fcb8c9b798e67cf7dee2838e8da0fdfe89664a127f65b8056a448b544d228fae

Intercontinental Exchange, Inc. (ICE) is a leading global provider of technology and data services, specializing in operating regulated marketplaces and offering a range of financial and technological solutions. The company operates through three main business segments: Exchanges, Fixed Income and Data Services, and Mortgage Technology, providing services such as trading and clearing derivatives, financial securities, pricing, reference data, and digital workflow tools for the mortgage market **[0001571949-24-000007_ice-20231231.htm:5]** **[0001571949-24-000007_ice-20231231.htm:6]** **[0001571949-24-000007_ice-20231231.htm:163]**. ICE's diverse offerings cater to various sectors, making it a significant player in the global financial and technology landscape.

1. **Exchanges** - Operates regulated marketplaces for trading and clearing derivatives and financial securities, while also providing related data and connectivity services.
2. **Fixed Income and Data Services** - Offers pricing, reference data, indices, analytics, and execution services to support financial market activities.
3. **Mortgage Technology** - Provides digital workflow tools designed for the U.S. residential mortgage market, enhancing efficiency and accuracy in mortgage processing.

e35a670c803b4782ac8a399f403762098a212e7078e8d9b06e4da00b92194694

213fc13d26eadb500ebc50def465acc1f2f53ad5bb1e3b616528045e40b8e0b8

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from Debt [USD, Millions]

Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

fcd749cb57877f020736c7196311fa32b54b7b6872cbb62d8d21a74529d995ed

| Segment / Quarter                          | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|--------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Exchanges Segment (USD Million)**        | **982**  **[0001104659-23-009568_tm234867d1_ex99-1.htm:1]**  | **1,097**  **[0001104659-23-055780_tm2314387d1_ex99-1.htm:0]**  | **1,100**  **[0001104659-23-087043_tm2322473d1_ex99-1.htm:0]**  | **1,100**  **[0001104659-23-113586_tm2329450d1_ex99-1.htm:1]**  | **1,136**  **[0001104659-24-011936_tm245272d1_ex99-1.htm:1]**  | **1,734**  **[0001571949-24-000011_ice-20240331.htm:32]**  | **1,246**  **[0001104659-24-084630_tm2420391d1_ex99-1.htm:0]**  | **1,254**  **[0001104659-24-112854_tm2426975d1_ex99-1.htm:1]**  |
| **Fixed Income and Data Services (USD Million)** | **537**  **[0001104659-23-009568_tm234867d1_ex99-1.htm:2]**  | **563**  **[0001104659-23-055780_tm2314387d1_ex99-1.htm:0]**  | **546**  **[0001104659-23-087043_tm2322473d1_ex99-1.htm:0]**  | **559**  **[0001104659-23-113586_tm2329450d1_ex99-1.htm:1]**  | **563**  **[0001104659-24-011936_tm245272d1_ex99-1.htm:1]**  | **568**  **[0001571949-24-000011_ice-20240331.htm:32]**  | **565**  **[0001104659-24-084630_tm2420391d1_ex99-1.htm:0]**  | **586**  **[0001104659-24-112854_tm2426975d1_ex99-1.htm:1]**  |
| **Mortgage Technology Segment (USD Million)** | **249**  **[0001104659-23-009568_tm234867d1_ex99-1.htm:2]**  | **236**  **[0001104659-23-055780_tm2314387d1_ex99-1.htm:0]**  | **249**  **[0001104659-23-087043_tm2322473d1_ex99-1.htm:0]**  | **330**  **[0001104659-23-113586_tm2329450d1_ex99-1.htm:1]**  | **502**  **[0001104659-24-011936_tm245272d1_ex99-1.htm:1]**  | **499**  **[0001571949-24-000011_ice-20240331.htm:32]**  | **506**  **[0001104659-24-084630_tm2420391d1_ex99-1.htm:0]**  | **509**  **[0001104659-24-112854_tm2426975d1_ex99-1.htm:1]**  |

