% and revenues increased 3% for the three months ended March 31, 2024 from the comparable period in 2023, driven by elevated price volatility as a result of weather-related supply and demand dynamics impacting our Cocoa and Cotton markets.
Previous report
Draws under the Term Loan bear interest on the principal amount outstanding at either (a) Term Secured Overnight Financing Rate, or Term SOFR, plus an applicable margin plus a credit spread adjustment of 8.75 basis points or (b) a "base rate" plus an applicable margin. We have the option to prepay outstanding amounts under the Term Loan in whole or in part at any time. As of March 31, 2024, we had $1.0 billion outstanding under the Term Loan.
Reworded paragraphs (84)
Previous wording
•the impact of the introduction of or any changes in laws, regulations, rules or government policies with respect to financial markets, climate change, increased regulatory scrutiny or enforcement actions and our ability to comply with these requirements;
Current wording
•the impact of the introduction of, or any changes to, laws, regulations, rules or government policies with respect to, among other things, financial markets and climate change, as well as increased regulatory scrutiny or enforcement actions;
Previous wording
•the performance and reliability of our trading, clearing and mortgage technologies and those of third-party service providers;
Current wording
•the impacts of computer and communications systems failures and delays, inclusive of the performance and reliability of our trading, clearing, data services and mortgage technologies and those of third-party service providers;
Previous wording
Our business has been impacted positively and negatively by these global economic conditions. For instance, due to market and interest rate volatility, we have seen increased trading across a number of our products, such as interest rate and equity futures, credit default swaps and bonds. Conversely, increases in mortgage interest rates in 2022, 2023 and, to a lesser extent, the first quarter of 2024, have resulted in reduced consumer and investor demand for mortgages and adversely impacted the transaction-based revenues in our Mortgage Technology segment. If mortgage rates remain high or further increase, or if banks change their mortgage lending practices, our Mortgage Technology segment revenues may be further impacted.
Current wording
Our business has been impacted positively and negatively by these global economic conditions. For instance, due to market and interest rate volatility, we have seen increased trading across a number of our products, such as interest rate and equity futures, credit default swaps and bonds. Conversely, increases in mortgage interest rates in 2022, 2023 and, to a lesser extent, the first half of 2024, have resulted in reduced consumer and investor demand for mortgages and adversely impacted the transaction-based revenues in our Mortgage Technology segment. If mortgage rates remain high or further increase, or if banks change their mortgage lending practices, our Mortgage Technology segment revenues may be further impacted. In addition, higher interest rates have resulted, and may continue to result, in higher interest rates for our debt instruments as we refinance our existing indebtedness.
Previous wording
We expect the macroeconomic environment to remain dynamic in the near-term, and we continue to monitor macroeconomic conditions, including interest rates, the inflationary environment, geopolitical events and military conflicts, including election outcomes and repercussions from the conflicts in Ukraine, Israel and Gaza and the impact that any of the foregoing may have on the global economy and on our business. We have closely been monitoring the credit worthiness of our counterparties and investment agents during banking sector events, scrutinized counterparties directly impacted and monitored for any potential contagion. We did not suffer any material negative impact from the banking sector events that occurred in early 2023. In light of the current and expected macroeconomic environment we will continue to closely monitor credit worthiness of our counterparties, clearing members and our financial service providers and take risk management measures in line with established risk management frameworks.
Current wording
We expect the macroeconomic environment to remain dynamic in the near-term, and we continue to monitor macroeconomic conditions, including interest rates, the inflationary environment, geopolitical events and military conflicts, including election outcomes and repercussions from the conflicts in Ukraine, Israel and Gaza and the impact that any of the foregoing may have on the global economy and on our business. We also continue to closely monitor credit worthiness of our counterparties, clearing members and our financial service providers and take risk management measures in line with established risk management frameworks.
Previous wording
•Benchmarks Regulation. Most London Interbank Offered Rate, or LIBOR, settings have ceased to be published; however, the Financial Conduct Authority, or FCA, has required ICE Benchmark Administration, or IBA, as the administrator of LIBOR, to continue publishing certain LIBOR settings for a temporary period using a changed "synthetic" methodology. "Synthetic" LIBOR settings are not representative of the underlying market or economic reality the settings were previously intended to measure.
