UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q




(Mark One)
þ	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended June 30, ~~2016~~2017
Or
¨	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from to

Commission File Number 001-36198

INTERCONTINENTAL EXCHANGE, INC.

(Exact name of registrant as specified in its charter)



Delaware	46-2286804
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification Number)
5660 New Northside Drive, Atlanta, Georgia	30328 (Zip Code)
(Address of principal executive offices)

(770) 857-4700

Registrant’s telephone number, including area code

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, ~~or a~~ smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and ~~“smaller reporting~~“emerging growth company” in Rule 12b-2 of the Exchange Act. ~~(Check one):~~




Large accelerated filer þ	Accelerated filer ¨	Non-accelerated filer ¨	Smaller reporting company ¨	Emerging growth company ¨


(Do not check if a smaller company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No þ

As of August 1, ~~2016,~~2017, the number of shares of the registrant’s Common Stock outstanding was ~~119,133,837~~588,492,565 shares.

INTERCONTINENTAL EXCHANGE, INC.

Form 10-Q

Quarterly Period Ended June 30, ~~2016~~2017

TABLE OF CONTENTS





PART I.	Financial Statements
Item 1	Consolidated Financial Statements (Unaudited):
	Consolidated Balance Sheets as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016	2
	Consolidated Statements of Income for the six and three months ended June 30, ~~2016~~2017 and ~~2015~~2016	4
	Consolidated Statements of Comprehensive Income for the six and three months ended June 30, ~~2016~~2017 and ~~2015~~2016	5
	Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Loss and Redeemable Non-Controlling Interest for the six months ended June 30, ~~2016~~2017 and for the year ended December 31, ~~2015~~2016	6
	Consolidated Statements of Cash Flows for the six months ended June 30, ~~2016~~2017 and ~~2015~~2016	7
	Notes to Consolidated Financial Statements	8
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2829
Item 3	Quantitative and Qualitative Disclosures About Market Risk	4756
Item 4	Controls and Procedures	4958

PART II.	Other Information
Item 1	Legal Proceedings	5058
Item 1A	Risk Factors	5059
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	5059
Item 3	Defaults Upon Senior Securities	5059
Item 4	Mine Safety Disclosures	5059
Item 5	Other Information	5059
Item 6	Exhibits	5160
SIGNATURES		5261

PART I. Financial Statements

Item 1. Consolidated Financial Statements (Unaudited)

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Balance Sheets

(In millions, except per share amounts)

(Unaudited)


	As of		As of		As of		As of
	June 30, 2016		December 31, 2015		June 30, 2017		December 31, 2016
Assets:
Current assets:
Cash and cash equivalents	$	390	$	627	$	398	$	407
Short-term investments	24		29		17		23
Short-term restricted cash and investments	722		657		769		679
Customer accounts receivable, net of allowance for doubtful accounts of $2 at June 30, 2016 and December 31, 2015	862		700
Customer accounts receivable, net of allowance for doubtful accounts of $8 and $7 at June 30, 2017 and December 31, 2016, respectively					912		777
Margin deposits and guaranty funds	48,501		51,169		53,585		55,150
Prepaid expenses and other current assets	131		131		767		97
Total current assets	50,630		53,313		56,448		57,133
Property and equipment, net	1,048		1,037		1,161		1,129
Other non-current assets:
Goodwill	12,046		12,079		12,001		12,291
Other intangible assets, net	10,493		10,758		10,103		10,420
Long-term restricted cash and investments	262		263		264		264
Long-term investments	427		299		—		432
Other non-current assets	318		238		347		334
Total other non-current assets	23,546		23,637		22,715		23,741
Total assets	$	75,224	$	77,987	$	80,324	$	82,003

Liabilities and Equity:
Current liabilities:
Accounts payable and accrued liabilities	$	350	$	398	$	415	$	388
Section 31 fees payable	195		116		181		131
Accrued salaries and benefits	149		215		140		230
Deferred revenue	330		98		338		114
Short-term debt	1,811		2,591		2,023		2,493
Margin deposits and guaranty funds	48,501		51,169		53,585		55,150
Other current liabilities	102		156		137		111
Total current liabilities	51,438		54,743		56,819		58,617
Non-current liabilities:
Non-current deferred tax liability, net	2,903		2,837		2,915		2,958
Long-term debt	4,719		4,717		3,874		3,871
Accrued employee benefits	470		478		407		430
Other non-current liabilities	331		337		376		337
Total non-current liabilities	8,423		8,369		7,572		7,596
Total liabilities	59,861		63,112		64,391		66,213
Commitments and contingencies
Redeemable non-controlling interest	33		35		—		36


Equity:
Intercontinental Exchange, Inc. shareholders’ equity:
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at June 30, 2016 and December 31, 2015	—			—
Common stock, $0.01 par value; 500 shares authorized; 126 shares issued at June 30, 2016 and December 31, 2015, and 119 shares outstanding at June 30, 2016 and December 31, 2015	1			1
Treasury stock, at cost; 7 shares at June 30, 2016 and December 31, 2015	(1,496		)	(1,448		)
Preferred stock, $0.01 par value; 100 shares authorized; no shares issued or outstanding at June 30, 2017 and December 31, 2016							—			—
Common stock, $0.01 par value; 1,500 shares authorized; 599 and 596 shares issued at June 30, 2017 and December 31, 2016, respectively, and 589 and 595 shares outstanding at June 30, 2017 and December 31, 2016, respectively							6			6
Treasury stock, at cost; 10 and 1 shares at June 30, 2017 and December 31, 2016, respectively							(590		)	(40		)
Additional paid-in capital	12,376			12,295			11,381			11,306
Retained earnings	4,669			4,148			5,468			4,789
Accumulated other comprehensive loss	(258		)	(188		)	(367		)	(344		)
Total Intercontinental Exchange, Inc. shareholders’ equity	15,292			14,808			15,898			15,717
Non-controlling interest in consolidated subsidiaries	38			32			35			37
Total equity	15,330			14,840			15,933			15,754
Total liabilities and equity	$	75,224		$	77,987		$	80,324		$	82,003

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Income

(In millions, except per share amounts)

(Unaudited)


	Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,
	2016			2015			2016			2015			2017			2016			2017			2016
Revenues:
Transaction and clearing, net	$	1,789		$	1,583		$	860		$	747		$	1,615		$	1,789		$	817		$	860
Data services	974			405			497			205			1,041			974			521			497
Listings	208			202			105			101			213			208			107			105
Other revenues	87			86			42			43			94			87			49			42
Total revenues	3,058			2,276			1,504			1,096			2,963			3,058			1,494			1,504
Transaction-based expenses:
Section 31 fees	196			171			98			78			183			196			92			98
Cash liquidity payments, routing and clearing	579			458			277			221			438			579			224			277
Total revenues, less transaction-based expenses	2,283			1,647			1,129			797			2,342			2,283			1,178			1,129
Operating expenses:
Compensation and benefits	472			295			236			144			479			472			234			236
Professional services													64			69			32			37
Acquisition-related transaction and integration costs													23			47			9			20
Technology and communication	184			98			92			47			195			184			97			92
Professional services	69			65			37			32
Rent and occupancy	35			31			17			15			35			35			17			17
Acquisition-related transaction and integration costs	47			26			20			7
Selling, general and administrative	52			58			30			29			79			52			38			30
Depreciation and amortization	289			182			146			93			276			289			142			146
Total operating expenses	1,148			755			578			367			1,151			1,148			569			578
Operating income	1,135			892			551			430			1,191			1,135			609			551
Other income (expense):
Interest expense	(90		)	(46		)	(44		)	(23		)	(90		)	(90		)	(45		)	(44		)
Other income, net													187			11			1			9
Other income (expense), net	11			(7		)	9			(9		)	97			(79		)	(44		)	(35		)
Other expense, net	(79		)	(53		)	(35		)	(32		)
Income before income tax expense	1,056			839			516			398			1,288			1,056			565			516
Income tax expense	316			227			153			109			352			316			139			153
Net income	$	740		$	612		$	363		$	289		$	936		$	740		$	426		$	363
Net income attributable to non-controlling interest	(14		)	(14		)	(6		)	(6		)	(16		)	(14		)	(8		)	(6		)
Net income attributable to Intercontinental Exchange, Inc.	$	726		$	598		$	357		$	283		$	920		$	726		$	418		$	357
Earnings per share attributable to Intercontinental Exchange, Inc. common shareholders:
Basic	$	6.10		$	5.37		$	3.00		$	2.55		$	1.55		$	1.22		$	0.71		$	0.60
Diluted	$	6.07		$	5.34		$	2.98		$	2.54		$	1.54		$	1.21		$	0.70		$	0.60
Weighted average common shares outstanding:
Basic	119			112			119			111			593			595			591			595
Diluted	120			112			120			112			597			598			595			599
Dividend per share	$	1.70		$	1.40		$	0.85		$	0.75		$	0.40		$	0.34		$	0.20		$	0.17

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(In millions)

(Unaudited)


	Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,
	2016			2015			2016			2015			2017			2016			2017			2016
Net income	$	740		$	612		$	363		$	289		$	936		$	740		$	426		$	363
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax (expense) benefit of $1 and $3 for the six months ended June 30, 2016 and 2015, respectively, and ($1) and ($1) for the three months ended June 30, 2016 and 2015, respectively	(199		)	19			(125		)	56
Foreign currency translation adjustments, net of tax (expense) benefit of ($7) and $1 for the six months ended June 30, 2017 and 2016, respectively, and ($7) and ($1) for the three months ended June 30, 2017 and 2016, respectively													85			(199		)	60			(125		)
Change in fair value of available-for-sale securities	129			(39		)	75			31			68			129			—			75
Employee benefit plan adjustments	—			(2		)	—			(2		)
Reclassification of realized gain on available-for-sale investment to other income													(176		)	—			—			—
Other comprehensive income (loss)	(70		)	(22		)	(50		)	85			(23		)	(70		)	60			(50		)
Comprehensive income	$	670		$	590		$	313		$	374		$	913		$	670		$	486		$	313
Comprehensive income attributable to non-controlling interest	(14		)	(14		)	(6		)	(6		)	(16		)	(14		)	(8		)	(6		)
Comprehensive income attributable to Intercontinental Exchange, Inc.	$	656		$	576		$	307		$	368		$	897		$	656		$	478		$	307

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Loss

and Redeemable Non-Controlling Interest

(In millions)

(Unaudited)


	Intercontinental Exchange, Inc. Shareholders' Equity																Non- Controlling Interest in Consolidated Subsidiaries			Total Equity			Redeemable Non-Controlling Interest			Intercontinental Exchange, Inc. Shareholders' Equity																		Non- Controlling Interest in Consolidated Subsidiaries			Total Equity			Redeemable Non-Controlling Interest
	Common Stock			Treasury Stock					Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss												Common Stock				Treasury Stock					Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss
	Shares	Value		Shares		Value			Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Loss												Shares		Value		Shares		Value			Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss
Balance, as of December 31, 2014	116	$	1	(3	)	$	(743	)	$	9,938	$	3,210		$	(46	)	$	32		$	12,392		$	165
Balance, as of December 31, 2015																										628		$	6	(34	)	$	(1,448	)	$	12,290		$	4,148		$	(188	)	$	32		$	14,840		$	35
Other comprehensive loss	—	—		—		—			—		—			(142		)	—			(142		)	—			—		—		—		—			—			—			(156		)	—			(156		)	—
Stock consideration issued for acquisitions	9	—		—		—			2,197		—			—			—			2,197			—
Exercise of common stock options																										1		—		—		—			22			—			—			—			22			—
Treasury shares retired in connection with stock split																										(35	)	—		35		1,512			(1,142		)	(370		)	—			—			—			—
Repurchases of common stock																										—		—		(1	)	(50		)	—			—			—			—			(50		)	—
Payments relating to treasury shares																										—		—		(1	)	(54		)	—			—			—			—			(54		)	—
Stock-based compensation																										—		—		—		—			136			—			—			—			136			—
Issuance of restricted stock																										2		—		—		—			—			—			—			—			—			—
Adjustment to redemption value																										—		—		—		—			—			(2		)	—			—			(2		)	1
Distributions of profits																										—		—		—		—			—			—			—			(19		)	(19		)	(3		)
Dividends paid to shareholders																										—		—		—		—			—			(409		)	—			—			(409		)	—
Net income attributable to non-controlling interest																										—		—		—		—			—			(27		)	—			24			(3		)	3
Net income																										—		—		—		—			—			1,449			—			—			1,449			—
Balance, as of December 31, 2016																										596		6		(1	)	(40		)	11,306			4,789			(344		)	37			15,754			36
Other comprehensive loss																										—		—		—		—			—			—			(23		)	—			(23		)	—
Exercise of common stock options	—	—		—		—			19		—			—			—			19			—			—		—		—		—			6			—			—			—			6			—
Repurchases of common stock	—	—		(3	)	(660		)	—		—			—			—			(660		)	—			—		—		(8	)	(469		)	—			—			—			—			(469		)	—
Payments relating to treasury shares	—	—		(1	)	(45		)	—		—			—			—			(45		)	—			—		—		(1	)	(81		)	—			—			—			—			(81		)	—
Stock-based compensation	—	—		—		—			122		—			—			—			122			—			—		—		—		—			78			—			—			—			78			—
Issuance of restricted stock	1	—		—		—			—		—			—			—			—			—			3		—		—		—			—			—			—			—			—			—
Tax benefits from stock option plans	—	—		—		—			19		—			—			—			19			—
Adjustment to redemption value	—	—		—		—			—		(5		)	—			—			(5		)	4
Distributions of profits	—	—		—		—			—		—			—			(16		)	(16		)	(11		)
Dividends paid to shareholders	—	—		—		—			—		(331		)	—			—			(331		)	—
Purchase of subsidiary shares	—	—		—		—			—		—			—			—			—			(128		)
Net income attributable to non-controlling interest	—	—		—		—			—		(21		)	—			16			(5		)	5
Net income	—	—		—		—			—		1,295			—			—			1,295			—
Balance, as of December 31, 2015	126	1		(7	)	(1,448		)	12,295		4,148			(188		)	32			14,840			35
Other comprehensive loss	—	—		—		—			—		—			(70		)	—			(70		)	—
Exercise of common stock options	—	—		—		—			13		—			—			—			13			—
Payments relating to treasury shares	—	—		—		(48		)	—		—			—			—			(48		)	—
Stock-based compensation	—	—		—		—			68		—			—			—			68			—
Acquisition of non-controlling interest																										—		—		—		—			(9		)	—			—			(5		)	(14		)	—
Acquisition of redeemable non-controlling interest																										—		—		—		—			—			(2		)	—			—			(2		)	(37		)
Distributions of profits	—	—		—		—			—		—			—			(7		)	(7		)	(3		)	—		—		—		—			—			—			—			(12		)	(12		)	—
Dividends paid to shareholders	—	—		—		—			—		(205		)	—			—			(205		)	—			—		—		—		—			—			(239		)	—			—			(239		)	—
Net income attributable to non-controlling interest	—	—		—		—			—		(14		)	—			13			(1		)	1			—		—		—		—			—			(16		)	—			15			(1		)	1
Net income	—	—		—		—			—		740			—			—			740			—			—		—		—		—			—			936			—			—			936			—
Balance, as of June 30, 2016	126	$	1	(7	)	$	(1,496	)	$	12,376	$	4,669		$	(258	)	$	38		$	15,330		$	33
Balance, as of June 30, 2017																										599		$	6	(10	)	$	(590	)	$	11,381		$	5,468		$	(367	)	$	35		$	15,933		$	—


	As of			As of			As of			As of
	June 30, 2016			December 31, 2015			June 30, 2017			December 31, 2016
Accumulated other comprehensive loss was as follows:
Foreign currency translation adjustments	$	(244	)	$	(45	)	$	(260	)	$	(345	)
Fair value of available-for-sale securities	103			(26		)	—			108
Comprehensive income from equity method investment	2			2			2			2
Employee benefit plans adjustments	(119		)	(119		)	(109		)	(109		)
Accumulated other comprehensive loss	$	(258	)	$	(188	)	$	(367	)	$	(344	)

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In millions)

(Unaudited)


	Six Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2017			2016
Operating activities:
Net income	$	740		$	612		$	936		$	740
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	289			182			276			289
Stock-based compensation	60			47			68			60
Deferred taxes	49			(38		)	(11		)	49
Amortization of fair market value premium on NYSE Notes	—			(23		)
Cetip realized investment gain, net							(114		)	—
Other	4			(17		)	(7		)	4
Changes in assets and liabilities:
Customer accounts receivable	(157		)	(91		)	(170		)	(157		)
Other current and non-current assets	(21		)	(25		)	(37		)	(21		)
Section 31 fees payable	79			31			51			79
Deferred revenue	257			237			241			257
Other current and non-current liabilities	(197		)	(145		)	(135		)	(197		)
Total adjustments	363			158			162			363
Net cash provided by operating activities	1,103			770			1,098			1,103

Investing activities:
Capital expenditures	(96		)	(92		)	(81		)	(96		)
Capitalized software development costs	(61		)	(44		)	(69		)	(61		)
Proceeds from term deposits and sales of available-for-sale investments	—			1,084
Decrease (increase) in restricted cash and investments	(75		)	11
Cash received for divestitures (net of cash paid for acquisitions)							10			—
Proceeds from sale of Cetip, net							438			—
Increase in restricted cash and investments							(89		)	(75		)
Other	(70		)	(60		)	—			(70		)
Net cash provide by (used in) investing activities	(302		)	899
Net cash provided by (used in) investing activities							209			(302		)

Financing activities:
Repayments of debt facilities and commercial paper, net	(781		)	(918		)
Repayments of commercial paper, net							(469		)	(781		)
Dividends to shareholders	(205		)	(158		)	(239		)	(205		)
Repurchases of common stock	—			(399		)	(469		)	—
Payments relating to treasury shares received for restricted stock tax payments and stock option exercises	(48		)	(39		)	(81		)	(48		)
Distributions of profits to non-controlling interest	(10		)	(17		)
Purchase of subsidiary shares from non-controlling interest	—			(128		)
Acquisition of non-controlling interest and redeemable non-controlling interest							(55		)	—
Other	13			24			(8		)	3
Net cash used in financing activities	(1,031		)	(1,635		)	(1,321		)	(1,031		)
Effect of exchange rate changes on cash and cash equivalents	(7		)	(8		)	5			(7		)
Net increase (decrease) in cash and cash equivalents	(237		)	26
Net decrease in cash and cash equivalents							(9		)	(237		)
Cash and cash equivalents, beginning of period	627			652			407			627
Cash and cash equivalents, end of period	$	390		$	678		$	398		$	390

Supplemental cash flow disclosure:
Cash paid for income taxes	$	275		$	233		$	429		$	275
Cash paid for interest	$	88		$	91		$	87		$	88

See accompanying notes.

Intercontinental Exchange, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

(Unaudited)


1.	Description of Business

We are a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity and financial markets. We operate regulated marketplaces for listing, trading ~~listing~~ and clearing a broad array of derivatives contracts and securities ~~contracts~~ across major asset classes, including energy and agricultural commodities, interest rates, equities, equity derivatives, exchange traded funds, credit derivatives, bonds and currencies. We offer end-to-end market data services to support the trading, investment and risk management ~~and connectivity~~ needs of customers across virtually all asset classes.

Our exchanges include futures exchanges in the United States, or U.S., United Kingdom, or U.K., Continental Europe, Canada and Singapore, and cash equities, ~~exchanges~~equity options and ~~equity options~~bond exchanges in the U.S. We also operate over-the-counter, or OTC, markets for physical energy and credit default swaps, or CDS, trade execution. To serve global derivatives markets, we operate central counterparty clearing houses in the U.S., U.K., Continental Europe, Canada and Singapore (Note 9). We offer a range of data ~~and connectivity~~ services ~~to customers in~~for global financial and commodity markets, including ~~fixed income~~ pricing and reference data, exchange data, analytics, feeds, ~~desktops~~desktop and connectivity solutions. Through our markets, clearing houses, listings and market data services, we provide end-to-end solutions for our customers through liquid markets, benchmark products, access to capital markets, ~~information,~~ and ~~a range of~~ related services to support their ability to manage risk and raise capital.


2.	Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared by us in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, pursuant to the rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements and should be read in conjunction with our audited consolidated financial statements and related notes thereto for the year ended December 31, ~~2015.~~2016. The accompanying unaudited consolidated financial statements reflect all adjustments that are, in our opinion, necessary for a fair presentation of results for the interim periods presented. These adjustments are of a normal recurring nature.

Preparing financial statements requires us to make certain estimates and assumptions that affect the amounts that are reported in the consolidated financial statements and accompanying disclosures. Although these estimates are based on our best knowledge of current events and actions that we may undertake in the future, actual results may be different from these estimates. The results of operations for the six months and three months ended June 30, ~~2016~~2017 are not necessarily indicative of the results to be expected for any future period or the full fiscal year.

The accompanying unaudited consolidated financial statements include the accounts of us and our wholly-owned and controlled subsidiaries. All intercompany balances and transactions between us and our wholly-owned and controlled subsidiaries have been eliminated in the consolidation. For those consolidated subsidiaries in which our ownership is less than 100% and for which we have control over the assets and liabilities and the management of the entity, the outside stockholders’ interests are shown as non-controlling interests. In instances where outside stockholders’ hold an option to require us to repurchase the outside ~~stockholders'~~stockholders’ interest, these interests are shown as redeemable non-controlling interests.

Held for Sale

We classify long-lived assets or disposal groups as held for sale in the period in which all of the following criteria are met: management commits to a plan to sell; the long-lived asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such long-lived assets or disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell have been initiated; the sale is probable within one year; the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets and disposal groups classified as held for sale are measured at the lower of their carrying amount or fair value less costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized until the date of sale. The fair value of a long-lived asset less any costs to sell is assessed each reporting period it remains classified as held for sale, and any change in fair value is reported as an adjustment to the carrying value of the asset, except that increases in fair value are limited to prior decreases recorded. Upon being classified as held for sale, depreciation and amortization is ceased. See Note 10 for information regarding our classification of Trayport as held for sale as of June 30, 2017.

New and Recently Adopted Accounting Pronouncements

~~In January 2016, the~~The Financial Accounting Standards Board, or FASB, has issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 606. ASU 606 provides guidance outlining a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers that supersedes most current revenue recognition guidance. This guidance requires us to recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt ASU 606 at the beginning of our first quarter of fiscal 2018. The new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. We are currently evaluating the overall impact this guidance will have on our consolidated financial statements, as well as the method of adoption. Based on our preliminary assessment, we expect that the adoption may accelerate the timing of recognition of a portion of original and supplemental listing fees related to our NYSE businesses, which are currently deferred over an estimated customer life of nine and five years, respectively. We are continuing our assessment, which may identify other impacts of the adoption of ASU 606.

The FASB has issued Accounting Standards Update No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU 2016-01. ASU 2016-01 provides updated guidance for the recognition, measurement, presentation, and disclosure of certain financial assets and liabilities, including the requirement that equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) are to be measured at fair value with changes in fair value recognized in net income. ASU 2016-01 is effective for annual and interim reporting periods beginning after December 15, 2017. OnWith the ~~adoption~~sale of ~~ASU 2016-01,~~our Cetip investment, we no longer have any equity investments that would be required to be measured at fair value with changes in ~~the~~ fair value ~~of our equity investment in Cetip, S.A., or Cetip, will no longer be reflected in accumulated other comprehensive income but will be~~ recognized in net ~~income. As of June 30, 2016, our investment in Cetip included an accumulated unrealized gain of $103 million~~income (Note ~~10)~~11). During the six months and three months ended June 30, 2016, the change in the fair value of the Cetip investment was an increase of $128 million and $75 million, respectively. Once adopted, such fair value changes will be reported as other income (expense) under ASU 2016-01. We are currently evaluating this guidance to determine any additional potential impact on our consolidated financial statements upon adoption.

~~In February 2016, the~~The FASB has issued Accounting Standards Update No. 2016-02, Leases, or ASU 2016-02. ASU 2016-02 requires an entity to recognize both assets and liabilities arising from financing and operating leases, along with additional qualitative and

quantitative disclosures. A lessee should recognize in its balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018, with early adoption permitted. We will not adopt ASU 2016-02 early, but we are currently evaluating this guidance to determine the potential impact on our consolidated financial ~~statements and whether we will adopt this guidance early.~~statements.

~~In March 2016, the~~The FASB has issued Accounting Standards Update No. ~~2016-09, Stock Compensation~~2016-18, ~~(Topic 718) - Improvements to Employee Share-Based Payment Accounting~~Statement of Cash Flows: Restricted Cash, or ASU ~~2016-09. ASU 2016-09 provides updated guidance for~~2016-18, that will require entities to show the ~~recognition, measurement, presentation,~~changes in the total of cash, cash equivalents, restricted cash and ~~disclosure of certain components of stock compensation. The guidance includes the recognition of all excess tax benefits/deficiencies~~restricted cash equivalents in the statement of ~~income~~cash flows. As a result, entities will no longer present transfers between cash and ~~classification as operating activities within~~cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, the new guidance requires a reconciliation of the totals in the statement of cash flows ~~as well as~~to the ~~option~~related captions in the balance sheet. This reconciliation can be presented either on the face of the statement of cash flows or in the notes to ~~account for forfeitures based on awards expected~~the financial statements. Entities will also have to ~~vest or as they occur.~~disclose the nature of their restricted cash and restricted cash equivalent balances. ASU ~~2016-09 is~~2016-18 becomes effective for ~~annual and interim reporting periods~~us in fiscal years beginning after December 15, 2017, and interim periods within those years, with early adoption permitted. We ~~decided~~will be required to apply the guidance retrospectively when adopted, and provide the relevant disclosures in the first interim and annual periods in which we adopt the guidance. We will not adopt ASU ~~2016-09~~2016-18 early, but do expect to be impacted by the new presentation and disclosure requirements required by ASU 2016-18 due to our restricted and unrestricted cash balances.


3.	Acquisitions and Divestitures

TMX Atrium Acquisition

On May 1, 2017, we acquired 100% of TMX Atrium, a global extranet and wireless services business, from TMX Group. TMX Atrium provides low-latency access to markets and market data across 12 countries, more than 30 major trading venues, and ultra-low latency wireless connectivity to access markets and market data in the Toronto, New Jersey and Chicago metro areas. The wireless assets consists of microwave and millimeter networks that transport market data and provide private bandwidth. Our customers are increasingly seeking wireless services for use in their trading strategies. TMX Atrium is now part of ICE Data Services and is being integrated with our connectivity services, including our Secure Financial Transaction Infrastructure, or SFTI network.

National Stock Exchange Acquisition

On January 31, 2017, we acquired 100% of National Stock Exchange, Inc., now named NYSE National. The acquisition gives the NYSE Group a fourth U.S. exchange license. NYSE National is distinct from NYSE Group’s three listings exchanges because

NYSE National will only be a trading venue and will not be a listings market. NYSE Group’s three listings exchanges, NYSE, NYSE MKT (NYSE MKT changed its name to NYSE American in July 2017) and NYSE Arca, have unique market models designed for corporate and ETF issuers. After closing the transaction, NYSE National ceased operations on February 1, 2017. We will engage with NYSE National members, buy-side participants and retail brokerage firms before finalizing operational plans for NYSE National’s re-launch, which is expected to occur in 2018.

Purchase of Minority Interests

For consolidated subsidiaries in which our ownership is less than 100% and for which we have control over the assets, liabilities and management of the entity, the outside stockholders’ interests are shown as non-controlling interest in our consolidated financial statements. As of December 31, 2016, non-controlling interest included those related to the operating results of our CDS clearing subsidiaries in which non-ICE limited partners held a 42.5% net profit sharing interest; ICE Endex in which Gasunie held a 21% ownership interest; and ICE Clear Netherlands in which ABN AMRO Clearing Bank N.V. held a 25% ownership interest. For both ICE Endex and ICE Clear Netherlands, in addition to the non-controlling interest reported in the consolidated statements of income, we reported redeemable non-controlling interest in the consolidated balance sheets which represents the minority interest redemption fair value for each company.

During June 2017, we purchased both Gasunie’s 21% minority ownership interest in ICE Endex and ABN AMRO Clearing Bank N.V.’s 25% minority ownership interest in ICE Clear Netherlands. Subsequent to these acquisitions, we own 100% of ICE Endex and ICE Clear Netherlands and will no longer include any non-controlling interest amounts for ICE Endex and ICE Clear Netherlands in our consolidated financial statements. During April 2017, we purchased 3.2% of the net profit sharing interest in our CDS clearing subsidiaries from a non-ICE limited partner and the remaining non-ICE limited partners hold a 39.3% net profit sharing interest as of ~~January~~June 30, 2017.

Pending Acquisition of Global Research Division’s Index Platform from Bank of America Merrill Lynch

On June 1, ~~2016~~2017, we announced a definitive agreement to acquire the Global Research division’s index platform from Bank of America Merrill Lynch, or BofAML. The BofAML indices are the second largest group of fixed income indices as measured by assets under management, or AUM, globally. Upon closing, the AUM benchmarked against our combined fixed income indices will be nearly $1 trillion, and the indices will be re-branded as the ICE BofAML indices.

NYSE Governance Services Divestiture

On June 1, 2017, we sold NYSE Governance Services to Marlin Heritage, L.P. NYSE Governance Services provides governance and compliance analytics and education solutions for organizations and their boards through dynamic learning solutions. We recognized a net loss of $6 million on ~~a prospective basis. As a result,~~the sale of NYSE Governance Services, which was recorded in depreciation and amortization expenses in the consolidated statements of income for the six months and three months ended June 30, ~~2016, we recorded $12 million and $1 million, respectively, in excess tax benefits within our consolidated statements of income~~2017 (Note 8)4). ~~No other terms of the adopted guidance resulted in any significant impact on our consolidated financial statements.~~

~~Reclassifications~~

Certain prior period amounts have been reclassified to conform to the current period’s financial statement presentation. For the six months and three months ended June 30, 2015, we reclassified $47 million and $23 million, respectively, of transaction based expenses in transaction and clearing revenues, net to transaction based expenses for consistency of how we report our cash equities markets. The amounts reclassified to transaction based expenses relate to equity options markets. For the six months and three months ended June 30, 2015, we also reclassified $27 million and $14 million, respectively, in connectivity fees from other revenues to data services revenues.