f2db033ff8d72e6e1e36b6ef3ed03cb5c3221c53e488349e6b5cb3fa62f37fcb

| Metric / Quarter | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| ICE Portion of Guaranty Fund Contribution ($ million) | **405** **[0001571949-23-000006_ice-20221231.htm:186]** | **405** **[0001571949-23-000011_ice-20230331.htm:19]** | **405** **[0001571949-23-000015_ice-20230630.htm:22]** | **390** **[0001571949-23-000019_ice-20230930.htm:25]** | **340** **[0001571949-24-000007_ice-20231231.htm:188]** | **340** **[0001571949-24-000011_ice-20240331.htm:23]** | **370** **[0001571949-24-000014_ice-20240630.htm:25]** | **370** **[0001571949-24-000017_ice-20240930.htm:25]** |
| Default Insurance ($ million) | **400** **[0001571949-23-000006_ice-20221231.htm:186]** | **200** **[0001571949-23-000011_ice-20230331.htm:19]** | **200** **[0001571949-23-000015_ice-20230630.htm:22]** | **400** **[0001571949-23-000019_ice-20230930.htm:25]** | **400** **[0001571949-24-000007_ice-20231231.htm:188]** | **200** **[0001571949-24-000011_ice-20240331.htm:23]** | **400** **[0001571949-24-000014_ice-20240630.htm:25]** | **400** **[0001571949-24-000017_ice-20240930.htm:25]** |
| Original Margin ($ billion) | **136.666** **[0001571949-23-000006_ice-20221231.htm:186]** | **209.8** **[0001571949-23-000011_ice-20230331.htm:18]** | **194.0** **[0001571949-23-000015_ice-20230630.htm:21]** | **178.4** **[0001571949-23-000019_ice-20230930.htm:24]** | **73.221** **[0001571949-24-000007_ice-20231231.htm:189]** | **68.377** **[0001571949-24-000011_ice-20240331.htm:23]** | **179.0** **[0001571949-24-000014_ice-20240630.htm:24]** | **178.6** **[0001571949-24-000017_ice-20240930.htm:24]** |
| Unsettled Variation Margin, Net ($ million) | **749** **[0001571949-23-000006_ice-20221231.htm:186]** | **663** **[0001571949-23-000011_ice-20230331.htm:19]** | **693** **[0001571949-23-000015_ice-20230630.htm:22]** | **785** **[0001571949-23-000019_ice-20230930.htm:25]** | **984** **[0001571949-24-000007_ice-20231231.htm:189]** | **1,108** **[0001571949-24-000011_ice-20240331.htm:23]** | **1,506** **[0001571949-24-000014_ice-20240630.htm:25]** | **788** **[0001571949-24-000017_ice-20240930.htm:25]** |
| Guaranty Fund ($ million) | **7,940** **[0001571949-23-000006_ice-20221231.htm:186]** | **8,267** **[0001571949-23-000011_ice-20230331.htm:19]** | **7,733** **[0001571949-23-000015_ice-20230630.htm:22]** | **7,064** **[0001571949-23-000019_ice-20230930.htm:25]** | **5,989** **[0001571949-24-000007_ice-20231231.htm:189]** | **6,282** **[0001571949-24-000011_ice-20240331.htm:23]** | **6,388** **[0001571949-24-000014_ice-20240630.htm:25]** | **6,585** **[0001571949-24-000017_ice-20240930.htm:25]** |
| Net Notional Value of Unsettled Contracts ($ trillion) | **2.8** **[0001571949-23-000006_ice-20221231.htm:191]** | **2.4** **[0001571949-23-000011_ice-20230331.htm:23]** | **2.4** **[0001571949-23-000015_ice-20230630.htm:26]** | **2.1** **[0001571949-23-000019_ice-20230930.htm:29]** | **2.1** **[0001571949-24-000007_ice-20231231.htm:193]** | **2.1** **[0001571949-24-000011_ice-20240331.htm:28]** | **2.2** **[0001571949-24-000014_ice-20240630.htm:30]** | **2.4** **[0001571949-24-000017_ice-20240930.htm:30]** |
| Notional Value of CDS Cleared ($ trillion) | **23.8** **[0001571949-23-000006_ice-20221231.htm:91]** | **6.8** **[0001571949-23-000011_ice-20230331.htm:48]** | **3.4** **[0001571949-23-000015_ice-20230630.htm:55]** | **5** **[0001571949-23-000019_ice-20230930.htm:59]** | **18.8** **[0001571949-24-000007_ice-20231231.htm:93]** | **5.0** **[0001571949-24-000011_ice-20240331.htm:50]** | **4.0** **[0001571949-24-000014_ice-20240630.htm:57]** | **6.6** **[0001571949-24-000017_ice-20240930.htm:57]** |
| Annual Subscription Value (ASV) ($ billion) | **1.682** **[0001571949-23-000006_ice-20221231.htm:91]** | **1.708** **[0001571949-23-000011_ice-20230331.htm:48]** | **1.724** **[0001571949-23-000015_ice-20230630.htm:55]** | **1.722** **[0001571949-23-000019_ice-20230930.htm:59]** | **1.752** **[0001571949-24-000007_ice-20231231.htm:93]** | **1.786** **[0001571949-24-000011_ice-20240331.htm:50]** | **1.795** **[0001571949-24-000014_ice-20240630.htm:57]** | **1.831** **[0001571949-24-000017_ice-20240930.htm:57]** |
| Rate per Contract (Energy, $) | **1.54** **[0001571949-23-000006_ice-20221231.htm:87]** | **1.62** **[0001571949-23-000011_ice-20230331.htm:45]** | **1.73** **[0001571949-23-000015_ice-20230630.htm:51]** | **1.74** **[0001571949-23-000019_ice-20230930.htm:55]** | **1.70** **[0001571949-24-000007_ice-20231231.htm:89]** | **1.71** **[0001571949-24-000011_ice-20240331.htm:47]** | **1.71** **[0001571949-24-000014_ice-20240630.htm:53]** | **1.71** **[0001571949-24-000017_ice-20240930.htm:53]** |
| Services Transferred Over Time - Risk Management ($ million) | **262** **[0001571949-23-000006_ice-20221231.htm:162]** | **76** **[0001571949-23-000011_ice-20230331.htm:11]** | **75** **[0001571949-23-000015_ice-20230630.htm:13]** | **78** **[0001571949-23-000019_ice-20230930.htm:15]** | **312** **[0001571949-24-000007_ice-20231231.htm:164]** | **93** **[0001571949-24-000011_ice-20240331.htm:14]** | **94** **[0001571949-24-000014_ice-20240630.htm:15]** | **94** **[0001571949-24-000017_ice-20240930.htm:15]** |
| Services Transferred Over Time - Listings ($ million) | **515** **[0001571949-23-000006_ice-20221231.htm:162]** | **126** **[0001571949-23-000011_ice-20230331.htm:11]** | **126** **[0001571949-23-000015_ice-20230630.htm:13]** | **124** **[0001571949-23-000019_ice-20230930.htm:15]** | **497** **[0001571949-24-000007_ice-20231231.htm:164]** | **122** **[0001571949-24-000011_ice-20240331.htm:14]** | **122** **[0001571949-24-000014_ice-20240630.htm:15]** | **122** **[0001571949-24-000017_ice-20240930.htm:15]** |
| Services Transferred Over Time - Regulatory Fees ($ million) | **110** **[0001571949-23-000006_ice-20221231.htm:162]** | **28** **[0001571949-23-000011_ice-20230331.htm:11]** | **33** **[0001571949-23-000015_ice-20230630.htm:13]** | **37** **[0001571949-23-000019_ice-20230930.htm:15]** | **31** **[0001571949-24-000011_ice-20240331.htm:14]** | **31** **[0001571949-24-000011_ice-20240331.htm:14]** | **33** **[0001571949-24-000014_ice-20240630.htm:15]** | **34** **[0001571949-24-000017_ice-20240930.htm:15]** |
| Transaction Price Allocated to Future Obligations ($ billion) | N/A | N/A | N/A | N/A | **4.0** **[0001571949-24-000007_ice-20231231.htm:165]** | **4.1** **[0001571949-24-000011_ice-20240331.htm:14]** | **3.8** **[0001571949-24-000014_ice-20240630.htm:15]** | **3.7** **[0001571949-24-000017_ice-20240930.htm:15]** |
| Government Securities at Face Value ($ million) | **116,420** **[0001571949-23-000006_ice-20221231.htm:189]** | **97,858** **[0001571949-23-000011_ice-20230331.htm:22]** | **97,853** **[0001571949-23-000015_ice-20230630.htm:25]** | **89,054** **[0001571949-23-000019_ice-20230930.htm:28]** | **85,752** **[0001571949-24-000007_ice-20231231.htm:191]** | **89,548** **[0001571949-24-000011_ice-20240331.htm:26]** | **87,551** **[0001571949-24-000014_ice-20240630.htm:28]** | **90,792** **[0001571949-24-000017_ice-20240930.htm:28]** |
| Emissions Certificates at Fair Value ($ million) | N/A | N/A | N/A | **904** **[0001571949-24-000007_ice-20231231.htm:191]** | **904** **[0001571949-24-000007_ice-20231231.htm:191]** | **730** **[0001571949-24-000011_ice-20240331.htm:26]** | **1,117** **[0001571949-24-000014_ice-20240630.htm:28]** | **1,109** **[0001571949-24-000017_ice-20240930.htm:28]** |
| ICE NGX Cash Deposits ($ million) | **2,357** **[0001571949-23-000006_ice-20221231.htm:189]** | **1,632** **[0001571949-23-000011_ice-20230331.htm:22]** | **1,349** **[0001571949-23-000015_ice-20230630.htm:25]** | **1,286** **[0001571949-23-000019_ice-20230930.htm:28]** | **1,219** **[0001571949-24-000007_ice-20231231.htm:191]** | **1,060** **[0001571949-24-000011_ice-20240331.htm:26]** | **1,036** **[0001571949-24-000014_ice-20240630.htm:28]** | **737** **[0001571949-24-000017_ice-20240930.htm:28]** |
| Environmentals & Other Futures Volume Change (%) | N/A | **-5** **[0001571949-23-000011_ice-20230331.htm:42]** | **-6** **[0001571949-23-000015_ice-20230630.htm:49]** | **-3** **[0001571949-23-000019_ice-20230930.htm:53]** | **0** **[0001571949-24-000007_ice-20231231.htm:85]** | **16** **[0001571949-24-000011_ice-20240331.htm:45]** | **58** **[0001571949-24-000014_ice-20240630.htm:51]** | **56** **[0001571949-24-000017_ice-20240930.htm:51]** |
| Agricultural & Metals Futures Volume Change (%) | N/A | **18** **[0001571949-23-000011_ice-20230331.htm:42]** | **27** **[0001571949-23-000015_ice-20230630.htm:49]** | **5** **[0001571949-23-000019_ice-20230930.htm:53]** | **16** **[0001571949-24-000007_ice-20231231.htm:85]** | **9** **[0001571949-24-000011_ice-20240331.htm:46]** | **-6** **[0001571949-24-000014_ice-20240630.htm:51]** | **0** **[0001571949-24-000017_ice-20240930.htm:51]** |
| Sugar Futures Volume Change (%) | N/A | N/A | **37** **[0001571949-23-000015_ice-20230630.htm:49]** | **3** **[0001571949-23-000019_ice-20230930.htm:53]** | N/A | **-15** **[0001571949-24-000011_ice-20240331.htm:46]** | **-20** **[0001571949-24-000014_ice-20240630.htm:51]** | **17** **[0001571949-24-000017_ice-20240930.htm:51]** |
| Interest Rate Futures Volume Change (%) | N/A | **18** **[0001571949-23-000011_ice-20230331.htm:43]** | **-12** **[0001571949-23-000015_ice-20230630.htm:49]** | **-14** **[0001571949-23-000019_ice-20230930.htm:53]** | **31** **[ICE_3372429_1]** | **9** **[0001571949-24-000011_ice-20240331.htm:46]** | **56** **[0001571949-24-000014_ice-20240630.htm:51]** | **52** **[0001571949-24-000017_ice-20240930.htm:51]** |
| NYSE Cash Equities Volume (ADV, million shares) | N/A | **2,381** **[0001571949-23-000011_ice-20230331.htm:46]** | **2,169** **[0001571949-23-000015_ice-20230630.htm:52]** | **2,071** **[0001571949-23-000019_ice-20230930.htm:56]** | N/A | N/A | N/A | N/A |