Current wording
•Benchmarks Regulation. Most London Interbank Offered Rate, or LIBOR, settings have ceased to be published; however, the Financial Conduct Authority, or FCA, has required ICE Benchmark Administration, or IBA, as the administrator of LIBOR, to continue publishing certain LIBOR settings for a temporary period using a changed "synthetic" methodology. "Synthetic" LIBOR settings are not representative of the underlying market or economic reality the settings were previously intended to measure. The last remaining "synthetic" LIBOR settings are expected to cease publication in September 2024.
Previous wording
•EU Deforestation Regulation. Effective in December 2024, the EU Deforestation Regulation, or EUDR, requires that certain commodities (including cocoa and coffee) and their products be from deforestation-free land and meet other requirements before they can be placed or made available on the EU market, or exported from it. The EUDR requirements may decelerate the physical trade of cocoa and coffee, impact the usability of EU coffee and cocoa physical inventories, and reduce trading volumes on ICE Futures Europe of the Robusta Coffee Contract and London Cocoa Contract and on ICE Futures U.S. of the Coffee C Contract (Arabica). In March, 20 EU Member States urged the EU Commission to revise the EUDR and temporarily suspend implementation. We are monitoring the impact of these developments on ICE Futures Europe and ICE Futures U.S.
Current wording
•EU Deforestation Regulation. Effective in December 2024, the EU Deforestation Regulation, or EUDR, requires that certain commodities (including cocoa and coffee) and their products be from deforestation-free land and meet other requirements before they can be placed or made available on the EU market, or exported from it. The EUDR requirements may decelerate the physical trade of cocoa and coffee, impact the usability of EU coffee and cocoa physical inventories, and reduce trading volumes on ICE Futures Europe of the Robusta Coffee Contract and London Cocoa Contract and on ICE Futures U.S. of the Coffee C Contract (Arabica). Several EU Member States and U.S. cabinet members have urged the EU Commission to revise the EUDR and temporarily suspend implementation. We are monitoring the impact of these developments on ICE Futures Europe and ICE Futures U.S.
Previous wording
•U.K. Deforestation Regulation. In December 2023, the U.K. Government announced its intent to implement a regulation which would require that certain commodities (including cocoa) and their products be from deforestation-free land and meet other requirements. Legislation to implement these requirements is likely to be adopted early in 2024. We are monitoring the impact of these developments and any impact on ICE Futures Europe.
Current wording
•U.K. Deforestation Regulation. In December 2023, the U.K. Government announced its intent to implement a regulation which would require that certain commodities (including cocoa) and their products be from deforestation-free land and meet other requirements. We are monitoring the impact of these developments and any impact on ICE Futures Europe.
Previous wording
•U.K. Commodity Derivatives Reform. In December 2023, the FCA published a consultation proposing to revise the U.K. commodity derivatives framework. The Financial Services and Markets Act 2023, or FSMA 2023, reformed the U.K.’s commodity derivatives regulatory regime including revoking the Markets in Financial Instruments Directive II, or MIFID II, requirement to set position limits on all exchange traded and over-the-counter contracts and transferring the powers to set position limits from the FCA to trading venue operators. The FCA is proposing to require that trading venues set position limits for critical and related contracts including ICE's softs, agricultural and energy contracts such as Brent, WTI, gasoil and natural gas, to establish accountability thresholds and to report enhanced position data. These requirements could make trading on ICE Futures Europe more difficult and could result in a reduction in volumes and liquidity.
Current wording
•U.K. Commodity Derivatives Reform. In December 2023, the FCA published a consultation proposing to revise the U.K. commodity derivatives framework. The Financial Services and Markets Act 2023, or FSMA 2023, reformed the U.K.’s commodity derivatives regulatory regime including revoking the Markets in Financial Instruments Directive II, or MIFID II, requirement to set position limits on all exchange traded and over-the-counter contracts and transferring the powers to set position limits from the FCA to trading venue operators. The FCA's current proposals would require that trading venues set position limits for critical and related contracts including ICE's softs, agricultural and energy contracts such as Brent, WTI, gasoil and natural gas, to establish accountability thresholds and to report enhanced position data. These requirements could make trading on ICE Futures Europe more difficult and could result in a reduction in volumes and liquidity.
