ICE - Earnings call transcript Q4 2017 | Intercontinental Exchange, Inc.

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Operator

Good morning and welcome to the ICE Fourth Quarter 2017 Earnings Conference Call. All participants will be in listen-only mode. [Operator instructions] Please note this event is being recorded. I would now like to turn the conference over to Warren Gardiner, Vice President of Investor Relations. Please go ahead.

Warren Gardiner

morning. Good XXXX section presentation of quarter in be release Investors the the earnings fourth can and found ICE’s ice.com. These our items call and will be will available for be archived replay. forward-looking may statements. call contain Today’s to These we and subject risks, statements, to our and undertake obligation are uncertainties. which assumptions current update, no judgment represent

our to believe our this Form refer in including reflective a please forward-looking income, measures earnings For we cause refer of morning. XX-K materially differ and measures, to supplement, risks certain and adjusted operations more operating non-GAAP EBITDA these to core EPS, tax description are XXXX business of cash margin, which statements, our expenses, filed we from our In rate. could our that performance. We results those described non-GAAP

adjusted the how for term information reconciliation measures uses to the and revenue for and Chairman Hill, to why diluted President. You our in materials explanation and revenue turn refers expenses as a Q&A call Financial be now this Scott in the per joining with net we us share. refers over Form time this Scott. on Jeff the and When deem to of CEO; will well management find earnings adjusted equivalent transaction-based as GAAP used an on Chief of XX-K. and Ben call, Jackson, these Officer; Sprecher, the Also net our first meaningful call us are earnings will available to I being earnings will

Scott Hill

X% revenues X% fourth billion. on down increased X% currency operating to clearing adjusted revenues basis, to Slide thank operating to key of X revenues the organic fourth an while I XX%. morning, $XXX flat us expanded start margins Good reported highlights quarter. expenses and versus on Data today. prior were $X.X and quarter consolidated the Adjusted and year-over-year million trading X% everyone net joining some for ICE’s and increased Warren. period. Thanks, from were our constant as grew you with will

synergies and will $XX and remaining over The half we delivered per which synergies quarter generated of was I last of fourth up from XXXX margin in expect share, to earnings X%. million as expansions quarter year’s and in of we million $X.XX later, XXXX. growth Importantly, growth X% during $XX earnings line top full in combination year to generate the around of discuss contributed fourth

billion proactive primarily were to from of Our Cash pension $X.X move flow our flows the slightly operating in legacy strong use due down to $XXX to earnings plan. was NYSE that but generated XXXX. fund million nearly cash XXXX, fully

now future have largely eliminated liability. pension We any

rates incremental by tax action record the $X.X corporate billion related $XX X. higher the Slide more to tax tax our federal on addition We savings generations realized return leveraged our nearly we XXXX. cash which taking strong cash you in advance see reform, detail to you In can of in million an to of in shareholders, a

in price including here divested of $XXX our over and an capital BondPoint. It’s schedule closing level both that even and to target pausing record growth $XX. shareholders, year versus year our $X.XX NGX our XXXX invest the morning with we Lynch nearly share, acquired continued price dividend forma have entered average organic During leverage higher of versus capital XXXX authorization, as during and of note and and announced up quarter CapEx XXXX assets M&A, which will and expenses at ahead year of And solid grow million of than to the we needs authorization. share $X.X XXXX this of our America/Merrill first Euroclear, is $XX combinations revenues We repurchase XXXX, to per achieved in than XXXX our by our the also returned strategic With continuing our billion generation Bank pro XX% indices, just is worth prior repurchased shrinking, we our which return. $XX the higher results. to over And $XX another ago. by around we we million of and increase sets a XX% and as profits XX/XX to reduced our for stock million cash of

fourth to the quarter, year-over-year Now margins expanded an our currency fourth growth will listings and was Organic discuss quarter. basis grew and X% to In segment. our where X I let’s on up segment organic best class Slide XX%. move constant data listings in business operating revenues our in in the X%

growth up in Of analytics listings note, our January, by of with business Governance XXXX across balance were $X will a the growth our was an we in listings expect the services on X. excluding start We very quarter Services XXXX Slide accelerate on XX. lines. sale business the year-over-year outstanding NYSE in well in additional the due XXXX. in signings XXXX. growth the quarter to December our as new impact Trayport results business strong XX% in growth constant with provide across Given to of sale increased first around pricing and organic entered data organic fourth I currency ASV some X% of of performance X% quarter reduced services all our X% revenue organic X% business, that million as data insights to to In and is regarding

and reference our services, of attributable to data sales evaluated XX% pricing were products analytics innovative and as such offerings. roughly Importantly, index products pricing new continuous our XXXX our our

generate product at growth acquisition acceleration growth enhanced analytics an This XXXX, strong than organic prior high pricing growth lineup, and to X% greater the is to in to X% signings X% in in in XXXX. X% and and XXXX. retentions growth customer in IDC from XXXX our this expect X.X% We

significantly accelerate Our revenue growth. would that innovations IDC on was thesis out. when proving we is product renewed customers That focus acquired thesis a and