3.	~~Acquisitions~~

Interactive Data ~~Acquisition~~Managed Solutions Divestiture

On ~~December 14, 2015,~~March 31, 2017, we ~~acquired 100%~~sold Interactive Data Managed Solutions, or IDMS, a unit of Interactive Data, Holdings Corporation, or Interactive Data, in a stock and cash transaction. The total purchase price was $5.6 billion comprised of cash consideration of $4.1 billion and 6.5 million shares of our common stock. The cash consideration was funded from $2.5 billion of net proceeds received on November 24, 2015 in connection with the offering of new senior notes and $1.6 billion of borrowing under our commercial paper program (Note 6). Interactive Datato FactSet. IDMS is a ~~leading~~managed solutions and portal provider ~~of financial market data, analytics and related data solutions, serving financial institutions, asset~~for the global wealth management firms, hedge funds, securities and the financial instrument processing and administration sectors. ICE Data Services is the marketing name we use to refer to the suite of pricing, market data, analytics, and related services offered by us and certain of our affiliates, including Interactive Data and its subsidiaries.

~~The total purchase price~~industry. There was ~~allocated to Interactive Data’s preliminary tangible and identifiable intangible assets and liabilities based~~no gain or loss recognized on the ~~estimated fair values~~sale of those assets as of December 14, 2015, as set forth below. The excess of the purchase price over the preliminary net tangible and identifiable intangible assets was recorded as goodwill and assigned to our data and listings reporting unit. The adjusted preliminary purchase price allocation is as follows (in millions):

Cash and cash equivalents $ 301
Goodwill 3,247
Identifiable intangible assets 2,883
Other assets and liabilities, net 268
Deferred tax liabilities on identifiable intangible assets (1,071 )
Total purchase price $ 5,628

In performing the preliminary purchase price allocation, we considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of Interactive Data’s business. We have not yet obtained all of the information related to the fair value of the acquired assets and liabilities related to the acquisition to finalize the purchase price allocation. However, during the six months ended June 30, 2016, we adjusted the preliminary purchase price allocation based on updated fair value analyses of the Interactive Data tangible and intangible assets and liabilities. The fair value adjustments reflected in the tables above and below primarily result in an increase in data/databases intangible assets of $33 million, a decrease in trade name and trademarks intangible assets of $21 million, a decrease in customer relationship intangible assets of $17 million, a decrease in other assets and liabilities, net of $28 million, an increase in deferred tax liabilities on identifiable intangible assets of $20 million, and a corresponding increase in goodwill of $47 million. The income statement impact for 2015 related to these fair value

~~adjustments is not significant and has been recorded in 2016 in accordance with ASU 2015-16,~~ ~~Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments~~.

The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of income taxes (including uncertain tax positions) and certain other tangible assets and liabilities. The allocation of the purchase price will be finalized upon the completion of the analysis of the acquired assets and liabilities during the year ended December 31, 2016.

~~The following table sets forth the components of the preliminary intangible assets associated with the acquisition as of June 30, 2016 (in millions, except years):~~

Preliminary Intangible Assets Acquisition-Date Preliminary Fair Value Foreign Currency Translation Accumulated Amortization Net Book Value Useful Life (Years)
Customer relationships $ 2,452
$ (45 ) $ (55 ) $ 2,352
20 to 25
Developed technology 168
(3 ) (13 ) 152
5 to 8
In-process research and development 129
(3 ) —
126
N/A
Data/databases 109
(1 ) (16 ) 92
4
Trade names and trademarks 12
—
(6 ) 6
2
Market data provider relationships 11
—
—
11
20
Non-compete agreements 2
—
(1 ) 1
1
Total $ 2,883
$ (52 ) $ (91 ) $ 2,740

~~As of June 30, 2016, $11 million of the in-process research and development has been moved to developed technology with a useful life of seven years.~~

~~Trayport Acquisition~~

On December 11, 2015, we acquired 100% of Trayport in a stock transaction. The total purchase price was $620 million, comprised of 2.5 million shares of our common stock. Trayport is a software company that licenses its technology to serve exchanges, OTC brokers and traders to facilitate electronic and hybrid trade execution primarily in the energy markets. The Competition and Markets Authority in the U.K. is currently reviewing our acquisition of Trayport under the merger control laws of the U.K. During the pendency of the review, we have limited ability to integrate Trayport's operations in to our existing business operations and the review could force us to take actions that may result in us not realizing the benefits of the acquisition. The timing of a final decision is uncertain at this time.

The total purchase price was allocated to Trayport’s preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of December 11, 2015, as set forth below. The excess of the purchase price over the preliminary net tangible and identifiable intangible assets was recorded as goodwill and assigned to our data and listings reporting unit. The preliminary purchase price allocation is as follows (in millions):

Goodwill $ 388
Identifiable intangible assets 274
Other assets and liabilities, net 8
Deferred tax liabilities on identifiable intangible assets (50 )
Total purchase price $ 620

~~The following table sets forth the components of the preliminary intangible assets associated with the acquisition as of June 30, 2016 (in millions, except years):~~

Preliminary Intangible Assets Acquisition-Date Preliminary Fair Value Foreign Currency Translation Accumulated Amortization Net Book Value Useful Life (Years)
Customer relationships $ 242
$ (30 ) $ (7 ) $ 205
20
Developed technology 14
(1 ) (2 ) 11
3 to 5
Trade names and trademarks 18
(2 ) —
16
Indefinite
Total $ 274
$ (33 ) $ (9 ) $ 232

~~Pro Forma Information~~

The financial information in the table below summarizes the combined results of operations of us, Interactive Data and Trayport, on a pro forma basis, as though the companies had been combined as of the beginning of the periods presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of the periods presented. This pro forma financial information is based on estimates and assumptions that have been made solely for purposes of developing such pro forma information, including, without limitation, purchase accounting adjustments. The pro forma financial information does not reflect any synergies or operating cost reductions that have been and may be achieved from the combined operations. The pro forma financial information combines the historical results for us, Interactive Data and Trayport for the six months and three months ended June 30, 2015 in the following table (in millions, except per share amounts).

Six Months Ended June 30, 2015 Three Months Ended June 30, 2015
Total revenues, less transaction-based expenses $ 2,153
$ 1,053
Operating income 996
478
Net income attributable to ICE 632
299
Earnings per common share:
Basic $ 5.25
$ 2.49
Diluted $ 5.22
$ 2.48

~~Pending Acquisition~~

In March 2016, we entered into a definitive agreement with McGraw Hill Financial to acquire Standard & Poor’s Securities Evaluations, Inc., or SPSE, a provider of fixed income evaluated pricing, and Credit Market Analysis Limited, or CMA, a provider of independent data for the OTC markets. When, and if, completed, the acquisition will enable us to offer customers new data and valuation services. Under the terms of the agreement, we can elect to satisfy our payment of the purchase price upon closing in either cash or shares of our common stock. The completion of the transaction is subject to obtaining regulatory approvals.IDMS.


4.	Goodwill and Other Intangible Assets

The following is a summary of the activity in the goodwill balance for the six months ended June 30, ~~2016~~2017 (in millions):


Goodwill balance at December 31, 2015	$	12,079
Goodwill balance at December 31, 2016				$	12,291
Acquisitions (divestitures), net				1
Foreign currency translation	(79		)	43
Reclassification to held for sale				(331		)
Other activity, net	46			(3		)
Goodwill balance at June 30, 2016	$	12,046
Goodwill balance at June 30, 2017				$	12,001

The following is a summary of the activity in the other intangible assets balance for the six months ended June 30, ~~2016~~2017 (in millions):


Other intangible assets balance at December 31, 2015	$	10,758
Other intangible assets balance at December 31, 2016				$	10,420
Acquisitions (divestitures), net				5
Foreign currency translation	(95		)	43
Reclassification to held for sale				(214		)
Other activity, net	(6		)	(9		)
Amortization of other intangible assets	(164		)	(142		)
Other intangible assets balance at June 30, 2016	$	10,493
Other intangible assets balance at June 30, 2017				$	10,103

We completed the acquisitions of TMX Atrium and NYSE National and sold NYSE Governance Services and IDMS during the six months ended June 30, 2017 (Note 3). We reclassified the net assets of Trayport, including the related goodwill and other intangible assets, to held for sale as of June 30, 2017 (Note 10). The foreign currency translation adjustments in the tables above ~~resulted~~result from a portion of our goodwill and other intangible assets being held at our U.K., Continental European and Canadian subsidiaries, some of whose functional currencies are not the U.S.

dollar. The foreign currency translation decrease for the six months ended June 30, 2016 is primarily due to certain of our goodwill and intangible assets being recorded in pounds sterling, which decreased in value due to the weakening pound sterling exchange rate following the U.K. referendum vote in late June 2016 to leave the European Union.

The changes in other activity, net in the tables above primarily relate to adjustments to the fair value of the net tangible and identifiable intangible assets and liabilities relating to the ~~Interactive Data acquisition,~~acquisitions, with a corresponding adjustment to ~~goodwill (Note 3).~~goodwill. We did not recognize any impairment losses on goodwill or other intangible assets during the six months and three months ended June 30, ~~2016~~2017 and ~~2015.~~2016.


5.	Deferred Revenue

Deferred revenue represents cash received that is yet to be recognized as revenue. Total deferred revenue was ~~$442~~$474 million as of June 30, ~~2016,~~2017, including ~~$330~~$338 million in current deferred revenue and ~~$112~~$136 million in non-current deferred revenue. The changes in our deferred revenue during the six months ended June 30, ~~2016~~2017 are as follows (in millions):


	Annual Listings Revenue			Original Listings Revenues			Other Listings Revenues			Data Services and Other Revenues			Total			Annual Listings Revenue			Original Listings Revenues			Other Listings Revenues			Data Services and Other Revenues			Total
Deferred revenue balance at December 31, 2015	$	—		$	50		$	59		$	81		$	190
Deferred revenue balance at December 31, 2016																$	—		$	66		$	83		$	88		$	237
Additions	363			12			43			263			681			366			12			39			256			673
Amortization	(183		)	(4		)	(21		)	(221		)	(429		)	(184		)	(7		)	(21		)	(214		)	(426		)
Deferred revenue balance at June 30, 2016	$	180		$	58		$	81		$	123		$	442
Less NYSE Governance Services, IDMS and Trayport (Notes 3 and 10)																—			—			—			(10		)	(10		)
Deferred revenue balance at June 30, 2017																$	182		$	71		$	101		$	120		$	474


6.	Debt

Our total debt, including short-term and long-term debt, consisted of the following as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (in millions):


	As of June 30, 2016		As of December 31, 2015		As of June 30, 2017		As of December 31, 2016
Debt:
Commercial Paper	$	1,811	$	2,591	$	1,173	$	1,642
NYSE Notes (2.00% senior unsecured notes due October 5, 2017)					850		851
Short-term debt	1,811		2,591		2,023		2,493
NYSE USD Notes (2.00% senior unsecured notes due October 5, 2017)	852		852
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018)	597		597		598		598
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020)	1,240		1,239		1,243		1,242
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)	789		789		791		790
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)	1,241		1,240		1,242		1,241
Long-term debt	4,719		4,717		3,874		3,871
Total debt	$	6,530	$	7,308	$	5,897	$	6,364

Credit Facility

We have entered into a $3.0 billion senior unsecured revolving credit facility, or the Credit Facility, with a maturity date of November 13, 2020. The Credit Facility includes an option for us to propose an increase in the aggregate amount available for borrowing by up to $1.0 billion, subject to the consent of the lenders funding the increase and certain other conditions. On November 13, 2015, we utilized this option to increase the amount of the Credit Facility to $3.4 billion. The commitments under the Credit Facility will automatically reduce to ~~$2.95~~$3.2 billion on April 3, 2019. No amounts were outstanding under the Credit Facility as of June 30, ~~2016.~~2017.

Of the $3.4 billion that is currently available for borrowing under the Credit Facility, ~~$1.8~~$1.2 billion is required to back-stop the amount outstanding under our Commercial Paper Program as of June 30, ~~2016.~~2017. The amount required to back-stop the amounts outstanding under the Commercial Paper Program will fluctuate as we increase or decrease our commercial paper borrowings. The remaining ~~$1.6~~$2.2 billion available under the Credit Facility as of June 30, ~~2016~~2017 is available to us to use for working capital and general corporate purposes including, but not limited to, acting as a back-stop to future increases in the amounts outstanding under the Commercial Paper ~~Program.~~

~~364 Day Facility~~

~~In November 2015, we entered into a $500 million 364 day senior unsecured revolving credit facility,~~Program or to fund the ~~364 Day Facility. The amounts available under~~redemption of the 364 Day Facility are available for use by us for working capital and general corporate purposes, but specifically excluding any use to back-stop amounts issued under the Commercial Paper Program. The commitments under the 364 Day Credit Facility were reduced to $375 million on May 13, 2016 and will be automatically reduced to $250 million on August 13, 2016. No amounts were outstanding under the 364 Day Facility as of June 30, 2016.

NYSE Notes discussed below.

Commercial Paper Program

We have entered into a U.S. dollar commercial paper program, or the Commercial Paper Program. Our Commercial Paper Program is currently backed by the borrowing capacity available under the Credit Facility, equal to the amount of the commercial paper that is issued and outstanding at any given point in time. The effective interest rate of commercial paper issuances does not materially differ from short term interest rates (such as USD LIBOR). The fluctuation of these rates due to market conditions may impact our interest expense.

Commercial paper notes of ~~$1.8~~$1.2 billion with original maturities ranging from 13 to 8975 days were outstanding as of June 30, ~~2016~~2017 under our Commercial Paper Program. As of June 30, ~~2016,~~2017, the weighted average interest rate on the ~~$1.8~~$1.2 billion outstanding under our Commercial Paper Program was ~~0.54%~~1.16% per annum, with a weighted average maturity of 1821 days. We repaid ~~$781~~$469 million of the amounts outstanding under the Commercial Paper Program during the six months ended June 30, ~~2016~~2017 primarily using net cash proceeds received from the sale of our investment in Cetip (Note 11) and cash flows from ~~operations and a portion of our unrestricted cash balances.~~

~~Senior Notes~~

On November 24, 2015, we issued $2.5 billion in aggregate senior notes, including $1.25 billion principal amount of 2.75% senior unsecured fixed rate notes due November 2020, or the 2020 Senior Notes, and $1.25 billion principal amount of 3.75% senior unsecured fixed rate notes due November 2025, or the 2025 Senior Notes. We used the net proceeds from the 2020 Senior Notes and 2025 Senior Notes offering, together with $1.6 billion of borrowings under our Commercial Paper Program, to finance the $4.1 billion cash portion of the purchase price of the acquisition of Interactive Data (Note 3).

In October 2013, we issued $600 million principal amount of 2.50% senior unsecured fixed rate notes due October 2018, or the 2018 Senior Notes, and $800 million principal amount of 4.00% senior unsecured fixed rate notes due October 2023, or the 2023 Senior Notes.operations.

NYSE Notes

~~During the six months and three months ended June 30, 2015, the amortization of the increase in the fair value~~redemption of the NYSE Notes ~~that was recorded in connection~~ with the ~~NYSE acquisition purchase accounting was $23 million and $11 million, respectively. No significant amortization expenses were recorded after the repayment~~issuance of new senior term notes. However, if we are unable to issue new senior term notes or to do so on favorable terms, then we would fund the NYSE ~~EUR Notes.~~Notes redemption under the Commercial Paper Program or with the unused amount available under the Credit Facility, or a combination of these sources.


7.	Equity

We currently sponsor employee and director stock option and restricted stock plans. Stock options and restricted stock are granted at the discretion of the compensation committee of the board of directors. All stock options and restricted stock awards are granted at an exercise price equal to the fair value of the common stock on the date of grant. The grant date fair value is based on the closing stock price on the date of grant. The fair value of the stock options and restricted stock on the date of grant is recognized as expense over the vesting period, net of estimated forfeitures. The non-cash compensation expenses recognized in our consolidated statements of income for stock options and restricted stock were ~~$60~~$68 million and ~~$47~~$60 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$31~~$34 million and ~~$23~~$31 million for the three months ended June 30, 2017 and 2016, ~~and 2015,~~ respectively.

Stock Option Plans

The following is a summary of stock options for the six months ended June 30, ~~2016:~~2017:


	Number of Options		Weighted Average Exercise Price per Option		Number of Options		Weighted Average Exercise Price per Option
Outstanding at December 31, 2015	774,551		$	159.66
Outstanding at December 31, 2016					3,878,705		$	36.05
Granted	150,323		250.07		730,913		57.34
Exercised	(92,653	)	143.45		(220,020	)	27.56
Outstanding at June 30, 2016	832,221		177.80
Outstanding at June 30, 2017					4,389,598		40.02

Details of stock options outstanding as of June 30, ~~2016~~2017 are as follows:


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In millions)		Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (In millions)
Vested or expected to vest	832,221	$	177.80	6.9	$	65	4,389,598	$	40.02	6.8	$	114
Exercisable	559,552	$	151.84	5.9	$	58	3,097,035	$	34.58	5.9	$	97

The total intrinsic value of stock options exercised during the six months ended June 30, 2017 and 2016 ~~and 2015~~ were ~~$10~~$7 million and ~~$14~~$10 million, respectively, and $7$4 million and $9$7 million for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. As of June 30, ~~2016,~~2017, there ~~was $11~~were $12 million in total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 2.0 years as the stock options vest.

We use the Black-Scholes option pricing model for purposes of valuing stock option awards. During the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, we used the weighted-average assumptions in the table below to compute the value of all options for shares of common stock granted to employees:


	Six Months Ended June 30,						Six Months Ended June 30,
Assumptions:	2016			2015			2017			2016
Risk-free interest rate	1.51		%	1.08		%	1.84		%	1.51		%
Expected life in years	5.0			5.0			5.0			5.0
Expected volatility	24		%	24		%	21		%	24		%
Expected dividend yield	1.36		%	1.25		%	1.40		%	1.36		%
Estimated weighted-average fair value of options granted per share	$	49.39		$	40.94		$	10.50		$	9.88

The risk-free interest rate is based on the zero-coupon U.S. Treasury yield curve in effect at the time of grant. The expected life computation is derived from historical exercise patterns and anticipated future patterns. Expected volatilities are based on historical volatility of our stock.

Restricted Stock Plans

In January ~~2016,~~2017, we reserved a maximum of ~~330,924~~1,534,218 restricted shares for potential issuance as performance-based restricted shares to certain of our employees. The number of shares that will ultimately be granted under ~~the performance awards~~this award will be based on our actual financial performance as compared to financial performance targets set by our board of directors and compensation committee for the year ending December 31, ~~2016.~~2017, as well as our 2017 total shareholder return as compared to that of the S&P 500 Index. The maximum compensation expense to be recognized under these performance-based restricted shares is ~~$80~~$85 million if the maximum financial performance target is met and all ~~330,924~~1,534,218 shares vest. The compensation expense to be recognized under these performance-based restricted shares will be ~~$39~~$42 million if the target financial performance is met, which would result in ~~165,462~~767,109 shares vesting. ~~These restricted shares are also subject to a market condition that could reduce the number of shares that are ultimately granted.~~ We will recognize expense on an accelerated basis over the three-year vesting period based on our quarterly assessment of the probable ~~2016~~2017 actual financial performance as compared to the ~~2016~~2017 financial performance targets. As of June 30, ~~2016,~~2017, we determined that it is probable that the financial performance level will be at target for ~~2016.~~2017. Based on this assessment, we recorded non-cash compensation expense of ~~$11~~$12 million and $6$7 million for the six months and three months ended June 30, ~~2016,~~2017, respectively, related to these shares and the remaining ~~$28~~$30 million in non-cash compensation expense will be recorded on an accelerated basis over the remaining vesting period, including $13 million of which will be recorded over the remainder of ~~2016.~~2017.

The following is a summary of the non-vested restricted shares for the six months ended June 30, ~~2016:~~2017:


	Number of Restricted Stock Shares	Weighted Average Grant-Date Fair Value per Share		Number of Restricted Stock Shares	Weighted Average Grant-Date Fair Value per Share
Non-vested at December 31, 2015	1,254,235	$	199.44
Non-vested at December 31, 2016				6,435,871	$	45.33
Granted	580,901	248.45		3,148,277	57.19
Vested	(447,715)	187.50		(3,265,749)	44.51
Forfeited	(36,541)	225.76		(270,695)	51.06
Non-vested at June 30, 2016	1,350,880	224.22
Non-vested at June 30, 2017				6,047,704	52.25

Restricted stock shares granted in the table above include both time-based and performance-based grants. Performance-based shares have been presented to reflect the actual shares to be issued based on the achievement of past performance targets. Non-vested performance-based restricted shares granted are presented in the table above at the ~~maximum~~target number of restricted shares that would vest if the maximum performance targets are met. As of June 30, ~~2016,~~2017, there were ~~$174~~$205 million in total unrecognized compensation costs

~~costs~~ related to the time-based restricted stock and the performance-based restricted stock. These costs are expected to be recognized over a weighted-average period of ~~1.6~~2.0 years as the restricted stock vests. These unrecognized compensation costs assume that a target performance level will be met on the performance-based restricted shares granted in January 2016. During the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, the total fair value of restricted stock vested under all restricted stock plans was $203 million and $112 million, ~~and $86 million,~~ respectively.

Stock Repurchase Program

~~During 2015,~~In August 2016, our board of directors approved an aggregate of $1.0 billion for future repurchases of our common stock with no fixed expiration date, subject to applicable laws and regulations. The shares repurchased are held in treasury stock. As of June 30, 2017, the remaining board authorization permits repurchases ~~were completed~~of up to $481 million of our common stock. We expect funding for any share repurchases to come from our operating cash flow or borrowings under ~~stock repurchase~~our debt facilities or commercial paper program. Repurchases may be made from time to time on the open market, through established trading plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules and regulations. We have entered into a Rule 10b5-1 trading plan, as authorized by our board of ~~directors. In connection with our acquisition~~directors, to govern some or all of ~~Interactive Data during~~ the ~~fourth quarter of 2015, we suspended our stock repurchase plan and that plan has now expired. We did not repurchase any~~repurchases of our ~~outstanding~~shares of common stock, ~~during~~and we began to repurchase shares in October 2016. We may discontinue the stock repurchases at any time and may amend or terminate the Rule 10b5-1 trading plan at any time. The approval of our board of directors for the share repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our board of directors may increase or decrease the amount of capacity we have for repurchases from time to time.

During the six months ended June 30, ~~2016.~~2017, we repurchased 7,827,513 shares of our outstanding common stock at a cost of $469 million. These repurchases were completed on the open market and under our 10b5-1 trading plan. The timing and extent of future repurchases ~~if any,~~ that are not made pursuant to a Rule 10b5-1 trading plan will be at our discretion and will depend upon many conditions. Our management ~~and board of directors~~ periodically ~~review~~reviews whether or not to be active in repurchasing our stock. In making a determination regarding any stock repurchases, we consider multiple factors. The factors may include: overall stock market conditions, our common stock price movements, the remaining amount authorized for repurchases by our board of directors, the potential impact of a stock repurchase program on our corporate debt ratings, our expected free cash flow and working capital needs, our current and future planned strategic growth initiatives, and other potential uses of our cash and capital resources.

~~In August~~Dividends

During the six months ended June 30, 2017 and 2016, we paid cash dividends per share of $0.40 and $0.34, respectively, for an aggregate payout of $239 million and $205 million, respectively. The declaration of dividends is subject to the discretion of our board of directors, ~~approved an aggregate of $1.0 billion for future repurchases of our common stock with no fixed expiration date, subject to applicable laws~~ and ~~regulations. Repurchases~~ may be ~~made from time to time on the open market, through established plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules~~affected by various factors, including our future earnings, financial condition, capital requirements, levels of indebtedness, credit ratings and regulations. We plan to enter into a Rule 10b5-1 trading plan in the future to govern the repurchase of our shares of common stock. Assuming we do begin to repurchase our shares of common stock in the future, we may discontinue the stock repurchases at any time and may terminate the Rule 10b5-1 trading plan. The approval for the share repurchases does not obligate us to acquire any particular amount of our common stock. In addition,other considerations our board of directors ~~may increase~~deem relevant. Our board of directors has adopted a quarterly dividend declaration policy providing that the declaration of any dividends will be determined quarterly by the board or ~~decrease~~audit committee of the ~~amount~~board of ~~capacity we have for repurchases from time to time.~~directors taking into account such factors as our evolving business model, prevailing business conditions and our financial results and capital requirements, without a predetermined annual net income payout ratio.


8.	Income Taxes

Our effective tax rate was ~~30%~~27% and ~~27%~~30% for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~30%~~25% and ~~27%~~30% for the three months ended June 30, 2017 and 2016, ~~and 2015.~~respectively. The effective tax rates for the six months and three months ended June 30, ~~2016~~2017 and ~~2015~~2016 were lower than the federal statutory rate primarily due to favorable foreign income tax rate differentials, partially offset by state income taxes. ~~The favorable~~Favorable foreign income tax rate ~~differential results~~differentials result primarily from lower income tax rates in the U.K. and various other lower tax jurisdictions as compared to the income tax rates in the U.S. The effective tax rates for the six months and three months ended June 30, ~~2016~~2017 are ~~higher~~lower than the effective tax ~~rate~~rates for the comparable periods in ~~2015~~2016 primarily due to tax benefits associated with a ~~mix of foreign versus U.S. based income and an increase to deferred income taxes in the current year, partially offset by the tax benefit from the early adoption of ASU 2016-09 (Note 2).~~divestiture.

Our non-U.S. subsidiaries had ~~$3.3~~$4.1 billion in cumulative undistributed earnings as of June 30, ~~2016.~~2017. This amount represents the post-income tax earnings under U.S. GAAP adjusted for previously taxed income. The earnings from our non-U.S. subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes has been made in the accompanying consolidated financial statements. Further, a determination of the unrecognized deferred tax liability is not practicable. Any future distribution by way of dividend of these non-U.S. earnings may subject us to both U.S. federal and state income taxes, as adjusted for non-U.S. tax credits, and withholding taxes payable to various non-U.S. countries.


9.	Clearing Organizations

We operate regulated central counterparty clearing houses for the settlement and clearance of derivative contracts. The clearing houses include ICE Clear Europe, ICE Clear Credit, ICE Clear ~~U.S.,~~US, ICE Clear Canada, ICE Clear Netherlands and ICE Clear Singapore (referred to herein collectively as the “ICE Clearing Houses”).

ICE Clear Europe performs the clearing and settlement for all futures and options contracts traded through ICE Futures Europe and ICE Endex, for ~~CDS contracts submitted for clearing in Europe, and for~~ energy futures and options contracts trading through ICE Futures U.S., and for CDS contracts submitted for clearing in Europe.

ICE Clear Credit performs the clearing and settlement for CDS contracts submitted for clearing in North America.

ICE Clear ~~U.S.~~US performs the clearing and settlement of agricultural, metals, currencies and financial futures and options contracts traded through ICE Futures U.S.

ICE Clear Canada performs the clearing and settlement for all futures and options contracts traded through ICE Futures Canada.

ICE Clear Netherlands ~~offers~~is preparing to provide clearing ~~for The Order Machine, a multi-lateral trading facility for equity options.~~services to Euronext, which are expected to commence during the second half of 2018.

ICE Clear Singapore performs the clearing and settlement for all futures and options contracts traded through ICE Futures Singapore.

Each of the ICE Clearing Houses requires all clearing members to maintain cash on deposit or pledge certain assets, which may include government obligations, non-government obligations ~~letters of credit~~ or gold to guarantee performance of the clearing members’ open positions. Such amounts in total are known as “original margin”. The ICE Clearing Houses may make intraday original margin calls in circumstances where market conditions require additional protection. The daily profits and losses from and to the ICE Clearing Houses due to the marking-to-market of open contracts isare known as “variation margin”. The ICE Clearing Houses mark all outstanding contracts to market, and therefore pay and collect variation margin, at least once daily, and in some cases multiple times throughout the day. Marking-to-market allows the ICE Clearing Houses to identify any clearing members that may be unable to satisfy the financial obligations resulting from changes in the prices of their open contracts before those financial obligations become exceptionally large and jeopardize the ability of the ICE Clearing Houses to ensure financial performance of clearing members’ open positions.

Each of the ICE Clearing Houses requires that each clearing member make deposits into a fund known as a “guaranty fund”, which is maintained by the relevant ICE Clearing House. These amounts serve to secure the obligations of a clearing member to the ICE Clearing House to which it has made the guaranty fund deposit and may be used to cover losses sustained by the respective ICE Clearing House in the event of a default of a clearing member.

The ICE Clearing Houses seek to reduce their exposure through a risk management program that includes initial and ongoing financial standards for clearing member admission and continued membership, original and variation margin requirements, and mandatory deposits to the guaranty fund. The amounts that the clearing members are required to maintain in the original margin and guaranty fund accounts are determined by standardized parameters established by the risk management departments and reviewed by the risk committees and the boards of directors of each of the ICE Clearing Houses and may fluctuate over time. As of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, the ICE Clearing Houses have received or have been pledged ~~$89.1~~$96.4 billion and ~~$87.2~~$95.7 billion, respectively, in cash and non-cash collateral in original margin and guaranty fund deposits to cover price movements of underlying contracts for both periods. The ICE Clearing Houses also have powers of assessment that provide the ability to collect additional funds from their clearing members to cover a defaulting member’s remaining obligations up to the limits established under the respective rules of each ICE Clearing House.

Should a particular clearing member fail to deposit original margin, or fail to make a variation margin payment, when and as required, the relevant ICE Clearing House may liquidate or hedge the clearing member’s open positions and use the clearing member’s original margin and guaranty fund deposits to make up any amount owed. In the event that those deposits are not sufficient to pay the amount owed in full, the ICE Clearing Houses may utilize the respective guaranty fund deposits of their respective clearing members on a pro-rata basis for that purpose.

We have contributed $150 million, $50 million and $50 million in cash to the ICE Clear Europe, ICE Clear Credit and ICE Clear ~~U.S.~~US guaranty funds, respectively, as of June 30, ~~2016,~~2017, and such amounts are at risk and could be used in the event of a clearing member default where the amount of the defaulting clearing member’s original margin and guaranty fund deposits are insufficient. We have also contributed $4 million in cash in total to the ICE Clear Canada, ICE Clear Netherlands and ICE Clear Singapore guaranty funds. The ~~$250~~$254 million combined contributions to the guaranty funds as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016 are included in long-term restricted cash in the accompanying consolidated balance sheets.