e24b4ba2fd710c6e0592c0b4774529ab3af2968a657c51b2e8b8442a6cb13414

1. **Despite record energy revenues up 33% year-over-year and double-digit growth over the past 5 years  **[ICE_3395649_4]** , how do you plan to sustain this growth in your energy complex considering potential macroeconomic and geopolitical headwinds?**

2. **With the announced launch of a clearing service for U.S. treasury securities and repurchase agreements in response to the new SEC rule effective in 2025  **[ICE_3395649_9]** , what challenges do you foresee in entering this market, and how will you differentiate your offering from existing competitors?**

3. **Your ICE Mortgage Technology segment experienced attrition within your data and document automation product  **[ICE_3395649_2]** ; could you provide more details on the reasons behind this attrition and what strategies you have in place to mitigate it?**

4. **Given the recent acquisition of Black Knight and its integration into your ICE Mortgage Technology business  **[ICE_3395649_9]** **[ICE_3395649_8]** , how are you addressing integration risks to ensure that the expected synergies are realized, especially in a challenging mortgage market?**

5. **As natural gas markets become increasingly global with the rise of LNG and new benchmarks like TTF and JKM  **[ICE_3395649_5]** , how does ICE plan to maintain its competitive edge against other exchanges in providing risk management tools for these markets?**

150a37f413c55e4acf22ffb74adb2df8a9a743e908d677564622831f63d2b7bd

50a9e83c232a36623bb4d69f6d1bcc609e5d27d3c688662ffcf13307c6b04a37

ICE Portion of Guaranty Fund Contribution ($ million)

Default Insurance ($ million)

Original Margin ($ billion)

Unsettled Variation Margin, Net ($ million)

Guaranty Fund ($ million)

Net Notional Value of Unsettled Contracts ($ trillion)

Notional Value of CDS Cleared ($ trillion)

Annual Subscription Value (ASV) ($ billion)

Rate per Contract (Energy, $)

Services Transferred Over Time - Risk Management ($ million)

Services Transferred Over Time - Listings ($ million)

Services Transferred Over Time - Regulatory Fees ($ million)

Transaction Price Allocated to Future Obligations ($ billion)

Government Securities at Face Value ($ million)

Emissions Certificates at Fair Value ($ million)

ICE NGX Cash Deposits ($ million)

Environmentals & Other Futures Volume Change (%)

Agricultural & Metals Futures Volume Change (%)

Sugar Futures Volume Change (%)

Interest Rate Futures Volume Change (%)

NYSE Cash Equities Volume (ADV, million shares)

9ff8f9279b5a0090bced2a2200c9fdea5f9f647c4c9dfad110544ba817e2244b

- Regulated, diversified futures exchanges: Compete in asset classes such as energy, agriculture, equity and equity index, credit, and interest rate derivatives markets and foreign exchange  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Exchanges offering listing and trading of cash equities, ETFs, closed-end funds, and other structured products  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Market data and information vendors, financial firm consortia, and single financial institutions selling such data and information  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Providers of digital solutions for the U.S. residential mortgage industry, including technology providers for loan origination, closing solutions, and other ancillary solutions, and loan servicing  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Interdealer brokers active in the global credit derivatives markets  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Existing and newly formed electronic trading platforms, service providers, and exchanges  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Other clearing houses  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Consortia of customers, members, or market participants that may establish new exchanges, trading platforms, or clearing facilities  **[0001571949-24-000007_ice-20231231.htm:65]** .
- Nasdaq, Inc.: Principal U.S. competitor in equity options markets and corporate listings  **[0001571949-24-000007_ice-20231231.htm:23]** .
- Cboe Global Markets, Inc.: Principal U.S. competitor in equity options markets and ETF listings  **[0001571949-24-000007_ice-20231231.htm:23]** .
- Large investment banks, brokers, and customers: Compete by assuming the role of principal and acting as counterparty to orders or matching order flows through bilateral trading arrangements  **[0001571949-24-000007_ice-20231231.htm:23]** .
- Third-party providers of similar data assets, including niche providers and lender in-house capabilities in the mortgage technology sector  **[0001571949-24-000007_ice-20231231.htm:23]** .

