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Intercontinental Exchange (ICE) August Volumes Rise Y/Y

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Intercontinental Exchange (ICE - Free Report) reported solid average daily volume (ADV) for August 2021. ADV of 5.4 million contracts per day was up 12.3% year over year driven by higher volumes in Commodities, partly offset by lower Financials volumes. There were 22 trading days in August this year.

Commodities ADV increased 19.8% to 3.4 million owing to 22.4% higher Energy ADV and 2.2% higher Agriculture and Metals ADV.  

Financials ADV slipped 0.1% attributable to lower foreign exchange volume. Nonetheless, Equity Indices volumes increased nearly 25% while Interest volumes inched up 0.1% to 1.5 million.

Intercontinental Exchange develops and offers an array of products along with a broad range of risk management services including trade execution, market data, and pre- and post-trade processing and clearing services on an integrated platform. Its volume growth continues to drive Trading and Clearing revenues.

The company is well poised to capitalize on the accelerated digitization taking place in the U.S. residential mortgage industry. It has the largest mortgage network in the United States. The integration of Ellie Mae into ICE Mortgage Technology is likely to help the company in boosting its mortgage business.

Shares of this Zacks Rank #3 (Hold) company have gained 2.1% quarter to date, outperforming the industry’s increase of 1.9%. 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, CME Group Inc. (CME - Free Report) reported August average daily volume (ADV) of 17.5 million, up 7% year over year. Nasdaq, Inc. (NDAQ - Free Report) reported mixed volumes for August 2021 with U.S. equity options volume increasing 14.9% year over year to 247 million contracts but European options and futures volume declining 8.2% year over year to 4.5 million contracts.

A Stock to Consider

A better-ranked stock from the same space is OTC Markets Group (OTCM - Free Report) , carrying a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here

The company delivered an earnings surprise of 47.50% in the last reported quarter.