XXXX. customers pricing in connectivity year growth data the The on and strong business. growth network than offset growth We growth contributed strong well XX% our our capacity Investor data our growth growth are consistent connectivity more and in the revenue to in to in we grew term over expect to were in X% slower you as and increased feeds analytics that in The XXXX, and very Day organic to double exchange in June. as in revenue a indeed longer provided digit repeat contribute revenues by for overall their at organically with outlook we which our also capacity seeing strong should

Revenues the commercial revenues fourth quarter, and year-to-year I segment average and in a X, to XX%. product orientation. were flat volume now operating supported Slide our customer X% our Let’s turn segment. X% where trading by expanded mix year-over-year a resilient for while to which our increased favorable by will in margins RPC benefited commodities, daily decline review clearing from Despite

build overall total by to XXXX strong were rates with in ads We which growth were also remained up year-over-year. year-over-year. volumes interest Open and continue up that year-over-year. growth year-over-year options with was XX% futures on OI interest XX% in led and XX% strength January This trend up XX% up which

futures and of X% X, can on see by across in increased and clearing in you and our XXXX XX% next the volume growth XXXX. options trading Slide top in Moving segment. our business trends this Average daily to positive was

notched XXst XX% a year volumes. record increase was year-over-year our its in franchise, growth XXXX Brent led consecutive Our of by which

Our rate level the increased since European volumes XX% XXXX. and UK interest for highest

XXXX. And important is More platform up an I rates as and open importantly, created of despite XX%. II. open by interest with the growth and I OI the high interest we temporary uncertainty markets. wrap with OI preview my solid with a across interest on start year oil of January noted Slide Open demand from in implementation future customer are of XXXX in early a indicator XX% increased and up will some our up just the days X% XX remarks across February benefiting the MiFID of of

X% The between our earlier combined to that ASV organic consistently ASV XXXX and momentum data efficiency retention, As X% and customer supports our accelerate revenue sales we metrics improving analytics connectivity and growth XXXX our entered and organic and with strong products with noted I data our and year-over-year business. feeds new will in up X%. business, pricing high in view

organic in segment for solid expect line XXXX. in clearing That our growth provided another appendix year the top reform margin capital help down in coupled We growth capture XX revenue accelerated should XXXX. growing which strong we to well make trading business and capital XXXX growth expansion, well year-over-year by XX% another expenditures, to tax with all be for in and bodes year the base The return. revenues for as Slide of revenue establish listings as trends have our in data our of revenue interest strength open

that in dividend As we deployed turn mentioned expenses. I billion XX% and in announced next I million will we quarter a morning, increase of repurchase to first $X.X January authorization. this already our $XXX

around expect XXXX. range $X million to various the $XX increase and in from comps in the related in IDC will synergies. remaining impact year you small manner. $XX our acquisitions our million to pensions. the FX, results, includes XXXX billion to but for reflect over first million million. to be $XX are in by expenses consistent a XXXX quarter GAAP accounting $X.X we million in expenses change will divestitures for $XX restated impact When as expenses will XXXX, billion just by rules This We also of the well and of revenues will see increase full accounted our the compensation $XX The expected add under XXXX as in report expenses net

to revenue million. by to similar XXXX, associated addition, In around directly which with variable see increased $XX are we expenses growth expect

those investment of our operations to offerings, to Q&A, future of years I a BondPoint fixed now, and income and merit-based bottom Safety $XXX the to Next, our million and invest cash between further strengthen fall our should our $XX expect $XX line. XXXX. and during incremental the take technology which light investment to We tax support anticipate XX% I million it but With This rate through turn to change And savings and $XX will be XX%, do add million over and to the will footprint. Jeff. MERS, level flow. employees to our your our still laws, million and performance will reference recent $XXX around similar intend increased savings to the million finally, in we required million in in of XXXX that, we tax of cyber bonuses to be growth will cash indices, data majority future development network. tax during the drop income reinvest to in of $XX in will U.S. not questions for compensation our happy and We net capabilities to our to somewhere

