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Intercontinental Exchange (ICE) Q2 Volumes Decrease Y/Y

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Intercontinental Exchange (ICE - Free Report) reported soft average daily volume (ADV) for the second quarter but improved ADV for June 2021. ADV of 5.5 million contracts per day was down 0.3% year over year in the second quarter due to lower volumes in Commodities partly offset by higher Financials. There were 63 trading days in the second quarter of this year.

Though Future and Options volumes declined in the second quarter, per Ben Jackson, president of Intercontinental Exchange, “the second quarter has seen record open interest reached across many of our asset classes, with particularly high activity in commodities and interest rates.”

Commodities ADV declined 8.4% to 3.2 million owing to 9.6% lower Energy ADV partly offset by 0.5% higher Agriculture and Metals ADV.  Financials ADV increased 13.2% attributable to higher interest rate volume and foreign exchange volume.

Intercontinental Exchange also updated its expense guidance for the second quarter of 2021. The company now expects second quarter GAAP non-operating expenses to be in the range of $97 million to $102 million. Adjusted non-operating expenses are expected to be in the range of $105 million to $110 million. Earlier, in the first quarter, it had guided adjusted non-operating expense in the range of $78 million to $83 million.

Concurrently, it reported ADV of 5.9 million contracts for June. ADV increased 12.1%, attributable to higher volumes in Commodities as well as Financials.

Shares of this Zacks Rank #4 (Sell) company have rallied 26.6% compared with the industry’s increase of 29.3% in the past year. The company’s product portfolio, along with a broad range of risk management services, strategic buyouts and a robust capital position will likely help the stock retain its growth momentum.

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Recently, MarketAxess Holdings (MKTX - Free Report) reported June volumes of $567 billion, consisting of $122.1 billion in credit volume and $327.5 billion in rates volume. CME Group (CME - Free Report) reported ADV of 18.4 million contracts for June. ADV improved 7%, attributable to higher volumes in four product lines. Cboe Global Markets (CBOE - Free Report) reported ADV of 12.2 million contracts for June. ADV increased 12.6%, attributable to higher volumes in Options, partly offset by lower volumes in Futures.

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

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