Previous wording
The OECD Pillar Two minimum tax rules, which generally provide for a minimum effective tax rate of 15%, are intended to apply to tax years beginning in 2024. In 2023, the OECD issued administrative guidance providing transitional safe harbor rules concerning the implementation of the Pillar Two framework, which will apply to fiscal years ending on or before December 31, 2026. The EU member states and many other countries, including the U.K., have committed to implement or have already enacted legislation adopting the Pillar Two rules. We are monitoring developments and evaluating the impacts of these new rules on our tax rate, including our ability to qualify for the safe harbor rules as implemented by each jurisdiction; however, we do not expect a material impact to our effective tax rate given our current tax profile.
Current wording
The Organisation for Economic Cooperation and Development, or OECD, Pillar Two minimum tax rules, which generally provide for a minimum effective tax rate of 15%, are intended to apply to tax years beginning in 2024. In 2023, the OECD issued administrative guidance providing transitional safe harbor rules concerning the implementation of the Pillar Two framework, which will apply to fiscal years ending on or before December 31, 2026. The EU member states and many other countries, including the U.K., have committed to implement or have already enacted legislation adopting the Pillar Two rules. We are monitoring developments and evaluating the impacts of these new rules on our tax rate, including our ability to qualify for the safe harbor rules as implemented by each jurisdiction; however, we do not expect a material impact to our effective tax rate given our current tax profile.
Previous wording
(1) Operating loss from our Mortgage Technology segment was $48 million and $28 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
(1) Operating loss from our Mortgage Technology segment was $80 million and $45 million for the six months ended June 30, 2024 and 2023, respectively.
Previous wording
•Revenues, less transaction-based expenses, increased $394 million for the three months ended March 31, 2024 from the comparable period in 2023. See "—Exchanges Segment", "—Fixed Income and Data Services Segment" and "—Mortgage Technology Segment" below for a discussion of the significant changes in our revenues. The increase in revenues during the three months ended March 31, 2024 includes $9 million in favorable foreign exchange effects arising from fluctuations in the U.S. dollar from the comparable period in 2023.
Current wording
•Revenues, less transaction-based expenses, increased $823 million and $429 million for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. See "—Exchanges Segment", "—Fixed Income and Data Services Segment" and "—Mortgage Technology Segment" below for a discussion of the significant changes in our revenues. The change in revenues during the six and three months ended June 30, 2024 includes $8 million in favorable and $1 million in unfavorable, respectively, foreign exchange effects arising from fluctuations in the U.S. dollar from the comparable periods in 2023.
Previous wording
•Operating expenses increased $300 million for the three months ended March 31, 2024 from the comparable period in 2023. See "—Consolidated Operating Expenses" below for a discussion of the significant changes in our operating expenses. The increase in operating expenses during the three months ended March 31, 2024 includes $3 million in unfavorable foreign exchange effects arising from fluctuations in the U.S. dollar from the comparable period in 2023.
Current wording
•Operating expenses increased $618 million and $318 million for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. See "—Consolidated Operating Expenses" below for a discussion of the significant changes in our operating expenses. The increase in operating expenses during the six and three months ended June 30, 2024 includes $4 million and $1 million, respectively, in unfavorable foreign exchange effects arising from fluctuations in the U.S. dollar from the comparable periods in 2023.
Previous wording
For the three months ended March 31, 2024 and 2023, 23% and 20%, respectively, of our Exchanges segment revenues, less transaction-based expenses, were billed in pounds sterling or euros. Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar, our Exchanges segment revenues, less transaction-based expenses, were higher by $7 million for the three months ended March 31, 2024, from the comparable periods in 2023.
Current wording
For the six and three months ended June 30, 2024, 23% and 22%, respectively, of our Exchanges segment revenues, less transaction-based expenses, were billed in pounds sterling or euros, and for both of the six and three months ended June 30, 2023, 19% of our Exchanges segment revenues, less transaction-based expenses, were billed in pounds sterling or euros. Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar, our Exchanges segment revenues, less transaction-based expenses, were higher by $7 million for the six months ended June 30, 2024, and flat for the three months ended June 30, 2024, respectively, from the comparable periods in 2023.