Jeff Sprecher

Scott for you, good consecutive XX. on year of Thank on Slide growth, XXth adjusted record margin expansion, earnings. will begin call. the everyone XXXX to I return and revenue another morning rising marked year the solid and capital

growth this markets, achieved of consistent needs. while customer through and muted have of elevated workflows vision, We and change bull uncover to bear of a enhancing this record markets as We evolving periods and markets and growth through credit our is regulatory track dissolve to for volatility volatility across ever as customers. well the which through inefficiencies

invest generate a that this future flow our efficient all and our with business return expanded, with jurisdictions. operates and deliver by now ability growth growth our increasing cost compounding to on It’s an spans complemented the opportunity Combined a with capital visibility that classes business to workflows, competence it. structure, to platform execution while vision consistent to multiple from our and provides a business asset cycles. We in with is As benefit ability we and has cash various that has across customers’ through continually us high-quality grown one subscription-based our data critical shareholders. our major to proven execute consistent

leader trading risk connectivity corporate energy We As X XX, levering X do see was trading the which our the in and most are and for deepest a this and largest Slide world’s largest we market liquidity centers. XX and by clearinghouses by comprehensive of and important unique of comprises on supported European largest the world’s the and of across market, the rate drives most data you major operate This listings. infrastructure, can services. pools interest markets. management world’s global this suite a UK venue some its foundation We exchanges model flexible in

participants linking they to to Our vast world require that is markets infrastructure manage the critical information around to everyday. risk the and

to for in Moving our global markets, in the to in Slide $XXX first volume on year rely its needs. Revenues XXst XXXX energy we as their record of on our oil as customers building energy XX, driven our topped by recorded our time meet are of complex million platform. business the energy our position year a premier platform volumes. And commercial ever energy hedging increasingly Brent global help

can our the franchise. WTI U.S. is a January late in reports demand in and our Similarly, given Gasoil average growth our in to speculative start provided Brent Gasoil in strong off of you X% capital As trading our a contracts improving byproduct are oilfields energy reported positive continues. is investment interest Gasoil for indicator benchmark the a year-over-year Brent North oil market growth. year up of a for draw is Henry European with XXXX in and markets, January building Sea as the track diesel rises in futures record is volumes up And Hub. business hitting generally Open the of of Asian Notably, economy. year-over-year, and transitory fuel on oil, the extreme growth the back crude the record barrel a start an to Brent see, on inventory new upon as as weather in of WTI XX% opportunities markets surprise such our more winter leading

these position be to we customer complete and nature offering products, trends Europe biased our to While long-term. and range MiFID structural. less cater January, in reporting II’s base by a commercial we tend not benefited nature largely the of in be Because upward an with cyclical from regimes. the types to moves global these in limit a of energy implemented transient tend in contracts, markets energy Also growth over

first January, found be many customers’ our these weeks to month created now we particularly While of to concerns the for few quieted in of regulators customers, market challenges short-term these commodity our as and concerns. of have the December receptive through

as of was longstanding fronts. the gas applications, to of our a over on at delivery see, make our market our In to operate North we processed many compared share the exemption liquidity moment. structural hubs. versus crude gas global markets, natural oil accordingly over FCA minute year. weeks first fact, our gas this Again, strategy, venue progress leading basis you to In few were continue transient many has XXX which natural customers. and UK’s last the X,XXX American filed the trading, hedge Shifting providing for for we And hedging clarity bring to rebounded has can to the

UK commercial with the some signs structural The changes contract from moving in are exploration business Given addition natural solutions, strategic a coupled European basis It and open gas natural volume Henry and gas by physical Hub is shifting benchmark And our increasingly into to in in in full America, trading this our that North tools interest view asset January. these settlement demonstrated hedging North of customers natural December. natural we this brings and our see trading, are that important of globalize. and offer of regional acquisition when markets, and customers NGX our a leading basis position. gas American the clearing the as in across away we efforts class record markets. commercial was international with service hedging newest additional our enhancing gas continues now markets our to as us And contracts, range large

structure platform for look our trends ways capitalize. secular class expanded to Slide we income XX, investable creating that the efficiency the by to early we XXXX analog a there market which is fixed multi-asset one are participants. from platform, facilitate many In are is as to largest world market information in with its to we increasingly classes asset income sought market into that’s the markets, the digital transition in and of workflow. now continue designed and move Turning fixed to The leverage an upon

a unique facilitate help the needs assembled while specific assets have We this customer addressing to of along suite way. evolution,

a are leading income fixed pricing. independent We provider of

XX spans countries. business reference data global We have instruments a across XXX that million

We and income work customers critical risk our have inventory widely flows. management to used fixed analytics