039c0cbe8c3727610a476911681a9e7ac9d38888a45e753d89009f2de0f003cc

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**:
  - **Adjusted Expenses**: Expected to be in the range of **$955 million to $965 million**, with a sequential increase driven by higher occupancy costs, slightly higher compensation, and higher depreciation expense  **[ICE_3395649_2]** .
  - **Adjusted Nonoperating Expense**: Expected to be between **$190 million to $195 million**, driven by lower interest expense  **[ICE_3395649_2]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  - **Third Quarter Adjusted Expenses**: Expected to be in the range of **$955 million to $965 million**, representing an increase of roughly 1% year-over-year on a pro forma basis. This increase is driven by growth across the Exchange and FID segments, largely offset by dissynergies anticipated to exit 2024 at an annualized run rate of over **$150 million**, up from prior expectations of **$135 million**  **[ICE_3395649_2]** .
  - **Adjusted Nonoperating Expense**: Expected to be between **$190 million to $195 million**, driven by lower interest expense as the company continues to direct free cash flow to reducing debt outstanding  **[ICE_3395649_2]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  - **Second Quarter Adjusted Operating Expenses**: Expected to be in the range of **$945 million to $955 million**  **[ICE_3382161_1]** .
  - **Full Year Expense Guidance**: Lowered to **$3.79 billion to $3.82 billion** due to synergies being realized sooner than expected  **[ICE_3382161_1]** .
  - **Mortgage Technology Business Revenue Growth**: Expected to be **flat to down in the low single-digit range** for the full year. The high end of the range assumes a flat-to-modest improvement in industry origination volumes, while the lower end anticipates a decline in the mid- to high single-digit range relative to 2023  **[ICE_3382161_2]** .
  - **Recurring Revenue Growth in Exchange Segment**: Expected to be in the **low single-digit range** for the full year. This is not necessarily dependent on a significant acceleration in IPO listings but could be supported by improvements in the data and connectivity line  **[ICE_3382161_15]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  - **Adjusted Operating Expenses**: Expected to be between **$3.81 billion and $3.86 billion**  **[ICE_3372429_3]** .
  - **Nonoperating Expense**: Expected to be between **$215 million and $220 million** in the first quarter, with a slight decline expected in subsequent quarters  **[ICE_3372429_3]** .
  - **Full Year Tax Rate**: Anticipated to be in the range of **24% to 26%**  **[ICE_3372429_3]** .
  - **Full Year Capital Expenditures (CapEx)**: Expected to be in the range of **$600 million to $650 million**, including approximately **$100 million** related to Black Knight and another **$100 million** for new office space and improvements  **[ICE_3372429_3]** .
  - **Mortgage Technology Revenue Growth**: On a pro forma basis, expected to be in the low single-digit to mid-single-digit range for the full year  **[ICE_3372429_2]** .
  - **Recurring Revenues in Mortgage Technology**: Expected to be roughly flat, with a decline of roughly **$5 million to $10 million** in the first quarter relative to the fourth quarter, but improving sequentially thereafter  **[ICE_3372429_2]** .
  - **Recurring Revenues in Fixed Income and Data Services**: Expected to grow in the mid-single-digit range  **[ICE_3372429_2]** .
  - **Recurring Revenues in Exchange Segment**: Expected to grow in the low single digits  **[ICE_3372429_1]** .

8d284b872472858bc2f806cec289b6d8f515f137839f7746b9035031c7b4cd6c

**Quarterly guidance for Q3 2024:**
- **Adjusted Expenses**: $955 million to $965 million  **[ICE_3395649_2]**  (no change from prior guidance   )  
- **Adjusted Nonoperating Expense**: $190 million to $195 million  **[ICE_3395649_2]**  (no change from prior guidance   )  

fcce2d46ea32e730b577739a52833a65820a7c841c53cda4c34db9b938a13bc9

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432d0a0592bcd729be823e3ec2adbeb505fc6c01727354ddb64282754f41a0b7

| Name                   | Position                                             | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                       |
|------------------------|------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Jeffrey C. Sprecher    | Chair and Chief Executive Officer                    | Inception of ICE | Jeffrey C. Sprecher has been a director and the Chief Executive Officer of ICE since its inception. He has served as Chair of the Board of Directors since November 2002. Mr. Sprecher acquired CPEX, the predecessor company to ICE, in 1997. He holds a Bachelor of Science degree in Chemical Engineering and an MBA  **[0001571949-24-000007_ice-20231231.htm:209]** **[0001193125-24-083553_d646208ddef14a.htm:14]** **[0001193125-23-070799_d454149d10ka.htm:6]** .                          |
| A. Warren Gardiner     | Chief Financial Officer                              | May 2021         | A. Warren Gardiner has served as the CFO of ICE since May 2021. He is responsible for all aspects of ICE's finance and accounting functions. Before becoming CFO, he was Vice President of Investor Relations at ICE. He is a CFA Charterholder and holds a Bachelor of Arts degree in Managerial Economics  **[0001571949-24-000007_ice-20231231.htm:210]** **[ICE_3329588_0]** **[ICE_3374344_0]** .                                         |
| Christopher S. Edmonds | President, Fixed Income & Data Services              | January 2024     | Christopher S. Edmonds has served as President, Fixed Income & Data Services at ICE since January 2024. He manages ICE's global fixed income and data business. Prior to this, he was Chief Development Officer and has been with ICE since February 2010  **[0001571949-24-000007_ice-20231231.htm:210]** **[0001571949-24-000007_ice-20231231.htm:209]** .                                                                                                 |
| Douglas A. Foley       | Senior Vice President, Human Resources & Administration | November 2013    | Douglas A. Foley has served as Senior Vice President of Human Resources & Administration at ICE since November 2013. He is responsible for ICE's global human resource and real estate functions. Before joining ICE, he worked at Ernst & Young LLP and Delta Air Lines  **[0001571949-24-000007_ice-20231231.htm:210]** **[0001571949-23-000006_ice-20221231.htm:208]** .                                                                                |
| Benjamin R. Jackson    | President                                            | November 2017    | Benjamin R. Jackson has served as President of ICE since November 2017. He is responsible for ICE's global technology, information security, and operations. He joined ICE in July 2011 from SunGard, where he led the company’s energy and commodities business segment  **[0001571949-24-000007_ice-20231231.htm:211]** **[0001571949-23-000006_ice-20221231.htm:209]** .                                                                                  |
| Mayur V. Kapani        | Chief Technology Officer                             | June 2016        | Mayur V. Kapani has served as the Chief Technology Officer at ICE since June 2016. He oversees all global technology development groups within ICE. Mr. Kapani joined ICE in 2006 and previously served as Senior Vice President of Trading Technology  **[0001571949-24-000007_ice-20231231.htm:211]** .                                                                                                      |
| Elizabeth K. King      | Global Head of Clearing & Chief Regulatory Officer   | January 2024     | Elizabeth K. King has served as the Global Head of Clearing and Chief Regulatory Officer at ICE since January 2024. She has been the Chief Regulatory Officer since October 2018. Before joining ICE, she was the Deputy General Counsel and Global Head of Regulatory Affairs at KCG  **[0001571949-24-000007_ice-20231231.htm:211]** .                                                                       |
| Lynn C. Martin         | President, NYSE Group and Chair, ICE Fixed Income & Data Services | January 2022     | Lynn C. Martin has served as President of NYSE Group since January 2022 and Chair of Fixed Income & Data Services at ICE. Before her current role, she was the President of Fixed Income & Data Services and President of ICE Data Services  **[0001571949-24-000007_ice-20231231.htm:212]** **[0000947871-24-000253_ss3098627_sc13da.htm:13]** **[0001571949-23-000006_ice-20221231.htm:210]** .                                                                                                         |
| Andrew J. Surdykowski  | General Counsel                                      | October 2018     | Andrew J. Surdykowski has served as General Counsel at ICE since October 2018. He is responsible for overseeing the company's legal affairs globally. Before becoming General Counsel, he was Senior Vice President, Associate General Counsel, and Assistant Corporate Secretary  **[0001571949-24-000007_ice-20231231.htm:212]** **[0001571949-23-000006_ice-20221231.htm:210]** .                                                                         |
| Stuart G. Williams     | Chief Operating Officer                              | July 2022        | Stuart G. Williams has served as the Chief Operating Officer of ICE since July 2022. He is responsible for the day-to-day operations and support of the global infrastructure. Before becoming COO, he held several leadership roles at ICE Futures Europe  **[0001571949-24-000007_ice-20231231.htm:212]** **[0001571949-23-000006_ice-20221231.htm:211]** .                                                                                               |