As of June 30, 2017, our cash margin deposits and guaranty fund were as follows for the ICE Clearing Houses (in millions):



	ICE Clear Europe		ICE Clear Credit		ICE Clear US		Other ICE Clearing Houses		Total
Original margin	$	20,898	$	21,883	$	5,410	$	90	$	48,281
Guaranty fund	2,625		2,332		317		30		5,304
Total	$	23,523	$	24,215	$	5,727	$	120	$	53,585

As of December 31, 2016, our cash margin deposits and guaranty fund ~~are~~were as follows for the ICE Clearing Houses (in millions):

ICE Clear
Europe
ICE Clear
Credit ICE Clear U.S. Other ICE Clearing Houses Total
Original margin $ 25,177
$ 14,176
$ 4,445
$ 160
$ 43,958
Guaranty fund 2,797
1,431
303
12
4,543
Total $ 27,974
$ 15,607
$ 4,748
$ 172
$ 48,501

~~As of December 31, 2015, our cash margin deposits and guaranty fund are as follows for the ICE Clearing Houses (in millions):~~


	ICE Clear Europe		ICE Clear Credit		ICE Clear U.S.		Other ICE Clearing Houses		Total		ICE Clear Europe		ICE Clear Credit		ICE Clear US		Other ICE Clearing Houses		Total
Original margin	$	28,454	$	13,750	$	3,882	$	159	$	46,245	$	27,046	$	16,833	$	6,184	$	107	$	50,170
Guaranty fund	2,589		2,011		311		13		4,924		2,444		2,135		316		85		4,980
Total	$	31,043	$	15,761	$	4,193	$	172	$	51,169	$	29,490	$	18,968	$	6,500	$	192	$	55,150

We have recorded these cash deposits in the accompanying consolidated balance sheets as current assets with corresponding current liabilities to the clearing members of the relevant ICE Clearing House. All cash ~~securities~~ and ~~letters of credit~~securities are available only to meet the financial obligations of that clearing member to the relevant ICE Clearing House. ICE Clear Europe, ICE Clear Credit, ICE Clear ~~U.S.,~~US, ICE Clear Canada, ICE Clear Netherlands and ICE Clear Singapore are separate legal entities and are not subject to the liabilities of the other ICE Clearing Houses or the obligations of the members of the other ICE Clearing Houses. The

amount of these cash deposits may fluctuate due to the types of margin collateral choices available to clearing members and the change in the amount of deposits required. As a result, these assets and corresponding liabilities may vary significantly over time.

~~Except with respect to ICE Clear Credit, the majority of~~Of the cash held by the ICE Clearing Houses, as of June 30, 2017, $30.6 billion is secured in reverse repurchase agreements with primarily overnight maturities or direct investment in ~~U.S.~~ government securities. ICE Clear Credit, ~~has been designated as~~ a systemically important financial market utility as designated by the Financial Stability Oversight Council, ~~and has been authorized to establish and maintain a cash account at the Federal Reserve Bank of Chicago. ICE Clear Credit~~ held ~~$7.3~~$19.4 billion of its U.S. dollar cash in the guaranty fund and in original margin in ~~the~~ cash ~~account~~accounts at the Federal Reserve Bank of Chicago as of June 30, ~~2016.~~2017. The remaining cash deposits at the ICE Clearing Houses are held in demand deposit accounts at large, highly rated financial institutions and directly in U.S. Treasury securities with original maturities of less than 12 months. The carrying value of these securities approximates their fair value due to the short-term nature of the instruments and repurchase agreements.

In addition to the cash deposits for original margin and the guaranty fund, the ICE Clearing Houses have also received other assets from clearing members, which ~~may~~ include government obligations, and may include other non-cash collateral such as certain agency and corporate debt ~~letters of credit~~ or gold to mitigate credit risk. These assets are not reflected in the accompanying consolidated balance sheets as the risks and rewards of these assets remain with the clearing members unless the ICE Clearing Houses have sold or re-pledged the assets or in the event of a clearing member default, where the clearing member is no longer entitled to redeem the assets. Any income, gain or loss accrues to the clearing member. For certain non-cash deposits, the ICE Clearing Houses may impose discount or “haircut” rates to ensure adequate collateral levels to account for fluctuations in the market value of these deposits. As of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, the assets pledged by the clearing members as original margin and guaranty fund deposits for each of the ICE Clearing Houses are detailed below (in millions):


	As of June 30, 2016								As of December 31, 2015								As of June 30, 2017								As of December 31, 2016
	ICE Clear Europe		ICE Clear Credit		ICE Clear U.S.		Other ICE Clearing Houses		ICE Clear Europe		ICE Clear Credit		ICE Clear U.S.		Other ICE Clearing Houses		ICE Clear Europe		ICE Clear Credit		ICE Clear US		Other ICE Clearing Houses		ICE Clear Europe		ICE Clear Credit		ICE Clear US		Other ICE Clearing Houses
Original margin:
Government securities at face value	$	23,465	$	6,157	$	9,862	$	44	$	21,690	$	4,989	$	8,161	$	97	$	26,131	$	4,201	$	11,926	$	19	$	22,961	$	6,013	$	10,542	$	37
Letters of credit	—		—		—		389		—		—		—		381
Other																	—		—		—		—		—		—		—		368
Total	$	23,465	$	6,157	$	9,862	$	433	$	21,690	$	4,989	$	8,161	$	478	$	26,131	$	4,201	$	11,926	$	19	$	22,961	$	6,013	$	10,542	$	405
Guaranty fund:
Government securities at face value	$	261	$	179	$	153	$	45	$	267	$	229	$	158	$	61	$	311	$	44	$	163	$	3	$	217	$	178	$	147	$	40


10.	Held for Sale

On December 11, 2015, we acquired 100% of Trayport in a stock transaction. The total purchase price was $620 million, comprised of 12.6 million shares of our common stock. Trayport is a software company that licenses its technology to serve exchanges, OTC brokers and traders to facilitate electronic and hybrid trade execution primarily in the energy markets.

The U.K. Competition and Markets Authority, or the CMA, undertook a review of our acquisition of Trayport under the merger control laws of the U.K. In October 2016, the CMA issued its findings and ordered a divestment of Trayport to remedy what the CMA determined to be a substantial lessening of competition. In November 2016, we filed an appeal with the Competition Appeal Tribunal, or the CAT, to challenge the CMA’s decision. In March 2017, the CAT upheld the CMA decision that we should divest Trayport. Following the CAT’s judgment, we asked for leave to appeal the CAT’s decision at the U.K. Court of Appeals. In May 2017, the U.K. Court of Appeals denied our request for leave to appeal. We are now obligated to sell Trayport.

The functional currency of Trayport is the pound sterling, as this is the currency in which Trayport operates. The $620 million in Trayport net assets were recorded on our December 11, 2015 opening balance sheet at a pound sterling/U.S. dollar exchange rate of 1.5218 (£407 million). Because our consolidated financial statements are presented in U.S. dollars, we must translate the Trayport net assets into U.S. dollars at the exchange rates in effect at the end of each reporting period. Therefore, increases or decreases in the value of the U.S. dollar against the pound sterling will affect the value of the Trayport balance sheet, with gains or losses included in the cumulative translation adjustment account, a component of equity. As a result of the decrease in the pounds sterling/U.S. dollar exchange rate to 1.3025 as of June 30, 2017, the portion of our equity attributable to the Trayport net assets in accumulated other comprehensive loss from foreign currency translation was $89 million as of June 30, 2017.

As of June 30, 2017, we have classified Trayport as held for sale and ceased depreciation and amortization of the property and equipment and other intangible assets (Note 2). Upon classification of Trayport as held for sale, we have determined that the adjusted carrying value of Trayport’s net assets as of June 30, 2017 of $610 million, which is equal to the $521 million carrying value plus the $89 million in accumulated other comprehensive loss from foreign currency translation, is lower than the estimated fair value of Trayport, less the costs to dispose of the business. We will continue to evaluate the fair value of Trayport until it is sold, including reviewing the bids received for Trayport; its operating performance; its financial projections; changes in the business and regulatory climate in which it operates; the volatility in the capital markets; and the volatility in the pound sterling/U.S. dollar exchange rate. Any changes in these factors could result in adjustments to Trayport’s fair value.

Trayport is included in our data and listings segment. The total assets held for sale as of June 30, 2017 were $578 million and were reclassified and are included in “prepaid expenses and other current assets” in our accompanying consolidated balance sheet and the total liabilities held for sale as of June 30, 2017 were $57 million and were reclassified and are included in “other current liabilities” in our accompanying consolidated balance sheet. The carrying amounts of the major classes of assets and liabilities of Trayport are as follows as of June 30, 2017 (in millions):



Assets held for sale:
Cash and cash equivalents	$	6
Goodwill	331
Other intangibles, net	214
Other current and non-current assets	27
Total assets held for sale (included in prepaid expenses and other current assets)	$	578

Liabilities held for sale:
Deferred tax liabilities, net	$	38
Other current and non-current liabilities	19
Total liabilities held for sale (included in other current liabilities)	$	57

Accumulated other comprehensive loss from foreign currency translation classified as held for sale in equity	$	89


11.	Fair Value Measurements

Our financial instruments consist primarily of cash and cash equivalents, short-term and long-term restricted cash and investments, short-term and long-term investments, customer accounts receivable, margin deposits and guaranty funds, cost and equity method investments, short-term and long-term debt and certain other short-term assets and liabilities. The fair value of our financial instruments are measured based on a three-level hierarchy:

Level 1 inputs — quoted prices for identical assets or liabilities in active markets.

Level 2 inputs — observable inputs other than Level 1 inputs such as quoted prices for similar assets and liabilities in active markets or inputs other than quoted prices that are directly observable.

Level 3 inputs — unobservable inputs supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

~~In general, we~~

We use Level 1 inputs to determine fair value. The Level 1 assets consist of U.S. Treasury securities, equity and other securities listed in active markets, and investments in publicly traded mutual funds held for the purpose of providing future payments of the supplemental executive retirement and the supplemental executive savings plans.

Financial assets and liabilities recorded in the accompanying consolidated balance sheets as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016 are classified in their entirety based on the lowest level of input that is significant to the asset or liability’s fair value measurement. Financial instruments measured at fair value on a recurring basis as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016 are as follows (in millions):


	As of June 30, 2016						As of December 31, 2015						As of June 30, 2017						As of December 31, 2016
	Level 1		Level 2 and 3		Total		Level 1		Level 2 and 3		Total		Level 1		Level 2 and 3		Total		Level 1		Level 2 and 3		Total
Assets at fair value:
Long-term investment in equity securities	$	427	$	—	$	427	$	299	$	—	$	299	$	—	$	—	$	—	$	432	$	—	$	432
U.S. Treasury securities	503		—		503		449		—		449		469		—		469		500		—		500
Mutual Funds	24		—		24		29		—		29		17		—		17		23		—		23
Total assets at fair value	$	954	$	—	$	954	$	777	$	—	$	777	$	486	$	—	$	486	$	955	$	—	$	955

As of June 30, ~~2016,~~2017, the fair value of our $1.24 billion 2020 Senior Notes was ~~$1.30~~$1.27 billion, the fair value of our $1.24 billion 2025 Senior Notes was ~~$1.35~~$1.31 billion, the fair value of our ~~$852~~$850 million NYSE ~~USD~~ Notes was ~~$860~~$850 million, the fair value of our ~~$789~~$791 million 2023 Senior Notes was ~~$865~~$841 million, and the fair value of our ~~$597~~$598 million 2018 Senior Notes was ~~$615~~$606 million. The fair values of these fixed rate notes were estimated using quoted market prices for these instruments. The fair value of our commercial paper approximates the carrying value since the rates of interest on this short-term debt approximate market rates as of June 30, ~~2016~~2017. All other financial instruments are determined to approximate carrying value due to the short period of time to their maturities.

~~The long-term investment in equity securities represents our investment~~Until March 29, 2017, we held a 12% ownership interest in Cetip, S.A., or Cetip, which ~~is recorded~~we classified as an available-for-sale ~~investment, and is recorded and held in Brazilian reais.~~long-term investment. Cetip was ~~valued~~recorded at ~~$427 million as of June 30, 2016,~~its fair value using its quoted market price. Changes in the fair value of ~~the Cetip investment~~available-for-sale securities are ~~currently~~ reflected in accumulated other comprehensive income, ~~(loss)~~ and ~~do not impact earnings, except to~~include the ~~extent that~~effects of both stock price and foreign currency translation fluctuations. The unrealized holding gains and losses are excluded from earnings and reported in other comprehensive income until realized. Realized gains and losses, and declines in value deemed to be ~~other than temporary (Note 2). As~~other-than-temporary, are recognized in earnings.

We acquired the common stock of ~~June 30,~~Cetip for an aggregate consideration of $514 million in cash in July 2011. During the year ended December 31, 2013, we recognized an impairment loss on our Cetip investment of $190 million, primarily due to unfavorable foreign exchange rate changes, which was equal to the difference between the $324 million fair value as of December 31, 2013 and the original investment cost of $514 million. The $324 million fair value of the Cetip investment as of December 31, 2013 became our new cost basis. The long-term investment in equity securities as of December 31, 2016 represents our investment in Cetip, which was valued at $432 million, including a $108 million accumulated unrealized gain.

On March 29, 2017, Cetip and BM&FBOVESPA S.A. finalized a merger agreement. BM&FBOVESPA S.A., which changed its name to B3 S.A. - Brasil, Bolsa, Balcao, or B3, following the merger with Cetip, is a stock exchange and operator of registration, clearing, custodial and settlement services for equities, financial securities, indices, rates, commodities and currencies and is located in São Paulo, Brazil. The merger valued our Cetip investment at $500 million. We received the proceeds in cash and in B3 common stock.

The cash component was valued at $319 million, which was subject to Brazilian capital gains tax of $28 million that was remitted to the Brazilian tax authorities in March 2017. We received net cash proceeds in April 2017 of $286 million, which is net of a foreign exchange loss of $6 million that was incurred in April 2017. We received 29,623,756 B3 common shares valued at their quoted market price of $181 million. In April 2017, we ~~had~~sold the B3 common shares for net proceeds of $152 million, which is net of a capital gain tax of $26 million that was remitted to the Brazilian tax authorities and further transaction expenses of $3 million that were incurred in April 2017. We used the $438 million in net cash and stock proceeds received from the merger and sale of B3 shares to pay down amounts outstanding under our Commercial Paper Program and for share repurchases.

The $500 million fair value of our investment in Cetip included an accumulated unrealized gain ~~related to this investment~~ of ~~$103 million.~~

In April 2016, Cetip and BM&FBOVESPA in Brazil entered into a merger agreement. Consummation of the merger remains subject to approval by the regulatory bodies of the Central Bank of Brazil, the Securities and Exchange Commission of Brazil and Brazil’s Council for Economic Defense. The proposed merger values Cetip at R$43.79 per share based upon the June 30, 2016 BM&FBOVESPA closing stock price. Under the terms of the merger agreement, Cetip shareholders will receive a combination of cash (75%) and BM&FBOVESPA stock (25%). Given that a portion of the purchase price consists of BM&FBOVESPA stock, the merger agreement includes an adjustment mechanism that provides for a stock valuation$176 million, based on the ~~BMF&BOVESPA average trading price during~~$324 million cost basis. In connection with the sale of our equity investment in Cetip, the $176 million, accumulated unrealized gain was reclassified out of accumulated other comprehensive income and was recognized in other income as a realized investment gain in the accompanying consolidated statement of income for the six months ended June 30, ~~trading days preceding the last required regulatory approval, with a minimum stock valuation of R$42.00 per share and a maximum stock valuation of R$48.51 per share.~~ 2017.

As of June 30, ~~2016,~~2017, we held ~~$503~~$469 million in U.S. Treasury ~~securities, all of which had remaining maturities of less than one year at the date of purchase.~~securities. Of these securities, ~~$33 million were recorded as cash and cash equivalents, $320~~$319 million were recorded as short-term restricted cash and investments and $150 million were recorded as long-term restricted cash and investments in the accompanying consolidated balance sheet as of June 30, ~~2016. All of~~2017. We account for the U.S. Treasury securities ~~recorded~~held using the available-for-sale method.

Mutual funds represent equity and fixed income mutual funds held for the purpose of providing future payments for the supplemental executive savings plan and the supplemental executive retirement plan and are classified as ~~cash and cash equivalents have original maturities of less than 90 days.~~available-for-sale securities.

We did not use Level 2 and 3 inputs to determine the fair value of assets or liabilities measured at fair value on a recurring basis as of June 30, ~~2016~~2017 or December 31, ~~2015.~~2016. We measure certain assets, such as intangible assets and cost and equity method investments, at fair value on a non-recurring basis. These assets are recognized at fair value if they are deemed to be impaired. As of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, none of these assets were required to be recorded at fair value since no impairment indicators were present.


~~11.~~12.	Condensed Consolidating Financial Statements (Unaudited)

In connection with our acquisition of NYSE, Intercontinental Exchange, Inc., or ICE, and NYSE Holdings LLC, or NYSE Holdings, established various guarantees to protect against structural subordination of each entity’s existing indebtedness. NYSE Holdings is our 100% owned subsidiary and fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of our senior notes. Similarly, ICE fully and unconditionally guarantees, on an unsecured and unsubordinated basis, the payment of principal, premium, if any, and interest of the NYSE ~~USD~~ Notes. The ICE guarantees will remain in place until ~~each applicable debt obligation has been satisfied.~~the earlier of when the NYSE Notes are paid off or mature in October 2017 and certain other actions are taken to terminate the guarantees. After all of the guarantees are terminated, we will cease including a Condensed Consolidating Financial Statements footnote in our quarterly and annual filings.

The following consolidating financial information sets forth, under the equity method of accounting, the condensed consolidating statements of income and comprehensive income, the condensed consolidating balance sheets, and the condensed consolidating statements of cash flows for (i) ICE (Parent); (ii) NYSE Holdings; (iii) the subsidiary non-guarantors; (iv) elimination entries necessary to consolidate each of ICE (Parent) and NYSE Holdings with the non-guarantor subsidiaries; and (v) on a consolidated basis. The condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements.

Intercontinental Exchange, Inc.

Condensed Consolidating Balance Sheets

As of June 30, ~~2016~~2017

(In millions)


	ICE (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating Adjustments			Consolidated Total		ICE (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating Adjustments			Consolidated Total
Current assets:
Cash and cash equivalents	$	2	$	—	$	388	$	—		$	390	$	1	$	—	$	397	$	—		$	398
Intercompany receivable	3,267		—		312		(3,579		)	—		2,398		—		—		(2,398		)	—
Margin deposits and guaranty funds	—		—		48,501		—			48,501		—		—		53,585		—			53,585
Notes receivable from affiliate, current	—		343		—		(343		)	—		—		281		42		(323		)	—
Other current assets	2		—		1,737		—			1,739		2		—		2,463		—			2,465
Total current assets	3,271		343		50,938		(3,922		)	50,630		2,401		281		56,487		(2,721		)	56,448
Property and equipment, net	—		—		1,048		—			1,048		—		—		1,161		—			1,161
Other non-current assets:
Goodwill and other intangible assets, net	—		—		22,539		—			22,539		—		—		22,104		—			22,104
Investment in subsidiaries	21,776		13,925		—		(35,701		)	—		24,302		13,912		—		(38,214		)	—
Notes receivable from affiliate, non-current	—		5,433		4,689		(10,122		)	—		620		6,602		8,405		(15,627		)	—
Other non-current assets	91		10		906		—			1,007		106		11		494		—			611
Total other non-current assets	21,867		19,368		28,134		(45,823		)	23,546		25,028		20,525		31,003		(53,841		)	22,715
Total assets	$	25,138	$	19,711	$	80,120	$	(49,745	)	$	75,224	$	27,429	$	20,806	$	88,651	$	(56,562	)	$	80,324

Current liabilities:
Short-term debt	$	1,811	$	—	$	—	$	—		$	1,811	$	1,173	$	850	$	—	$	—		$	2,023
Margin deposits and guaranty funds	—		—		48,501		—			48,501		—		—		53,585		—			53,585
Intercompany payable	—		3,579		—		(3,579		)	—		—		1,805		593		(2,398		)	—
Notes payable to affiliates, current	281		—		62		(343		)	—		283		40		—		(323		)	—
Other current liabilities	24		—		1,102		—			1,126		20		—		1,191		—			1,211
Total current liabilities	2,116		3,579		49,665		(3,922		)	51,438		1,476		2,695		55,369		(2,721		)	56,819
Non-current liabilities:
Long-term debt	3,868		851		—		—			4,719		3,874		—		—		—			3,874
Notes payable to affiliates, non-current	3,858		831		5,433		(10,122		)	—		6,177		2,228		7,222		(15,627		)	—
Other non-current liabilities	4		—		3,700		—			3,704		4		—		3,694		—			3,698
Total non-current liabilities	7,730		1,682		9,133		(10,122		)	8,423		10,055		2,228		10,916		(15,627		)	7,572
Total liabilities	9,846		5,261		58,798		(14,044		)	59,861		11,531		4,923		66,285		(18,348		)	64,391
Redeemable non-controlling interest	—		—		33		—			33

Equity:
Total shareholders' equity	15,292		14,450		21,251		(35,701		)	15,292
Total shareholders’ equity												15,898		15,883		22,331		(38,214		)	15,898
Non-controlling interest in consolidated subsidiaries	—		—		38		—			38		—		—		35		—			35
Total equity	15,292		14,450		21,289		(35,701		)	15,330		15,898		15,883		22,366		(38,214		)	15,933
Total liabilities and equity	$	25,138	$	19,711	$	80,120	$	(49,745	)	$	75,224	$	27,429	$	20,806	$	88,651	$	(56,562	)	$	80,324

Intercontinental Exchange, Inc.

Condensed Consolidating Balance Sheets

As of December 31, ~~2015~~2016

(In millions)


	ICE (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating Adjustments			Consolidated Total		ICE (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors		Consolidating Adjustments			Consolidated Total
Current assets:
Cash and cash equivalents	$	1	$	—	$	626	$	—		$	627	$	1	$	—	$	406	$	—		$	407
Intercompany receivable	3,176		—		—		(3,176		)	—		2,340		—		—		(2,340		)	—
Margin deposits and guaranty funds	—		—		51,169		—			51,169		—		—		55,150		—			55,150
Note receivable from affiliate, current	—		705		77		(782		)	—		—		281		23		(304		)	—
Other current assets	5		—		1,512		—			1,517		—		—		1,576		—			1,576
Total current assets	3,182		705		53,384		(3,958		)	53,313		2,341		281		57,155		(2,644		)	57,133
Property and equipment, net	—		—		1,037		—			1,037		—		—		1,129		—			1,129
Other non-current assets:
Goodwill and other intangible assets, net	—		—		22,837		—			22,837		—		—		22,711		—			22,711
Investment in subsidiaries	21,120		9,840		—		(30,960		)	—		23,266		13,238		—		(36,504		)	—
Note receivable from affiliate, non-current	—		3,128		3,370		(6,498		)	—		620		5,958		6,373		(12,951		)	—
Other non-current assets	20		10		770		—			800		100		11		919		—			1,030
Total other non-current assets	21,140		12,978		26,977		(37,458		)	23,637		23,986		19,207		30,003		(49,455		)	23,741
Total assets	$	24,322	$	13,683	$	81,398	$	(41,416	)	$	77,987	$	26,327	$	19,488	$	88,287	$	(52,099	)	$	82,003

Current liabilities:
Short-term debt	$	2,591	$	—	$	—	$	—		$	2,591	$	1,642	$	851	$	—	$	—		$	2,493
Margin deposits and guaranty funds	—		—		51,169		—			51,169		—		—		55,150		—			55,150
Intercompany payable	—		1,784		1,392		(3,176		)	—		—		1,935		405		(2,340		)	—
Notes payable to affiliates, current	358		—		424		(782		)	—		281		23		—		(304		)	—
Other current liabilities	36		—		947		—			983		31		—		943		—			974
Total current liabilities	2,985		1,784		53,932		(3,958		)	54,743		1,954		2,809		56,498		(2,644		)	58,617
Non-current liabilities:
Long-term debt	3,865		852		—		—			4,717		3,871		—		—		—			3,871
Notes payable to affiliates, non-current	2,629		741		3,128		(6,498		)	—		4,781		1,592		6,578		(12,951		)	—
Other non-current liabilities	35		—		3,617		—			3,652		4		—		3,721		—			3,725
Total non-current liabilities	6,529		1,593		6,745		(6,498		)	8,369		8,656		1,592		10,299		(12,951		)	7,596
Total liabilities	9,514		3,377		60,677		(10,456		)	63,112		10,610		4,401		66,797		(15,595		)	66,213
Redeemable non-controlling interest	—		—		35		—			35		—		—		36		—			36

Equity:
Total shareholders' equity	14,808		10,306		20,654		(30,960		)	14,808
Total shareholders’ equity												15,717		15,087		21,417		(36,504		)	15,717
Non-controlling interest in consolidated subsidiaries	—		—		32		—			32		—		—		37		—			37
Total equity	14,808		10,306		20,686		(30,960		)	14,840		15,717		15,087		21,454		(36,504		)	15,754
Total liabilities and equity	$	24,322	$	13,683	$	81,398	$	(41,416	)	$	77,987	$	26,327	$	19,488	$	88,287	$	(52,099	)	$	82,003

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Six Months Ended June 30, 2017

(In millions)



	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Revenues:
Transaction and clearing, net	$	—		$	—		$	1,615		$	—		$	1,615
Data services	—			—			1,041			—			1,041
Listings and other revenues	—			—			307			—			307
Revenues	—			—			2,963			—			2,963
Transaction-based expenses	—			—			621			—			621
Revenues, less transaction-based expenses	—			—			2,342			—			2,342
Operating expenses:
Compensation and benefits	1			—			478			—			479
Acquisition-related transaction and integration costs	—			—			23			—			23
Technology and communication	—			—			195			—			195
Selling, general, administrative and other	—			—			178			—			178
Depreciation and amortization	—			—			276			—			276
Operating expenses	1			—			1,150			—			1,151
Operating income (loss)	(1		)	—			1,192			—			1,191
Intercompany interest on loans	(25		)	35			(10		)	—			—
Other income (expense), net	(71		)	(8		)	176			—			97
Total other income (expense), net	(96		)	27			166			—			97
Income (loss) before income taxes	(97		)	27			1,358			—			1,288
Income tax expense	—			—			352			—			352
Equity earnings from subsidiaries	1,017			765			—			(1,782		)	—
Net income	$	920		$	792		$	1,006		$	(1,782	)	$	936
Net income attributable to non-controlling interest	—			—			(16		)	—			(16		)
Net income attributable to ICE	$	920		$	792		$	990		$	(1,782	)	$	920

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Six Months Ended June 30, 2017

(In millions)



	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net income	$	920		$	792		$	1,006		$	(1,782	)	$	936
Other comprehensive income (loss):
Foreign currency translation adjustments	—			—			85			—			85
Change in fair value of available-for-sale-securities	—			—			68			—			68
Reclassification of realized gain on available-for-sale investment to other income	—			—			(176		)	—			(176		)
Total other comprehensive loss	—			—			(23		)	—			(23		)
Comprehensive loss of subsidiaries	(23		)	(38		)	—			61			—
Comprehensive income	897			754			983			(1,721		)	913
Comprehensive income attributable to non-controlling interests	—			—			(16		)	—			(16		)
Comprehensive income attributable to ICE	$	897		$	754		$	967		$	(1,721	)	$	897

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Three Months Ended June 30, 2017

(In millions)



	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Revenues:
Transaction and clearing, net	$	—		$	—		$	817		$	—		$	817
Data services	—			—			521			—			521
Listings and other revenues	—			—			156			—			156
Revenues	—			—			1,494			—			1,494
Transaction-based expenses	—			—			316			—			316
Revenues, less transaction-based expenses	—			—			1,178			—			1,178
Operating expenses:
Compensation and benefits	—			—			234			—			234
Acquisition-related transaction and integration costs	—			—			9			—			9
Technology and communication	—			—			97			—			97
Selling, general, administrative and other	—			—			87			—			87
Depreciation and amortization	—			—			142			—			142
Operating expenses	—			—			569			—			569
Operating income	—			—			609			—			609
Intercompany interest on loans	(15		)	17			(2		)	—			—
Other expense, net	(34		)	(4		)	(6		)	—			(44		)
Total other income (expense), net	(49		)	13			(8		)	—			(44		)
Income (loss) before income taxes	(49		)	13			601			—			565
Income tax expense	—			—			139			—			139
Equity earnings from subsidiaries	467			335			—			(802		)	—
Net income	$	418		$	348		$	462		$	(802	)	$	426
Net income attributable to non-controlling interest	—			—			(8		)	—			(8		)
Net income attributable to ICE	$	418		$	348		$	454		$	(802	)	$	418

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Three Months Ended June 30, 2017

(In millions)



	ICE (Parent)		Subsidiary Guarantor - NYSE Holdings		Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net income	$	418	$	348	$	462		$	(802	)	$	426
Other comprehensive income:
Foreign currency translation adjustments	—		—		60			—			60
Total other comprehensive income	—		—		60			—			60
Comprehensive income of subsidiaries	60		49		—			(109		)	—
Comprehensive income	478		397		522			(911		)	486
Comprehensive income attributable to non-controlling interests	—		—		(8		)	—			(8		)
Comprehensive income attributable to ICE	$	478	$	397	$	514		$	(911	)	$	478

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Six Months Ended June 30, 2016

(In millions)