America/Merrill the suite, acquisition of acquisition client index dealer provider our income indices. on our segment. over fourth Bank the income closed now the of And at Lynch broadening X,XXX fixed of XXXX are offering quarter following of second the we We offering to largest start index fixed execution in BondPoint, our unique

the While it’s days a ICE the to execution fixed delivered the links we information off to in worth a is are BondPoint its improving customer demonstrating safety engaging over strong and ecosystem, that early in that secure connectivity Customers still essential the workflows. platform complementary that it’s in history, the solutions. January XX% respectively registering and volume up our month noting This with start products the nature are part year-over-year. now are platform innovation of of purpose suite of services income markets built our best

ourselves world how past capital efficiencies seventh so positioned New role of our Shifting billion. as in $XX and other This have twice in daily raising the Exchange similar led over consecutive capabilities the evolve exchange globally. by raised workflows to leading to for inflection Stock XXXX marked that And help amount in to points, into virtue by initial venue of is customers. our any times we we services bring the at the markets their the public the the year York raising, almost our offerings, to ingrain to

January record best we As United sector listing levels. capital to raising which large margins, We exceptional XX. XX of we as is unique to start proceeds content critical on $X through in broaden to raised public distribution ability an I initial XXX raised drive We And for year. together provide and history. have of enhanced to markets, earnings and future over will technology expanded remarks returns grew my strategic with continue is XXXX the XX% States. billion our world’s more. to defined premier or million We new XXXX information we by Slide our the revenues, growth. another addressable the in NYSE’s attracted market bringing IPOs venue conclude $XXX our the the last markets. was off XX offerings, year participants XXXX the in mission the and

that beyond has created opportunity to organic is stronger for and been never has our nor we we foundation then set look broad. as sustainable growth the So XXXX have

strong this business report rose a in we derivatives weeks In year rate January. can few Just XX% the futures into our on already volumes foundation. interest

gas natural volumes XX%. American grew North Our

rose ASV data global New fixed is business expanded X%. up record we the In in growth. our newly all income volume XX% Gasoil were XX%. volume up business XXXX. base signings Our for from BondPoint’s Year XX%, in And a year off growth while enters And our this benefited us

need. sustainable to they virtuous that pursuit vital cycle, provider platform infrastructure This and commodity for It’s financial solutions risk of a the positioned As that to look the productivity. the fueled one a connect long-term we with ways a all stakeholders. and management leading is continue efficiently with efficiency growth benefits market accruing to we by to of participants and the markets information generate

being These session hope seek like and will in to the our I to Time. contributions in their our colleagues year question-and-answer and do out, companies. our thank hard now join And conduct Kate one record pride were great AM for to Fortune will of would which customers my not year, operator we back to Eastern we I recognized. the are moderator exchange and became XX a X.XX takes but So the I to something we that for Fortune as XXX our another I thank until want first named in turn their credits business XXXX. call that work magazine’s Future team

Operator

The of question the We go [Operator Instructions] will Repetto session. Rich ahead. begin first Sandler comes Please O’Neill. now from question-and-answer

Rich Repetto

had morning you delayed. the access Jeff, and morning start I guess I Good will being a win – good significant mandate Scott with in broad MiFID II Jeff, in open

your how to II, had I in to from related And fundamental standpoint important more II MiFID that talked was and about a to Brexit view am look you? then at energy, you time at just from the Brexit, have So, know those I like look that, both on trying you as MiFID now well. to it when items? M&A and two What’s you get but impact

Jeff Sprecher

provision a discussing in Well, in And Sure. spent with minuses over Europe the was of provision, you we in concern I and of and have without the across and as open the as pluses future people Europe together or the the tremendous creating sense amount way time drafted the particular part UK markets MiFID makes and whether a lot II. the way overly real governments think senior most of access that is know it all Europe designed economy it there help inefficiencies. a not makes of the drive without to whether in finance EU economy fragmenting sense the that operates a and the

we could EU that’s should saw coordinate and the of not it but governments a whether Europe over to all across their that now whether see broadly from future a that going time-to-time on there fits or you or and move is reworking provision. across delay of So, what modification specifically on that of MiFID, or reported some conversation not and be with gets provision

very position lot on specific notwithstanding MiFID type minute. unprepared a till all for were lot conversation. did these More the some it’s accountability my There governments a did with of just last that talking people limits, and about broadly, lot in a appreciate the that they do the So, I but requirements. calls, remarks, have prepared very that said – it but MiFID and we customers way markets have are specific back. in a we very waited they the work, requirements. engage we There are are delay as now engaged that us been step had and of reporting delay We that and was to some taken with years

over I thousand mentioned And the FCA particular so processed in that applications.