b015515054178c768b4564bcfd44d9112d0ed0de6be9ad502803903eba397a9a

| Program Details          | Program 1        |
|--------------------------|------------------|
| Approval Date            | December 2021  **[0001571949-24-000017_ice-20240930.htm:21]** **[0001571949-24-000017_ice-20240930.htm:73]**  |
| End Date/Duration        | No fixed expiration date  **[0001571949-24-000017_ice-20240930.htm:21]** **[0001571949-24-000017_ice-20240930.htm:73]**  |
| Total additional amount  | **$3.15 billion**  **[0001571949-24-000017_ice-20240930.htm:21]** **[0001571949-24-000017_ice-20240930.htm:73]**  |
| Remaining authorization amount | **$2.5 billion** (as of September 30, 2024)  **[0001571949-24-000017_ice-20240930.htm:21]** **[0001571949-24-000017_ice-20240930.htm:73]** **[0001571949-24-000017_ice-20240930.htm:74]**  |
| Details                  | The program considers factors such as stock market conditions, stock price performance, and strategic growth initiatives. It does not obligate the company to acquire any specific amount of stock and can be amended or terminated at any time.  **[0001571949-23-000006_ice-20221231.htm:177]** **[0001571949-23-000015_ice-20230630.htm:17]** **[0001571949-23-000011_ice-20230331.htm:15]** **[0001571949-22-000016_ice-20220930.htm:22]** **[0001571949-24-000017_ice-20240930.htm:21]** **[0001571949-24-000014_ice-20240630.htm:21]** **[0001571949-23-000019_ice-20230930.htm:20]** **[0001571949-23-000019_ice-20230930.htm:74]**  |

557b748857c62315c758f6d934f1a7aefaea4721370492a28a506b38ed22f766

United States

Foreign Countries

Total Revenue

ffa74c651e7609334e5662d1142d8069ace0cd2a23fa025e43127060f619af34

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP | 2002  **[0001571949-24-000007_ice-20231231.htm:133]**    | Present  | Current auditor   |

9ba70ee5a50a4e0240fb9630f85c510c49d7abdc0ece9a90aef4ce2921e661dc

51346b0c087a40b4d7f0256abb6ebd6aa8a93f1338f52bbff493cb79b389e484

- Total Revenue: $3,033 million (+25% YoY)  **[0001571949-23-000019_ice-20230930.htm:3]** **[0001571949-24-000017_ice-20240930.htm:2]**   
- Exchanges: $1,938 million (+26% YoY)  **[0001571949-23-000019_ice-20230930.htm:37]** **[0001571949-23-000019_ice-20230930.htm:3]** **[0001571949-24-000017_ice-20240930.htm:13]**   
- Mortgage Technology: $509 million (**+54% YoY**)  **[0001571949-23-000019_ice-20230930.htm:37]** **[0001571949-24-000017_ice-20240930.htm:13]** **[0001571949-23-000019_ice-20230930.htm:60]**   
- Operating Income (EBIT): $1,103 million (**+31% YoY**)  **[0001571949-23-000019_ice-20230930.htm:3]** **[0001571949-24-000017_ice-20240930.htm:2]**   
- Net Income: $657 million (+30% YoY)  **[0001571949-23-000019_ice-20230930.htm:3]** **[0001571949-24-000017_ice-20240930.htm:2]**   
- EPS (Diluted): $1.14 (+19% YoY)  **[0001571949-23-000019_ice-20230930.htm:3]** **[0001571949-24-000017_ice-20240930.htm:2]**   

72398ba0f4a6ceb4921bb6c0943dc709d50d8a4a136b04af956174676a2ac0cd

7c3bdf43578a7fb71ba436ccc6b344dd7116f7f1a192b3a5eace00582592f260

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43bbeb6125903ff92f6ff941521768453a7f44e2fa26e0af74754d0cd522eb53

| Year | Amount Due (in millions) | Debt Type                                   | Interest Rate (%) | % of Total Debt                                                                 |
|----------|------------------------------|------------------------------------------------|------------------------|------------------------------------------------------------------------------------|
| 2024     | $1,400                       | Commercial Paper                               | 5.2                    | 6.6% = (1,400 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:71]** **[0001571949-24-000017_ice-20240930.htm:17]**                                      |
| 2025     | $1,248                       | Senior Notes (unsecured, due May 23, 2025)     | 3.65                   | 5.9% = (1,248 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:33]**                                             |
| 2025     | $1,249                       | Senior Notes (unsecured, due December 1, 2025) | 3.75                   | 5.9% = (1,249 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:33]**                                             |
| 2027     | $1,491                       | Senior Notes (unsecured, due September 15, 2027) | 4.00                   | 7.0% = (1,491 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2027     | $498                         | Senior Notes (unsecured, due September 15, 2027) | 3.10                   | 2.3% = (498 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                       |
| 2028     | $933                         | Senior Notes (unsecured, due September 1, 2028) | 3.625                  | 4.4% = (933 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                       |
| 2028     | $596                         | Senior Notes (unsecured, due September 21, 2028) | 3.75                   | 2.8% = (596 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                       |
| 2029     | $1,243                       | Senior Notes (unsecured, due June 15, 2029)    | 4.35                   | 5.9% = (1,243 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2030     | $1,239                       | Senior Notes (unsecured, due June 15, 2030)    | 2.10                   | 5.8% = (1,239 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2031     | $743                         | Senior Notes (unsecured, due June 15, 2031)    | 5.25                   | 3.5% = (743 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                       |
| 2032     | $1,487                       | Senior Notes (unsecured, due September 15, 2032) | 1.85                   | 7.0% = (1,487 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2033     | $1,490                       | Senior Notes (unsecured, due March 15, 2033)   | 4.60                   | 7.0% = (1,490 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2040     | $1,233                       | Senior Notes (unsecured, due September 15, 2040) | 2.65                   | 5.8% = (1,233 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2048     | $1,233                       | Senior Notes (unsecured, due September 21, 2048) | 4.25                   | 5.8% = (1,233 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2050     | $1,223                       | Senior Notes (unsecured, due June 15, 2050)    | 3.00                   | 5.8% = (1,223 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2052     | $1,466                       | Senior Notes (unsecured, due June 15, 2052)    | 4.95                   | 6.9% = (1,466 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2060     | $1,472                       | Senior Notes (unsecured, due September 15, 2060) | 3.00                   | 6.9% = (1,472 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                     |
| 2062     | $985                         | Senior Notes (unsecured, due June 15, 2062)    | 5.20                   | 4.6% = (985 / 21,200) * 100 **[0001571949-24-000017_ice-20240930.htm:17]** **[0001571949-24-000017_ice-20240930.htm:33]**                                       |