	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total			ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Revenues:
Transaction and clearing, net	$	—		$	—		$	1,789		$	—		$	1,789		$	—		$	—		$	1,789		$	—		$	1,789
Data services	—			—			974			—			974			—			—			974			—			974
Listings and other revenues	—			—			295			—			295			—			—			295			—			295
Revenues	—			—			3,058			—			3,058			—			—			3,058			—			3,058
Transaction-based expenses	—			—			775			—			775			—			—			775			—			775
Revenues, less transaction-based expenses	—			—			2,283			—			2,283			—			—			2,283			—			2,283
Operating expenses:
Compensation and benefits	1			—			471			—			472			1			—			471			—			472
Acquisition-related transaction and integration costs																—			—			47			—			47
Technology and communication	—			—			184			—			184			—			—			184			—			184
Acquisition-related transaction and integration costs	—			—			47			—			47
Selling, general, administrative and other	—			—			156			—			156			—			—			156			—			156
Depreciation and amortization	—			—			289			—			289			—			—			289			—			289
Operating expenses	1			—			1,147			—			1,148			1			—			1,147			—			1,148
Operating income (loss)	(1		)	—			1,136			—			1,135			(1		)	—			1,136			—			1,135
Intercompany interest on loans	(10		)	16			(6		)	—			—			(10		)	16			(6		)	—			—
Other income (expense), net	(79		)	(8		)	8			—			(79		)	(79		)	(8		)	8			—			(79		)
Total other income (expense), net	(89		)	8			2			—			(79		)	(89		)	8			2			—			(79		)
Income (loss) before income taxes	(90		)	8			1,138			—			1,056			(90		)	8			1,138			—			1,056
Income tax expense	—			—			316			—			316			—			—			316			—			316
Equity earnings from subsidiaries	816			611			—			(1,427		)	—			816			611			—			(1,427		)	—
Net income	$	726		$	619		$	822		$	(1,427	)	$	740		$	726		$	619		$	822		$	(1,427	)	$	740
Net income attributable to non-controlling interest	—			—			(14		)	—			(14		)	—			—			(14		)	—			(14		)
Net income attributable to ICE	$	726		$	619		$	808		$	(1,427	)	$	726		$	726		$	619		$	808		$	(1,427	)	$	726

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Six Months Ended June 30, 2016

(In millions)


	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total			ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net income	$	726		$	619		$	822		$	(1,427	)	$	740		$	726		$	619		$	822		$	(1,427	)	$	740
Other comprehensive income (loss):
Foreign currency translation adjustments	—			—			(199		)	—			(199		)	—			—			(199		)	—			(199		)
Change in fair value of available-for-sale-securities	—			—			129			—			129			—			—			129			—			129
Total other comprehensive loss	—			—			(70		)	—			(70		)	—			—			(70		)	—			(70		)
Comprehensive loss of subsidiaries	(70		)	(18		)	—			88			—			(70		)	(18		)	—			88			—
Comprehensive income	656			601			752			(1,339		)	670			656			601			752			(1,339		)	670
Comprehensive income attributable to non-controlling interests	—			—			(14		)	—			(14		)	—			—			(14		)	—			(14		)
Comprehensive income attributable to ICE	$	656		$	601		$	738		$	(1,339	)	$	656		$	656		$	601		$	738		$	(1,339	)	$	656

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Income

Three Months Ended June 30, 2016

(In millions)


	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total			ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Revenues:
Transaction and clearing, net	$	—		$	—		$	860		$	—		$	860		$	—		$	—		$	860		$	—		$	860
Data services	—			—			497			—			497			—			—			497			—			497
Listings and other revenues	—			—			147			—			147			—			—			147			—			147
Revenues	—			—			1,504			—			1,504			—			—			1,504			—			1,504
Transaction-based expenses	—			—			375			—			375			—			—			375			—			375
Revenues, less transaction-based expenses	—			—			1,129			—			1,129			—			—			1,129			—			1,129
Operating expenses:
Compensation and benefits	1			—			235			—			236			1			—			235			—			236
Acquisition-related transaction and integration costs																—			—			20			—			20
Technology and communication	—			—			92			—			92			—			—			92			—			92
Acquisition-related transaction and integration costs	—			—			20			—			20
Selling, general, administrative and other	—			—			84			—			84			—			—			84			—			84
Depreciation and amortization	—			—			146			—			146			—			—			146			—			146
Operating expenses	1			—			577			—			578			1			—			577			—			578
Operating income (loss)	(1		)	—			552			—			551			(1		)	—			552			—			551
Intercompany interest on loans	(6		)	8			(2		)	—			—			(6		)	8			(2		)	—			—
Other income (expense), net	(38		)	(4		)	7			—			(35		)	(38		)	(4		)	7			—			(35		)
Total other income (expense), net	(44		)	4			5			—			(35		)	(44		)	4			5			—			(35		)
Income (loss) before income taxes	(45		)	4			557			—			516			(45		)	4			557			—			516
Income tax expense	—			—			153			—			153			—			—			153			—			153
Equity earnings from subsidiaries	402			324			—			(726		)	—			402			324			—			(726		)	—
Net income	$	357		$	328		$	404		$	(726	)	$	363		$	357		$	328		$	404		$	(726	)	$	363
Net income attributable to non-controlling interest	—			—			(6		)	—			(6		)	—			—			(6		)	—			(6		)
Net income attributable to ICE	$	357		$	328		$	398		$	(726	)	$	357		$	357		$	328		$	398		$	(726	)	$	357

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Comprehensive Income

Three Months Ended June 30, 2016

(In millions)


	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total			ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net income	$	357		$	328		$	404		$	(726	)	$	363		$	357		$	328		$	404		$	(726	)	$	363
Other comprehensive income (loss):
Foreign currency translation adjustments	—			—			(125		)	—			(125		)	—			—			(125		)	—			(125		)
Change in fair value of available-for-sale-securities	—			—			75			—			75			—			—			75			—			75
Total other comprehensive loss	—			—			(50		)	—			(50		)	—			—			(50		)	—			(50		)
Comprehensive loss of subsidiaries	(50		)	(28		)	—			78			—			(50		)	(28		)	—			78			—
Comprehensive income	307			300			354			(648		)	313			307			300			354			(648		)	313
Comprehensive income attributable to non-controlling interests	—			—			(6		)	—			(6		)	—			—			(6		)	—			(6		)
Comprehensive income attributable to ICE	$	307		$	300		$	348		$	(648	)	$	307		$	307		$	300		$	348		$	(648	)	$	307

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of ~~Income~~Cash Flows

Six Months Ended June 30, ~~2015~~2017

(In millions)

ICE
(Parent)
Subsidiary Guarantor - NYSE Holdings Subsidiary
Non-Guarantors
Consolidating
Adjustments

Consolidated
Total
Revenues:
   Transaction and clearing, net $ —
$ —
$ 1,583
$ —
$ 1,583
   Data services —
—
405
—
405
   Listings and other revenues —
—
288
—
288
Revenues —
—
2,276
—
2,276
Transaction-based expenses —
—
629
—
629
Revenues, less transaction-based expenses —
—
1,647
—
1,647
Operating expenses:
   Compensation and benefits 1
—
294
—
295
   Technology and communication —
—
98
—
98
   Acquisition-related transaction and integration costs —
—
26
—
26
   Selling, general, administrative and other 1
—
153
—
154
   Depreciation and amortization —
—
182
—
182
Operating expenses 2
—
753
—
755
Operating income (loss) (2 ) —
894
—
892
Intercompany interest on loans (2 ) 19
(17 ) —
—
Other expense, net (7 ) (33 ) (13 ) —
(53 )
Total other expense, net (9 ) (14 ) (30 ) —
(53 )
Income (loss) before income taxes (11 ) (14 ) 864
—
839
Income tax expense (benefit) (3 ) —
230
—
227
Equity earnings from subsidiaries 606
168
—
(774 ) —
Net income $ 598
$ 154
$ 634
$ (774 ) $ 612
Net income attributable to non-controlling interest —
—
(14 ) —
(14 )
Net income attributable to ICE $ 598
$ 154
$ 620
$ (774 ) $ 598



	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net cash provided by (used in) operating activities	$	(14	)	$	121		$	951		$	40		$	1,098
Investing activities:
Cash received for divestitures (net of cash paid for acquisitions)	—			—			10			—			10
Loans to subsidiaries	(63		)	(644		)	(2,051		)	2,758			—
Capital expenditures and capitalized software development costs	—			—			(150		)	—			(150		)
Increase in restricted cash and investments	—			—			(89		)	—			(89		)
Proceeds from sale of Cetip, net	—			—			438			—			438
Net cash provided by (used in) investing activities	(63		)	(644		)	(1,842		)	2,758			209
Financing activities:
Repayments of commercial paper, net	(469		)	—			—			—			(469		)
Intercompany borrowing	1,398			523			837			(2,758		)	—
Dividends to shareholders	(239		)	—			—			—			(239		)
Intercompany dividends	—			—			40			(40		)	—
Repurchases of common stock	(469		)	—			—			—			(469		)
Other financing activities	(144		)	—			—			—			(144		)
Net cash provided by (used in) financing activities	77			523			877			(2,798		)	(1,321		)
Effect of exchange rates on cash and cash equivalents	—			—			5			—			5
Net decrease in cash and cash equivalents	—			—			(9		)	—			(9		)
Cash and cash equivalents, beginning of period	1			—			406			—			407
Cash and cash equivalents, end of period	$	1		$	—		$	397		$	—		$	398

~~Intercontinental Exchange, Inc.~~

~~Condensed Consolidating Statements of Comprehensive Income~~

~~Six Months Ended June 30, 2015~~

~~(In millions)~~

ICE
(Parent)
Subsidiary Guarantor - NYSE Holdings Subsidiary
Non-Guarantors
Consolidating
Adjustments

Consolidated
Total
Net income $ 598
$ 154
$ 634
$ (774 ) $ 612
Other comprehensive income (loss):
   Foreign currency translation adjustments —
1
18
—
19
   Change in fair value of available-for-sale-securities —
—
(39 ) —
(39 )
   Employment benefit plan adjustments —
—
(2 ) —
(2 )
Total other comprehensive income (loss) —
1
(23 ) —
(22 )
Comprehensive loss of subsidiaries (22 ) (14 ) —
36
—
Comprehensive income 576
141
611
(738 ) 590
Comprehensive income attributable to non-controlling interests —
—
(14 ) —
(14 )
Comprehensive income attributable to ICE $ 576
$ 141
$ 597
$ (738 ) $ 576

~~Intercontinental Exchange, Inc.~~

~~Condensed Consolidating Statements of Income~~

~~Three Months Ended June 30, 2015~~

~~(In millions)~~

ICE
(Parent)
Subsidiary Guarantor - NYSE Holdings Subsidiary
Non-Guarantors
Consolidating
Adjustments

Consolidated
Total
Revenues:
   Transaction and clearing, net $ —
$ —
$ 747
$ —
$ 747
   Data services —
—
205
—
205
   Listings and other revenues —
—
144
—
144
Revenues —
—
1,096
—
1,096
Transaction-based expenses —
—
299
—
299
Revenues, less transaction-based expenses —
—
797
—
797
Operating expenses:
   Compensation and benefits 1
—
143
—
144
   Technology and communication —
—
47
—
47
   Acquisition-related transaction and integration costs —
—
7
—
7
   Selling, general, administrative and other —
—
76
—
76
   Depreciation and amortization —
—
93
—
93
Operating expenses 1
—
366
—
367
Operating income (loss) (1 ) —
431
—
430
Intercompany interest on loans (1 ) 9
(8 ) —
—
Other income (expense), net (26 ) 7
(13 ) —
(32 )
Total other income (expense), net (27 ) 16
(21 ) —
(32 )
Income (loss) before income taxes (28 ) 16
410
—
398
Income tax expense (benefit) (10 ) —
119
—
109
Equity earnings from subsidiaries 301
71
—
(372 ) —
Net income $ 283
$ 87
$ 291
$ (372 ) $ 289
Net income attributable to non-controlling interest —
—
(6 ) —
(6 )
Net income attributable to ICE $ 283
$ 87
$ 285
$ (372 ) $ 283

~~Intercontinental Exchange, Inc.~~

~~Condensed Consolidating Statements of Comprehensive Income~~

~~Three Months Ended June 30, 2015~~

~~(In millions)~~

ICE
(Parent)
Subsidiary Guarantor - NYSE Holdings Subsidiary
Non-Guarantors
Consolidating
Adjustments

Consolidated
Total
Net income $ 283
$ 87
$ 291
$ (372 ) $ 289
Other comprehensive income (loss):
   Foreign currency translation adjustments —
—
56
—
56
   Change in fair value of available-for-sale-securities —
—
31
—
31
   Employment benefit plan adjustments —
—
(2 ) —
(2 )
Total other comprehensive income —
—
85
—
85
Comprehensive income of subsidiaries 85
13
—
(98 ) —
Comprehensive income 368
100
376
(470 ) 374
Comprehensive income attributable to non-controlling interests —
—
(6 ) —
(6 )
Comprehensive income attributable to ICE $ 368
$ 100
$ 370
$ (470 ) $ 368

Intercontinental Exchange, Inc.

Condensed Consolidating Statements of Cash Flows

Six Months Ended June 30, 2016

(In millions)

ICE
(Parent)
Subsidiary
Guarantor - NYSE Holdings
Subsidiary
Non-Guarantors

Consolidating
Adjustments

Consolidated
Total
Net cash provided by (used in) operating activities $ (40 ) $ 59
$ 1,149
$ (65 ) $ 1,103
Investing activities:
Loans to subsidiaries (91 ) (1,943 ) (1,554 ) 3,588
—
Capital expenditures and capitalized software development costs —
—
(157 ) —
(157 )
Increase in restricted cash and investments —
—
(75 ) —
(75 )
Other investing activities —
—
(70 ) —
(70 )
Net cash used in investing activities (91 ) (1,943 ) (1,856 ) 3,588
(302 )
Financing activities:
Repayments of commercial paper, net (780 ) (1 ) —
—
(781 )
Intercompany borrowing 1,152
1,885
551
(3,588 ) —
Dividends to shareholders (205 ) —
—
—
(205 )
Intercompany dividends —
—
(65 ) 65
—
Other financing activities (35 ) —
(10 ) —
(45 )
Net cash provided by (used in) financing activities 132
1,884
476
(3,523 ) (1,031 )
Effect of exchange rates on cash and cash equivalents —
—
(7 ) —
(7 )
Net increase (decrease) in cash and cash equivalents 1
—
(238 ) —
(237 )
Cash and cash equivalents, beginning of period 1
—
626
—
627
Cash and cash equivalents, end of period $ 2
$ —
$ 388
$ —
$ 390

~~Intercontinental Exchange, Inc.~~

~~Condensed Consolidating Statements of Cash Flows~~

~~Six Months Ended June 30, 2015~~

~~(In millions)~~


	ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total			ICE (Parent)			Subsidiary Guarantor - NYSE Holdings			Subsidiary Non-Guarantors			Consolidating Adjustments			Consolidated Total
Net cash provided by (used in) operating activities	$	(25	)	$	(38	)	$	845		$	(12	)	$	770		$	(40	)	$	59		$	1,149		$	(65	)	$	1,103
Investing activities:
Loans to subsidiaries	—			(305		)	(801		)	1,106			—			(91		)	(1,943		)	(1,554		)	3,588			—
Proceeds from term deposits and sales of available-for-sale investments	—			1,084			—			—			1,084
Capital expenditures and capitalized software development costs	—			—			(136		)	—			(136		)	—			—			(157		)	—			(157		)
Decrease in restricted cash and investments	—			—			11			—			11
Increase in restricted cash and investments																—			—			(75		)	—			(75		)
Other investing activities	—			—			(60		)	—			(60		)	—			—			(70		)	—			(70		)
Net cash provided by (used in) investing activities	—			779			(986		)	1,106			899
Net cash used in investing activities																(91		)	(1,943		)	(1,856		)	3,588			(302		)
Financing activities:
Repayments of debt facilities and commercial paper, net	111			(1,029		)	—			—			(918		)
Repayments of commercial paper, net																(780		)	(1		)	—			—			(781		)
Intercompany borrowing	495			283			328			(1,106		)	—			1,152			1,885			551			(3,588		)	—
Dividends to shareholders	(158		)	—			—			—			(158		)	(205		)	—			—			—			(205		)
Repurchases of common stock	(399		)	—			—			—			(399		)
Purchase of subsidiary shares from non-controlling interest	—			—			(128		)	—			(128		)
Intercompany dividends																—			—			(65		)	65			—
Other financing activities	(29		)	—			(15		)	12			(32		)	(35		)	—			(10		)	—			(45		)
Net cash provided by (used in) financing activities	20			(746		)	185			(1,094		)	(1,635		)	132			1,884			476			(3,523		)	(1,031		)
Effect of exchange rates on cash and cash equivalents	—			—			(8		)	—			(8		)	—			—			(7		)	—			(7		)
Net increase (decrease) in cash and cash equivalents	(5		)	(5		)	36			—			26			1			—			(238		)	—			(237		)
Cash and cash equivalents, beginning of period	6			5			641			—			652			1			—			626			—			627
Cash and cash equivalents, end of period	$	1		$	—		$	677		$	—		$	678		$	2		$	—		$	388		$	—		$	390


~~12.~~13.	Segment Reporting

We operated as a single reportable business segment as of December 31, 2015 but began operating as two operating segments in the first quarter of 2016 following our acquisition of Interactive Data. As of June 30, 2016, we continue to operate as two business segments: our Trading and Clearing segment and our Data and Listings segment. This presentation is reflective of how our chief operating decision maker reviews and operates our business. Our Trading and Clearing segment comprises our transaction-based execution and clearing businesses. Our Data and Listings segment comprises our subscription-based data services and securities listings businesses. Our chief operating decision maker does not review total assets, intersegment revenues/expenses or statements of income below operating income by segments; therefore, such information is not presented below. Financial data for our business segments is as follows for the six months and three months ended June 30, ~~2016~~2017 and ~~2015~~2016 (in millions):

Trading and Clearing Segment Data and Listings Segment Consolidated
Six Months Ended June 30, 2016:
Revenues, less transaction-based expenses $ 1,101
$ 1,182
$ 2,283
Operating expenses 427
721
1,148
Operating income 674
461
1,135
Six Months Ended June 30, 2015:
Revenues, less transaction-based expenses $ 1,040
$ 607
$ 1,647
Operating expenses 445
310
755
Operating income 595
297
892


	Trading and Clearing Segment		Data and Listings Segment		Consolidated		Trading and Clearing Segment		Data and Listings Segment		Consolidated
Three Months Ended June 30, 2016
Six Months Ended June 30, 2017:
Revenues, less transaction-based expenses	$	527	$	602	$	1,129	$	1,088	$	1,254	$	2,342
Operating expenses	214		364		578		430		721		1,151
Operating income	313		238		551		658		533		1,191
Three Months Ended June 30, 2015
Six Months Ended June 30, 2016:
Revenues, less transaction-based expenses	$	491	$	306	$	797	$	1,101	$	1,182	$	2,283
Operating expenses	219		148		367		427		721		1,148
Operating income	272		158		430		674		461		1,135



	Trading and Clearing Segment		Data and Listings Segment		Consolidated
Three Months Ended June 30, 2017
Revenues, less transaction-based expenses	$	550	$	628	$	1,178
Operating expenses	214		355		569
Operating income	336		273		609
Three Months Ended June 30, 2016
Revenues, less transaction-based expenses	$	527	$	602	$	1,129
Operating expenses	214		364		578
Operating income	313		238		551

Revenue from ~~one~~two clearing ~~member~~members of ~~the~~our Trading and Clearing segment comprised 10% of our Trading and Clearing revenues for the six months and three months ended June 30, 2017 and revenue from one clearing members of our Trading and Clearing segment comprised 10% of our Trading and Clearing revenues for the six months ended June 30, 2016. Clearing members are primarily intermediaries and represent a broad range of principal trading firms. If a clearing member ceased its operations, we believe that the trading firms would continue to conduct transactions and would clear those transactions through another clearing member firm. No additional customers or clearing members accounted for more than 10% of our segment revenues or consolidated revenues for the six months and three months ended June 30, ~~2016~~2017 and ~~2015.~~2016.


~~13.~~14.	Earnings Per Common Share

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per common share computations for the six months and three months ended June 30, ~~2016~~2017 and ~~2015~~2016 (in millions, except per share amounts):


	Six Months Ended June 30,				Three Months Ended June 30,				Six Months Ended June 30,				Three Months Ended June 30,
	2016		2015		2016		2015		2017		2016		2017		2016
Basic:
Net income attributable to Intercontinental Exchange, Inc.	$	726	$	598	$	357	$	283	$	920	$	726	$	418	$	357
Weighted average common shares outstanding	119		112		119		111		593		595		591		595
Basic earnings per common share	$	6.10	$	5.37	$	3.00	$	2.55	$	1.55	$	1.22	$	0.71	$	0.60
Diluted:
Weighted average common shares outstanding	119		112		119		111		593		595		591		595
Effect of dilutive securities - stock options and restricted shares	1		—		1		1		4		3		4		4
Diluted weighted average common shares outstanding	120		112		120		112		597		598		595		599
Diluted earnings per common share	$	6.07	$	5.34	$	2.98	$	2.54	$	1.54	$	1.21	$	0.70	$	0.60

Basic earnings per common share is calculated using the weighted average common shares outstanding during the period. The weighted average common shares outstanding increased for the six months and three months ended June 30, 2016, over the prior year period, primarily due to stock issued for the Interactive Data and Trayport acquisitions in December 2015, partially offset by stock repurchases during 2015. We issued 6.5 million shares of our common stock to Interactive Data stockholders and 2.5 million shares of our common stock to Trayport stockholders, weighted to show these additional shares outstanding for periods after the respective acquisition dates (Note 3).

Common equivalent shares from stock options and restricted stock awards, using the treasury stock method, are included in the diluted per share calculations unless the effect of their inclusion would be antidilutive. During the six months ended June 30, 2017 and 2016, 726,696 and ~~2015, 150,323 and 190,000~~751,615 outstanding stock options, respectively, were not included in the computation of diluted earnings per common share since the inclusion would have had an antidilutive effect because the outstanding stock option exercise prices were greater than the average market price of the common shares during the relevant periods. Certain figures in the table above may not recalculate due to rounding.


~~14.~~15.	Subsequent Events

We have evaluated subsequent events and determined that no events or transactions met the definition of a subsequent event for purposes of recognition or disclosure in the accompanying consolidated financial statements.


ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Quarterly Report on Form 10-Q, including the sections entitled “Notes to Consolidated Financial Statements”, “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”, contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Any statements contained herein that are not statements of historical fact may be forward-looking statements. Any forward looking statements are based on our present beliefs and assumptions as well as the information currently available to us. Forward-looking statements may be introduced by or contain terminology such as “may,” “will,” “should,” “could,” “would,” “targets,” “goal,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue,” or the antonyms of these terms or other comparable terminology. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our results, levels of activity, performance, cash flows, financial position or achievements to differ materially from those expressed or implied by these forward-looking statements. These risks and other factors include those set forth in Item 1(A) under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, ~~2015,~~2016, or our ~~2015~~2016 Form 10-K, as filed with the SEC on February ~~4, 2016.~~7, 2017.

Forward-looking statements and other risks and factors that may affect our performance include, but are not limited to: conditions in global financial markets and domestic and international economic, political and social conditions; the impact of the introduction of or any changes in laws, regulations, rules or government policy with respect to financial markets, increased regulatory scrutiny or enforcement actions and our ability to comply with these requirements; volatility in commodity prices, equity prices, and price volatility of financial benchmarks and instruments such as interest rates, credit spreads, equity indices and foreign exchange rates; the business environment in which we operate and trends in our industry, including trading volumes, clearing, data services, fees, changing regulations, competition and consolidation; continued high renewal rates of subscription-based data revenues; the impact of the introduction of or any changes in laws, regulations, rules or government policy with respect to financial markets, increased regulatory scrutiny or enforcement actions and our ability to comply with these requirements; our ability to identify and effectively pursue, implement and integrate acquisitions and strategic alliances; our ability to continue to realize the synergies and benefits of our acquisitions within the expected time frame, and to integrate acquired operations with our business; the success of our clearing houses and our ability to minimize the risks associated with operating clearing houses in multiple jurisdictions; the success of our equity exchanges and the exchanges’ compliance with their regulatory and oversight responsibilities; the resilience of our electronic platforms and soundness of our business continuity and disaster recovery plans; continued high renewal rates of subscription-based data revenues; our ability to identify and effectively pursue, implement and integrate acquisitions and strategic alliances; our ability to complete and realize the synergies and benefits of our acquisitions within the expected time frame, and to integrate acquired operations with our business; our ability to effectively maintain our growth; the performance and reliability of our other technologies and those of third party service providers, including our ability to keep pace with technological developments and ensure that the technology we utilize is not vulnerable to security risks or other disruptive events; our ability to identify trends and adjust our business to benefit from such trends; the accuracy of our cost and other financial estimates and our belief that cash flows from operations will be sufficient to service our debt and fund our operational and capital expenditure needs; our ability to ~~identify trends and adjust our business to benefit from such trends; our ability to~~ maintain existing market participants and data customers, and attract new ones, and to offer additional products and services, leverage our risk management capabilities and enhance our technology in a timely and cost-effective fashion; our ability to attract and retain key talent; our ability to protect our intellectual property rights and to operate our business without violating the intellectual property rights of others; and potential adverse results of threatened or pending litigation and regulatory actions and proceedings.

We caution you not to place undue reliance on any forward-looking statements as they speak only as of the date on which such statements were made, and we undertake no obligation to update any forward-looking statement or to reflect the occurrence of an unanticipated event. New factors emerge from time to time, and it is not possible for management to predict all factors that may affect our business and prospects. Further, management cannot assess the impact of each factor on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

In this Quarterly Report on Form 10-Q, unless otherwise indicated, the terms “Intercontinental Exchange”, “ICE”, “we”, “us”, “our”, “our company” and “our business” refer to Intercontinental Exchange, Inc., together with its consolidated subsidiaries. Due to rounding, figures may not sum exactly.

Overview

We are a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity and financial markets. We operate regulated marketplaces for trading, listing and clearing a broad array of derivatives contracts and securities ~~contracts~~ across major asset classes, including energy and agricultural commodities, interest rates, equities, equity derivatives, exchange traded funds, credit derivatives, bonds and currencies. We offer end-to-end market data services to support the trading, investment and risk management ~~and connectivity~~ needs of customers across virtually all asset classes.

Our exchanges include futures exchanges in the U.S., U.K., Continental Europe, Canada and Singapore, and cash equities, ~~exchanges~~equity options and ~~equity options~~bond exchanges in the U.S. We also operate OTC markets for physical energy and CDS trade execution. To serve global derivatives markets, we operate central counterparty clearing houses in the U.S., U.K., Continental Europe, Canada and Singapore. We offer a range of data ~~and connectivity~~ services ~~to customers in~~for global financial and commodity markets, including ~~fixed income~~ pricing and reference data, exchange data, analytics, feeds, ~~desktops~~desktop and connectivity solutions. Through our markets, clearing houses, listings and market data

services, we provide end-to-end solutions for our customers through liquid markets, benchmark products, access to capital markets, ~~information,~~ and ~~a range of~~ related services to support their ability to manage risk and raise capital. Our business is

currently conducted as two reportable business segments, our Trading and Clearing segment and our Data and Listings segment, and the majority of our identifiable assets are located in the U.S. and U.K.

Recent Developments

~~Completed Acquisitions~~Pending Divestiture of Trayport and ~~Investments~~Its Classification as Held for Sale

On December 14, 2015, we acquired 100% of Interactive Data in a stock and cash transaction. The total purchase price was $5.6 billion comprised of cash consideration of $4.1 billion and 6.5 million shares of our common stock, and their results are included in our consolidated results effective from the acquisition date. Interactive Data is a leading provider of financial market data, analytics and related data solutions. On December 11, 2015, we acquired 100% of Trayport in a stock transaction. The total purchase price was $620 million, comprised of ~~2.5~~12.6 million shares of our common ~~stock, and their results are included in our consolidated results effective from the acquisition date.~~stock. Trayport is a software company that licenses its technology to serve exchanges, OTC brokers and traders to facilitate electronic and hybrid trade execution primarily in the energy markets.

The U.K. Competition and Markets Authority, inor the ~~U.K. is currently reviewing~~CMA, undertook a review of our acquisition of Trayport under the merger control laws of the U.K. ~~During~~In October 2016, the ~~pendency~~CMA issued its findings and ordered a divestment of Trayport to remedy what the CMA determined to be a substantial lessening of competition. In November 2016, we filed an appeal with the Competition Appeal Tribunal, or the CAT, to challenge the CMA’s decision. In March 2017, the CAT upheld the CMA decision that we should divest Trayport. Following the CAT’s judgment, we asked for leave to appeal the CAT’s decision at the U.K. Court of Appeals. In May 2017, the U.K. Court of Appeals denied our request for leave to appeal. We are now obligated to sell Trayport.

The functional currency of Trayport is the pound sterling, as this is the currency in which Trayport operates. The $620 million in Trayport net assets were recorded on our December 11, 2015 opening balance sheet at a pound sterling/U.S. dollar exchange rate of 1.5218 (£407 million). Because our consolidated financial statements are presented in U.S. dollars, we must translate the Trayport net assets into U.S. dollars at the exchange rates in effect at the end of each reporting period. Therefore, increases or decreases in the value of the ~~review,~~U.S. dollar against the pound sterling will affect the value of the Trayport balance sheet, with gains or losses included in the cumulative translation adjustment account, a component of equity. As a result of the decrease in the pounds sterling/U.S. dollar exchange rate to 1.3025 as of June 30, 2017, the portion of our equity attributable to the Trayport net assets in accumulated other comprehensive loss from foreign currency translation was $89 million as of June 30, 2017.

As of June 30, 2017, we have ~~limited ability~~classified Trayport as held for sale and ceased depreciation and amortization of the property and equipment and other intangible assets. Upon classification of Trayport as held for sale, we have determined that the adjusted carrying value of Trayport’s net assets as of June 30, 2017 of $610 million, which is equal to ~~integrate Trayport's operations~~the $521 million carrying value plus the $89 million in accumulated other comprehensive loss from foreign currency translation, is lower than the estimated fair value of Trayport, less the costs to ~~our existing~~dispose of the business. We will continue to evaluate the fair value of Trayport until it is sold, including reviewing the bids received for Trayport; its operating performance; its financial projections; changes in the business ~~operations~~and regulatory climate in which it operates; the volatility in the capital markets; and the ~~review~~volatility in the pound sterling/U.S. dollar exchange rate. Any changes in these factors could ~~force us to take actions that may~~ result in ~~us not realizing~~adjustments to Trayport’s fair value.

Trayport is included in our data and listings segment. The total assets held for sale as of June 30, 2017 were $578 million and were reclassified and are included in “prepaid expenses and other current assets” in our accompanying consolidated balance sheet and the ~~benefits~~total liabilities held for sale as of ~~the acquisition. The timing of a final decision is uncertain at this time.~~June 30, 2017 were $57 million and were reclassified and are included in “other current liabilities” in our accompanying consolidated balance sheet. Refer to note 310 to our consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report, ~~on Form 10-Q,~~ for more information on the pending divestiture of Trayport and its classification as held for sale.