this out and lot continue a talking trying particularly over the meetings really did about of out Brexit into senior had a its at MiFID would work MiFID. our engaged calmer. a number You much gets broad market at FCA held see just that that. and and figure on request conversations the market how of has stepped December with January to with UK The to of our have calls how calls, fortunately people to the going more of end period do I in on we lot exchange is to they this implemented appreciate across people have addition of

I think and positive agreed shape there and a in lot process. work underneath is very be out, how that still it’s of deal to headlines the but on that’s of certainly going know there go a to and to work has a Brexit, the hard how there that’s going things to pear-shaped is going could possibility

a want That and It’s a help, we right we we So, a made investment in it’s – It’s Europe we one that we one will have custody Europe is grow that use towards use. solution expand. custody to to custodian view clear, an said, continue which one and Europe. cautious for being now. that

Europe So, we broad how seen unfolds to will certainly strategic it. we where have opportunity concerns while we have pinpoint do about some ability

Operator

of Please ahead. The comes Ken next Worthington go from question JPMorgan.

Ken Worthington

not the BAML do There provided any services kind if maybe against want I good guess a the ancillary or say and ancillary you it for so? cross-selling so was is is to from got pursue maybe business, very BAML, impact these for to like for ancillary feels year quarter are this BAML positive I early, what you it see? now BAML Hi, you have for providing pricing about of so services? now how reference or you What services we morning. the but outlook the talk in BAML. is data analytics as the out And Index you look Thanks. know even before quarter guys did there if had I

Jeff Sprecher

to gets been clean major so of I on connectivity Sure. the in I a from before to content standpoint across pressure this really financial received. I Well, information because and it and today harder services that a issues. some to incredibly calls well distributed response provide in in and all, questions in think been also on of security of good And is first and easily your because word organizations that firms, mentioned is mean regulatory it’s have earlier need cyber Ken harder great. there And much consumed. they firms a way data it’s

services. and to is fact growing behind promenades of the network company. network in that it us pay one package people So deliver and to fastest of ecosystem part safety by to hooking increasingly secure parts so are our that to that broader is And these safety a having have of security that so allows are is things our weren’t of has that pretty our them attention they we suddenly when attention essentially a that easily already the many pipe over can They offerings didn’t products hooked a and people now to a cross-sell. and paying ICE cyber get firewalls deliver because new

going it’s So well.

and this on rapid not is and – a call will for and so information buy is second best quantitative interesting a a I other as privately investing. If and information of and of because just will the and people their there if in providers the for that a own and provider. are can clean some analysis about thing information taking talked you customer use because information of one indices and there it from find, the some increased a about BCP is planning demand where have you the as both data on before people multiple from market case thirst this that buy not for backup from The we is provider kind

that frankly business that that is her and is who in working we and thesis indices the team excited getting running particularly of saying had Lynn of is the area way longwinded that So is valuation. responses Martin about

Operator

question go Jefferies. of Fannon ahead. next from is The Dan Please

Dan Fannon

capital are net your M&A, in of divestitures your flow Thanks. XXX% deals active small you can year I Scott and XXXX? so Good returning cash of M&A the after guess free priorities you us morning, mentioned on of pretty update thoughts

Scott Hill

Yes.

a it the ago at have I focus and while think deals absolutely executed on our we world the have incremental looking on. that’s would we on same what be are said way, we both that

news right I our XX% embedded active the still dividend share good as think one-twelfth mentioned increase a the buyback of the balance with and the sitting are in we last which it year were I already and year. in leverage is of authorization sheet spent we in with all increase earlier in good of very XX% of on the range

enhance are think So strategic to the that right our for we look strategies will on deals always that find price right we can are focus those pursuing, we is we as is the that but businesses as of out, at the key levels I M&A that return generate us continue already investors. have, for we

Operator

is of go Pleased from Carrier question Bank next ahead. The of America. Michael

Sameer Murukutla

Hi, Sameer good for for This a question. Thanks Murukutla guys. Carrier. taking on morning, Michael is

Just X%? a ‘XX to the X% isn’t again, than strong FX and services just one the divestitures data related the the that in why this wind businesses ASVs higher down and I of growth those I guess X% I given X% even are they signings, to guess really quick the growth including guess and benefits any revenue is and to I one guess

Jeff Sprecher

Yes.