8508f7954eeb72a1fa71b9c946d601be792f52a2e272484f5caf3340878edd5f

1. **Mortgage Revenue Trends**  
   **Q:** How will mortgage recurring revenues trend amid headwinds?  
   **A:** Management expects recurring revenues to be slightly down year-over-year due to pressure on renewals and decisions being pushed out, but they continue to have sales success even in a challenging environment, with new client wins expected to contribute later this year and into next year.  **[ICE_3382161_16]**  They have achieved around **$30 million** in revenue synergies and continue to make progress.  **[ICE_3382161_16]** 

2. **Energy Markets Growth**  
   **Q:** What's driving accelerated growth in oil markets?  
   **A:** The company sees a long-term growth trend in energy, particularly in oil, driven by underinvestment in legacy energy infrastructure, global supply chain evolution, and clients' need for precise risk management tools.  **[ICE_3382161_17]**  Open interest in oil has grown over **20%** year-over-year, and innovations like new contracts have positioned them well for future growth.  **[ICE_3382161_17]** 

3. **Fixed Income & Data Services**  
   **Q:** What's behind the acceleration in fixed income ASV?  
   **A:** The acceleration in **Annual Subscription Value (ASV)** is driven by reengagement from customers, with stable retention trends and improved sales cycles.  **[ICE_3382161_14]**  Clients are investing in comprehensive solutions, leading to shortened sales cycles and robust strategic discussions.  **[ICE_3382161_14]** 

4. **Exchange Segment Outlook**  
   **Q:** Will Exchange recurring revenues grow this year?  
   **A:** Management expects low single-digit growth in recurring fees for the full year.  **[ICE_3382161_15]**  Underlying trends are positive, with anticipated revenue improvements as prior-year anomalies are corrected, and potential momentum in listings contributing to growth.  **[ICE_3382161_15]** 

5. **Globalization of Gas**  
   **Q:** What's driving TTF volume growth and impact of LNG policies?  
   **A:** TTF open interest is up **90%** year-over-year and volumes are up **60%**, driven by natural gas liberalization and LNG movement globally, making TTF the global hedging benchmark.  **[ICE_3382161_9]**  The Biden administration's pause on new LNG export permits is seen as a **speed bump** with limited long-term impact, as LNG continues to expand.  **[ICE_3382161_9]** 

3ba5e1952cdc4fa6639a3b5d84fd4d1bc3aba90896c62672b8731ce77eeff727

1. **Partnership with MarketAxess**  
   **Q:** How will the ICE Bonds partnership with MarketAxess enhance liquidity, and could it lead to an acquisition?  
   **A:** The partnership combines unique client bases to provide broader access to liquidity pools. Early results are positive, and both companies are pleased, planning to add more instruments as the market evolves. Management avoided commenting on the possibility of a future acquisition or equity investment.  **[ICE_3405030_10]** 

2. **Mortgage Business Guidance**  
   **Q:** Why is Q4 IMT guidance conservative despite MBA forecast pickup?  
   **A:** ICE expects a slower purchase market in Q4 due to higher interest rates impacting applications and closed loans, which may not be fully reflected in MBA forecasts. Their guidance is based on current application volumes indicating lower activity, making it a reasonable expectation for the quarter.  **[ICE_3405030_11]** 

3. **Expense Outlook and Margins**  
   **Q:** What's driving the Q4 expense increase, and how should we think about 2025 expenses and mortgage margins?  
   **A:** Q4 expenses include **$10 to $15 million** of one-time costs across different business areas. Excluding these, the run rate is around **$970 million**, slightly higher due to increased SG&A, marketing, and professional services. For 2025, similar investments in people and technology are planned. As mortgage transaction volumes normalize, higher incremental margins are expected due to the high incremental margins on transaction revenues.  **[ICE_3405030_12]** 

4. **Mortgage Revenue Growth**  
   **Q:** When will investments in the mortgage network show revenue growth, even if industry volumes stay low?  
   **A:** Operating as a network, each new participant adds value by reducing underwriting costs, driving revenue growth independently of industry volumes. As volumes return to normal levels, significant contributions to top and bottom lines are anticipated, but timing is hard to predict.  **[ICE_3405030_14]** 

5. **Energy Business Outlook**  
   **Q:** What's repeatable in the energy business heading into 2025, and where might trading be weaker?  
   **A:** Open interest is a solid indicator of future volume since positions will need managing as markets evolve. Geopolitical events create short-term volatility and new supply chains, benefiting ICE's diverse product offerings. Energy consumption is expected to double over the next 25 years, especially in non-OECD countries, offering growth opportunities.  **[ICE_3405030_9]** 

6. **Environmental Markets Growth**  
   **Q:** How is growth in environmental markets progressing, and what's the long-term outlook?  
   **A:** Carbon pricing effectively channels investments to reduce emissions. The European ETS is expanding coverage from **40% to 80%**, including sectors like shipping. More governments are adopting carbon pricing, and ICE is developing infrastructure like reference data to support market scaling, including in voluntary carbon markets.  **[ICE_3405030_15]** 

7. **Energy Opportunities and Sustainable Aviation Fuel**  
   **Q:** Where are customer opportunities in energy, and how does ICE view sustainable aviation fuel?  
   **A:** ICE sees increased global participation, with U.S. clients trading TTF and JKM due to gas globalization. In oil, U.S. producers are using ICE's HOU contract for exports. The sustainable aviation fuel market is emerging; ICE is monitoring it and leveraging its position in biofuels and sugar markets to capitalize on future opportunities.  **[ICE_3405030_13]** 

8. **TTF and JKM Contract Growth**  
   **Q:** With TTF growth exceeding LNG capacity, how does ICE view hedging versus physical volumes?  
   **A:** The futures curve for TTF extends **10 years**, so hedging involves multiple years of supply. As LNG demand grows significantly, more hedging is needed. Increased liquidity and pricing transparency in TTF and JKM lead to more indexed transactions, modernizing the market and driving volume growth.  **[ICE_3405030_16]** 

79f3a2aecb52c7eb45d443d9bc16354f15fe689e6a6fa7bd270ac9eff5f97e53

- **Mortgage Technology segment is under pressure due to historically low origination volumes, with recurring revenues expected to be down year-over-year and renewals facing challenges.**  **[ICE_3382161_16]**
- **Servicing business is experiencing declines from industry consolidation and accelerated sales of mortgage servicing rights by large depositories, impacting recurring revenues from legacy Black Knight operations.**  **[ICE_3382161_12]**
- **Implementation of new large financial institution clients is taking longer due to compliance requirements, delaying revenue contributions until later this year or next year.**  **[ICE_3382161_12]**

ad727b99163bbbc1da73326ed131951cae61d7b30d7692d7828007f7937116c5

1. **Energy Revenue Growth Outlook**  
   **Q:** How sustainable is recent energy revenue growth?  
   **A:** Management attributes the strong energy revenue growth, up **30%** this year, to structural factors like growth in open interest, which is up **25%** in energy markets.  **[ICE_3395649_17]**  They believe innovation and increasing demand for hedging across oil, gas, power, and emissions will continue to drive growth, making 2024 a solid base to build upon.  **[ICE_3395649_17]** 

