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Intercontinental Exchange August Volumes Solid, Shares Up

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Shares of Intercontinental Exchange, Inc. (ICE - Free Report) inched up 0.6% in the last trading session after it reported solid average daily volume (ADV) for August. The metric for the month increased 3.5% year over year to 4.8 million contracts. Also, the same sequentially improved 7.6%.

The year-over-year improvement was driven by Financials volume, rallying 21.5% to 2.2 million contracts per day. However, Commodities volume, which also averaged approximately at 2.6 million contracts per day, slipped 8% year over year. There were 23 trading days in August.

Energy volume decreased 12% to about 2.2 million contracts per day while Agricultural and Metals volume increased 21.8% to 0.4 million contracts. Interest Rate volume surged 33.2% to 1.9 million contracts per day whereas Equity Index volume declined 29.1% to 0.2 million contracts. Foreign exchange volume plunged 14.3% to nearly 0.02 million contracts.

Revenue per contract was 4.90 cents for August, down 3.9% year over year.

Shares of Intercontinental Exchange have underperformed the industry  year to date. The stock has gained 10.3%, lagging the industry’s increase of 11.3%.



The company’s array of products along with a broad range of risk management services, strategic acquisitions and a solid capital position should help the stock retain its growth momentum. This in turn, should also help shares trend higher.

Recently, securities exchanges, namely CME Group Inc. (CME - Free Report) , Nasdaq Inc. (NDAQ - Free Report) and MarketAxess Holdings Ltd. (MKTX - Free Report) also reported respective volumes. Nasdaq posted a 10.5% expansion in options volume, recording 154.6 million contracts. MarketAxess posted a trading volume of $124.4 billion for August consisting of $66.1 billion in U.S. high-grade volume, $53.3 billion in other credit volume and $5 billion in liquid products volume. CME Group’s ADV of 15.9 million contracts per day remained unchanged year over year.

Intercontinental Exchange carries a Zacks Rank #4 (Sell).

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

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