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Intercontinental Exchange (ICE) Reports Soft December Volumes

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Intercontinental Exchange, Inc.’s (ICE - Free Report) average daily volume (ADV) in December decreased 1.4% to 4.9 million, largely attributable to lower Commodities and Financial ADV. There were 22 trading days in December.

Agriculture and Metals ADV of 0.3 million contracts declined 31.7%. Energy volume increased 3.2% to 2.5 million contracts per day. Commodities ADV decreased 1.8% to 2.7 million in December. The company remains well-positioned for growth on the back of its solid energy franchise.

Interest Rate volume increased 1.3% to 1.5 million contracts per day whereas Equity Index volume increased 7% to 0.6 million contracts. Foreign exchange volume increased 25% to nearly 0.04 million contracts.

Volume growth continues to drive trading and clearing segment revenues.

Revenues per contract were 8 cents for the month, down 27% year over year.

Concurrently, the company estimates fourth-quarter GAAP non-operating expenses between $72 million and $77 million. Adjusted non-operating expenses are anticipated between $126 million and $131 million, given higher-than-expected OCC’s estimated profits for 2020.

For full-year 2020, Futures and Options ADV increased 6% year over year.

Shares of this Zacks Rank #3 (Hold) company have gained 22.5% in a year, compared with the industry’s decline of 11.9%. The company’s compelling product portfolio, along with a broad range of risk management services, strategic buyouts and a robust capital position will likely help the stock bounce back



Recently, CME Group (CME - Free Report) reported December average daily volume of 14.2 million contracts per day, down 8% year over year, attributable to lower volumes in four of the six product lines.  MarketAxess Holdings (MKTX - Free Report) reported December volumes of $472.3 billion, comprising $203.5 billion in credit volume and $268.7 billion in rates volume. Cboe Global Markets (CBOE - Free Report) reported total average daily volume (ADV) of 10.8 million contracts in December, up 45.8% year over year driven by solid performance in Options, partly offset by lower Futures volume.  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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