Obviously, X of you will grow will bit of it to little help, faster ‘XX. includes to reported range. IDC. exchange did as low a in again kind now growing not are organic XXXX. at feeds as business each going where repeat a that’s basis. it will I grow of than to That X% and And going significantly will our and faster I owned analytics X% remarks of And asking in So think that the business little points be X% and to constant that’s to is than X.X% why grow a X% or so at compared coming was by connectivity mitigated when X% single-digits. in couple my that versus I FX first I constant expect that’s pricing right our currency prepared points – note by year it’s last in of a it’s growing all, reported and a that it in bit couple said and currency includes last that on grow, X% X% we will the than in but And faster it’s and an I year going faster, when grow between in off but data ‘XX then is X%

overall sight mix business, then margin XX%, are with are we revenues. other of not space. but only is starting of of which not thing else growth the to And in we lose our above happy, anybody with a revenues that significantly So the growing the is really of

good about strength we are So of growth, we across data better. like be margin the incremental And with happy margins the board. will the feel profile, the we business the the again

Ben Jackson

in have cash in market. is scenes, Stock New equities the SEP we industry York pushing transparent. be the Behind the data market, revenue out of one open point the gets the the that equities we And comes been is the more some the other We of about to transparent Exchange and trying that core be more to do been which participate cash SIP what to we the generator. have of

more equities that’s a partly want business. of SIP embedded quite the maybe U.S. We have that is started why that the the And become be a of not on people time business and But is SIP. and more down part a up in really is there We call we long color data first put to all – table our lot proposal for surprised growth take around for earnings well. that’s more transparent. in around there short, going while particular to it’s at I that’s last reporting looking that for a from to cash transparency And markets. shortly the as story committee that’s purposes the to think

Operator

from ahead. Blostein go Please of question Sachs. next Goldman Alex comes Your

Alex Blostein

pay of is around about guess base is for appreciated, in number connectivity, the go that’s A, looking I and of year-over-year indicative data, drivers to little indicator capacity morning. XX% this you about for again network, want good a more that the the I can we should Slide for this data XX% a stuff? back us to growth so on so more give Scott business hit indicator a to am more I it’s guys will which or kind growing a this second, okay leading that we the plus is buying think color of at on definitely sort want is this of on more you how continued bit think I of leading of to capacity guys, that kind to kind safety customers growth circle is Hi of X, base really actually be revenue other you our should using are we of the data think and highlighted any

Scott Hill

we is capacity the the that’s couple Yes. into look – thing business. interest business. years My that good sense a the our of connectivity open it’s a very If similar about future trending open up trending is a question. trading that great is prospects are interest. growth That’s And to up if of

it’s to source, our customers up, need side help And capacity the the that’s help they now that understanding capacity – are of business. up reasons including we is into taking a us. from people so of confidence growth, order our one again our are sign have more proprietary as commodities data data, grows about on connect the that lot more are businesses deeper more data become our from feeds of but to people dig we it us. the thing other drive I connectivity more As A we as will in more the good greater from NYSE, people those was and also seeing through the safety, their seeing places feeds, which will more trading, we drive business. business, of historically on connecting the feeds consume And it’s that single data data

year reasons it ports, on of so as last again But talked is are growth much smaller indicator. with confidence at capacity give sustainable. data why ports XX% to the that the transparency reasons one digits for Jeff us in So seeing year, that double will regards we are larger exchange are we growth additional the the revenue data. moving to look this giving because about transparency why grow I capacity, we additional it’s people of is have leading metrics one this And up the a like growing definitely me

Operator

Ben Please ahead. go Citi. The of from is next Herbert question

Ben Herbert

Thanks for morning. taking Good question. the

of June year from Just in another some was drivers, do with June you products back newer pricing just and data, the ‘XX of might your Thank we be XX% mix question if think that to I a signs that of that your how just more in and a you. guide, in guided just Investor it know that revenue share of maybe this growth shift, around bigger of or newer back your mix long-term but the data think then developments? into that’s on [ph] even ‘XX Day analytics, products XX% and product that

Jeff Sprecher

great. Yes,

So, thanks for the question.

look So, products in we if showed XXXX what to very is with what June. you line from in guidance much at our expect revenue we you new get in

the so be to it strong, contribution And is strong. we expected

another addition that, with pie are was new to meaningful you that showed In of products these some new part also driving that of we customers.

are them put have who we demands from so in new customers seeing those on products. And MiFID, Europe, particularly consume

a each when some what’s bit those you lead talk contributing growth. what’s to and but is products, And the XX% the indicators. understand overall from a liquidity those customer, new new new are product about so little the there that of the coming And I between are over will of

that’s continue future platform been product a has it really as while, a example, products. as around to is not for for prices develop an product As as new evaluative as BestEx our an a much so new example that

contribution So again new we if in in year. XX% retention in you pricing new you overall, that look at around showed our have products, analytics pricing terms June we retentions, the of customers, high it last business

the ‘XX again in growth growth ‘XX. in are those also in things a way contributing in and the by of in All very good balance