Purchase of Minority Interests

During June 2017, we purchased both Gasunie’s 21% minority ownership interest in ICE Endex and ABN AMRO Clearing Bank N.V.’s 25% minority ownership interest in ICE Clear Netherlands. Subsequent to these ~~acquisitions.~~acquisitions, we own 100% of ICE Endex and ICE Clear Netherlands and will no longer include any non-controlling interest amounts for ICE Endex and ICE Clear Netherlands in our consolidated financial statements. During April 2017, we purchased 3.2% of the net profit sharing interest in our CDS clearing subsidiaries from a non-ICE limited partner and the remaining non-ICE limited partners hold a 39.3% net profit sharing interest as of June 30, 2017. See “- Consolidated Non-Operating Income (Expense)” below.

NYSE Governance Services Divestiture

On June ~~30, 2016,~~1, 2017, we ~~acquired~~sold NYSE Governance Services to Marlin Heritage, L.P. NYSE Governance Services provides governance and compliance analytics and education solutions for organizations and their boards through dynamic learning solutions. We recognized a ~~majority equity position in MERSCORP Holdings, Inc., owner~~net loss of ~~Mortgage Electronic Registrations Systems, Inc., or collectively "MERS". MERS is a privately held, member-based organization that owns and manages~~$6 million on the ~~MERS® System and is made up~~sale of thousands of lenders, servicers, sub-servicers, investors and government institutions. In addition, we have entered into a software development agreement to rebuild the MERS® System to benefit the U.S. residential mortgage finance market. The MERS® System is a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in U.S.-based mortgage loans. This new infrastructure is expected to shift its operation to an ICE data center in the first half of 2018.

The terms of the MERS acquisition include a right for us to purchase all, but not less than, the remaining equity interests of MERS after we satisfy our deliverables under the software development agreement. In addition, the MERS equityholders may exercise a put option to require us to purchase all of the remaining equity interests of MERS. Each of these terms is subject to certain price provisions. Because we do not have the ability to control MERS' operations, we have recorded the purchase as an equity method investment and our ratable share of net income (loss) in MERS in future periods will beNYSE Governance Services, which was recorded in ~~our~~depreciation and amortization expenses in the consolidated statements of income for the six months and three months ended June 30, 2017.

Pending Acquisition of Global Research Division’s Index Platform from Bank of America Merrill Lynch

On June 1, 2017, we announced a definitive agreement to acquire the Global Research division’s index platform from Bank of America Merrill Lynch, or BofAML. The BofAML indices are the second largest group of fixed income indices as ~~equity earnings~~measured by assets under management, or AUM, globally. Upon closing, the AUM benchmarked against our combined fixed income indices will be nearly $1 trillion, and the indices will be re-branded as the ICE BofAML indices.

TMX Atrium Acquisition

Cetip Investment Gain

Until March 29, 2017, we held a 12% ownership interest in Cetip, S.A., or Cetip, which we classified as an available-for-sale long-term investment. On March 29, 2017, Cetip and BM&FBOVESPA S.A. finalized a merger agreement. BM&FBOVESPA S.A., which changed its name to B3 S.A. - Brasil, Bolsa, Balcao, or B3, following the merger with Cetip, is a stock exchange and operator of registration, clearing, custodial and settlement services for equities, financial securities, indices, rates, commodities and currencies and is located in São Paulo, Brazil. The merger valued our Cetip investment at $500 million. We received the proceeds in cash and in B3 common stock.

The cash component was valued at $319 million, which was subject to Brazilian capital gains tax of $28 million that was remitted to the Brazilian tax authorities in March 2017. We received net cash proceeds in April 2017 of $286 million, which is net of a foreign exchange loss of $6 million that was incurred in April 2017. We received 29,623,756 B3 common shares valued at their quoted market price of $181 million. In April 2017, we sold the B3 common shares for net proceeds of $152 million, which is net of a capital gain tax of $26 million that was remitted to the Brazilian tax authorities and further transaction expenses of $3 million that were incurred in April 2017. We used the $438 million in net cash and stock proceeds received from the merger and sale of B3 shares to pay down amounts outstanding under our Commercial Paper Program and for share repurchases.

The $500 million fair value of our ~~unconsolidated subsidiaries, below operating~~investment in Cetip included an accumulated unrealized gain of $176 million, based on the $324 million cost basis. In connection with the sale of our equity investment in Cetip, the $176 million accumulated unrealized gain was reclassified out of accumulated other comprehensive income and was recognized in other income ~~(loss).~~as a realized investment gain in the accompanying consolidated statement of income for the six months ended June 30, 2017.

~~Pending~~Refer to note 11 to our consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report, for more information on the Cetip investment gain.

Interactive Data Managed Solutions Divestiture

On March 31, 2017, we sold Interactive Data Managed Solutions, or IDMS, a unit of Interactive Data, to FactSet. IDMS is a managed solutions and portal provider for the global wealth management industry. There was no gain or loss recognized on the sale of IDMS.

National Stock Exchange Acquisition ~~and Sale~~

~~In March 2016,~~On January 31, 2017, we ~~entered into a definitive agreement with McGraw Hill Financial to acquire Standard & Poor’s Securities Evaluations,~~acquired 100% of National Stock Exchange, Inc., ~~or SPSE,~~now named NYSE National. The acquisition gives the NYSE Group a ~~provider of fixed income evaluated pricing,~~fourth U.S. exchange license. NYSE National is distinct from NYSE Group’s three listings exchanges because NYSE National will only be a trading venue and ~~Credit Market Analysis Limited, or CMA,~~will not be a ~~provider of independent data~~listings market. NYSE Group’s three listings exchanges, NYSE, NYSE MKT (NYSE MKT changed its name to NYSE American in July 2017) and NYSE Arca, have unique market models designed for ~~the OTC markets. When completed, the acquisition will enable us to offer customers new data~~corporate and ~~valuation services. Under the terms of the agreement, we can elect to satisfy our payment of the purchase price upon~~ETF issuers. After closing ~~in either cash or shares of our common stock. The completion of~~ the transaction, ~~is subject to obtaining regulatory approvals.~~

~~In July 2016, we entered into an agreement to sell certain of the U.S. voice brokerage~~NYSE National ceased operations ~~of Creditex to Tullett Prebon.~~on February 1, 2017. We will ~~retain Creditex's electronically traded markets~~engage with NYSE National members, buy-side participants and ~~systems, post-trade connectivity platforms and intellectual property. The completion of the transaction~~retail brokerage firms before finalizing operational plans for NYSE National’s re-launch, which is ~~subject~~expected to ~~regulatory approval.~~occur in 2018.

Regulation

Our markets are primarily subject to the jurisdiction of regulatory agencies in the U.S., U.K., Canada, Singapore and the European ~~Union.~~Union, or EU. Global policy makers have undertaken reviews of their existing legal framework governing financial markets in connection with regulatory reform, and have either passed new laws and regulations, or are in the process of debating and/or enacting new laws and regulations that apply to our business and to our customers’ businesses. Legislative and regulatory actions may impact the way in which we or our customers conduct business and may create uncertainty, which could affect trading volumes or demand for market data. As discussed in Item 1 “Business - Regulation” included in our ~~2015~~2016 Form 10-K, the implementation of Markets in Financial Instruments Directives II, or MiFID II, and its counterpart the European Market Infrastructure Regulation, or EMIR, may result in operational, regulatory and/or business risk. ~~In June 2016,~~

Most of the specific regulations which support the MiFID II framework have now been approved by the European ~~Union approved plans~~Parliament and European Council. The European Securities and Markets Authority, or ESMA, and the national regulatory authorities are continuing to work on detailed aspects of the framework which are relevant to the markets operated by ICE Futures Europe and ICE Endex, including position limits and the determination of pre-trade and post-trade price transparency parameters for ~~a twelve-month postponement of MiFID II implementation and compliance to January 1, 2018.~~

financial instruments.

In March 2016, the European Commission adopted a decision relating to U.S. Commodity Futures Trading Commission, or CFTC, regulatory equivalence and margin treatment for clearing houses. The equivalence decision allows European clearing houses to margin customers at a one day gross margin period of risk (equivalent to the U.S. rules for clearing houses) and, with respect to CFTC regulated products, requires U.S. clearing houses to margin proprietary positions at a two day net margin period of risk (equivalent to the European rules for clearing houses). U.S. clearing houses are also required to demonstrate implementation of specific anti-procyclicality measures, equivalent to European regulatory standards. The equivalence decision exempts U.S. agricultural products (including ICE Futures U.S.’s coffee, cocoa, cotton and sugar contracts) from these changes. Upon recognition under the equivalence decision, European customers will be able to continue to access our CFTC regulated U.S. clearing houses with respect to CFTC regulated products. Similarly, ICE Clear Europe will be able to margin customers in a manner similar to U.S. clearing houses.

In June 2016, the European Union granted recognition to U.S. regulated exchanges, including ICE Futures U.S. With recognition, a futures transaction on a U.S. exchange is treated similar to a futures transaction on any European exchange.

~~In June 2016,~~2017, the U.K. ~~voted to leave the European Union. It will remain in the European Union until the withdrawal process has been negotiated and concluded. That process will commence once the U.K. government invokes~~officially triggered Article 50 and notified the EU of its intention of leaving the ~~Lisbon Treaty. After invoking~~EU. The triggering of Article 50 begins the ~~Lisbon Treaty envisions a period~~process of ~~up to~~withdrawal from the EU, which will last two years ~~for a Member State~~unless extended by the unanimous decision of member states. We are monitoring the impact to ~~negotiate its withdrawal. All European Union laws and treaties will remain in effect as the U.K. negotiates its exit. The actual impact on~~ our business ~~relating to~~of the U.K. leaving the ~~European Union~~EU. The impact to our business and ~~the~~ corresponding regulatory changes are uncertain at this time, and may not be known in the near future.

~~Proposed Future Stock Split~~In 2017, the Commodity Futures Trading Commission, or CFTC, announced its new agenda calling for regulatory simplification and the reduction of regulatory burdens. The CFTC is looking to restructure its rules by moving away from prescriptive regulations and adopting a principles-based approach. The restructuring of regulations could apply to our business and to our customers’ businesses. Any impacts are uncertain at this time, and may not be known in the near future.

In ~~August 2016, our board~~June 2017, the European Commission published a proposal to regulate non-EU clearing houses that conduct business in the EU. The nature and extent of ~~directors approved pursuing~~the regulation would depend on the “impact” of a non-EU clearing house’s business in the EU. The publication discusses a “sliding scale” of regulation that includes: continued implementation of the existing EMIR equivalence and recognition regime for low impact non-EU clearing houses; direct regulatory oversight for medium impact non-EU clearing houses; and, with respect to systemically important, high impact, non-EU clearing houses, an ~~effective 5-for-1 split~~undefined “location” requirement. Details on the classification of ~~ICE’s common stock that~~non-EU clearing will be ~~distributed~~established by the European Commission in cooperation with ESMA and the ~~form~~European System of ~~a four share stock dividend per share of common stock,~~Central Banks. The proposal will undergo legislative review by the European Parliament and the EU Member States, and is subject to ~~both SEC and stockholder approval of~~change. The proposal could have an ~~amendment and restatement to~~impact on our Certificate of Incorporation to increase our authorized shares of common stock and capital stock. We will provide additional information to our stockholders regarding a special meeting to approve the increase to our authorized share capital in the third quarter of 2016 and, subjectnon-EU clearing houses to the ~~required approvals and further action by our directors, we expect~~extent they are deemed to ~~effect the stock split through a dividend~~be doing business in the fourth quarter of 2016. Also, in connection with the proposed stock split, we plan to retire all of our outstanding treasury shares. No assurance can be given that the amended and restated Certificate of Incorporation will be approved by the SEC and by our stockholders or that the board of directors will proceed with the stock split.Europe.

Financial Highlights

The following summarizes our results and significant changes in our consolidated financial performance for the periods presented (dollars in millions, except per share ~~amounts)~~amounts, and YTD represents the six-month periods ended June 30th):


	Six Months Ended June 30,								Three Months Ended June 30,								Six Months Ended June 30,								Three Months Ended June 30,
	2016			2015			Change		2016			2015			Change		2017			2016			Change		2017			2016			Change
Revenues, less transaction-based expenses	$	2,283		$	1,647		39	%	$	1,129		$	797		42	%	$	2,342		$	2,283		3	%	$	1,178		$	1,129		4	%
Operating expenses	$	1,148		$	755		52	%	$	578		$	367		58	%	$	1,151		$	1,148		—	%	$	569		$	578		(2)	%
Adjusted operating expenses⁽¹⁾	$	970		$	664		46	%	$	494		$	328		51	%	$	983		$	970		1	%	$	488		$	494		(1)	%
Operating income	$	1,135		$	892		27	%	$	551		$	430		28	%	$	1,191		$	1,135		5	%	$	609		$	551		11	%
Adjusted operating income⁽¹⁾	$	1,313		$	983		34	%	$	635		$	469		35	%	$	1,359		$	1,313		3	%	$	690		$	635		8	%
Operating margin	50		%	54		%	(4 pts)		49		%	54		%	(5 pts)		51		%	50		%	1 pt		52		%	49		%	3 pts
Adjusted operating margin⁽¹⁾	58		%	60		%	(2 pts)		56		%	59		%	(3 pts)		58		%	58		%	—		59		%	56		%	3 pts
Other expense, net	$	79		$	53		47	%	$	35		$	32		9	%
Other income (expense), net																	$	97		$	(79	)	n/a		$	(44	)	$	(35	)	27	%
Income tax expense	$	316		$	227		40	%	$	153		$	109		41	%	$	352		$	316		11	%	$	139		$	153		(10)	%
Effective tax rate	30		%	27		%	3 pts		30		%	27		%	3 pts		27		%	30		%	( 3 pts)		25		%	30		%	(5 pts)
Net income attributable to ICE	$	726		$	598		21	%	$	357		$	283		26	%	$	920		$	726		27	%	$	418		$	357		17	%
Adjusted net income attributable to ICE⁽¹⁾	$	852		$	667		28	%	$	411		$	323		27	%	$	889		$	852		4	%	$	448		$	411		9	%
Diluted earnings per share attributable to ICE common shareholders	$	6.07		$	5.34		14	%	$	2.98		$	2.54		17	%	$	1.54		$	1.21		27	%	$	0.70		$	0.60		17	%
Adjusted diluted earnings per share attributable to ICE common shareholders⁽¹⁾	$	7.12		$	5.96		19	%	$	3.43		$	2.90		18	%	$	1.49		$	1.42		5	%	$	0.75		$	0.69		9	%
Cash flows from operating activities	$	1,103		$	770		43	%									$	1,098		$	1,103		—	%

⁽¹⁾The adjusted numbers in the charts and table above are calculated by excluding items that are not reflective of our cash operations and core business performance, and for adjusted net income attributable to ICE and adjusted diluted earnings per share attributable to ICE common shareholders, are presented net of taxes. As a result, these adjusted numbers are not calculated in accordance with GAAP. See “- Non-GAAP Financial Measures” below.

Revenues, less transaction-based expenses, increased ~~$636~~$59 million and ~~$332~~$49 million for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in 2015, primarily due to our acquisitions of Interactive Data and Trayport, and to a lesser extent, revenue increases in our exchange-related data services, cash equities, Brent crude and agricultural transaction and clearing. We recognized $525 million and $265 million in Interactive Data and Trayport data services revenues for the six months and three months ended June 30, 2016, respectively.2016. See “- Trading and Clearing Segment” and “Data and Listings Segment” ~~below. Partially offsetting~~below for a discussion of the ~~revenue increases were~~changes in our revenues. The increase in revenues includes $37 million and $16 million in unfavorable foreign exchange effects ~~of $15 million and $6 million~~ arising from the strengthening U.S. dollar ~~(primarily impacting revenues billed in pounds sterling)~~ for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015.~~2016. See Item 3 “Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information on the impact of

currency fluctuations. Excluding the $37 million and $16 million in unfavorable foreign exchange effects, our revenues, less transaction-based expenses, would have been $2.4 billion and $1.2 billion for the six months and three months ended June 30, 2017, respectively, an increase of 4% and 6%, respectively, from the comparable periods in 2016.

Operating expenses increased ~~$393~~$3 million and ~~$211~~decreased $9 million for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015, primarily~~2016. See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our consolidated operating expenses. Operating expenses decreased $20 million and $8 million due to ~~$428 million and $210 million in operating expenses relating to Interactive Data and Trayport~~favorable foreign exchange effects arising from the strengthening U.S. dollar for the six months and three months ended June 30, ~~2016, respectively. Offsetting~~2017, respectively, from the ~~Interactive Data and Trayport operating expenses were decreases~~comparable periods in ~~operating expenses of $35~~2016.

In connection with Cetip’s merger with BM&FBOVESPA S.A., we recognized a $176 million realized investment gain in other income (expense), net for the six months ended June 30, ~~2016 from the comparable period~~2017, and $9 million in ~~2015. See “- Consolidated Operating Expenses” below. Also partially offsetting the operating expense increases were favorable~~ foreign exchange ~~effects of $10 million~~losses and ~~$5 million arising from the strengthening U.S. dollar (primarily impacting operating~~transaction expenses ~~incurred~~ in ~~pounds sterling)~~other income (expense), net for the six months and three months ended June 30, ~~2016, respectively, from the comparable periods in 2015.~~

Other expense, net increased for the six months and three months ended June 30, 2016 from the comparable periods in 2015, primarily due to the additional interest expense we recognized on the new debt we incurred to finance the Interactive Data acquisition in December 2015.2017. See “- ~~Debt” below.~~Recent Developments - Cetip Investment Gain” above.

Variability in Quarterly Comparisons

The business environments in which we operate directly affect our results of operations. Our results have been and will continue to be affected by many factors, including, without limitation, market volatility and the level of trading activity in our markets, which during any period is significantly influenced by general market conditions; legislative and regulatory changes, as well as our fulfillment of our regulatory obligations; competition; demand for our market data services and our market share; our system reliability; our ability to offer new products; our acquisition activities and the pace of industry consolidation; broad trends in the data and finance industry; the number and financial health of companies listed on our cash markets; geopolitical events; real and perceived supply and demand imbalances; changing technology in the financial services industry; and our reputation, among other factors. In particular, in recent years, ~~the~~our business environment has been characterized by industry consolidation and increasing competition among global markets for trading, ~~volumes~~clearing and listings; the globalization of exchanges, customers and competitors; market participants’ rising demand for speed ~~capacity~~ and ~~reliability,~~data capacity, which requires ~~continuing~~ongoing investment in technology; evolving and disparate regulation across multiple jurisdictions; and increasing ~~competition for market data services.~~ focus on capital and cost efficiencies.

Price volatility increases the need to hedge risk and creates demand among market participants for the exchange of ~~risk.~~risk through trading and clearing. Market liquidity is one of the primary market attributes for attracting and maintaining customers and is an important indicator of a market’s strength. ~~The maintenance~~In addition, the ability to evolve existing products to serve emerging needs, develop new products and ~~growth of~~respond to competitive dynamics in pricing, exclusivity and consolidation is important to our ~~revenues could also be impacted if we face increased pressure on pricing.~~business. Changes in these and other factors could cause our revenues to fluctuate from period to period and these fluctuations may affect the reliability of period to period comparisons of our revenues and operating results. For additional information regarding the factors that affect our results of operations, see Item 1(A) “Risk Factors” included in our ~~2015~~2016 Form 10-K.

Segment Reporting

While revenues are allocated directly to segments, a significant portion of our operating expenses are not solely related to a specific segment because the expenses serve functions that are necessary for the operation of both segments. Because these expenses do not relate to a single segment, we have employed a reasonable allocation method to allocate expenses between the segments for presentation purposes. We have elected to use a pro-rata revenue approach as the allocation method for the expenses that do not relate

solely to one segment. Further, precise allocation of expenses to specific revenue streams within these segments is not reasonably possible. Accordingly, we did not allocate expenses to specific revenue streams within the segments.

Trading and Clearing Segment

The following charts and table ~~presents~~present our selected statements of income data for our Trading and Clearing segment (dollars in ~~millions)~~millions and YTD represents the six-month periods ended June 30th):

⁽¹⁾The adjusted numbers in the charts above are calculated by excluding items that are not reflective of our cash operations and core business performance. As a result, these adjusted numbers are not calculated in accordance with U.S. GAAP. See “- Non-GAAP Financial Measures” below.


	Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,
	2016		2015		Change		2016		2015		Change		2017		2016		Change		2017		2016		Change
Revenues:
Brent crude futures and options contracts	$	154	$	134	14	%	$	72	$	60	19	%	$	169	$	154	10	%	$	89	$	72	24	%
Other oil futures and options contracts	56		59		(3	)	27		26		7		69		56		21		34		27		22
Gasoil futures and options contracts	48		45		4		24		21		12		53		48		13		27		24		18
Natural gas futures and options contracts	108		101		6		51		43		18		105		108		(3	)	50		51		(3	)
Power futures and options contracts	44		42		8		23		21		13		37		44		(17	)	19		23		(20	)
Emissions and other energy futures and options contracts	32		29		9		15		12		21		26		32		(16	)	12		15		(14	)
Sugar futures and options contracts	66		57		16		34		30		13		55		66		(17	)	29		34		(17	)
Other agricultural and metals futures and options contracts	63		53		20		33		27		24		63		63		—		33		33		—
Interest rates futures and options contracts	100		106		(5	)	44		50		(11	)	101		100		—		52		44		16
Other financial futures and options contracts	74		65		12		36		32		12		71		74		(4	)	37		36		2
Cash equities and equity options													771		944		(18	)	390		454		(14	)
Credit default swaps	74		77		(3	)	34		34		2		70		74		(5	)	33		34		(3	)
Cash equities and equity options	944		791		19		454		379		20
Other transactions	26		24		9		13		12		5		25		26		(2	)	12		13		(1	)
Transaction and clearing, net	1,789		1,583		13		860		747		15		1,615		1,789		(10	)	817		860		(5	)
Other revenues	87		86		—		42		43		(5	)	94		87		8		49		42		16
Revenues	1,876		1,669		12		902		790		14		1,709		1,876		(9	)	866		902		(4	)
Transaction-based expenses	775		629		23		375		299		25		621		775		(20	)	316		375		(16	)
Revenues, less transaction-based expenses	1,101		1,040		6		527		491		7		1,088		1,101		(1	)	550		527		4
Other operating expenses	312		327		(4	)	154		161		(4	)	330		312		6		162		154		5
Acquisition-related transaction and integration costs	7		10		(32	)	6		2		168		—		7		(97	)	—		6		(98	)
Depreciation and amortization	108		108		—		54		56		(4	)	100		108		(7	)	52		54		(3	)
Operating expenses	427		445		(4	)	214		219		(2	)	430		427		1		214		214		—
Operating income	$	674	$	595	13	%	$	313	$	272	15	%	$	658	$	674	(2	)%	$	336	$	313	7	%

Transaction and Clearing Revenues

Overview

Our transaction and clearing revenues are reported on a net basis, except for the ~~NYSE-related~~NYSE transaction-based expenses discussed below, and consist of fees collected from our derivatives, ~~trading and clearing, and from our~~ cash ~~trading~~equities and equity options ~~exchanges.~~trading and derivatives clearing. In our derivatives markets, we earn transaction and clearing revenues from both counterparties to each contract that is traded and/or cleared, and in our equity and equity options markets, we receive trade execution fees as well as routing fees related to orders in our markets which are routed to other markets for execution.

~~Revenues~~Rates per-contract are driven by the number of contracts or securities traded and the fees charged per contract, net of certain rebates. Our per-contract transaction and clearing revenues will depend upon many factors, including, but not limited to, market conditions, transaction and clearing volume, product mix, pricing, applicable revenue sharing and market making agreements, and new product introductions. Because transaction and clearing revenues are generally assessed on a per-contract basis, revenues and profitability fluctuate with changes in contract volume ~~but~~and, though not to the same degree, due to product mix.

For the six months ended June 30, 2017 and 2016, 20% and 21%, respectively, of our Trading and Clearing segment revenues, less transaction-based expenses, were billed in pounds sterling or euros and for the three months ended June 30, 2017 and 2016, 19% and 20%, respectively, were billed in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly. The strengthening of the U.S. dollar compared to the pound sterling and euro reduced our Trading and Clearing segment revenues, less transaction-based expenses, by $23 million for the six months ended June 30, 2017, from the comparable period in 2016 and by $10 million for the three months ended June 30, 2017, from the comparable period in 2016. See Item 3 “- Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information on the impact of currency fluctuations.

Our transaction and clearing revenues are presented net of rebates. We recorded rebates of ~~$347~~$392 million and ~~$271~~$347 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$165~~$201 million and ~~$130~~$165 million for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. We offer rebates in certain of our markets primarily to support market liquidity and trading volume by providing qualified participants in those markets a discount to the applicable commission rate. Such rebates are calculated based on

volumes traded. The increase in the rebates is due primarily to an increase in the number of participants in the rebate programs offered on various contracts, an increase in our traded volume and an increase in the number of rebate programs. ~~The level of rebates as a percentage of our total transaction and clearing revenues remained relatively consistent for the six months ended June 30, 2016 and 2015.~~

Commodities Markets

We operate global crude oil and refined oil futures markets, including the ICE Brent, ICE WTI and ICE Gasoil futures and options contracts, as well as ~~over 400~~approximately 500 refined oil futures products that relate to our benchmark futures ~~contracts. Total oil volume~~contracts and revenues increased 11% and 8%, respectively, for the six months ended June 30, 2016 from the comparable period in 2015, and 15% and 15%, respectively, for the three months ended June 30, 2016 from the comparable period in 2015.other key price benchmarks. The ICE Brent crude futures contract is relied upon by a broad range of global market participants, including oil producing nations and multinational companies, to price and hedge their crude oil production and consumption. ICE Gasoil is a key refined oil benchmark in Europe and Asia. Total oil volume and revenues increased 17% and 13%, respectively, for the six months ended June 30, 2017 from the comparable period in 2016 and increased 30% and 23%, respectively, for the three months ended June 30, 2017 from the comparable period in 2016. ICE Brent crude futures and options volume increased ~~15%~~17% and ~~19%~~34% for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015.~~2016 and ICE WTI crude futures and options volume increased 7%22% and ~~11%~~39% for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015. ICE Brent crude~~2016. The increase in total oil volume was primarily driven by price volatility related to shifting supply and ~~ICE WTI crude futures and options volume increased primarily~~demand dynamics globally, while oil revenues grew at a slightly lower rate due to ~~increased oil price volatility~~customer, product and ~~broader market volatility in oil products, equities and foreign exchange rates.~~currency mix.

Our global natural gas futures and options volume ~~declined 2%~~increased 5% and revenues ~~increased 6%~~decreased 3%, respectively, for the six months ended June 30, ~~2016~~2017 from the comparable period in ~~2015,~~2016 and volume increased 7% and ~~18%~~revenues decreased 3%, respectively, for the three months ended June 30, ~~2016~~2017 from the comparable period in ~~2015. Our North American~~2016. Volume increased primarily due to growth in U.S. natural gas volume ~~increased for the three months ended June 30, 2016, from the comparable period in 2015, primarily~~ due to ~~increased~~greater price ~~volatility.~~

~~Total volume~~volatility in the first half of 2017 than in the first half of 2016 and revenues in our agricultural and metals futures and options markets increased 20% and 18%, respectively, for the six months ended June 30, 2016 from the comparable period in 2015, and 21% and 18%, respectively, for the three months ended June 30, 2016 from the comparable period in 2015. Volume in our largest agricultural contract, sugar futures and options, increased 14% and 12%, respectively, for the six months and three months ended June 30, 2016 from the comparable periods in 2015, and other agricultural and metal futures and options volume increased 26% and 29%, respectively, for the six months and three months ended June 30, 2016 from the comparable periods in 2015. The increases in agricultural volume were primarily driven by increased price volatility due to changing supply and demand expectations largely related to weather and production levels for sugar, cocoa and coffee.

~~Financial Markets~~

Financial futures and options volume and revenues increased 14% and 1%, respectively, for the six months ended June 30, 2016 from the comparable period in 2015, and increased 5% and declined 2%, respectively, for the three months ended June 30, 2016 from the comparable period in 2015. Interest rate futures and options volume increased 13% and 3%, respectively, for the six months and three months ended June 30, 2016 from the comparable periods in 2015, primarily due to uncertainty around central bank actions and economic data during the first quarter of 2016. Revenue increased at a lower rate than volumedecreased primarily due to increased market making rebates that apply at higher volume levels and the impact of foreign currency ~~translation.~~translation in our European natural gas products.

~~Other financial~~Total volume and revenues in our agricultural and metals futures and options markets both decreased 9% for the six months ended June 30, 2017 from the comparable period in 2016 and both decreased 8% for the three months ended June 30, 2017 from the comparable period in 2016. Volume in our largest agricultural contract, sugar futures and options, decreased 15% for both the six months and three months ended June 30, 2017, from the comparable periods in 2016, and other agricultural and metal futures and options volume ~~increased 14%~~decreased 4% and ~~13%, respectively,~~3% for the six months and three months ended June 30, ~~2016~~2017, respectively, from the comparable ~~periods~~period in ~~2015,~~2016. The decreases in agricultural volume were primarily ~~due to~~driven by the reduced price volatility in ~~equity indexes~~the first half of 2017 compared to the higher price volatility in the first half of 2016 which was driven by ~~strong global equity market volatility. Volume~~more extreme weather conditions in ~~our MSCI~~2016.

Financial Markets

Financial futures and options ~~contracts~~volume increased ~~65%~~24% and ~~63%~~revenues decreased 1%, respectively, for the six months ended June 30, 2017 from the comparable period in 2016, and volume increased 39% and revenues increased 10%, respectively, for the three months ended June 30, 2017 from the comparable period in 2016. Interest rate futures and options volume increased 39% and 58% for the six months and three months ended June 30, ~~2016~~2017, respectively, from the comparable periods in ~~2015~~2016, primarily due to expectations for heightened central bank activity during the first half of 2017. Interest rate futures and options revenues increased less than traded volumes, compared to the prior year periods, primarily due to the impact of foreign currency translation and increased market making rebates that apply at higher volume levels. Other financial futures and options volume decreased 13% and 7% for the six months and three months ended June 30, 2017, respectively, from the comparable periods in 2016, primarily due to lower price volatility in global equity ~~market volatility.~~markets.