Previous wording
Our exchange transaction and clearing revenues are presented net of rebates. We recorded rebates of $297 million and $252 million for the three months ended March 31, 2024 and 2023, respectively. We offer rebates in certain of our markets primarily to support market liquidity and trading volume by providing qualified participants in those markets a discount to the applicable commission rate. Such rebates are calculated based on volumes traded. The increase in rebates for the three months ended March 31, 2024 is primarily due to higher volumes traded as compared to the comparable period in 2023.
Current wording
Our exchange transaction and clearing revenues are presented net of rebates. We recorded rebates of $616 million and $488 million for the six months ended June 30, 2024 and 2023, respectively, and $319 million and $236 million for the three months ended June 30, 2024 and 2023, respectively. We offer rebates in certain of our markets primarily to support market liquidity and trading volume by providing qualified participants in those markets a discount to the applicable commission rate. Such rebates are calculated based on volumes traded. The increase in rebates for the six and three months ended June 30, 2024 is primarily due to higher volumes traded as compared to the comparable periods in 2023.
Previous wording
•Energy Futures and Options: Total energy volume increased 25% and revenues increased 33% for the three months ended March 31, 2024 from the comparable period in 2023.
Current wording
•Energy Futures and Options: Total energy volume increased 29% and revenues increased 32% for the six months ended June 30, 2024 from the comparable period in 2023 and volume increased 33% and revenues increased 32% for the three months ended June 30, 2024 from the comparable period in 2023.
Previous wording
–Our global natural gas futures and options volume increased 32% for the three months ended March 31, 2024 from the comparable period in 2023, due to continued growth in our TTF and Asian JKM products as natural gas continues to globalize, as well as strength in our North American natural gas products driven by increased volatility related to shifting weather and fundamentals.
Current wording
–Our global natural gas futures and options volume increased 35% and 38% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, due to continued growth in our TTF and Asian JKM products as natural gas continues to globalize, as well as strength in our North American natural gas products driven by increased volatility related to shifting weather and fundamentals.
Previous wording
–Our environmentals and other futures and options volume increased 16% for the three months ended March 31, 2024 from the comparable period in 2023, due to higher environmentals and power volumes versus the year ago period.
Current wording
–Our environmentals and other futures and options volume increased 35% and 58% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, due to higher environmentals and power volumes versus the year ago period.
Previous wording
–Sugar futures and options volumes decreased 15% for the three months ended March 31, 2024 from the comparable period in 2023.
Current wording
–Sugar futures and options volumes decreased 17% and 20% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023.
Previous wording
–Other agricultural and metal futures and options volume increased 26% for the three months ended March 31, 2024 from the comparable period in 2023.
Current wording
–Other agricultural and metal futures and options volume increased 16% and 6% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023.
Previous wording
•Financial Futures and Options: Total volumes in our financial futures and options markets increased 4% and revenues increased 6% for the three months ended March 31, 2024 from the comparable period in 2023, including the impacts of foreign exchange effects. The three months ended March 31, 2024 benefited from elevated interest rate volatility related to increased central bank activity speculation.
Current wording
•Financial Futures and Options: Total volumes in our financial futures and options markets increased 21% and 46% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023 and revenues increased 15% and 26% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, including the impacts of foreign exchange effects. The six and three months ended June 30, 2024 benefited from interest rate volatility related to central bank activity speculation.
Previous wording
–Interest rate futures and options volume increased 9% and revenue increased 16% for the three months ended March 31, 2024 from the comparable period in 2023. The three months ended March 31, 2024 benefited from elevated interest rate volatility related to increased central bank activity speculation. Interest rate futures and options revenues were $97 million and $84 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
–Interest rate futures and options volume increased 28% and 56% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023 and revenue increased 27% and 41% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. The six and three months ended June 30, 2024 benefited from interest rate volatility related to increased central bank activity speculation.