Operator

is UBS. go Please from Alex of Kramm question next ahead. The

Alex Kramm

more you Hey, stay questions, MiFID you and side be more extension an and good upside have data far do how of the side just probably is think can I is think more what well, MiFID down base seeing, I few seeing around last addressable of you budgets like people very real so throughout level flipside you on of of to I the as Then specific obviously the because from maybe little on still that there? you guess, signings I bit then still because to customer exactly but ready, along products coming of get guess for been it maybe BestEx get importantly sales XXXX some showing big you. in maybe you detail the still need there? data market do And it’s in morning. to meaning the are give bit you around a what confidence II. want you still just the a comes II but can there are to when are quick need more mean, little Europe, a the

the that wondering just must are as even if you. struggling with of have? also actually am Thank you are canceling I some not So, seeing things people budgets

Jeff Sprecher

Yes.

runs we So, I Martin what Alex are think on to bullish I begun understand think what question, Tim they and – to Noble, very some who but that am we are seeing we and I days. There that’s begun and will Lynn great companies that as II. prepare to tell in I what a but And sales, its excited, days. talk are about you II’s early are, have MiFID implications very I have MiFID it early EMEA related are

really pricing of tell I in And is reflected and of in average, analytics and Europe. in in and in mind the II question in for so MiFID Slide those BestEx you that that higher. my liquidity at there of all on in ASV still confidence some pricing pricing in that terms noted as in analytics, like CEP signings things on and our I at particular is demand EMEA analytics were products I answer no indicators, January the in And that that growth XX% we X look X% look signings will terms of which and fact is and as XX% ASV are above

that driver growth split of is so on a the Slide And big it Europe out, to year just be have breakdown don’t the but seen is it yet, as I X. we geographic was have when going my and for we it guess

are the see The the specific meet II encouraging in starting indicators of we to products requirements the have those to products, Asia BestEx, the of is designed other well. thing that’s really efficacy and though these customers liquidity as U.S. MiFID using

to also in that to will am we contribute Asia. the in And be we demand to and in continue Europe, encouraged those are seeing will start so the and growth more also in U.S. but products I more

to with the purpose a it’s example given bill opportunity to product innovation that’s to for about so days geographies and different for their Europe. your question, excited those in great so were outside team meet the sales a prospects different products excited some to Europe, used I where customers those believe direct offers other great also early products and sell need industries of is, to And a start ours and in our response which it about focused, of the but

Operator

Bedell is Deutsche The Brian go ahead. next of from Please question Bank.

Brian Bedell

sense January, And increase of then can as think progress your during revenue for on that a income overall? from from parsing the about with of last the the out Scott marrying fixed contribution Maybe is switching if on of trading question data in about a Jeff, more BondPoint old in to you Maybe view just you income gears in how year? maybe bit just could little will folks. and Hi, us revenue of refresh we fixed good maybe platform had volumes if the little BondPoint a NGX, Jeff Thanks, better the a talk this get platform a morning. just and I indices to coming strategically into that given little give bit Scott, both the trajectory strategy, this. that the BAML want you

Scott Hill

Yes.

specifically haven’t business. So no, bond start the we with disclosed revenues and the will I associated

is relatively growth small a part it had growth forward. we of to, I over XX% a alluded big BondPoint volumes. very record today, The January month of as would in terms revenue characterize it’s in Jeff opportunity a As move our but in we way

Jeff Sprecher

the you working is instruments relationship will. the a fixed if available of very existing Yes. together and thinking the that the fastest leading is we is we we have fine, collection is together that trying whole we interesting are that’s as to what assets an in and we of following are And these own of of to a listings customer that a about parts relationship network are continue to sales efforts think essentially they about that that have NYSE what ETF through one those an don’t platform income the since on but of ET for with with have and fixed suite people the have on of want services space. and you Arca close do safety purchasing for growing customer trend a is this and around providers in one other income ETF our you, go put package a of we fixed fact way connectivity all space. And say, it also businesses the is opportunities a also in just and growth and why convenient to if way income past, It’s put the very have have those we that benefit we have relationship in really apps

products. NYSE there services of we So, that’s around – are can people those launching of we lot for kinds that that are and provide marketing also

pieces of these in I together. put are our it’s bodes certain think way been lot have that with companies a very that far engaged great pay us they various And a for bits that now our platform, us we future. that a to and didn’t customers connectivity so So, have and reception major well even are surprised it’s on the that bobs under with we that the ICE attention honestly, name