~~CDS clearing~~Cash equities handled volume decreased 20% and 13% for the six months and three months ended June 30, 2017, from the comparable periods in 2016, respectively, primarily due to a reduction in U.S. equities volatility during the first half of 2017 compared to the prior year periods. Cash equities revenues, net of transaction-based expenses, were ~~$53~~$103 million ~~and $51~~for the six months ended June 30, 2017, a decrease of 12% from $117 million for the six months ended June 30, 2016 and ~~2015, respectively, and $24 million and $22~~$51 million for the three months ended June 30, 2017, a decrease of 5% from $55 million for the three months ended June 30, 2016. Equity options volume decreased 21% and 14% for the six months and three months ended June 30, 2017, from the comparable periods in 2016, respectively, primarily due to lower U.S. equity market volatility. Equity options revenues, net of transaction-based expenses, were $47 million for the six months ended June 30, 2017, a decrease of 11% from $52 million for the six months ended June 30, 2016 and ~~2015,~~$23 million for the three months ended June 30, 2017, a decrease of 9% from $24 million for the three months ended June 30, 2016.

CDS clearing revenues were $56 million and $53 million for the six months ended June 30, 2017 and 2016, respectively, and $26 million and $24 million for the three months ended June 30, 2017 and 2016, respectively. The notional value of CDS cleared during the same periods were ~~$6.4~~$5.6 trillion and ~~$6.0~~$6.4 trillion for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and $2.6 ~~trillion and $2.7~~

trillion for both the three months ended June 30, ~~2016~~2017 and ~~2015, respectively. Buyside participation at our U.S.~~2016. The increase in CDS clearing ~~house, ICE Clear Credit, reached~~revenues was driven by record ~~levels in terms of number of participants~~buyside clearing during the six months and ~~notional cleared due to increased participation from both U.S. and European buyside customers due to the breadth of products and cost efficient margining in the U.S. relative to Europe.~~

three months ended June 30, 2017. CDS trade execution revenues were ~~$22~~$14 million and ~~$26~~$22 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$11~~$7 million and ~~$12~~$11 million for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. The ~~notional value of the underlying~~decrease in CDS traded was $273 billion and $518 billion for the six months ended June 30, 2016 and 2015, respectively, and $140 billion and $241 billion for the three months ended June 30, 2016 and 2015, respectively.

~~Cash equities handled volume increased 21% and 17%, respectively,~~trade execution revenues for the six months and three months ended June 30, ~~2016,~~2017, from the comparable periods in ~~2015,~~2016, is primarily due to ~~increased market volatility~~the sale and ~~to a lesser extent, gains~~discontinuance of our CDS voice brokerage operations in ~~market share by NYSE. Cash equities revenues, net~~the third quarter of ~~transaction-based expenses, were $117 million for the six months ended June 30, 2016, an~~

increase of 14% from $103 million for the six months ended June 30, 2015 and $55 million for the three months ended June 30, 2016, an increase of 6% from $52 million for the three months ended June 30, 2015.

Equity options volume increased 8% and 4%, respectively, for the six months and three months ended June 30, 2016 compared to the same periods in 2015 due to market volatility. Equity options revenues, net of transaction-based expenses, were $52 million for the six months ended June 30, 2016, a decrease of 11% from net equity options revenues of $58 million for the six months ended June 30, 2015 and $24 million for the three months ended June 30, 2016, a decrease of 10% from $27 million for the three months ended June 30, 2015. Equity options rate per contract decreased compared to the prior year periods primarily due to increased market maker rebates at higher volume levels. 2016.

Other Revenues

Other revenues include interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees.

Selected Operating Data

The following charts and table ~~presents~~present trading activity in our futures and options markets by commodity type based on the total number of contracts traded, as well as futures and options rate per contract (in millions, except for percentages and rate per contract ~~amounts)~~amounts and YTD represents the six-month periods ended June 30th):



Volume and Rates per Contract

Six Months Ended
June 30, Three Months Ended June 30,
2016 2015 Change 2016 2015 Change
Number of contracts traded:
Brent crude futures and options 116
100
15 % 55
46
19 %
Other oil futures and options 46
44
5
22
20
8
Gasoil futures and options 32
31
6
16
14
13
Natural gas futures and options 111
113
(2 ) 52
49
7
Power futures and options 15
15
(1 ) 8
7
5
Emissions and other energy futures and options 5
4
19
2
2
35
Sugar futures and options 26
23
14
13
12
12
Other agricultural and metals futures and options 31
24
26
16
12
29
Interest rates futures and options 208
184
13
91
88
3
Other financial futures and options 63
55
14
30
27
13
Total 653
593
10 % 305
277
10 %

Rate per contract:
Energy futures and options rate per contract $ 1.36
$ 1.33
2 % $ 1.37
$ 1.32
4 %
Agricultural and metals futures and options rate per contract $ 2.31
$ 2.36
(2 )% $ 2.32
$ 2.38
(3 )%
Financial futures and options rate per contract $ 0.61
$ 0.68
(10 )% $ 0.63
$ 0.67
(6 )%



	Six Months Ended June 30,						Three Months Ended June 30,
	2017		2016		Change		2017		2016		Change
Number of contracts traded:
Brent crude futures and options	135		116		17	%	73		55		34	%
Other oil futures and options	56		46		21		29		22		31
Gasoil futures and options	36		32		10		19		16		15
Natural gas futures and options	117		111		5		56		52		7
Power futures and options	10		8		19		4		5		(18	)
Emissions and other energy futures and options	4		5		(22	)	2		2		(21	)
Sugar futures and options	22		26		(15	)	11		13		(15	)
Other agricultural and metals futures and options	29		31		(4	)	15		16		(3	)
Interest rates futures and options	288		208		39		144		91		58
Other financial futures and options	69		79		(13	)	34		37		(7	)
Total	766		662		16	%	387		309		25	%

Rate per contract:
Energy futures and options rate per contract	$	1.29	$	1.38	(6	)%	$	1.28	$	1.37	(7	)%
Agricultural and metals futures and options rate per contract	$	2.31	$	2.31	—	%	$	2.32	$	2.32	—	%
Financial futures and options rate per contract	$	0.46	$	0.58	(20	)%	$	0.47	$	0.59	(21	)%

Open interest is the aggregate number of contracts (long or short) that clearing members hold either for their own account or on behalf of their clients. The following charts and table ~~presents~~present our quarter-end open interest for our futures and options contracts (in ~~millions,~~thousands, except for percentages).:

As of June 30,
2016 2015 Change
Open interest — in millions of contracts:
Brent crude futures and options 4
4
10 %
Other oil futures and options 5
5
(4 )
Gasoil futures and options 1
1
(16 )
Natural gas futures and options 18
19
(6 )
Power futures and options 8
8
(2 )
Emissions and other energy futures and options 2
2
2
Sugar futures and options 2
1
14
Other agricultural and metals futures and options 2
2
3
Interest rates futures and options 17
15
13
Other financial futures and options 5
5
10
Total 64
62
2 %



Open Interest



	As of June 30,
	2017	2016	Change
Open interest — in thousands of contracts:
Brent crude futures and options	4,150	4,159	—	%
Other oil futures and options	5,347	4,960	8
Gasoil futures and options	955	751	27
Natural gas futures and options	20,424	18,147	13
Power futures and options	3,101	3,831	(19	)
Emissions and other energy futures and options	1,909	2,183	(13	)
Sugar futures and options	1,411	1,648	(14	)
Other agricultural and metals futures and options	1,948	2,078	(6	)
Interest rates futures and options	22,085	16,773	32
Other financial futures and options	6,059	5,490	10
Total	67,389	60,020	12	%

The following charts and table ~~presents~~present selected cash equities and equity options trading data ~~for the six months and three months ended June 30, 2016 and 2015. All~~(all trading volume below is presented as net daily trading volume and is single ~~counted.~~counted and YTD represents the six-month periods ended June 30th):


	Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,
	2016		2015		Change		2016		2015		Change		2017		2016		Change		2017		2016		Change
Cash equities (shares in millions):
NYSE listed (tape A) issues:
Handled volume	1,386		1,152		20	%	1,295		1,122		15	%	1,144		1,386		(17	)%	1,161		1,295		(10	)%
Matched volume	1,370		1,133		21	%	1,282		1,106		16	%	1,134		1,370		(17	)%	1,151		1,282		(10	)%
Total NYSE listed consolidated volume	4,220		3,530		20	%	3,881		3,384		15	%	3,598		4,220		(15	)%	3,614		3,881		(7	)%
Share of total matched consolidated volume	32.5	%	32.1	%	0.4 pts		33.0	%	32.7	%	0.4 pts		31.5	%	32.5	%	(0.9 pts)		31.8	%	33.0	%	(1.2 pts)
NYSE Arca, NYSE MKT and regional listed (tape B) issues:
NYSE Arca, NYSE American and regional listed (tape B) issues:
Handled volume	408		293		39	%	377		264		43	%	319		408		(22	)%	316		377		(16	)%
Matched volume	394		279		41	%	365		251		46	%	310		394		(21	)%	307		365		(16	)%
Total NYSE Arca, NYSE MKT and regional listed consolidated volume	1,679		1,265		33	%	1,494		1,177		27	%
Total NYSE Arca, NYSE American and regional listed consolidated volume													1,319		1,679		(21	)%	1,255		1,494		(16	)%
Share of total matched consolidated volume	23.4	%	22.0	%	1.4 pts		24.5	%	21.3	%	3.2 pts		23.5	%	23.4	%	0.1 pts		24.5	%	24.5	%	0.0 pts
Nasdaq listed (tape C) issues:
Handled volume	213		212		—	%	195		211		(7	)%	148		213		(31	)%	151		195		(23	)%
Matched volume	202		200		1	%	186		199		(7	)%	138		202		(32	)%	141		186		(24	)%
Total Nasdaq listed consolidated volume	2,001		1,865		7	%	1,894		1,829		4	%	1,949		2,001		(3	)%	2,010		1,894		6	%
Share of total matched consolidated volume	10.1	%	10.7	%	(0.6 pts)		9.8	%	10.9	%	(1.1 pts)		7.1	%	10.1	%	(3.0 pts)		7.0	%	9.8	%	(2.8 pts)
Total cash handled volume	2,006		1,657		21	%	1,867		1,597		17	%	1,611		2,006		(20	)%	1,628		1,867		(13	)%
Total cash market share matched	24.9	%	24.2	%	0.7 pts		25.2	%	24.3	%	0.9 pts		23.0	%	24.9	%	(1.8 pts)		23.2	%	25.2	%	(2.0 pts)

Equity options (contracts in thousands):
NYSE equity options volume	2,826		2,629		8	%	2,649		2,544		4	%	2,229		2,826		(21	)%	2,286		2,649		(14	)%
Total equity options volume	14,669		14,341		2	%	14,087		13,876		2	%	14,710		14,669		—	%	14,812		14,087		5	%
NYSE share of total equity options	19.3	%	18.3	%	0.9 pts		18.8	%	18.3	%	0.5 pts		15.2	%	19.3	%	(4.1 pts)		15.4	%	18.8	%	(3.4 pts)

Revenue capture or rate per contract:
Cash equities revenue capture (per 100 shares)	$0.047		$0.050		(7	)%	$0.046		$0.051		(11	)%	$0.052		$0.047		11	%	$0.051		$0.046		11	%
Equity options rate per contract	$0.148		$0.180		(18	)%	$0.148		$0.174		(15	)%	$0.167		$0.148		13	%	$0.157		$0.148		7	%

Handled volume represents the total number of shares of equity securities, exchange traded funds, or ETFs, and crossing session activity internally matched on our exchanges or routed to and executed on an external market center. Matched volume represents the total number of shares of equity securities, ETFs and crossing session activity executed on our exchanges.

Transaction-Based Expenses

Our equities and equity options markets pay fees to the SEC pursuant to Section 31 of the Exchange Act. Section 31 fees ~~collected from customers~~ are recorded on a gross basis as a component of transaction and clearing fee revenue. These Section 31 fees are designed to recover the ~~government's~~government’s costs of supervising and regulating the securities markets and securities professionals. We, in turn, collect activity assessment fees, which are included in transaction and clearing revenues in our consolidated statements of income, from member organizations clearing or settling trades on the equities and options exchanges and recognize these amounts when invoiced. The activity assessment fees are designed so that they are equal to the Section 31 fees ~~which~~that are included in transaction-based expenses in our consolidated statements of income. As a result, activity assessment fees and the corresponding Section 31 fees do not have an impact on our net income. Activity assessment fees received are included in cash at the time of receipt and, as required by law, the amount due to the SEC is remitted semi-annually and recorded as an accrued liability until paid. As of June 30, ~~2016,~~2017, the accrued liability related to the un-remitted SEC Section 31 fees was ~~$195~~$181 million.

We also incur liquidity payments made to cash and options trading customers and routing charges made to other exchanges that are included in transaction-based expenses. We incur routing charges when we do not have the best bid or offer in the market for a security that a customer is trying to buy or sell on one of our securities exchanges. In that case, we route the customer’s order to the external market center that displays the best bid or offer. The external market center charges us a fee per share (denominated in tenths

of a cent per share) for routing to its system. We record routing charges on a gross basis as a component of transaction and clearing fee revenue.

Operating Expenses, Operating Income and Operating Margin

Trading and Clearing segment operating expenses ~~decreased $18~~increased $3 million and ~~$5 million, respectively,~~were flat for the six months and three months ended June 30, ~~2016~~2017, respectively, from the comparable ~~period~~periods in ~~2015.~~2016. See “- Consolidated Operating Expenses” below. Trading and Clearing segment operating income (decreased)/increased ($16 million) and $23 million for the six months and three months ended June 30, 2017, respectively, from the comparable periods in 2016. Trading and Clearing segment operating margins were 60% and 61% for the six months ended June 30, 2017 and 2016, respectively, and 61% and 59% for the three months ended June 30, 2017 and 2016, respectively.

Trading and Clearing segment adjusted operating expenses were ~~$388~~$392 million and ~~$394~~$388 million for the six months ended June 30, 2017 and 2016, respectively, and ~~2015, respectively,~~$198 million and $196 million for ~~both~~ the three months ended June 30, 2017 and 2016, respectively. Trading and ~~2015.~~Clearing segment adjusted operating income was $696 million and $713 million for the six months ended June 30, 2017 and 2016, respectively, and $352 million and $331 million for the three months ended June 30, 2017 and 2016, respectively. Trading and Clearing segment adjusted operating margins were 64% and 65% for the six months ended June 30, 2017 and 2016, respectively, and 64% and 63% for the three months ended June 30, 2017 and 2016, respectively. See “- Non-GAAP Financial Measures” below.

Data and Listings Segment

The following charts and table ~~presents~~present our selected statements of income data for our Data and Listings segment (dollars in ~~millions)~~millions and YTD represents the six-month periods ended June 30th):

Six Months Ended
June 30, Three Months Ended June 30,
2016 2015 Change 2016 2015 Change
Revenues:
Pricing and analytics $ 415
$ 52
695 % $ 211
$ 27
681 %
Desktops and connectivity 292
116
152
147
58
154
Exchange data 267
237
13
139
120
17
Data services 974
405
141
497
205
143
Listings 208
202
3
105
101
3
Revenues 1,182
607
95
602
306
97
Other operating expenses 500
220
126
258
106
142
Acquisition-related transaction and integration costs 40
16
165
14
5
242
Depreciation and amortization 181
74
146
92
37
152
Operating expenses 721
310
133
364
148
147
Operating income $ 461
$ 297
55 % $ 238
$ 158
50 %

~~Data Services Revenues~~



	Six Months Ended June 30,						Three Months Ended June 30,
	2017		2016		Change		2017		2016		Change
Revenues:
Pricing and analytics	$	480	$	415	16	%	$	242	$	211	15	%
Exchange data	280		267		4		142		139		2
Desktops and connectivity	281		292		(4	)	137		147		(7	)
Data services	1,041		974		7		521		497		5
Listings	213		208		2		107		105		2
Revenues	1,254		1,182		6		628		602		4
Other operating expenses	522		500		5		256		258		(1	)
Acquisition-related transaction and integration costs	23		40		(43	)	9		14		(34	)
Depreciation and amortization (including impairment)	176		181		(3	)	90		92		(3	)
Operating expenses	721		721		—		355		364		(2	)
Operating income	$	533	$	461	15	%	$	273	$	238	15	%

The Data and Listings segment represents subscription-based, or recurring, revenue businesses that relate to data services and listings services offered across our trading and clearing businesses and ICE ~~NYSE, ICE Benchmark Administration, Interactive~~ Data ~~SuperDerivatives and Trayport.~~Services. Through ICE Data Services, we generate revenues from a range of market data services, including the dissemination of our exchange and evaluated pricing data and analytics, desktops, ~~and~~ connectivity and ~~exchange~~ market data. Through NYSE, NYSE American and NYSE ~~MKT,~~Arca, we generate listings revenue related to the provision of listings services for public companies and ETFs, and related corporate actions for listed companies.

For the six months ended June 30, 2017 and 2016, 10% and 12%, respectively, of our Data and Listings segment revenues were billed in pounds sterling or euros and for the three months ended June 30, 2017 and 2016, 10% and 12%, respectively, were billed in pounds sterling or euros (all relating to our data services revenues). As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly. The strengthening of the U.S. dollar compared to the pound sterling and euro reduced our Data and Listings segment revenues by $14 million for the six months ended June 30, 2017, from the comparable period in 2016 and by $6 million for the three months ended June 30, 2017, from the comparable period in 2016.

Data Services Revenues

Our pricing and analytics services consist of an extensive set of independent evaluated pricing services focused primarily on fixed income and international equity securities, valuation services, reference data, market data, end of day pricing, fixed income, equity portfolio analytics and risk management analytics. We also serve as an administrator of regulated ~~benchmarks, including LIBOR, the ICE Swap Rate and the LBMA Gold Price.~~benchmarks. Our index services offer a range of products across fixed income, energy, equities, ETFs and other asset classes to provide the methodology, pricing and licensing of ~~key~~indices and benchmarks.

Our desktop and connectivity services comprise technology based information platforms, feeds and connectivity. These include trading applications, desktop solutions and data feeds to support trading, voice brokers and investment functions. Our desktop and web-based applications deliver real-time market information, analytical and decision support tools to support trading and investment decisions. Through our consolidated feeds, clients receive consolidated real-time and/or delayed financial data from global exchanges, trading venues and data sources for exchange-traded and OTC markets.

Our connectivity services are primarily provided by our Secured Financial Transaction Infrastructure, or SFTI, network, and related connectivity and colocation services for the transmission of exchange data to our customers. SFTI is a secure, resilient, private multi-participant network that provides connectivity to global exchanges and content service providers via dedicated data circuits with a redundant design to help ensure that no single point of failure exists across the network. Our connectivity infrastructure managed services solution also offers direct exchange access, proximity hosting and support services that enable access to real-time exchange data and facilitates low latency electronic trading. We also offer server colocation space at our data centers for market participants to house their servers and applications near our matching engine on equivalent terms.

Our exchange data revenues primarily ~~represents~~represent subscription fees for the provision of our market data that is created from activity in our Trading and Clearing segment. In our derivatives markets, exchange data ~~fees primarily~~revenues relate to subscription fees charged for customer and license access from third party data vendors, or quote vendors such as Thomson Reuters orand Bloomberg, and from end users, as well as view-only data access, direct access services, terminal access, daily indices, forward curves, and ~~other valuation services, and~~ end of day reports.

We earn exchange data ~~fees~~revenues relating to our cash equity and options markets, and related data ~~and network~~ services. We collect cash trading market data fees principally for consortium-based data products and, to a lesser extent, for NYSE proprietary data products. Consortium-based data fees are determined by the securities industry plans and are charged to vendors based on their redistribution of data. Consortium-based data revenues (net of administrative costs) are distributed to participating securities markets on the basis of a formula set by the SEC under Regulation NMS. Last trade prices and quotes in New York Stock Exchange-listed, NYSE ~~MKT-listed,~~American-listed, and NYSE Arca-listed securities are disseminated through “Tape A” and “Tape B,” which constitute the majority of our revenues from consortium-based market data revenues.

Our desktop and connectivity services comprise technology-based information platforms, feeds and connectivity solutions. These include trading applications, desktop solutions, data feeds and infrastructure to support trading, voice brokers and investment functions. Our desktop and web-based applications deliver real-time market information, analytical and decision support tools to support trading and investment decisions. Through our consolidated feeds, clients receive consolidated real-time and/or delayed financial data from global exchanges, trading venues and data sources for exchange-traded and OTC markets. Our services offer clients a secure, resilient, private multi-participant network that provides access to global exchanges and content service providers.

Our infrastructure managed services solution also offers colocation space, direct exchange access, proximity hosting and support services that enable access to real-time exchange data, and facilitates low latency, secure electronic market access.

Our data services revenues increased 7% and 5% for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015,~~2016, primarily due to the ~~acquisition of Interactive Data and Trayport in December 2015, the high~~strong retention rate of existing customers, the addition of new customers, increased ~~usage~~purchases by existing customers, ~~and~~ the development of new and enhanced products ~~designed to efficiently deliver more value to~~serving the need for an expanded range of data, regulatory compliance and analytics solutions, and our ~~customers. We recognized $525 million~~acquisitions of Securities Evaluations and ~~$265 million, respectively,~~Credit Market Analysis from S&P Global in ~~data services revenues for Interactive Data~~October 2016. These increases were partially offset by the impact of foreign currency translation and ~~Trayport during~~ the ~~six months~~divestiture of IDMS in our desktop and ~~three months ended June 30, 2016.~~connectivity group.

Listings Revenues

We recognize listings revenues in our securities markets from ~~two types of~~ fees applicable to companies listed on our cash equities exchanges - original listing fees and annual listing fees. Original listing fees consist of two components: initial listing fees and fees related to ~~other~~ corporate-related actions. Initial listing fees, subject to a minimum and maximum amount, are based on the number of shares that a company initially lists. Initial listing fees are recognized as revenue on a straight-line basis over estimated service periods of nine years for NYSE and five years for NYSE Arca and NYSE ~~MKT.~~American. U.S. companies pay annual fees based on the number of outstanding shares the company has and non-U.S. companies pay annual fees based on the number of outstanding shares the company has issued or held in the U.S. Annual fees are recognized as revenue on a pro rata basis over the calendar year, and generally received as cash in the first quarter of the year.

In addition, ~~other~~we earn corporate actions-related listing fees ~~are paid by listed companies~~ in connection with actions involving the issuance of new shares, such as stock splits, rights issues and sales of additional securities, as well as mergers and acquisitions. ~~Other corporate~~Corporate actions-related listing fees are recognized as revenue on a straight-line basis over estimated service periods of six years for NYSE and three years for NYSE Arca and NYSE ~~MKT.~~American. Unamortized balances are recorded as deferred revenue in our consolidated balance sheet.

Operating Expenses, Operating Income and Operating Margin

Data and Listings ~~revenues increased~~segment operating expenses were flat and decreased $9 million for the six months and three months ended June 30, ~~2016,~~2017, respectively, from the comparable periods in ~~2015, primarily due to the amortization of the original listing fees earned since the acquisition of NYSE and due to additional annual listing fee revenue from new customers.~~

2016. See “- Consolidated Operating ~~Expenses~~

Expenses” below. Data and Listings segment operating ~~expenses~~income increased ~~$411~~$72 million and ~~$216~~$35 million ~~respectively,~~ for the six months and three months ended June 30, ~~2016~~2017, respectively, from the comparable periods in ~~2015, primarily due to $428 million and $210 million in operating expenses recognized relating to Interactive~~2016. Data and ~~Trayport~~Listings segment operating margins were 42% and 39% for the six months ended June 30, 2017 and 2016, respectively, and 43% and 40% for the three months ended June 30, 2017 and 2016, respectively. ~~See “- Consolidated Operating Expenses” below for further details on~~The operating income and operating margin increases were driven by the ~~Interactive Data and Trayport operating expenses for the six months and three months ended June 30, 2016.~~ revenue increases discussed above.

Data and Listings segment adjusted operating expenses were ~~$582~~$591 million and ~~$270~~$582 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$298~~$290 million and ~~$132~~$298 million for the three months ended June 30, 2017 and 2016, respectively. Data and ~~2015,~~Listings segment adjusted operating income was $663 million and $600 million for the six months ended June 30, 2017 and 2016, respectively, and $338 million and $304 million for the three months ended June 30, 2017 and 2016, respectively. Data and Listings segment adjusted operating margins were 53% and 51% for the six months ended June 30, 2017 and 2016, respectively, and 54% and 50% for the three months ended June 30, 2017 and 2016, respectively. See “- Non-GAAP Financial Measures” below.

Consolidated Operating Expenses

The following chart and table ~~presents~~present our consolidated operating expenses (dollars in ~~millions)~~millions and YTD represents the six-month periods ended June 30th):


	Six Months Ended June 30,						Three Months Ended June 30,						Six Months Ended June 30,						Three Months Ended June 30,
	2016		2015		Change		2016		2015		Change		2017		2016		Change		2017		2016		Change
Compensation and benefits	$	472	$	295	60	%	$	236	$	144	64	%	$	479	$	472	2	%	$	234	$	236	—	%
Professional services													64		69		(7	)	32		37		(14	)
Acquisition-related transaction and integration costs													23		47		(51	)	9		20		(54	)
Technology and communication	184		98		88		92		47		94		195		184		6		97		92		6
Professional services	69		65		5		37		32		12
Rent and occupancy	35		31		15		17		15		18		35		35		(1	)	17		17		(4	)
Acquisition-related transaction and integration costs	47		26		83		20		7		215
Selling, general and administrative	52		58		(11	)	30		29		3		79		52		53		38		30		25
Depreciation and amortization	289		182		59		146		93		58		276		289		(5	)	142		146		(3	)
Total operating expenses	$	1,148	$	755	52	%	$	578	$	367	58	%	$	1,151	$	1,148	—	%	$	569	$	578	(2	)%

~~As of~~For the six months ended June 30, 2017 and 2016, ~~we had 5,503 employees~~15% and as19%, respectively, of our consolidated operating expenses were incurred in pounds sterling or euros and 14% and 19%, respectively, for the three months ended June 30, ~~2015, we had 2,866 employees. The increase~~2017 and 2016 were billed in pounds sterling or euros. As the ~~employee headcount was primarily due~~pound sterling or euro exchange rate changes, the U.S. equivalent of operating expenses denominated in foreign currencies changes accordingly. Due to the ~~acquisitions~~strengthening of ~~Interactive Data~~the U.S. dollar compared to the pound sterling and ~~Trayport in December 2015. We recognized $175~~euro, our consolidated operating expenses decreased $20 million and ~~$86~~$8 million, ~~respectively, in compensation and benefits expenses relating to these acquisitions~~ for the six months and three months ended June 30, 2017, respectively, from the comparable periods in 2016.

As of June 30, 2017, we had 5,128 employees and as of June 30, 2016, we had 5,503 employees. Our employee headcount decreased over the last year primarily due to the divestiture of IDMS in March 2017, the divestiture of NYSE Governance Services in June 2017 and employee terminations in connection with our integration of Interactive Data. These decreases in our employee headcount were partially offset by the acquisitions of Securities Evaluations and Credit Market Analysis in October 2016 and TMX Atrium in May 2017 (see “- Recent Developments” above). Non-cash compensation expenses recognized in our consolidated financial statements for employee stock options and restricted stock were ~~$60~~$68 million and ~~$47~~$60 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$31~~$34 million and ~~$23~~$31 million for the three months ended June 30, 2017 and 2016, respectively. Our compensation and ~~2015, respectively. The increase~~benefits expenses increased for the six months ended June 30, 2017, from the comparable period in ~~non-cash compensation expenses is a result of a greater restricted stock award value in the January~~ 2016, ~~annual award,~~ primarily due to the ~~issuance~~integration of ~~more restricted stock awards to NYSE~~the Interactive Data employees into the ICE incentive plans during 2017, partially offset by the foreign currency decrease for our U.K. and European based employees and ~~employees at other acquired companies than~~the net decrease in our employee headcount. Our compensation

and benefits expenses decreased for the ~~same~~three months ended June 30, 2017 from the comparable period in 2016, primarily due to the ~~prior year.~~ reduction in our employee headcount from the IDMS and NYSE Governance Services divestitures.

~~Technology~~We incurred acquisition-related transaction and ~~communication expenses increased for~~integration costs of $23 million and $9 million during the six months and three months ended June 30, ~~2016, from the comparable periods in 2015,~~2017, respectively, primarily ~~due~~relating to ~~$81~~our integrations of Interactive Data, Securities Evaluations and Credit Market Analysis. We incurred acquisition-related transaction and integration costs of $47 million and ~~$40~~$20 million ~~respectively, relating to Interactive Data and Trayport.~~

Professional services expenses increased for the six months and three months ended June 30, 2016, from the comparable periods in 2015, primarily due to $16 million and $8 million, respectively, in professional services expenses relating to Interactive Data and Trayport for the six months and three months ended June 30, 2016, from the comparable periods in 2015. The increases were partially offset by the continued reduction of contractors at NYSE and the recognition of a credit during the first quarter of 2016 from a third party service provider related to fees charged during 2015. In addition, we incurred lower legal fees during the six months and three months ended June 30, 2016, ~~from the comparable periods in 2015. Legal fees, which are included in professional services expenses, primarily related to class action lawsuits in which NYSE is a defendant.~~

~~Rent and occupancy expenses increased for the six months and three months ended June 30, 2016, from the comparable periods in 2015, primarily due to $14 million and $7 million,~~ respectively, relating to Interactive Data and Trayport. The increases were partially offset by reduced rent and occupancy costs realized in 2016 related to consolidation of our New York and London office locations during 2015.

~~We incurred acquisition-related transaction and integration costs during the six months and three months ended June 30, 2016~~ primarily relating to our integration of Interactive Data, Trayport and NYSE, our investment in MERS, our pending acquisition of ~~SPSE~~Securities Evaluations and ~~CMA,~~Credit Market Analysis, and various other potential and discontinued acquisitions. ~~We incurred acquisition-related transaction and integration costs during the six months and three months ended June 30, 2015 primarily relating to our integration of NYSE.~~ The integration costs primarily relate to employee termination, lease termination and professional services costs.

~~Selling, general~~Technology and ~~administrative~~communication expenses increased ~~by $12 million and $6 million relating to the inclusion of expenses for Interactive Data and Trayport~~ for the six months and three months ended June 30, 2017, from the comparable periods in 2016, ~~respectively.~~ primarily due to the acquisitions of Securities Evaluations and Credit Market Analysis, partially offset by the foreign currency decrease.