2. **Mortgage Technology Revenue Growth and Impact of Large Wins**  
   **Q:** What is the expected impact of large mortgage wins on revenue?  
   **A:** Significant mortgage wins, such as the expanded relationship with JPMorgan Chase and other institutions, are expected to start contributing to recurring revenue in **2025 and 2026**.  **[ICE_3395649_11]**  Implementations of MSP and Encompass are complex and take **6 to 18 months** or longer, especially for larger clients.  **[ICE_3395649_11]**  Management is pleased with the pipeline and expects revenue synergies to grow, but doesn't anticipate a material impact in **2024**.  **[ICE_3395649_11]** 

3. **Mortgage Business Attrition and Client Losses**  
   **Q:** Can you discuss recent client attrition in mortgage technology?  
   **A:** There was attrition in the Data and Document Automation (DDA) platform, with one client leaving.  **[ICE_3395649_12]**  This platform was acquired by Ellie Mae and had legacy clients not fully utilizing integration with Encompass or MSP.  **[ICE_3395649_12]**  However, management also successfully transitioned another similar client, Citizens Bank, to Encompass and DDA, strengthening the relationship.  **[ICE_3395649_12]**  They expect recurring revenue to stabilize in the back half of the year.  **[ICE_3395649_12]** 

4. **Monetization of Mortgage Data**  
   **Q:** How are you monetizing mortgage data from the combined business?  
   **A:** ICE is integrating Black Knight's data assets into its platforms. They've cross-sold data sets like flood and fees data to over **200** Encompass customers in the first half of the year.  **[ICE_3395649_13]**  They're also leveraging Black Knight's Automated Valuation Models (AVMs) to offer home equity line of credit services, integrating data directly into Encompass and MSP.  **[ICE_3395649_13]**  Longer term, they see opportunities to sell data sets like McDash and EMBS to capital markets clients through their Fixed Income & Data Services business.  **[ICE_3395649_13]** 

5. **Fixed Income Business Growth Drivers**  
   **Q:** What's driving the acceleration in fixed income ASV?  
   **A:** Growth is broad-based across recurring revenue, including improvements in the PRB business and index side.  **[ICE_3395649_10]**  Reengagement from customers amid stabilizing interest rates has boosted new sales.  **[ICE_3395649_10]**  Investments in data network services and feeds business have led to strong trends.  **[ICE_3395649_10]**  Sales that have not yet implemented will start contributing in the third and fourth quarters.  **[ICE_3395649_10]** 

6. **Growth in Energy Open Interest and Options**  
   **Q:** What's driving the growth in energy open interest and options trading?  
   **A:** The growth is driven by commercial customers hedging risks across oil, gas, power, and emissions.  **[ICE_3395649_14]**  Open interest is up due to robust participation from commercial hedgers, with subsequent involvement from directional traders.  **[ICE_3395649_14]**  Increased geopolitical, political, and financial risks have led to higher demand for options as an efficient hedging tool.  **[ICE_3395649_14]** 

7. **Asia Opportunity and Trading Volumes Correlation**  
   **Q:** How does energy consumption in Asia relate to trading volumes?  
   **A:** As power demand and natural gas consumption grow in Asia, ICE expects increased hedging activity.  **[ICE_3395649_15]**  The correlation between energy consumption and trading volumes is influenced by factors like fuel sources and carbon pricing.  **[ICE_3395649_15]**  ICE provides a platform for hedging across power, gas, emissions, and coal, anticipating that increased consumption will lead to higher trading volumes.  **[ICE_3395649_15]** 

8. **Impact of Mr. Cooper-Flagstar Acquisition**  
   **Q:** How will the Mr. Cooper-Flagstar deal affect your business?  
   **A:** Management acknowledges that mortgage servicing rights (MSRs) transfer between clients and can impact revenues.  **[ICE_3395649_16]**  While they have a strong relationship with Mr. Cooper, who uses Encompass and other services, it's unclear how the acquisition will affect ICE.  **[ICE_3395649_16]**  They have not observed clients leaving for different platforms and note that such MSR movements can be both headwinds and tailwinds.  **[ICE_3395649_16]** 

e2fc0942eedc0f81e31228b112d594269787b17c4ef8b3c58ef029eb6fbe2abb

- ICE's Mortgage Technology segment is exceeding revenue synergy targets, having signed annualized revenue synergies of approximately $30 million—nearly 25% of its $125 million 5-year target in just 5 months—indicating strong cross-selling momentum and potential for significant growth ahead.  **[ICE_3372429_13]**
- ICE is ahead of schedule on cost synergies from the Black Knight acquisition, expecting to realize approximately $135 million in annualized savings by the end of 2024, surpassing the original expectation of $100 million, enhancing profitability.  **[ICE_3372429_3]** **[ICE_3372429_12]**
- ICE's energy markets are experiencing robust growth, with record volumes in key benchmarks like Brent and TTF, positioning ICE to capitalize on secular trends including globalization of natural gas and the energy transition, driving significant revenue growth in the energy segment.  **[ICE_3372429_4]** **[ICE_3372429_5]** **[ICE_3372429_11]**

6715d9e46ca2c8c1681172628e918629a80e7815e8c757d66a9d41bd5a1c494f

- **ICE's energy markets are experiencing long-term growth** with open interest growing over **20% year-over-year**. Innovations like the **Murban contract** and **HOU contract** have been growing significantly, positioning ICE well to meet clients' needs for precision in risk management tools.  **[ICE_3382161_17]**
- **ICE's mortgage technology business is gaining momentum** with large clients adopting their **MSP and Encompass platforms**. There's a record number of clients on MSP (**94 clients**), with **13 clients under implementation**, expected to contribute revenue in the latter part of this year and next.  **[ICE_3382161_12]** **[ICE_3382161_16]**
- **ICE's Fixed Income & Data Services segment** is showing strong progress with a **record $600 billion in AUM** benchmarked against their index business. They've made changes to better serve clients, resulting in shorter sales cycles and more robust discussions on strategic plans, positioning them well for future growth.  **[ICE_3382161_14]** **[ICE_3382161_11]**

7b224313fc8cc4b0e0a08fe2f8e270eb98200e283ab788a8a9f754d7d30a78f8

- Fixed Income Data and Analytics segment shows signs of weakness, with **ASV flat for the last couple of quarters** and **revenue trends being challenged**.  **[ICE_3363594_15]**
- Potential impact on Mortgage Technology segment due to the recent **NAR lawsuit**, which could **reduce the number of buy-side real estate agents** and **disrupt the largest referral pipeline for loan officers**, core clients for ICE's Encompass platform.  **[ICE_3363594_14]**
- **Limited ability to raise prices aggressively to offset cost pressures**, as management plans to "**pick our spots**" on pricing adjustments rather than implementing broad-based increases.  **[ICE_3363594_18]**

