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Intercontinental (ICE) December ADV Soft, Q4 & 2021 Solid

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Intercontinental Exchange, Inc.’s (ICE - Free Report) average daily volume (ADV) in December decreased 5.5% to 4.6 million, largely attributable to a drop in Financial ADV. There were 22 trading days in December.

Agriculture and Metals ADV of 0.3 million contracts declined 1.8%. Energy volume increased 6.7% to 2.6 million contracts per day. Commodities ADV increased 5.8% to 2.9 million in December. The company remains well-positioned for growth on the back of its solid energy franchise.

Interest rate volume dropped 25% to 1.1 million contracts per day whereas Equity Index volume decreased 7.4% to 0.6 million contracts. Foreign exchange volume decreased 12.5% to nearly 0.04 million contracts.

Revenues per contract were 8 cents for the month, down 37.5% year over year.

However, this Zacks Rank #2 (Buy) leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity, financial, fixed income and equity markets reported record volumes for the fourth quarter as well as full-year 2021. ADV in the fourth quarter increased 16% to 5.9 million contracts, driven by 14.8% higher Commodities and a 17.9% increase in Financial ADV. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Energy ADV in 2021 improved 2%, while Interest Rate ADV increased 13% in 2021. NYSE equity options ADV jumped 40% in 2021. Ben Jackson, President of ICE stated, “Throughout 2021, and particularly during the fourth quarter, we saw consistently high volumes as customers navigated volatile gas and carbon markets, as well as interest rate uncertainty.” Volume growth continues to drive trading and clearing segment revenues.

Diversified products along with a broad range of risk management services including trade execution, market data, pre and post-trade processing and clearing services on an integrated platform should drive revenues for ICE. For fourth-quarter 2021, management estimates recurring revenues between $892 million and $907 million.

Shares of Intercontinental Exchange have gained 14.4% in a year, compared with the industry’s increase of 19.5%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Recently, CME Group (CME - Free Report) , MarketAxess Holdings (MKTX - Free Report) and Cboe Global Markets (CBOE - Free Report) reported ADV for December.

CME Group reported ADV of 18 million contracts per day, up 26% year over year due to higher volumes in three product lines. CME Group’s interest rate, Energy and Equity index volumes increased 41%, 5% and 45%, respectively.

MarketAxess’ trading volume during the 22 trading days in the month of December came in at $538.1 billion, which advanced 13.9% year over year. Also, MKTX’s December ADV of $24.5 billion improved 14% year over year.

Cboe Global’s multiply-listed options average daily volume (ADV) of 9.9 million contracts for December increased 8.1% year over year.

Shares of CME Group and Cboe Global have gained 17.1%, 35.2% and 30.4%, respectively, in a year while that of MarketAxess Holdings lost 30.4% in the same time frame.