Selling, general and administrative expenses ~~otherwise decreased~~increased for the six months and three months ended June 30, ~~2016,~~2017, from the comparable periods in ~~2015,~~2016, primarily due to the acquisitions of Securities Evaluations and Credit Market Analysis, a $10 million accrual made during the six months ended June 30, 2017 relating to ongoing investigations and inquiries, and the release of ~~non-income tax-related~~non-income-related tax reserves of $18 million and $6 million during the six months and three months ended June 30, 2016, ~~respectively.~~partially offset by the foreign currency decrease. See Part II, Item 1 “- Legal Proceedings” below for additional information on the accruals for the investigations and inquiries.

We recorded amortization expenses on the intangible assets acquired as part of our acquisitions, as well as on other intangible assets, of ~~$164~~$142 million and ~~$77~~$164 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$82~~$72 million and ~~$39~~$82 million for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. We recorded depreciation expenses on our fixed assets of ~~$125~~$128 million and ~~$105~~$125 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and $64 million ~~and $54 million~~ for both the three months ended June 30, ~~2016~~2017 and ~~2015, respectively.~~2016. We also recognized a net loss of $6 million on the sale of NYSE Governance Services, which was recorded in depreciation and amortization expenses ~~and depreciation expenses for Interactive Data and Trayport of $90 million and $23 million~~ for the six months ~~ended June 30, 2016, respectively,~~ and ~~$45 million and $12 million for the~~ three months ended June 30, 2017 (see “- Recent Developments” above). The decrease in the amortization expenses for the six months and three months ended June 30, 2017, from the comparable periods in 2016, ~~respectively.~~is primarily due to a reduction in amortization expenses recorded on intangible assets which became fully amortized (primarily related to certain of the NYSE intangible assets) and the foreign currency decrease, partially offset by amortization expenses on the Securities Evaluations, Credit Market Analysis and TMX Atrium intangible assets.

Consolidated Non-Operating Income (Expense)

Income and expenses incurred through activities outside of our core operations are considered non-operating. The following ~~tables present~~table presents our non-operating income (expenses) (dollars in millions):

Six Months Ended
June 30, Three Months Ended June 30,
2016 2015 Change 2016 2015 Change
Other income (expense):
Interest expense $ (90 ) $ (46 ) 96 % $ (44 ) $ (23 ) 91 %
Other income (expense), net 11
(7 ) n/a
9
(9 ) n/a
Total other expense, net $ (79 ) $ (53 ) 47 % $ (35 ) $ (32 ) 9 %
Net income from continuing operations attributable to non-controlling interest $ (14 ) $ (14 ) — % $ (6 ) $ (6 ) (7 )%



	Six Months Ended June 30,								Three Months Ended June 30,
	2017			2016			Change		2017			2016			Change
Other income (expense):
Interest expense	$	(90	)	$	(90	)	—	%	$	(45	)	$	(44	)	2	%
Other income, net	187			11			n/a		1			9			(94)
Total other income (expense), net	$	97		$	(79	)	n/a		$	(44	)	$	(35	)	27	%
Net income attributable to non-controlling interest	$	(16	)	$	(14	)	14	%	$	(8	)	$	(6	)	45	%

We recognized equity income relating to our ownership in MERSCORP Holdings, Inc., owner of Mortgage Electronic Registrations Systems, Inc., or collectively MERS, which we acquired in the third quarter of 2016, and The ~~increase~~Options Clearing Corporation, or OCC, in ~~interest~~other income, which was $13 million and $7 million for the six months ended June 30, 2017 and 2016, respectively, and $8 million and $2 million for the three months ended June 30, 2017 and 2016, respectively.

In connection with Cetip’s merger with BM&FBOVESPA S.A., we recognized a $176 million realized investment gain in other income for the six months ended June 30, 2017 and we recognized $9 million in foreign exchange losses and transaction expenses in other expense for the six months and three months ended June 30, ~~2016, from the comparable periods in 2015, is primarily due to the interest expense we recognized on the additional debt incurred to finance for the Interactive Data acquisition in December 2015.~~2017. See “- ~~Debt” below.~~

Recent Developments - Cetip Investment Gain” above. We recognized dividend income received relating to our investment in Cetip in other income of $8$5 million and ~~$10~~$8 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and $4 ~~million and $7~~ million for the three months ended June 30, ~~2016 and 2015, respectively.~~

2016. We ~~recognized equity income relating~~will no longer receive any dividends from Cetip or B3 subsequent to ~~our 40% ownership in The Options Clearing Corporation, or OCC, in other income, which was $7 million and $3 million for~~ the ~~six months ended June 30, 2016 and 2015, respectively, and $2 million for both the three months ended June 30, 2016 and 2015.~~first quarter of 2017.

We incurred foreign currency transaction gains (losses) of ($1 million) ~~and ($7 million)~~ for both the six months ended June 30, 2017 and 2016, and ~~2015, respectively,~~($1 million) and $2 million ~~and ($2 million)~~ for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, primarily attributable to the

fluctuations of the pound sterling and euro relative to the U.S. dollar. Foreign currency gains and losses are recorded in other income (expense) and relate to the settlement of foreign currency assets, liabilities and payables that occur through our foreign operations that are received in non-functional currencies due to the increase or decrease in the period-end foreign currency exchange rates between periods.

During the six months and three months ended June 30, 2015, we incurred $19 million in various litigation accruals, including the ATG/ATS arbitration proceeding, which was recorded in other expense. Refer to note 13 to our consolidated financial statements, which is included in our 2015 Form 10-K, for additional information on the ATG/ATS arbitration proceeding.

We recognized interest income of $1 million and $5 million for the six months ended June 30, 2016 and 2015, respectively, and $1 million and $3 million for the three months ended June 30, 2016 and 2015, respectively. Interest income is recorded in other income and the interest income recognized during 2015 primarily relates to interest earned on the cash that had been set aside in July 2014 from the proceeds of the sale of Euronext that was used to repay the NYSE EUR Notes on June 30, 2015.

For consolidated subsidiaries in which our ownership is less than 100%, and for which we have control over the assets, liabilities and management of the entity, the outside stockholders’ interests are shown as non-controlling ~~interests.~~interest in our consolidated financial statements. As of December 31, 2016, non-controlling interest included those related to the operating results of our CDS clearing subsidiaries in which non-ICE limited partners held a 42.5% net profit sharing interest; ICE Endex in which Gasunie held a 21% ownership interest; and ICE Clear Netherlands in which ABN AMRO Clearing Bank N.V. held a 25% ownership interest. For both ICE Endex and ICE Clear Netherlands, in addition to the non-controlling interest reported in the consolidated statements of income, we reported redeemable non-controlling interest in the consolidated balance sheets which represents the minority interest redemption fair value for each company.

Consolidated Income Tax Provision

Consolidated income tax expense was ~~$316~~$352 million and ~~$227~~$316 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~$153~~$139 million and ~~$109~~$153 million for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. The change in consolidated income tax expense between periods is primarily due to the ~~change~~tax impact of changes in our pre-tax income and the ~~change~~changes in our effective tax rate each period. Our effective tax rate was ~~30%~~27% and ~~27%~~30% for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and ~~30%~~25% and ~~27%~~30% for the three months ended June 30, 2017 and 2016, ~~and 2015.~~respectively. The effective tax rates for the six months and three months ended June 30, ~~2016~~2017 and ~~2015~~2016 were lower than the federal statutory rate primarily due to favorable foreign income tax rate differentials, partially offset by state income taxes. ~~The favorable~~Favorable foreign income tax rate ~~differential results~~differentials result primarily from lower tax rates in the U.K. and various other lower tax jurisdictions as compared to the tax rates in the U.S. The effective tax ~~rate~~rates for the six months and three months ended June 30, ~~2016 is higher~~2017 are lower than the effective tax ~~rate~~rates for the comparable periods in ~~2015~~2016 primarily due to tax benefits associated with a ~~mix of foreign versus U.S. based income and an increase to deferred income taxes in the current year, partially offset by the tax benefit from the early adoption of ASU 2016-09.~~divestiture.

Quarterly Results of Operations

The following quarterly unaudited consolidated statements of income data have been prepared on substantially the same basis as our audited consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of our consolidated results of operations for the quarters presented. The historical results for any quarter do not necessarily indicate the results expected for any future period. The following table sets forth quarterly consolidated statements of

income data (in millions):


	Three Months Ended,															Three Months Ended,
	June 30, 2016 ⁽¹⁾			March 31, 2016 ⁽¹⁾			December 31, 2015 ⁽¹⁾			September 30, 2015			June 30, 2015			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016
Revenues:
Brent crude futures and options contracts	$	72		$	82		$	64		$	65		$	60		$	89		$	80		$	75		$	70		$	72
Other oil futures and options contracts	27			29			26			27			26			34			35			32			30			27
Gasoil futures and options contracts	24			24			24			24			21			27			26			25			25			24
Natural gas futures and options contracts	51			57			52			46			43			50			55			54			46			51
Power futures and options contracts	23			21			20			17			21			19			18			21			18			23
Emissions and other energy futures and options contracts	15			17			16			13			12			12			14			17			10			15
Sugar futures and options contracts	34			32			23			30			30			29			26			18			25			34
Other agricultural and metals futures and options contracts	33			30			25			23			27			33			30			29			27			33
Interest rates futures and options contracts	44			56			57			43			50			52			49			40			37			44
Other financial futures and options contracts	36			38			33			38			32			37			34			34			33			36
Cash equities and equity options																390			381			426			410			454
Credit default swaps	34			40			34			38			34			33			37			34			35			34
Cash equities and equity options	454			490			428			457			379
Other transactions	13			13			12			10			12			12			13			13			11			13
Total transaction and clearing, net	860			929			814			831			747			817			798			818			777			860
Pricing and analytics	211			204			63			36			27			242			238			234			209			211
Exchange data																142			138			132			136			139
Desktops and connectivity	147			145			76			58			58			137			144			149			144			147
Exchange data	139			128			118			115			120
Total data services	497			477			257			209			205			521			520			515			489			497
Listings	105			103			102			101			101			107			106			105			106			105
Other revenues	42			45			46			46			43			49			45			46			44			42
Revenues	1,504			1,554			1,219			1,187			1,096
Total Revenues																1,494			1,469			1,484			1,416			1,504
Transaction-based expenses	375			400			344			371			299			316			305			346			338			375
Revenues, less transaction-based expenses	1,129			1,154			875			816			797
Total revenues, less transaction-based expenses																1,178			1,164			1,138			1,078			1,129
Compensation and benefits	236			236			166			150			144			234			245			237			236			236
Professional services																32			32			36			32			37
Acquisition-related transaction and integration costs																9			14			19			14			20
Technology and communication	92			92			56			49			47			97			98			97			93			92
Professional services	37			32			37			37			32
Rent and occupancy	17			18			12			14			15			17			18			18			17			17
Acquisition-related transaction and integration costs	20			27			54			8			7
Selling, general and administrative	30			22			34			24			29			38			41			33			31			30
Depreciation and amortization(1)	146			143			98			94			93			142			134			140			181			146
Operating expenses	578			570			457			376			367
Total operating expenses																569			582			580			604			578
Operating income	551			584			418			440			430			609			582			558			474			551
Other expense, net ⁽²⁾	(35		)	(44		)	(27		)	(17		)	(32		)
Other income (expense), net ⁽²⁾																(44		)	141			(28		)	(31		)	(35		)
Income tax expense ⁽³⁾	153			163			18			113			109			139			213			171			93			153
Net income	$	363		$	377		$	373		$	310		$	289		$	426		$	510		$	359		$	350		$	363
Net income attributable to non-controlling interest	(6		)	(8		)	(3		)	(4		)	(6		)	(8		)	(8		)	(7		)	(6		)	(6		)
Net income attributable to ICE	$	357		$	369		$	370		$	306		$	283		$	418		$	502		$	352		$	344		$	357

⁽¹⁾~~We acquired Trayport on December 11, 2015~~The increase in the depreciation and ~~Interactive Data on December 14, 2015 and have included their financial results in our results of operations~~amortization expenses for the ~~periods subsequent~~three months ended September 30, 2016 is primarily due to ~~their acquisition dates, with all revenues included in data services revenues.~~a $33 million Creditex customer relationship intangible asset impairment and the increase for the three months ended June 30, 2017 is primarily due to the $6 million net loss on the sale of NYSE Governance Services. See “- Recent Developments - NYSE Governance Services Divestiture” above.

⁽²⁾~~Other expense,~~In connection with Cetip’s merger with BM&FBOVESPA S.A., we recognized a $176 million realized investment gain in other income (expense), net for the three months ended March 31, 2017 and $9 million in foreign losses and transaction expenses in other income (expense), net for the three months ended June 30, ~~2015 includes $19 million in litigation settlements and accruals.~~2017. See “- Recent Developments - Cetip Investment Gain” above.

⁽³⁾The decrease in the income tax ~~expense~~expenses for the three months ended ~~December 31, 2015~~September 30, 2016 is primarily due to the deferred tax benefit associated with future U.K. income tax rate ~~reductions along with certain favorable settlements with various taxing authorities.~~reductions.

Liquidity and Capital Resources

Below are charts that reflect our capital allocation. The acquisition and integration costs in the chart below includes the acquisition-related transaction and integration costs in each period (YTD represents the six-month periods ended June 30th):

We have financed our operations, growth and cash needs primarily through income from operations and borrowings under our various debt facilities. Our principal capital requirements have been to fund capital expenditures, working capital, strategic acquisitions and investments, stock repurchases, dividends to our shareholders and the continued development of our ~~electronic trading and clearing platforms.~~technology platforms that support our businesses. We believe that our cash on hand and cash flows from operations will be sufficient to repay our outstanding debt as it matures. In the future, we may need to incur additional debt or issue additional equity securities, which we may be unable to do or to do on favorable terms. See “- Future Capital Requirements” below.

Our commercial paper program enables us to borrow efficiently at reasonable short term interest rates and provides us with the flexibility to de-lever using our strong annual cash flows from operating activities whenever our leverage becomes elevated as a result of investment or acquisition activities. We reduced our outstanding commercial paper during the six months ended June 30, ~~2016~~2017 by ~~$781~~$469 million ~~enabled by strong~~primarily using net cash proceeds received from the sale of our investment in Cetip and cash flows ~~which include annual listings billings during the first quarter of 2016, and a reduction in our unrestricted cash balance~~ from ~~year end.~~operations. See “- Recent Developments - Cetip Investment Gain” above.

Upon maturity of old issuances of commercial paper and to the extent old issuances are not repaid by cash on hand, we are exposed to the rollover risk of not being able to issue new commercial paper. To mitigate the rollover risk, we maintain an undrawn back-stop bank revolving credit facility for an aggregate amount equaling at any time the amount issued under our commercial paper program. If we were not able to issue new commercial paper, we have the option of drawing on the back-stop revolving facility, however electing to do so would result in higher interest expense. See “- Debt” below.

Consolidated cash and cash equivalents were ~~$390~~$398 million and ~~$627~~$407 million as of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively, and short-term and long-term restricted cash and investments were ~~$984 million~~$1.0 billion and ~~$920~~$943 million as of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, respectively. ~~See “- Cash Flows - Investing Activities” below for a discussion of the increase in the restricted cash and investments as of June 30, 2016.~~

As of June 30, ~~2016,~~2017, the amount of unrestricted cash held by our non-U.S. subsidiaries was ~~$236~~$225 million. While we consider our non-U.S. earnings to be indefinitely reinvested overseas, if these cash balances are needed for our operations in the U.S., any repatriation by way of dividend may be subject to both U.S. federal and state income taxes, as adjusted for any non-U.S. tax credits. However, we do not have any current needs or foreseeable future needs or other plans to repatriate cash by way of dividends from our non-U.S. subsidiaries.

~~During 2015, our stock repurchases were completed under stock repurchase plans authorized by our~~

Our board of ~~directors. In connection with~~directors has adopted a quarterly dividend declaration policy providing that the declaration of any dividends will be approved quarterly by the board of directors or audit committee of the board of directors taking into account such factors as our ~~acquisition of Interactive Data during~~evolving business model, prevailing business conditions and our financial results and capital requirements, without a predetermined annual net income payout ratio. During the ~~fourth~~second quarter of ~~2015,~~2017, we ~~suspended our stock repurchase plan and that plan has now expired. We did not repurchase any~~paid a quarterly dividend of $0.20 per share of our ~~outstanding~~ common stock ~~during~~for an aggregate payout of $119 million, and the aggregate dividend payout for the six months ended June 30, ~~2016. The timing and extent~~2017 was $239 million. On August 3, 2017, we announced a $0.20 per share dividend for the third quarter of ~~future repurchases, if any, that are not made pursuant~~2017 with the dividend payable on September 29, 2017 to ~~a Rule 10b5-1 trading plan will be at our discretion and will depend upon many conditions. Our management and board~~shareholders of directors periodically review whether or not to be active in repurchasing our stock. In making a determination regarding any stock repurchases, we consider multiple factors. The factors may include: overall stock market conditions, our common stock price movements, the remaining amount authorized for repurchases by our boardrecord as of directors, the potential impact of a stock repurchase program on our corporate debt ratings, our expected free cash flow and working capital needs, our current and future planned strategic growth initiatives, and other potential uses of our cash and capital resources.September 15, 2017.

In August 2016, our board of directors approved an aggregate of $1.0 billion for future repurchases of our common stock with no fixed expiration date, subject to applicable laws and regulations. ~~Repurchases may be made from time to time~~During the six months ended June 30, 2017, we repurchased 7,827,513 shares of our outstanding common stock at a cost of $469 million. These repurchases were completed on the open market ~~through established plans, in privately-negotiated transactions or otherwise, in accordance with all applicable securities laws, rules~~ and ~~regulations. We plan to enter into a Rule 10b5-1 trading plan in the future to govern the repurchase of~~under our ~~shares of common stock. Assuming we do begin to repurchase our shares of common stock in the future, we may discontinue the stock repurchases at any time and may terminate the Rule~~ 10b5-1 trading plan. ~~The approval for~~As of June 30, 2017, the ~~share~~remaining board authorization permits repurchases ~~does not obligate us~~of up to ~~acquire any particular amount~~$481 million of our common stock. ~~In addition,~~Refer to note 7 to our ~~board of directors may increase or decrease the amount of capacity we have~~consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report, for ~~repurchases from time to time. We expect funding for any share repurchases to come from~~more information on our ~~operating cash flow or borrowings under our debt facilities or commercial paper~~stock repurchase program.

Cash Flows

The following tables present the major components of net increases (decreases) in cash and cash equivalents (in millions):


	Six Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2017			2016
Net cash provided by (used in):
Operating activities	$	1,103		$	770		$	1,098		$	1,103
Investing activities	(302		)	899			209			(302		)
Financing activities	(1,031		)	(1,635		)	(1,321		)	(1,031		)
Effect of exchange rate changes	(7		)	(8		)	5			(7		)
Net increase (decrease) in cash and cash equivalents	$	(237	)	$	26
Net decrease in cash and cash equivalents							$	(9	)	$	(237	)

Operating Activities

Net cash provided by operating activities primarily consists of net income adjusted for certain non-cash items, including depreciation and amortization and the effects of changes in working capital. Fluctuations in net cash provided by operating activities are primarily attributable to increases and decreases in our net income between periods and due to fluctuations in working capital. The $336 million increase in net cash provided by operating activities for the six months ended June 30, 2016, from the comparable period in 2015, is primarily due to $171 million in cash provided by operating activities for Interactive Data and Trayport for the six months ended June 30, 2016, increase in the net income of our historical income statement excluding Interactive Data and Trayport, and other fluctuations in working capital. See “- Financial Highlights” above.

Investing Activities

Consolidated net cash used in investing activities for the six months ended June 30, ~~2016~~2017 and ~~2015~~2016 primarily relates to ~~proceeds~~the net cash received from ~~term deposits and sales~~our sale of ~~available-for-sale investments,~~Cetip, increases in our capital expenditures and capitalized software development costs, and changes in restricted cash.

We received net ~~proceeds from term deposits and sales of available-for-sale investments of $1.1 billion for the six months ended June 30, 2015, with the~~cash proceeds from the ~~term deposits used for the repayments~~sale of ~~the NYSE EUR Notes.~~Cetip of $438 million. See “- Recent Developments” above.

We had capital expenditures of ~~$96~~$81 million and ~~$92~~$96 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, and we had capitalized software development expenditures of ~~$61~~$69 million and ~~$44~~$61 million for the six months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively. The capital expenditures primarily relate to hardware purchases to continue the development and expansion of our electronic platforms, data services and clearing houses and leasehold improvements associated with the new and renovated office spaces in Atlanta, New York and London. The software development expenditures primarily relate to the continued development and expansion of our electronic trading platforms, data services and clearing houses.

We had a net ~~increase~~increases in restricted cash and investments of $89 million and $75 million for the six months ended June 30, ~~2016.~~2017 and 2016, respectively. The net restricted cash increase for the six months ended June 30, 2017 primarily related to increases in the regulatory capital restricted cash at ICE Clear Europe and ICE Clear US primarily due to revenue increases, additional costs incurred due to the growth of our clearing businesses and additional regulatory capital buffers. The net restricted cash increase for the six months ended June 30, 2016 primarily related to increases in the regulatory capital restricted cash at ICE Clear Europe and ICE Futures Europe partially offset by a decrease in the cash held as escrow for the SuperDerivatives acquisition and the reported regulatory capital restricted cash at LIFFE, whose restricted cash is held in pounds sterling and it decreased due to the impact of the weakening pound sterling on our exchange rate. The increases in the regulatory capital restricted cash at ICE Clear Europe and ICE Futures Europe were primarily due to additional costs incurred due to the growth of our trading and clearing businesses and additional regulatory capital buffers required by the Bank of England that we have classified as restricted cash.

Financing Activities

Consolidated net cash used in financing activities for the six months ended June 30, 2017 primarily relates to $469 million in net repayments under our commercial paper program, $469 million in repurchases of common stock, $239 million in dividend payments

to our shareholders, and $81 million in cash payments related to treasury shares received for restricted stock tax payments and stock options exercises.

Consolidated net cash used in financing activities for the six months ended June 30, 2016 primarily relates to $781 million in net repayments under our commercial paper program, $205 million in dividend ~~and dividend equivalent~~ payments to our shareholders, and $48 million in cash payments related to treasury shares received for restricted stock tax payments and stock options exercises.

Consolidated net cash used in financing activities for the six months ended June 30, 2015 primarily relates to $918 million in net repayments under our debt facilities and commercial paper program, $399 million in repurchases of common stock, $158 million in dividend and dividend equivalent payments to our shareholders, $128 million for the purchase of subsidiary shares from non-controlling interest holders (for the purchase of the NYSE Amex Options shares) and $39 million in cash payments related to treasury shares received for restricted stock tax payments and stock options exercises.

Debt

Our total debt, including short-term and long-term debt, consisted of the following as of June 30, ~~2016~~2017 and December 31, ~~2015~~2016 (in millions):


	As of June 30, 2016		As of December 31, 2015		As of June 30, 2017		As of December 31, 2016
Debt:
Commercial Paper	$	1,811	$	2,591	$	1,173	$	1,642
NYSE Notes (2.00% senior unsecured notes due October 5, 2017)					850		851
Short-term debt	1,811		2,591		2,023		2,493
NYSE USD Notes (2.00% senior unsecured notes due October 5, 2017)	852		852
2018 Senior Notes (2.50% senior unsecured notes due October 15, 2018)	597		597		598		598
2020 Senior Notes (2.75% senior unsecured notes due December 1, 2020)	1,240		1,239		1,243		1,242
2023 Senior Notes (4.00% senior unsecured notes due October 15, 2023)	789		789		791		790
2025 Senior Notes (3.75% senior unsecured notes due December 1, 2025)	1,241		1,240		1,242		1,241
Long-term debt	4,719		4,717		3,874		3,871
Total debt	$	6,530	$	7,308	$	5,897	$	6,364

Credit Facility

~~364 Day Facility~~

~~On November 13, 2015, we entered into a $500 million 364 day senior unsecured revolving credit facility,~~Program or to fund the ~~364 Day Facility. The amounts available under~~redemption of the 364 Day Facility are available for use by us for working capital and general corporate purposes but specifically excluding any use to back-stop amounts issued under the Commercial Paper Program. The commitments under the 364 Day Credit Facility were reduced to $375 million on May 13, 2016 and will be automatically reduced to $250 million on August 13, 2016. No amounts were outstanding under the 364 Day Facility as of June 30, 2016.NYSE Notes discussed below.

Commercial Paper Program

Commercial paper notes of ~~$1.8~~$1.2 billion with original maturities ranging from 13 to 8975 days were outstanding as of June 30, ~~2016~~2017 under our Commercial Paper Program. As of June 30, ~~2016,~~2017, the weighted average interest rate on the ~~$1.8~~$1.2 billion outstanding under our Commercial Paper Program was ~~0.54%~~1.16% per annum, with a weighted average maturity of 1821 days. We repaid ~~$781~~$469 million of the amounts outstanding under the Commercial Paper Program during the six months ended June 30, ~~2016~~2017 primarily using net cash proceeds received from the sale of our investment in Cetip and cash flows from ~~operations and a portion of our unrestricted cash balances.~~

~~Senior Notes~~

In November 2015, we issued $2.5 billion in aggregate senior notes, including $1.25 billion principal amount of 2.75% senior unsecured fixed rate notes due November 2020, or the 2020 Senior Notes, and $1.25 billion principal amount of 3.75% senior unsecured fixed rate notes due November 2025, or the 2025 Senior Notes. We used the net proceeds from the 2020 Senior Notes and 2025 Senior Notes offering, together with $1.6 billion of borrowings under our Commercial Paper Program, to finance the $4.1 billion cash portion of the purchase price of the acquisition of Interactive Data.

NYSE Notes

In connection with our acquisition on November 13, 2013 of NYSE Euronext, which we refer to as NYSE following the initial public offering and sale of Euronext in 2014, we assumed NYSE's outstanding debt instruments, which includedThe $850 million, of 2.00% senior unsecured fixed rate ~~notes~~NYSE Notes are due in October ~~2017, or~~2017. We currently plan to fund the redemption of the NYSE ~~USD~~ Notes ~~and €920 million ($1.1 billion)~~with the issuance of ~~5.375%~~new senior ~~unsecured fixed rate~~term notes. However, if we are unable to issue new senior term notes ~~that were due in June 2015,~~ or to do so on favorable terms, then we would fund the NYSE ~~EUR~~ Notes ~~and together~~redemption under the Commercial Paper Program or with the ~~NYSE USD Notes,~~unused amount available under the ~~NYSE Notes. On June 30, 2015, we repaid the NYSE EUR Notes using cash that had been set aside in July 2014 from the proceeds~~Credit Facility, or a combination of ~~the sale of Euronext.~~these sources.

Committed Contingent Liquidity Facilities

~~To provide~~As a liquidity tool to ~~address~~support the ~~liquidity needs~~management of ~~our clearing houses and manage the liquidation of~~initial margin and guaranty fund deposits, ~~held in the form of cash and high quality sovereign debt,~~ ICE Clear Europe, ICE Clear Credit and ICE Clear ~~U.S.~~US have entered into Committed Repurchase Agreement Facilities, or Committed Repo. Additionally, ICE Clear Credit has entered into Committed F/X Facilities to support these liquidity needs. As of June 30, ~~2016,~~2017, the following facilities were in place:

ICE Clear Europe: $1.05 billion in Committed Repo to finance U.S. dollar, euro and pound sterling ~~sovereign debt~~ deposits.


ICE Clear Credit:	$~~400~~300 million in Committed Repo to finance U.S. dollar and euro ~~sovereign debt~~ deposits, €500 million in Committed Repo to finance euro ~~sovereign debt~~ deposits, and ~~€1.0~~€1.4 billion in Committed F/X Facilities to finance euro payment ~~obligations with U.S. dollar deposits.~~obligations.

ICE Clear ~~U.S.:~~US: $250 million in Committed Repo to finance U.S. dollar ~~sovereign debt~~ deposits.

Future Capital Requirements

Our future capital requirements will depend on many factors, including the rate of growth across our trading and clearing and data ~~services~~ and listings ~~businesses,~~segments, strategic plans and acquisitions, available sources for financing activities, required technology and clearing initiatives, regulatory requirements, the timing and introduction of new products and enhancements to existing products, the geographic mix of our business, potential stock repurchases, and the continuing market acceptance of our electronic trading and clearing platforms. We currently expect to make aggregate operational capital expenditures and to incur capitalized software development costs ranging between $280 million and $300 million for the year ended December 31, ~~2016,~~2017, which we believe will support the enhancement of our technology, business integration and the continued ~~expansion~~growth of our businesses. In addition, we currently expect between ~~$45~~$40 million to ~~$55~~$45 million in real estate capital expenditures during ~~2016~~2017 for leasehold improvements primarily associated with our ~~Atlanta and~~ New York headquarters.

Our board of directors has adopted a quarterly dividend declaration policy providing that the declaration of any dividends will be approved quarterly by the board of directors or audit committee of the board of directors taking into account such factors as our evolving business model, prevailing business conditions and our financial results and capital requirements, without a predetermined annual net income payout ratio. During the second quarter of 2016, we paid a quarterly dividend of $0.85 per share of our common stock for an aggregate payout of $103 million, which includes the payment of dividend equivalents on unvested employee restricted stock units. During the six months ended June 30, 2016, our dividend payout was $1.70 per share of our common stock for an aggregate payout of $205 million, which includes the payment of dividend equivalents. On August 3, 2016, we announced a $0.85 per share dividend for the third quarter of 2016 with the dividend payable on September 30, 2016 to shareholders of record as of September 16, 2016.

As of June 30, ~~2016,~~2017, we had ~~$6.5~~$5.9 billion in outstanding debt. We currently have a $3.4 billion Credit Facility. After factoring in the ~~$1.8~~$1.2 billion ~~currently~~ required to backstop our Commercial Paper Program ~~$1.6~~as of June 30, 2017, $2.2 billion of our Credit Facility is currently available for general corporate ~~purposes.~~purposes, including for the potential repayment of the $850 million NYSE Notes when they mature in October 2017. The Credit ~~Facility, our $375 million 364 Day~~ Facility and our Commercial Paper Program are currently the only significant agreements or arrangements that we have with third parties for liquidity and capital resources. In the event of any strategic acquisitions, mergers or investments, or if we are required to raise capital for any reason or desire to return capital to our stockholders, we may incur additional debt, issue additional equity to raise necessary funds, repurchase additional shares of our common stock or pay a dividend. However, we cannot provide assurance that such financing or transactions will be available or successful, or that the terms of such financing or transactions will be favorable to us. We currently plan to fund the redemption of the NYSE Notes in October 2017 with the issuance of new senior term notes. However, if we are unable to issue new senior term notes or to do so on favorable terms, then we would fund the NYSE Notes redemption under the Commercial Paper Program or with the unused amount available under the Credit Facility, or a combination of these sources. See “- Debt” above.

