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Intercontinental Exchange's NYSE May Face SEC Enforcement
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Intercontinental Exchange, Inc.’s (ICE - Free Report) unit – The New York Stock Exchange (NYSE) – may face enforcement action by the Securities and Exchange Commission (SEC) over a technology glitch in Jul 2015 that led to a halt in trading for over three hours. The news perhaps took a toll on market sentiments as the shares of Intercontinental Exchange lost 4.8%, closing at $57.04 on Feb 8.
According to the annual report of Intercontinental Exchange filed on Tuesday, the NYSE had received an inquiry from the enforcement staff of the SEC in Dec 2015 related to the Jul 8, 2015 outage on the NYSE markets. Following investigation through 2016, the NYSE received a Wells Notice on Dec 29, 2016. The notice mentioned that the staff “has made a preliminary determination to recommend that the SEC file an enforcement action in connection with how NYSE responded on July 8, 2015 to the circumstances leading into the suspension of trading that day.”
The company, however, also noted in the report that the results of the Wells Notice and any enforcement action tied to Jul 8, 2015 outage remain unknown at present.
In the fourth-quarter 2016 earnings conference call, Jeffrey C. Sprecher, Chairman and Chief Executive Officer of Intercontinental Exchange said, “we dispute the appropriateness that – of the potential charges that the SEC wants to bring and we have a lot of defenses. And as a result of that, we made our own written submission to the SEC, articulating our points that at the end of the day it was a technology outage, it was very unfortunate, it was embarrassing and a black eye, but we don't believe that it actually violated any law.”
On Tuesday, Intercontinental Exchange reported fourth-quarter 2016 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate of 69 cents. Also, earnings improved 9.2% year over year. Results were aided by growth across the company’s data and listings business segments. However, the quarter recorded higher expenses.
Shares of Intercontinental Exchange have gained 20.7% in a year's time, underperforming the 29.7% growth for the Zacks categorized Securities Exchanges industry.
Intercontinental Exchange currently carries Zacks Rank #3 (Hold).
Stocks to Consider
CBOE Holdings, Inc. (CBOE - Free Report) : Over the last 30 days, the Zacks Consensus Estimate advanced 1.7% for 2017 to $2.90. The company sports a Zacks Rank #1 (Strong Buy).
E*TRADE Financial Corporation : Over the last 30 days, the Zacks Consensus Estimate for 2017 moved up 2.7% to $1.92. The company carries a Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Intercontinental Exchange's NYSE May Face SEC Enforcement
Intercontinental Exchange, Inc.’s (ICE - Free Report) unit – The New York Stock Exchange (NYSE) – may face enforcement action by the Securities and Exchange Commission (SEC) over a technology glitch in Jul 2015 that led to a halt in trading for over three hours. The news perhaps took a toll on market sentiments as the shares of Intercontinental Exchange lost 4.8%, closing at $57.04 on Feb 8.
According to the annual report of Intercontinental Exchange filed on Tuesday, the NYSE had received an inquiry from the enforcement staff of the SEC in Dec 2015 related to the Jul 8, 2015 outage on the NYSE markets. Following investigation through 2016, the NYSE received a Wells Notice on Dec 29, 2016. The notice mentioned that the staff “has made a preliminary determination to recommend that the SEC file an enforcement action in connection with how NYSE responded on July 8, 2015 to the circumstances leading into the suspension of trading that day.”
The company, however, also noted in the report that the results of the Wells Notice and any enforcement action tied to Jul 8, 2015 outage remain unknown at present.
In the fourth-quarter 2016 earnings conference call, Jeffrey C. Sprecher, Chairman and Chief Executive Officer of Intercontinental Exchange said, “we dispute the appropriateness that – of the potential charges that the SEC wants to bring and we have a lot of defenses. And as a result of that, we made our own written submission to the SEC, articulating our points that at the end of the day it was a technology outage, it was very unfortunate, it was embarrassing and a black eye, but we don't believe that it actually violated any law.”
On Tuesday, Intercontinental Exchange reported fourth-quarter 2016 adjusted earnings per share of 71 cents, beating the Zacks Consensus Estimate of 69 cents. Also, earnings improved 9.2% year over year. Results were aided by growth across the company’s data and listings business segments. However, the quarter recorded higher expenses.
Shares of Intercontinental Exchange have gained 20.7% in a year's time, underperforming the 29.7% growth for the Zacks categorized Securities Exchanges industry.
Intercontinental Exchange currently carries Zacks Rank #3 (Hold).
Stocks to Consider
CBOE Holdings, Inc. (CBOE - Free Report) : Over the last 30 days, the Zacks Consensus Estimate advanced 1.7% for 2017 to $2.90. The company sports a Zacks Rank #1 (Strong Buy).
MarketAxess Holdings Inc. (MKTX - Free Report) : The Zacks Consensus Estimate for 2017 increased 5.1% to $4.09, over the past 30 days. The company boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
E*TRADE Financial Corporation : Over the last 30 days, the Zacks Consensus Estimate for 2017 moved up 2.7% to $1.92. The company carries a Zacks Rank #2 (Buy).
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>