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ICE, the parent company of NYSE, beats expectations as volatility fuels record revenues

Intercontinental Exchange (parent of the New York Stock Exchange) beat its second-quarter profit expectations on Thursday as increased volatility led to record revenue.

During periods of volatility, exchanges flourish as investors rebalance their portfolios in order to take advantage of opportunities and mitigate risks. This increases trading volume.

The sweeping tariffs of U.S. president Donald Trump sparked volatility in April. Meanwhile, tensions in the Middle East increased in June.

The volatility index (a barometer of market uncertainty, and Wall Street’s most watched gauge of investor anxiety) spiked in April to record highs before easing off as the markets calmed down due to optimism about potential trade deals.

Total net revenue grew 10% in the third quarter to $2.54 billion, with a 27% increase in revenue from energy-related products.

According to estimates compiled and analyzed by LSEG, ICE's adjusted earnings per share were $1.81, a record, exceeding Wall Street expectations ($1.77).

Energy trading volumes have been supported by OPEC+ policy changes and shifting commitments in the U.S.

ICE's average daily volume of energy (ADV), which includes Brent, gasoil and natural gas, as well as other crude and refined product segments, grew by 27%, reaching a record quarterly.

The volatility in the oil and gas market led traders and investors, to purchase and sell more futures, options, and credits tied to Brent crude and U.S. Natural gas as well as European gas. New markets for carbon credits and renewable credits also added to activity.

ICE's listing business saw a 1% increase in revenue for the quarter, primarily due to large offerings like stablecoin issuer Circle.

The U.S. IPO Market saw a significant increase in activity in the second quarter after a brief lull during April. Companies that had delayed their listings due to tariff tensions accelerated their listings.

The increase in IPOs is good for exchanges that charge fees to list stocks.

(source: Reuters)