Non-GAAP Financial Measures

We use non-GAAP measures internally to evaluate our performance and in making financial and operational decisions. When viewed in conjunction with our GAAP results and the accompanying reconciliation, we believe that our presentation of these measures provides investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of these measures is useful to investors for period-to-period comparison of results because the items described below as adjustments to GAAP are not reflective of our core business performance. These financial measures are not in accordance with, or an alternative to, GAAP financial measures and may be different from non-GAAP measures used by other companies. We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance. We strongly recommend that investors review the GAAP financial measures included in this Quarterly Report, ~~on Form 10-Q,~~ including our consolidated financial statements and the notes thereto.

Adjusted operating expenses, adjusted operating income, adjusted operating margin, adjusted net income attributable to ICE common shareholders and adjusted earnings per share for the periods presented below are calculated by adding or subtracting the adjustments described below, which are not reflective of our cash operations and core business performance, and their related income tax effect and other tax adjustments (in millions, except for percentages and per share amounts):


	Trading and Clearing Segment						Data and Listings Segment						Consolidated						Trading and Clearing Segment						Data and Listings Segment						Consolidated
	Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015			2016			2015			2017			2016			2017			2016			2017			2016
Revenues, less transaction-based expenses	$	1,101		$	1,040		$	1,182		$	607		$	2,283		$	1,647		$	1,088		$	1,101		$	1,254		$	1,182		$	2,342		$	2,283
Operating expenses	$	427		$	445		$	721		$	310		$	1,148		$	755		$	430		$	427		$	721		$	721		$	1,151		$	1,148
Less: NYSE and Interactive Data transaction and integration costs	1			10			23			15			24			25
Less: Interactive Data and NYSE transaction and integration costs																			—			1			20			23			20			24
Less: Amortization of acquisition-related intangibles	38			41			116			25			154			66			28			38			104			116			132			154
Less: Net loss on divestiture of NYSE Governance Services																			—			—			6			—			6			—
Less: Accruals relating to ongoing investigations and inquiries																			10			—			—			—			10			—
Adjusted operating expenses	$	388		$	394		$	582		$	270		$	970		$	664		$	392		$	388		$	591		$	582		$	983		$	970
Operating income	$	674		$	595		$	461		$	297		$	1,135		$	892		$	658		$	674		$	533		$	461		$	1,191		$	1,135
Adjusted operating income	$	713		$	646		$	600		$	337		$	1,313		$	983		$	696		$	713		$	663		$	600		$	1,359		$	1,313
Operating margin	61		%	57		%	39		%	49		%	50		%	54		%	60		%	61		%	42		%	39		%	51		%	50		%
Adjusted operating margin	65		%	62		%	51		%	56		%	58		%	60		%	64		%	65		%	53		%	51		%	58		%	58		%

Net income attributable to ICE common shareholders													$	726		$	598														$	920		$	726
Add: NYSE and Interactive Data transaction and integration costs													24			25
Add: Interactive Data and NYSE transaction and integration costs																															20			24
Add: Amortization of acquisition-related intangibles													154			66															132			154
Add: Litigation settlements and accruals													—			19
Add: Net loss on divestiture of NYSE Governance Services																															6			—
Add: Accruals relating to ongoing investigations and inquiries																															10			—
Less: Cetip investment gain																															(176		)	—
Add: Foreign exchange loss and transaction expenses on sale of Cetip																															9			—
Less: Income tax effect for the above items													(65		)	(34		)													(32		)	(65		)
Add/(Less): Deferred tax adjustment on acquisition-related intangibles													13			(14		)
Add: Other tax adjustments													—			7
Add: Deferred tax adjustment on acquisition-related intangibles																															—			13
Adjusted net income attributable to ICE common shareholders													$	852		$	667														$	889		$	852

Basic earnings per share attributable to ICE common shareholders													$	6.10		$	5.37														$	1.55		$	1.22
Diluted earnings per share attributable to ICE common shareholders													$	6.07		$	5.34														$	1.54		$	1.21

Adjusted basic earnings per share attributable to ICE common shareholders													$	7.16		$	5.98														$	1.50		$	1.43
Adjusted diluted earnings per share attributable to ICE common shareholders													$	7.12		$	5.96														$	1.49		$	1.42


	Trading and Clearing Segment						Data and Listings Segment							Consolidated						Trading and Clearing Segment						Data and Listings Segment						Consolidated
	Three Months Ended June 30,						Three Months Ended June 30,							Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,						Three Months Ended June 30,
	2016			2015			2016			2015				2016			2015			2017			2016			2017			2016			2017			2016
Revenues, less transaction-based expenses	$	527		$	491		$	602		$	306			$	1,129		$	797		$	550		$	527		$	628		$	602		$	1,178		$	1,129
Operating expenses	$	214		$	219		$	364		$	148			$	578		$	367		$	214		$	214		$	355		$	364		$	569		$	578
Less: NYSE and Interactive Data transaction and integration costs	—			2			7			4				7			6
Less: Interactive Data and NYSE transaction and integration costs																				—			—			8			7			8			7
Less: Amortization of acquisition-related intangibles	18			21			59			12				77			33			16			18			51			59			67			77
Less: Net loss on divestiture of NYSE Governance Services																				—			—			6			—			6			—
Adjusted operating expenses	$	196		$	196		$	298		$	132			$	494		$	328		$	198		$	196		$	290		$	298		$	488		$	494
Operating income	$	313		$	272		$	238		$	158			$	551		$	430		$	336		$	313		$	273		$	238		$	609		$	551
Adjusted operating income	$	331		$	295		$	304		$	174			$	635		$	469		$	352		$	331		$	338		$	304		$	690		$	635
Operating margin	59		%	55		%	40		%	52		%		49		%	54		%	61		%	59		%	43		%	40		%	52		%	49		%
Adjusted operating margin	63		%	60		%	50		%	57		%		56		%	59		%	64		%	63		%	54		%	50		%	59		%	56		%

Net income attributable to ICE common shareholders														$	357		$	283														$	418		$	357
Add: NYSE and Interactive Data transaction and integration costs														7			6
Add: Interactive Data and NYSE transaction and integration costs																																8			7
Add: Amortization of acquisition-related intangibles														77			33															67			77
Add: Litigation settlements and accruals														—			19
Add: Net loss on divestiture of NYSE Governance Services																																6			—
Add: Foreign exchange loss and transaction expenses on sale of Cetip																																9			—
Less: Income tax effect for the above items														(30		)	(15		)													(60		)	(30		)
Less: Deferred tax adjustment on acquisition-related intangibles														—			(10		)
Add: Other tax adjustments														—			7
Adjusted net income attributable to ICE common shareholders														$	411		$	323														$	448		$	411

Basic earnings per share attributable to ICE common shareholders														$	3.00		$	2.55														$	0.71		$	0.60
Diluted earnings per share attributable to ICE common shareholders													��	$	2.98		$	2.54														$	0.70		$	0.60

Adjusted basic earnings per share attributable to ICE common shareholders														$	3.45		$	2.91														$	0.76		$	0.69
Adjusted diluted earnings per share attributable to ICE common shareholders														$	3.43		$	2.90														$	0.75		$	0.69

Acquisition-related transaction costs are included as part of our core business expenses, except for those that are directly related to the announcement, closing, financing or termination of a transaction. However, ~~all~~the acquisition-related transaction and integration costs relating to ~~NYSE~~Interactive Data and ~~Interactive Data~~NYSE are included in non-GAAP adjustments given the sizes of these acquisitions. As of June 30, 2016, the integration of NYSE had been completed and we will no longer include any NYSE integration costs as non-GAAP adjustments following this date. Amortization of acquisition-related intangibles are included in non-GAAP adjustments as excluding these non-cash expenses provides greater clarity regarding our financial strength and stability of cash operating results. ~~Also, included in~~During the six months ended June 30, 2017, we include as non-GAAP adjustments ~~are litigation settlements~~the $176 million Cetip realized investment gain and ~~accruals incurred~~ during the six and three months ended June 30, ~~2015.~~ 2017, the $9 million foreign exchange loss and transaction expenses on the sale of Cetip, as the sale of Cetip is not part of our core business operations. During the six months ended June 30, 2017, we include as a non-GAAP adjustment a $10 million accrual relating to ongoing investigations and inquiries as it is a non-recurring item. During the six months and three months ended June 30, 2017, we include as a non-GAAP adjustment the $6 million NYSE Governance Services net loss on divestiture as it is a non-recurring item.

The income tax effects relating to ~~these~~the items above are included in non-GAAP adjustments as well as deferred tax adjustments on acquisition-related intangibles. The tax items in non-GAAP adjustments are either the tax impacts of the pre-tax non-GAAP adjustments or are tax items as described below that are not in the normal course of business and are not indicative of our core business performance. The non-GAAP income tax effect adjustments above include tax benefits associated with the divestiture of NYSE Governance Services. Deferred tax adjustments on acquisition-related intangibles ~~and other tax effects relating to certain foreign~~include the impact of U.S. state tax law ~~changes.~~and apportionment changes which resulted in deferred tax benefits of $13 million for the six months ended June 30, 2016.

For additional information on these items, refer to our consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report and “- Recent Developments ”, “- Consolidated Operating Expenses”, “- Consolidated Non-Operating Income (Expense)”, “- Consolidated Income Tax Provision” and Part II, Item 1 “- Legal Proceedings”.

Contractual Obligations and Commercial Commitments

In the second quarter of ~~2016,~~2017, there were no significant changes to our contractual obligations and commercial commitments from those disclosed in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our ~~2015~~2016 Form 10-K.

Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, often referred to as structured finance or special purpose entities, which have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

New and Recently Adopted Accounting Pronouncements

Refer to note 2 to our consolidated financial statements above for information on the new and recently adopted accounting pronouncements that are applicable to us.

Critical Accounting Policies and Estimates

In the second quarter of ~~2016, except as discussed below,~~2017, there were no significant changes to our critical accounting policies and estimates from those disclosed in the section “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our ~~2015~~2016 Form 10-K.

Our goodwill and other identifiable intangible assets are identified as part of our critical accounting policies and affect our more significant judgments and estimates used in the preparation of our consolidated financial statements and could materially increase or decrease our reported results, assets and liabilities. Our goodwill and other indefinite-lived intangible assets are evaluated for impairment annually in our fiscal fourth quarter or more frequently if conditions exist that indicate that the value may be impaired. We test our goodwill for impairment at the reporting unit level. These impairment evaluations are performed by comparing the carrying value of the goodwill reporting unit or other indefinite-lived intangibles to its estimated fair value. We allocate goodwill to reporting units based on the reporting unit expected to benefit from the business combination.

We had previously identified three reporting units: our futures reporting unit, our CDS reporting unit, and our cash listings reporting unit. We have conducted a review to determine the appropriate reporting units as a result of operating under two business segments effective January 1, 2016 and following our acquisition of Interactive Data in December 2015. This review has led to the identification of four reporting units: our futures reporting unit, our CDS reporting unit, our cash reporting unit, and our data and listings reporting unit. The change in reporting units is not considered a triggering event and we therefore have not evaluated for impairment during the interim period, as there were otherwise no conditions that indicate that the value may be impaired.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a result of our operating and financing activities, we are exposed to market risks such as interest rate risk, foreign currency exchange rate risk and credit risk. We have implemented policies and procedures designed to measure, manage, monitor and report risk exposures, which are regularly reviewed by the appropriate management and supervisory bodies.

Interest Rate Risk

We have exposure to market risk for changes in interest rates relating to our cash and cash equivalents, short-term investments, short-term and long-term restricted cash and investments, and indebtedness. As of June 30, ~~2016~~2017 and December 31, ~~2015,~~2016, our cash and cash equivalents, short-term investments and short-term and long-term restricted cash and investments were $1.4 billion and ~~$1.6~~$1.4 billion, respectively, of which ~~$334~~$237 million and ~~$439~~$272 million, respectively, were denominated in pounds sterling, euros or Canadian dollars. The remaining cash and cash equivalents, short-term investments and short-term and long-term restricted cash and investments are denominated in U.S. dollars. We do not use our investment portfolio for trading or other speculative purposes. A hypothetical decrease in long-term interest rates to zero basis points would decrease annual pre-tax earnings by $3$5 million as of June 30, ~~2016,~~2017, assuming no change in the amount or composition of our cash and cash equivalents, short-term investments and short-term and long-term restricted cash and investments.

Our investment in Cetip, which is recorded as an available-for-sale, long-term investment and is recorded and held in Brazilian reais, was valued at $427 million as of June 30, 2016, including an accumulated unrealized gain of $103 million. Changes in the fair value of the Cetip investment are currently reflected in accumulated other comprehensive income (loss) and do not impact earnings, except to the extent that unrealized losses are deemed to be other than temporary.

As of June 30, ~~2016,~~2017, we had ~~$6.5~~$5.9 billion in outstanding debt, of which $3.9 billion relates to senior notes and ~~$852~~$850 million relates to the NYSE Notes, all of which bear interest at fixed interest rates. The remaining amount outstanding of ~~$1.8~~$1.2 billion relates to our Commercial Paper Program, which bears interest at fluctuating rates and, therefore, subjects us to interest rate risk. A hypothetical 100 basis point increase in long-term interest rates relating to the amounts outstanding under our Commercial Paper Program as of June 30, ~~2016~~2017 would decrease annual pre-tax earnings by ~~$18~~$12 million, assuming no change in the volume or composition of our outstanding indebtedness and no hedging activity.

The interest rates on our Commercial Paper Program are currently evaluated based upon current maturities and market conditions. The weighted average interest rate on our Commercial Paper Program increased from 0.74% as of December 31, 2016 to 1.16% as of June 30, 2017. The increase in the Commercial Paper Program weighted average interest rate was primarily due to the decisions by the U.S. Federal Reserve in March and June 2017 to increase the federal funds short-term interest rate by an aggregate 50 basis points to 1.25%. The Federal Reserve also signaled that they intend to continue to increase the federal fund short-term interest rate over the next several years, and if this occurs, this will continue to increase the weighted average interest rate on our Commercial Paper Program. See Item 2 “- Management’s Discussion and Analysis of Financial Condition and Results of Operations - Debt” included elsewhere in this Quarterly Report.

Foreign Currency Exchange Rate Risk

As an international business, we are subject to foreign currency exchange rate risk. We may experience gains or losses from foreign currency transactions in the future given that a significant part of our assets, liabilities, revenues and expenses are recorded in euros or pounds sterling. Certain assets, liabilities, revenues and expenses of foreign subsidiaries are denominated in the local functional currency of such subsidiaries. Our exposure to foreign denominated earnings for the six months and three months ended

June 30, ~~2016~~2017 is presented by primary foreign currency in the following table (dollars in millions, except exchange rates):


	Six Months Ended June 30, 2016						Three Months Ended June 30, 2016						Six Months Ended June 30, 2017						Three Months Ended June 30, 2017
	Pound sterling			Euro			Pound sterling			Euro			Pound sterling			Euro			Pound sterling			Euro
Average exchange rate to the U.S. dollar in the current year period	$	1.4417		$	1.1170		$	1.4383		$	1.1313		1.2595			1.0829			1.2793			1.1004
Average exchange rate to the U.S. dollar in the same period in the prior year	$	1.5236		$	1.1186		$	1.5301		$	1.1073		1.4340			1.1166			1.4339			1.1294
Average exchange rate increase (decrease)	(5		)%	—		%	(6		)%	2		%
Average exchange rate decreases													(12		)%	(3		)%	(11		)%	(3		)%
Foreign denominated percentage of:
Revenues, less transaction-based expenses	11		%	5		%	11		%	5		%	10		%	4		%	11		%	4		%
Operating expenses	15		%	4		%	16		%	4		%	12		%	3		%	12		%	2		%
Operating income	7		%	7		%	5		%	7		%	9		%	5		%	10		%	5		%
Impact of the currency fluctuations ⁽¹⁾ on:
Revenues, less transaction-based expenses	$	(15	)	$	—		$	(8	)	$	2		$	(34	)	$	(3	)	$	(15	)	$	(1	)
Operating expenses	$	(10	)	$	—		$	(6	)	$	1		$	(19	)	$	(1	)	$	(8	)	$	—
Operating income	$	(5	)	$	—		$	(2	)	$	1		$	(15	)	$	(2	)	$	(7	)	$	(1	)

⁽¹⁾Represents the impact of currency fluctuation for the six months and three months ended June 30, ~~2016~~2017 compared to the same periods in the prior year.

We have a significant part of our assets, liabilities, revenues and expenses recorded in pounds sterling or euros. For the six months and three months ended June 30, ~~2016, 17%~~2017, 15% and ~~16%~~15%, respectively, of our consolidated revenues, less transaction-based expenses, were denominated in pounds sterling or euros and ~~19%~~15% and 14%, respectively, of ~~both~~ our consolidated expenses were denominated in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues and expenses denominated in foreign currencies changes accordingly.

We have foreign currency transaction risk related to the settlement of foreign currency denominated assets, liabilities and payables that occur through our operations, which are received in or paid in pounds sterling or euros, due to the increase or decrease in the foreign currency exchange rates between periods. We ~~had~~incurred foreign currency transaction gains (losses) of ($1 million) ~~and ($7 million)~~ for both the six months ended June 30, 2017 and 2016, and ~~2015, respectively,~~($1 million) and $2 million ~~and ($2 million)~~ for the three months ended June 30, ~~2016~~2017 and ~~2015,~~2016, respectively, primarily attributable to the fluctuations of the pound sterling and euro relative to the U.S. dollar. A 10% adverse change in the underlying foreign currency exchange rates as of June 30, ~~2016~~2017 would result in a foreign currency transaction loss of $4 million, assuming no change in the composition of the foreign currency denominated assets, liabilities and payables and assuming no hedging activity.

We entered into foreign currency hedging transactions during the six months and three months ended June 30, ~~2016~~2017 as economic hedges to help mitigate a portion of our foreign exchange risk exposure and may enter into additional hedging transactions in the future to help mitigate our foreign exchange risk exposure. Although we may enter into additional hedging transactions in the future to help mitigate our foreign exchange risk exposure, these hedging arrangements may not be effective, particularly in the event of imprecise forecasts of the levels of our non-U.S. denominated assets and liabilities.

We have foreign currency translation risk equal to our net investment in our foreign subsidiaries. The financial statements of these subsidiaries are translated into U.S. dollars using a current rate of exchange, with gains or losses included in the cumulative translation adjustment account, a component of equity. Our exposure to the net investment in foreign currencies is presented by primary foreign currencies in the table below (in millions):


	As of June 30, 2016				As of June 30, 2017
	Position in pounds sterling		Position in euros		Position in pounds sterling		Position in euros
Assets	£	1,346	€	220	£	1,267	€	153
of which goodwill represents	522		43		268		43
Liabilities	146		92		130		53
Net currency position	£	1,200	€	128	£	1,137	€	100
Impact on consolidated equity of a 10% decrease in foreign currency exchange rates	$	160	$	14	$	148	$	11

As of June 30, ~~2016~~2017 and December 31, ~~2015~~,2016, the portion of our equity attributable to accumulated other comprehensive loss from foreign currency translation was ~~$244~~$260 million and ~~$45~~$345 million, respectively. As of June 30, ~~2016,~~2017, we had net exposure of pounds sterling and euros of ~~£1.2~~£1.1 billion ($~~1.6~~1.5 billion) and ~~€128~~€100 million ($~~143~~114 million), respectively. Based on these June 30, ~~2016~~2017 net currency positions, a hypothetical 10% decrease of the pound sterling against U.S. dollar would negatively impact our equity by ~~$160~~$148 million and a hypothetical 10% decrease of the euro against U.S. dollar would negatively impact our equity by ~~$14~~$11 million. For the six

months and three months ended June 30, ~~2016,~~2017, currency exchange rate differences had a ~~negative~~positive impact of ~~$199~~$85 million and ~~$125~~$60 million, respectively, on our consolidated equity, primarily due to the ~~decrease~~increase in the pound sterling/U.S. dollar exchange rate to ~~1.3312~~1.3025 as of June 30, ~~2016~~2017 (from ~~1.4868~~1.2336 as of December 31, ~~2015 and from 1.4363 as of March 31,~~ 2016) ~~due to the weakening pound sterling. The pound sterling decreased in late June 2016 following the U.K. referendum that resulted in a vote for the U.K. to leave the European Union.~~. The future impact on our business relating to the U.K. leaving the European Union and the corresponding regulatory changes are uncertain at this time, including future impacts on currency exchange rates.

Credit Risk

We are exposed to credit risk in our operations in the event of a counterparty default. We limit our exposure to credit risk by rigorously selecting the counterparties with which we make our investments and execute agreements. Credit risk is monitored by using exposure limits depending on ratings assigned by rating agencies as well as the nature and maturity of transactions. Our investment objective is to invest in securities that preserve principal while maximizing yields, without significantly increasing risk. We seek to substantially mitigate credit risk associated with investments by ensuring that these financial assets are placed with governments, well-capitalized financial institutions and other creditworthy counterparties.

An ongoing review is performed to evaluate changes in the status of counterparties. In addition to the intrinsic creditworthiness of counterparties, our policies require diversification of counterparties (banks, financial institutions, bond issuers and funds) so as to avoid a concentration of risk.

Our clearing houses hold material amounts of clearing member cash deposits which are held or invested primarily to provide security of capital while minimizing credit, market and liquidity risks. Refer to note 9 to our consolidated financial statements, ~~above~~which are included elsewhere in this Quarterly Report, for more information on the clearing houses cash deposits, which were ~~$48.5~~$53.6 billion as of June 30, ~~2016.~~2017. While we seek to achieve a reasonable rate of return which may generate interest income for our clearing members, we are primarily concerned with preservation of capital and managing the risks associated with these deposits. As the clearing houses may pass on interest revenues (minus costs) to the members, this could include negative or reduced yield due to market conditions. For a summary of the risks associated with this investment activity and how these risks are mitigated, see Part II, Item 7(A) “Quantitative and Qualitative Disclosures About Market Risk” in our ~~2015~~2016 Form 10-K.

Impact of Inflation

We have not been adversely affected by inflation as technological advances and competition have generally caused prices for the hardware and software that we use for our electronic platforms to remain constant or to decline. In the event of inflation, we believe that we will be able to pass on any price increases to our participants, as the prices that we charge are not governed by long-term contracts.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, an evaluation was carried out by our management, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in Internal Controls over Financial Reporting. There were no changes in our internal controls over financial reporting that occurred during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting. As a result, no corrective actions were taken.

PART II. Other Information

ITEM 1. LEGAL PROCEEDINGS

We are subject to legal proceedings, claims and ~~claims~~investigations that arise in the ordinary course of our business. ~~Typically,~~These include, for example, several ongoing investigations and inquiries from the SEC and other regulators as well as the matters described in Part I, Item 3 “Legal Proceedings” in our 2016 Form 10-K. We establish accruals for those matters in circumstances when a loss contingency is considered probable and the related amount is reasonably estimable. Any such accruals may be adjusted as circumstances change. During the six months ended June 30, 2017, we recorded a $10 million accrual relating to ongoing investigations and inquiries. Assessments of losses are inherently subjective and involve unpredictable factors. We do not believe that the resolution of ~~ordinary course~~these legal matters will have a material adverse effect on our consolidated financial ~~condition,~~conditions, results of operations or liquidity. It is possible, however, that future results of operations for any particular quarterly or annual period ~~could~~may be materially and adversely affected by any developments ~~relating to the~~in legal proceedings, claims and ~~claims. Refer to Part 1, Item 3, “Legal Proceedings”~~investigations.

Further, as previously disclosed in our ~~2015~~Annual Report on Form 10-K for the fiscal year ended December 31, 2016, in May 2014, three purported class action lawsuits were filed and later amended in the Southern District by Harold Lanier against the securities exchanges that are participants in each of the three national market system data distribution plans - the Consolidated Tape Association/Consolidated Quotation Plan, the Nasdaq UTP Plan, and the Options Price Reporting Authority, or the Plans, - which are established under the Exchange Act and regulated by the SEC. New York Stock Exchange LLC, NYSE Arca, Inc. and NYSE MKT LLC, which are our subsidiaries, were among the defendants named in one or more of the suits, in which Lanier claimed to sue on behalf of himself and all other similarly situated subscribers to the market data disseminated by the Plans. Lanier’s allegations included that the exchange participants in the Plans breached agreements with subscribers by disseminating market data in a ~~summary~~discriminatory manner in that other “preferred” customers allegedly received their data faster than the proposed class. In September 2014, the defendants moved to dismiss the amended complaints, and in April 2015, the court issued an opinion and order granting the motion and dismissing the three lawsuits with prejudice. In September 2016, the Second Circuit entered an order affirming the dismissal of ~~our legal proceedings~~the lawsuits. In November 2016, the Second Circuit denied a petition filed by Lanier, relating only to the lawsuit involving the Options Price Reporting Authority plan, seeking a rehearing by the panel of judges that decided the appeal or, in the alternative, for review by the full Second Circuit. Lanier has not sought review of these matters by the U.S. Supreme Court and ~~claims.~~we consider this matter closed.

ITEM 1(A). RISK FACTORS

In the second quarter of ~~2016,~~2017, there were no significant new risk factors from those disclosed in Part 1, Item 1A, “Risk Factors” in our ~~2015~~2016 Form 10-K. In addition to the other information set forth in this Quarterly Report, including the regulatory update information of Item 2 - ~~Management's~~Management’s Discussion and Analysis of Financial Condition and Results of Operations, you should carefully consider the factors discussed under “Risk Factors” and the regulation discussion under “Business - Regulation” in our ~~2015~~2016 Form 10-K. These risks could materially and adversely affect our business, financial condition and results of operations. The risks and uncertainties in our ~~2015~~2016 Form 10-K are not the only ones facing us. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also adversely affect our business.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Stock Repurchases

~~None. Please refer~~The table below sets forth the information with respect to ~~Part I, Item 2 - Management’s Discussion and Analysis~~purchases made by or on behalf of ~~Financial Condition and Results~~Intercontinental Exchange, Inc. or any “affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act) of ~~Operations - Liquidity and Capital Resources for information about potential future~~our common stock ~~repurchases.~~during the three months ended June 30, 2017.



Period (2017)	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs(1)	Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions)(1)
April 1 - April 30	1,192,114	$60.30	6,006,060	$649
May 1 - May 31	1,408,310	$59.68	7,414,370	$565
June 1 - June 30	1,316,063	$63.88	8,730,433	$481
Total	3,916,487	$61.28	8,730,433	$481


(1)	Refer to Note 7 to our consolidated financial statements and related notes, which are included elsewhere in this Quarterly Report, for details on our stock repurchase plans.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS



Exhibit Number		Description of Document

3.1	—	~~Sixth~~Fourth Amended and Restated ~~Bylaws~~Certificate of Incorporation of Intercontinental Exchange, Inc., effective May ~~6, 2016~~25, 2017 (incorporated by reference to Exhibit 3.1 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May ~~11, 2016,~~26, 2017, File No. 001-36198).

~~10.1~~3.2	—	~~Form~~Eighth Amended and Restated Bylaws of ~~Agreement Relating to Noncompetition and Other Covenants signed by each of the non-employee directors and by~~ Intercontinental Exchange, Inc. effective May 25, 2017 (incorporated by reference to Exhibit ~~10.01~~3.2 to Intercontinental Exchange, Inc.’s Current Report on Form 8-K filed with the SEC on May ~~17, 2016,~~26, 2017, File No. 001-36198).

10.1	—	Intercontinental Exchange, Inc. 2017 Omnibus Employee Incentive Plan (incorporated by reference to Exhibit 4.1 to Intercontinental Exchange, Inc.’s Form S-8 filed with the SEC on May 22, 2017, File No. 333-218619).

10.2	—	Amendment No. 1 to the Intercontinental Exchange, Inc. 2013 Omnibus Non-Employee Director Incentive Plan.

31.1	—	Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.

31.2	—	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.

32.1	—	Section 1350 Certification of Chief Executive Officer.

32.2	—	Section 1350 Certification of Chief Financial Officer.

101	—	The following materials from Intercontinental Exchange, Inc.’s Quarterly Report on Form 10-Q for the quarter ended June 30, ~~2016,~~2017, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Changes in Equity, Accumulated Other Comprehensive Loss and Redeemable Non-Controlling Interest (v) Consolidated Statements of Cash Flows and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text.*

As provided in Rule 406T of Regulation S-T, this information is “furnished” and not “filed” for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934. Such exhibit will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934 unless Intercontinental Exchange, Inc. specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.



	Intercontinental Exchange, Inc. (Registrant)

Date: August 3, ~~2016~~2017	By:	/s/ Scott A. Hill
		Scott A. Hill
		Chief Financial Officer
		(Principal Financial Officer)

5261



Cash and cash equivalents	$	301
Goodwill	3,247
Identifiable intangible assets	2,883
Other assets and liabilities, net	268
Deferred tax liabilities on identifiable intangible assets	(1,071		)
Total purchase price	$	5,628



Preliminary Intangible Assets	Acquisition-Date Preliminary Fair Value		Foreign Currency Translation			Accumulated Amortization			Net Book Value		Useful Life (Years)
Customer relationships	$	2,452	$	(45	)	$	(55	)	$	2,352	20 to 25
Developed technology	168		(3		)	(13		)	152		5 to 8
In-process research and development	129		(3		)	—			126		N/A
Data/databases	109		(1		)	(16		)	92		4
Trade names and trademarks	12		—			(6		)	6		2
Market data provider relationships	11		—			—			11		20
Non-compete agreements	2		—			(1		)	1		1
Total	$	2,883	$	(52	)	$	(91	)	$	2,740



	Six Months Ended June 30, 2015		Three Months Ended June 30, 2015
Total revenues, less transaction-based expenses	$	2,153	$	1,053
Operating income	996		478
Net income attributable to ICE	632		299
Earnings per common share:
Basic	$	5.25	$	2.49
Diluted	$	5.22	$	2.48