NYSE-parent ICE tops profit estimate on strong trading, data unit growth

Audio By Carbonatix

Enlarge

(Reuters) -Intercontinental Exchange beat Wall Street estimates for third-quarter profit on Thursday, helped by strong trading activity and growth in its fixed income and data unit.

Market volatility typically boosts exchange activity, as investors increase trades to adjust portfolios and hedge risks.

During the reported quarter, traders actively reshuffled portfolios as they navigated expectations over the Federal Reserve’s interest rate cuts, shifting U.S. trade policies and a boom in AI-linked shares.

ICE’s average daily volume (ADV) for equity options rose 9% in the third quarter, while ADV for cash equities jumped 48%.

The exchange operator said revenue from its exchange business – its largest segment – was up 1% at $1.27 billion in the third quarter, while revenue from energy-related trading rose 2% to $482 million.

Fixed income and data services revenue climbed 5%, while mortgage technology revenue increased 4%.

ICE’s data and mortgage technology units have provided steady revenue streams alongside its core trading business.

Shares of the NYSE parent were up 1.6% in premarket trading.

The exchange operator, like its peers, is expanding beyond traditional trading platforms into retail-focused and digital asset ventures to diversify.

Earlier this month, ICE said it would invest $2 billion in predictions market platform Polymarket. The move follows CME’s tie-up with sports betting firm FanDuel and Nasdaq’s recent investment in crypto exchange Gemini.

The New York Stock Exchange parent reported adjusted earnings of $980 million, or $1.71 per share, beating analyst expectations of $1.61 per share, according to data compiled by LSEG.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Leroy Leo)