Previous wording
–Other financial futures and options volume, which includes our MSCI®, FTSE® and NYSE FANG+ equity index products, decreased 21% and revenue decreased 13% for the three months ended March 31, 2024 from the comparable period in 2023. The decrease was primarily due to lower equity market volatility than during the comparable period in 2023. Other financial futures and options revenues were $38 million and $44 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
–Other financial futures and options volume, which includes our MSCI®, FTSE® and NYSE FANG+ equity index products, decreased 12% for the six months ended June 30, 2024, and were flat for the three months ended June 30, 2024, from the comparable periods in 2023. Revenue decreased 6% and increased 3% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. The decrease in other financial futures and options volume was primarily due to lower equity market volatility than during the comparable period in 2023.
Previous wording
•Cash Equities and Equity Options: Cash equities volume increased 2% for the three months ended March 31, 2024 from the comparable period in 2023, due to increased market share as compared to the same prior year period. Cash equities revenues, net of transaction-based expenses, were $71 million and $67 million for the three months ended March 31, 2024 and 2023, respectively. Equity options volume increased 7% for the three months ended March 31, 2024 from the comparable period in 2023, driven by increased participation and higher market share. Equity options revenues, net of transaction-based expenses, were $28 million for both the three months ended March 31, 2024 and 2023.
Current wording
•Cash Equities and Equity Options: Cash equities volume increased 8% and 15% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, due to increased market share as compared to the same prior year period. Cash equities revenues, net of transaction-based expenses, were $151 million and $134 million for the six months ended June 30, 2024 and 2023, respectively, and $80 million and $67 million for the three months ended June 30, 2024 and 2023, respectively. Equity options volume increased 14% and 22% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, driven by increased participation and higher market share. Equity options revenues, net of transaction-based expenses, were $59 million and $57 million for the six months ended June 30, 2024 and 2023, respectively, and $31 million and $29 million for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
•OTC and Other: OTC and other transactions include revenues from our OTC energy business and other trade confirmation services, as well as interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees. Our OTC and other revenues increased 2% for the three months ended March 31, 2024 from the comparable period in 2023.
Current wording
•OTC and Other: OTC and other transactions include revenues from our OTC energy business and other trade confirmation services, as well as net interest income and fees on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S.
Previous wording
•Data and Connectivity Services: Our data and connectivity services revenues increased 1% for the three months ended March 31, 2024 from the comparable period in 2023. The increase in revenue was driven by the strong retention rate of existing customers, the addition of new customers and increased purchases by existing customers.
Current wording
•Data and Connectivity Services: Our data and connectivity services revenues increased 3% and 4% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. The increase in revenue was driven by the strong retention rate of existing customers, the addition of new customers and increased purchases by existing customers.
Previous wording
•Listings Revenues: Through NYSE, NYSE American and NYSE Arca, we generate listings revenue related to the provision of listings services for public companies and ETFs, and related corporate actions for listed companies. Listings revenues decreased 4% for the three months ended March 31, 2024, from the comparable period in 2023, due to the roll off of initial listing fees from the strong IPO market in 2021. All listings fees are billed upfront, and revenues are recognized over time as the identified performance obligations are satisfied.
Current wording
•Listings Revenues: Through NYSE, NYSE American and NYSE Arca, we generate listings revenue related to the provision of listings services for public companies and ETFs, and related corporate actions for listed companies. Listings revenues decreased 3% for both the six and three months ended June 30, 2024 from the comparable periods in 2023 due to the roll off of initial listing fees from the strong initial public offering, or IPO, market in 2021. All listings fees are billed upfront, and revenues are recognized over time as the identified performance obligations are satisfied.
Previous wording
Our equities and equity options markets pay fees to the SEC pursuant to Section 31 of the Exchange Act. Section 31 fees are recorded on a gross basis as a component of transaction and clearing fee revenue. These Section 31 fees are assessed to recover the government’s costs of supervising and regulating the securities markets and professionals and are subject to change. We, in turn, collect corresponding activity assessment fees from member organizations clearing or settling trades on the equities and options exchanges, and recognize these amounts in our transaction and clearing revenues when invoiced. The activity assessment fees are designed to equal the Section 31 fees. As a result, activity assessment fees and the corresponding Section 31 fees do not have an impact on our net income, although the timing of payment by us will vary from collections. Section 31 fees were $67 million and $119 million for the three months ended March 31, 2024 and 2023, respectively. The decrease in Section 31 fees during the three months ended March 31, 2024 was primarily due to a decrease in rates. The fees we collect are included in cash at the time of receipt and we remit the amounts to the SEC twice a year as required. The total amount is included in current liabilities and was $66 million as of March 31, 2024.
