Latest News

NYSE-parent ICE's profit meets estimates as strong trading offsets greater expenses

Intercontinental Exchange reported thirdquarter earnings in line with expectations on Thursday, as strong trading volumes in the energy and options segments assisted balance out greater costs for the New york city Stock Exchange moms and dad.

Conflict in the Middle East and diverging views of the rate of interest trajectory have actually bumped up volatility in the international markets, triggering traders to actively change their portfolios to take advantage of fluctuating rates and avoid risks.

Exchanges generally take advantage of market chaos, which tends to improve overall trading volumes.

ICE's energy trading volumes increased 23% in the 3rd quarter, with gains across segments consisting of oil, gasoil along with other crude and fine-tuned items. Natural gas average daily volumes increased 33%.

Our customers continue to depend on our mission-critical data and technology to manage their risk and capture workflow performances amid a dynamic macroeconomic environment, Chief Executive Jeffrey Sprecher said in a statement.

The company's shares fell nearly 6% after it reported an adjusted revenue of $1.55 per share, constant with analyst expectations, according to price quotes assembled by LSEG.

ICE's weaker-than-expected performance in its home mortgage innovation section was significant due to the fact that ICE didn't seem to benefit from a refinancing wave in September, Owen Lau, senior analyst at Oppenheimer & & Co., stated in a note.

Total profits from the business's exchange organization, the biggest part of its revenue base, was $1.25 billion compared to $1.11 billion in the year-earlier period.

Financials earnings, which is housed within its exchanges section and includes rate of interest and other financial futures and choices, leapt 26%.

The results come as the initial public offerings market nears a three-year downturn, impacting exchanges that charge fees for stock listings.

Still, experts expect a significant recovery next year, with a strong pipeline of start-ups waiting to go public as uncertainty around interest rates and the U.S. election alleviates, developing a tailwind for ICE and its closest rival, Nasdaq .

ICE's listings organization posted a 1% decline in quarterly profits.

Overall operating costs rose to $1.25 billion in the quarter compared to $1.16 billion a year previously.

Revenue jumped 17% to a quarterly record of $2.35 billion, conference expert views.

(source: Reuters)