8d8a490402113c2565e315e718f3813bae0a13f09904d8a7dca3a94ff4d23b3a

1. **Mortgage Market Outlook**  
   **Q:** What was the mortgage origination market like in Q4, and what's the outlook for recovery?  
   **A:** Benjamin Jackson stated that the mortgage market was down approximately **11%** in Q4 based on industry estimates.  **[ICE_3372429_10]**  Despite this decline, ICE is gaining share against proprietary and third-party platforms, positioning the business as **spring-loaded for growth** when market volumes stabilize.  **[ICE_3372429_10]**  They believe that with volumes returning to **7 to 10 million loans**, they could see **$200 million to nearly $0.5 billion** of incremental transaction revenue at high margins.  **[ICE_3372429_10]** 

2. **Revenue Synergies in Mortgage Tech**  
   **Q:** Are you ahead on revenue synergies in Mortgage Tech after signing $30 million so far?  
   **A:** Benjamin Jackson indicated they have signed **$30 million** of the **$125 million** revenue synergy target in just five months.  **[ICE_3372429_12]**  They are ahead of schedule, with significant wins like **JPMorgan Chase** and **M&T Bank**, and are confident in achieving the **$300 million** synergy opportunities identified.  **[ICE_3372429_12]** 

3. **Debt Paydown and Capital Return**  
   **Q:** What's the expected pace of debt paydown, and when will capital returns resume?  
   **A:** Warren Gardiner explained they generated **$3.2 billion** of free cash flow in 2023  **[ICE_3372429_12]** , using the majority to repay debt.  **[ICE_3372429_12]**  They are on track to meet deleveraging targets by **2025**, possibly earlier, depending on business performance.  **[ICE_3372429_12]**  Capital returns, such as share buybacks, will be considered after debt reduction.  **[ICE_3372429_12]** 

4. **Cost Synergies Post Black Knight Acquisition**  
   **Q:** Can you elaborate on accelerated cost synergies and additional cost reductions post-merger?  
   **A:** Warren Gardiner stated they are ahead on cost synergies, exceeding initial expectations due to efficient integration.  **[ICE_3372429_12]**  They remain confident in achieving the **$200 million** synergy target by the end of year five.  **[ICE_3372429_12]**  Benjamin Jackson added that moving Black Knight's technology to ICE's proprietary cloud and integrating teams offers further efficiencies.  **[ICE_3372429_12]** 

5. **Energy Markets Share Shift**  
   **Q:** What's driving the share shift to ICE in European gas and oil markets?  
   **A:** Benjamin Jackson highlighted that the **TTF** contract's open interest increased by **100%** and average daily volume grew **45%** year-over-year.  **[ICE_3372429_11]**  TTF is becoming the global benchmark for natural gas, leading to increased trading on ICE.  **[ICE_3372429_11]**  In oil, innovations like the **HOU** contract have driven more trading volume to ICE's Exchange, capturing market share in WTI trading.  **[ICE_3372429_11]** 

6. **Futures Transaction Fee Pricing**  
   **Q:** How were the May pricing changes received, and are there plans for 2024?  
   **A:** Warren Gardiner noted that the pricing adjustments made in May were well-received, with record levels of volume and continued growth into January.  **[ICE_3372429_13]**  For 2024, they have made adjustments to Exchange data fees, energy contracts outside of oil, and collateral fees at the clearinghouse, aiming to capture value where they've created it.  **[ICE_3372429_13]** 

7. **Client Attrition in Mortgage Segment**  
   **Q:** Why are clients leaving despite having MSP and Encompass together?  
   **A:** Benjamin Jackson explained that client attrition resulted from mergers and acquisitions among clients.  **[ICE_3372429_9]**  Despite this, ICE sees a **net-net** effect, gaining clients like **JPMorgan** acquiring **First Republic**, whose loans moved onto MSP.  **[ICE_3372429_9]**  They are confident in low attrition and sales success, gaining share during a generational low in mortgage volumes.  **[ICE_3372429_9]** 

0057e5a3836f9176400ab37d323b5e603100e513852d36cebea73cb8b2303b3b

- **Strong Growth in Fixed Income Data Services**: ICE is experiencing a **shortening sales cycle** and increased demand for its front office tools as fixed income markets continue to electronify. **Money flowing into fixed income ETFs**, evidenced by a **30% year-on-year growth in index AUM at the end of Q3**, is boosting demand for ICE's data, indices, and services, positioning the company to capitalize on this trend.  **[ICE_3363594_13]**
- **Acceleration in Other Data Services and Connectivity Sales**: ICE's other data services business is showing strong growth, fueled by investments in modernizing their tech stack and the industry's shift towards automation. **Connectivity sales in Q3 were the second highest in ICE's history**, and desktop sales last quarter matched a historical high. Adoption of ICE's proprietary large language models in their Chat platform is driving revenue growth, with **Chat user growth up 13% year-to-date**, and activity generated through large language models in their energy markets up **90% quarter-on-quarter compared to last year** and **70% year-to-date**.  **[ICE_3363594_15]**
- **Significant Wins and Strong Pipeline in Mortgage Technology**: ICE's Mortgage Technology segment is achieving significant wins with major clients like **M&T Bank** and **Fifth Third Bank**, cross-selling products and expanding its customer base. The company has a strong funnel and believes their platform is **"spring-loaded"** for growth as the market normalizes, positioning them well to achieve long-term objectives. Importantly, they are **not losing significant customers**, which supports their positive outlook.  **[ICE_3363594_12]**

0603dcd9533c09cc003ce3c061252100657ec4ea5671682a834cc7e5cfaa3bae

- **ICE's Fixed Income & Data Services segment is experiencing broad-based growth across the recurring revenue base**, with improvements in the PRB business and index side. This growth is driven by **customer re-engagement as interest rate headwinds taper off**, and strong trends in the desktop and feeds businesses resulting from strategic investments.  **[ICE_3395649_10]**
- **Open interest across ICE's futures business is up 20% year-over-year**, with **Energy open interest up 25%**, indicating strong future volume potential. Innovations like the **HOU contract (open interest up 400%)** and the **Murban contract (ATVs up 160%)** demonstrate ICE's ability to meet customer needs and drive significant growth in its Energy segment.  **[ICE_3395649_17]**
- **Continuous innovation in natural gas markets**, including new LNG contracts and the development of the **JKM and TTF contracts**, is creating a **flywheel effect**. This attracts traders seeking to efficiently manage risk across oil, power, gas, and emissions in one place, enhancing ICE's platform and contributing to the growth of its benchmark contracts.  **[ICE_3395649_17]**

fd9280fbd6ecc2a19925a71e644c38fbd613bc5a8ac7581a55d6b619f6504f26

- **High debt levels due to the Black Knight acquisition may limit capital returns to shareholders until at least 2025, as the company focuses on deleveraging**.  **[ICE_3372429_14]**
- **The Mortgage Technology segment faces challenges with flat recurring revenue guidance amid generational lows in mortgage transaction volumes, impacting growth prospects**.  **[ICE_3372429_9]** **[ICE_3372429_10]**
- **Client attrition in the Black Knight acquisition due to customer mergers and acquisitions may impact recurring revenues**.  **[ICE_3372429_9]**

f2c1ce85dade81a6545c55120e26557b1c643bf71b1d9dbae8547782ce959b04

Intercontinental Exchange Inc (ICE)

Financials