Current wording
Our equities and equity options markets pay fees to the SEC pursuant to Section 31 of the Exchange Act. Section 31 fees are recorded on a gross basis as a component of transaction and clearing fee revenue. These Section 31 fees are assessed to recover the government’s costs of supervising and regulating the securities markets and professionals and are subject to change. We, in turn, collect corresponding activity assessment fees from member organizations clearing or settling trades on the equities and options exchanges, and recognize these amounts in our transaction and clearing revenues when invoiced. The activity assessment fees are designed to equal the Section 31 fees. As a result, activity assessment fees and the corresponding Section 31 fees do not have an impact on our net income, although the timing of payment by us will vary from collections. Section 31 fees were $205 million and $175 million for the six months ended June 30, 2024 and 2023, respectively, and $138 million and $56 million for the three months ended June 30, 2024 and 2023, respectively. The increase in Section 31 fees during the six and three months ended June 30, 2024 was primarily due to an increase in rates. The fees we collect are included in cash at the time of receipt and we remit the amounts to the SEC twice a year as required. The total amount of Section 31 fees payable is included in current liabilities and was $203 million as of June 30, 2024.
Previous wording
We make liquidity payments to cash and options trading customers, as well as routing charges made to other exchanges which are included in transaction-based expenses. We incur routing charges when we do not have the best bid or offer in the market for a security that a customer is trying to buy or sell on one of our securities exchanges. In that case, we route the customer’s order to the external market center that displays the best bid or offer. The external market center charges us a fee per share (denominated in tenths of a cent per share) for routing to its system. We record routing charges on a gross basis as a component of transaction and clearing fee revenue. Cash liquidity payments, routing and clearing fees were $444 million and $457 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
We make liquidity payments to cash and options trading customers, as well as routing charges made to other exchanges which are included in transaction-based expenses. We incur routing charges when we do not have the best bid or offer in the market for a security that a customer is trying to buy or sell on one of our securities exchanges. In that case, we route the customer’s order to the external market center that displays the best bid or offer. The external market center charges us a fee per share (denominated in tenths of a cent per share) for routing to its system. We record routing charges on a gross basis as a component of transaction and clearing fee revenue. Cash liquidity payments, routing and clearing fees were $886 million and $849 million for the six months ended June 30, 2024 and 2023, respectively, and $442 million and $392 million for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
For both the three months ended March 31, 2024 and 2023, 11% of our Fixed Income and Data Services segment revenues were billed in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly. Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar, our Fixed Income and Data Services revenues were higher by $2 million for the three months ended March 31, 2024 than the comparable period in 2023.
Current wording
For both of the six and three months ended June 30, 2024, 11% of our Fixed Income and Data Services segment revenues were billed in pounds sterling or euros, and for both of the six and three months ended June 30, 2023, 12% of our Fixed Income and Data Services segment revenues were billed in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly. Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar, our Fixed Income and Data Services revenues were higher by $1 million and lower by $1 million for the six and three months ended June 30, 2024, respectively, than the comparable periods in 2023.
Previous wording
Our Fixed Income and Data Services revenues increased 1% for the three months ended March 31, 2024 from the comparable period in 2023, primarily due to strength in our fixed income data and analytics products and our other data and network services.
Current wording
Our Fixed Income and Data Services revenues increased 2% and 4% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, primarily due to strength in our fixed income data and analytics products and our other data and network services.
Previous wording
•Fixed Income Execution: Fixed income execution includes revenues from ICE Bonds. Execution fees are reported net of rebates, which were $3 million for the three months ended March 31, 2024 and nominal for the three months ended March 31, 2023. Our fixed income execution revenues decreased 15% for the three months ended March 31, 2024 from the comparable period in 2023, as higher revenues from corporate bond trading were offset by lower levels of U.S. treasury activity.
Current wording
•Fixed Income Execution: Fixed income execution includes revenues from ICE Bonds. Execution fees are reported net of rebates, which were $5 million and $2 million for the six and three months ended June 30, 2024, respectively, and $2 million and $1 million for the six and three months ended June 30, 2023, respectively. Our fixed income execution revenues decreased 7% for the six months ended June 30, 2024 and increased and 3% for the three months ended June 30, 2024, respectively, from the comparable periods in 2023. Revenues for the six months ended June 30, 2024 decreased as higher revenues from corporate bond trading were more than offset by lower levels of U.S. treasury activity. Revenues increased in the three months ended June 30, 2024 due to higher corporate and municipal bond activity.
Previous wording
•CDS Clearing: CDS clearing revenues decreased 8% for the three months ended March 31, 2024 from the comparable period in 2023. The notional value of CDS cleared was $5.0 trillion and $6.8 trillion for the three months ended March 31, 2024 and 2023, respectively, as elevated volatility and demand for credit protection benefited the first quarter of 2023.
Current wording
•CDS Clearing: CDS clearing revenues decreased 7% and 6% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023. The notional value of CDS cleared was $9.0 trillion and $10.2 trillion for the six months ended June 30, 2024 and 2023, respectively, and $4.0 trillion and $3.4 trillion for the three months ended June 30, 2024 and 2023, respectively. The decrease in revenues is primarily due to lower net interest income on collateral balances.
Previous wording
•Fixed Income Data and Analytics: Our fixed income data and analytics revenues increased 4% for the three months ended March 31, 2024 from the comparable period in 2023 due to growth in our pricing and reference data business and strength in our index business.
Current wording
•Fixed Income Data and Analytics: Our fixed income data and analytics revenues increased 5% and 6% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023 due to growth in our pricing and reference data business and strength in our index business.
Previous wording
•Other Data and Network Services: Our other data and network services revenues increased 4% for the three months ended March 31, 2024 from the comparable period in 2023. The increase in revenues was driven by growth in our ICE Global Network offering, strength in our consolidated feeds and stronger desktop revenues.
Current wording
•Other Data and Network Services: Our other data and network services revenues increased 5% for both the six and three months ended June 30, 2024, from the comparable periods in 2023. The increase in revenues was driven by growth in our ICE Global Network offering, coupled with strength in our consolidated feeds and desktop revenues.
Previous wording
As of March 31, 2024, ASV was $1.786 billion, which increased 4.6% compared to the ASV as of March 31, 2023. ASV represents nearly 100% of total data services revenues for this segment. This does not adjust for year-over-year foreign exchange fluctuations.
Current wording
As of June 30, 2024, ASV was $1.795 billion, which increased 4.1% compared to the ASV as of June 30, 2023. ASV represents nearly 100% of total data services revenues for this segment. This does not adjust for year-over-year foreign exchange fluctuations.
Previous wording
Our mortgage technology revenues are derived from our comprehensive, end-to-end U.S. residential mortgage platform. Our mortgage technology business is intended to enable greater workflow efficiency and mitigate risks for customers throughout the mortgage life cycle. Mortgage technology revenues increased $263 million for the three months ended March 31, 2024 from the comparable period in 2023, primarily due the Black Knight acquisition.
Current wording
Our mortgage technology revenues are derived from our comprehensive, end-to-end U.S. residential mortgage platform. Our mortgage technology business is intended to enable greater workflow efficiency and mitigate risks for customers throughout the mortgage life cycle. Mortgage technology revenues increased $520 million and $257 million for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, primarily due the Black Knight acquisition.
Previous wording
•Origination technology: Our origination technology revenues were flat during the three months ended March 31, 2024 from the comparable period in 2023. Our origination technology acts as a system of record for the mortgage transaction, automating the gathering, reviewing, and verifying of mortgage-related information and enabling automated enforcement of rules and business practices designed to help ensure that each completed loan transaction is of high quality and adheres to secondary market standards. These revenues are based on recurring Software as a Service, or SaaS, subscription fees, with an additive transaction-based or success-based pricing fee as lenders exceed the number of loans closed that are included with their monthly base subscription, as well as professional services.
Current wording
•Origination technology: Our origination technology revenues were flat for the six months ended June 30, 2024 and increased 1% during the three months ended June 30, 2024 from the comparable periods in 2023. Our origination technology acts as a system of record for the mortgage transaction, automating the gathering, reviewing, and verifying of mortgage-related information and enabling automated enforcement of rules and business practices designed to help ensure that each completed loan transaction is of high quality and adheres to secondary market standards. These revenues are based on recurring Software as a Service, or SaaS, subscription fees, with an additive transaction-based or success-based pricing fee as lenders exceed the number of loans closed that are included with their monthly base subscription, as well as professional services.
Previous wording
•Closing solutions: Our closing solutions revenues increased 9% during the three months ended March 31, 2024 from the comparable period in 2023, driven by increased market share and continued adoption of digital solutions. Our closing solutions connect key participants, such as lenders, title and settlement agents and individual county recorders, to digitize the closing and recording process. Closing solutions also include revenues from our MERSCORP Holdings, Inc., or MERS, database, which provides a system of record for recording and tracking changes, servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate. Revenues from closing solutions are largely transaction-based and are based on the volume of loans closed.
Current wording
•Closing solutions: Our closing solutions revenues increased 9% during both of the six and three months ended June 30, 2024 from the comparable periods in 2023, driven by increased market share and continued adoption of digital solutions. Our closing solutions connect key participants, such as lenders, title and settlement agents and individual county recorders, to digitize the closing and recording process. Closing solutions also include revenues from our MERSCORP Holdings, Inc., or MERS, database, which provides a system of record for recording and tracking changes, servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate. Revenues from closing solutions are largely transaction-based and are based on the volume of loans closed.
Previous wording
•Data and analytics: Our Data and Analytics revenues increased 210% during the three months ended March 31, 2024 from the comparable period in 2023, primarily due to the revenue contribution from Black Knight during the three months ended March 31, 2024. Revenues include those related to ICE Mortgage Technology’s Data & Document Automation and Mortgage Analyzer solutions, or Analyzer, which offers customers greater efficiency by streamlining data collection and validation through our automated document recognition and data extraction capabilities. Analyzer revenues can be both recurring and transaction-based in nature. In addition, our data offerings include real-time industry and peer benchmarking tools, which provide originators a granular view into the real-time trends of the U.S. residential mortgage market, as well as credit and prepayment models, custom and proprietary analytics, valuation, and MLS solutions. We also provide a Data as a Service, or DaaS, for lenders and industry participants to access industry data and origination information. Revenues related to our data products are largely subscription-based and recurring in nature. The data and insights from these solutions inform, support and enhance our other solutions to help lenders and servicers make more informed decisions, improve performance, identify and predict risk and generate more qualified leads. Revenues related to our data products are largely subscription-based and recurring in nature.
Current wording
•Data and analytics: Our Data and Analytics revenues increased 187% and 165% during the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023, primarily due to the revenue contribution from Black Knight during the six and three months ended June 30, 2024. Revenues include those related to ICE Mortgage Technology’s Data & Document Automation and Mortgage Analyzer solutions, or Analyzer, which offers customers greater efficiency by streamlining data collection and validation through our automated document recognition and data extraction capabilities. Analyzer revenues can be both recurring and transaction-based in nature. In addition, our data offerings include real-time industry and peer benchmarking tools, which provide originators a granular view into the real-time trends of the U.S. residential mortgage market, as well as credit and prepayment models, custom and proprietary analytics, valuation, and MLS solutions. We also provide a Data as a Service, or DaaS, for lenders and industry participants to access industry data and origination information. Revenues related to our data products are largely subscription-based and recurring in nature. The data and insights from these solutions inform, support and enhance our other solutions to help lenders and servicers make more informed decisions, improve performance, identify and predict risk and generate more qualified leads. Revenues related to our data products are largely subscription-based and recurring in nature.
Previous wording
Included in the total consolidated operating expenses for the three months ended March 31, 2024 was $288 million related to Black Knight.
Current wording
Included in the total consolidated operating expenses for the six and three months ended June 30, 2024 was $563 million and $275 million, respectively, related to Black Knight.
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Current report — wording carried from elsewhere
securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees. Our OTC and other revenues decreased 1% and 3% for the six and three months ended June 30, 2024, respectively, from the comparable periods in 2023.
Current report — wording carried from elsewhere
•During the six months ended June 30, 2023, $6 million of expense for claims made following a NYSE system outage that occurred in January 2023.