Ben Jackson

of if will And quarter half about and half you last you chart I other Jackson, with add and it in you will one and BondPoint quick that Lynch between period, America/Merrill NGX revenue in million a this of I does BondPoint Bank gave America/Merrill Lynch. roughly split the you we just said data give at point of Bank that look indices tell $XX

idea we you base give will which will of the grow. believe that an from So, we

Operator

from is Please ahead. question Allen Rosenblatt. go Chris The next of

Chris Allen

this from question lot Good I getting morning, am clients. a guys.

was guys data run-rate market of could million. and the the the on growth acquisitions I looks just XXXX, based for $XX you from acquired? kind what’s So, that the wondering that impact guide in those Is in incremental does you opportunities clarify if XXXX set of businesses bake any it about that

Scott Hill

it organic I didn’t So, your I answer business ask my again, an if question indicates our in understand, and the number. I to but is X% X% data am going growth answer to then

detracted so it of benefit from doesn’t from nor terms does it acquisitions. in And

that call. it’s driving but for to – around going looking you typically currency gave organic X% we X%, or again the we no organic doesn’t And going but contribution X% kind showed grow again data are you in if it the reported overall. of real we from the reasons that model constant last back models the of we $XX million, you organic we organic we showed will that from that are minus benefit the X% all June are through talked quarter matter X% plus that’s to the to net from So growth work on acquisitions, to in as to X% about the guide, have that’s on impact divestitures, acquisitions on XX% you to X% acquisitions, have again revenues, no X%

Operator

Autonomous. of ahead. Please Vincent Hung question The go from next is

Vincent Hung

a bit of like on maybe you to on upon quarter you Hey. quarter’s look control? cliff so, your would I or think and you I interested and asset but bit be the know thoughts get and then your interested you be a structural them today, now time for opportunities to in whether having specifically call about in a or last talked that will around touch ultimately terms do had it of could

Jeff Sprecher

all, and to first so we and customer and important think of are an use it’s it’s we a us. we it’s interesting asset Well, one of that

even that can a both us similar company And like together and we with all very to to help Euroclear. help relationship. things really we we do merged invested very still on with have so out they Brazil and we that when in in the we much had allowed initiatives operating us the now initiatives Cetip the in to And a Brazil number into a Cetip partnership and in feel new of Cetip it back we But ICE there Brazil, It’s important in had which have pre-existing – long have sold Chairman. that had though and like we that shareholders the BM&F. management are as it that with of We we us. launch still to those like

if So will we you that see Euroclear. same with template

more. know that think I will we

been invited who join to our that clearing Board. is and have Hester clearing runs commodity operations operations to Board Serafini, – U.S. going We join the

think that more and governance so us will a allow can we I she we at have contribute good insight long into short relationships But I to least think will at story more company have good have And the insight, opportunities level. how it’s will together. we find very

Operator

ahead. Wells of go Please Harris Fargo. from is The Chris next question

Chris Harris

see complexity are you month, to some of whether energy guys, and that be so moving to to action Hi about might can wondering your do U.S. you little could can any the a guys this create later we going more I just that contracts you customers there? talk guys your believe bit

Jeff Sprecher

ask me let who time that is first one. Sure, Ben take to the Jackson for here

Ben Jackson

first you I am forum. going in this time speak to Thanks the of to for Chris. all

around easy energy this about North be reality America. the particular for of our thinking And a North looking got are this when move lot we North in to These people American our that from in primarily at to and America, this fallout products it’s and of American to responding primarily So move wanted is we MiFID. is customers questions based our they customers, North trade, their based complex.

it liquids gas the American which mentioned of NGX. North Jeff gas U.S. North strategic and Europe power at American our in complex of is you portfolio complex When comments of looked American were complex in others North in acquisition we with in and some the oil top our maybe As his our natural executed U.S. add then energy on doing well. of and the our products,

have America. We North products even more in

complex So North determined the with customers bringing that America their in collaborate way needs. to together this we right was and service

easy world. portfolio a customers always able multiple – products way we now of our around strategy various world to for access that it’s We to our the have that be had and have have diversified the around always having venues important a

Operator

next Kyle KBW. is The of ahead. question from Voigt Please go

Kyle Voigt

high credit rating, lastly, to I contain try maybe expect in up Euroclear, Hi, to on Scott, your certain the us think am more going you the that asset believe any that to we an am Euroclear a just maybe came owned? becoming competitive I And give just one majority constraints in other reasons, majority for license in then give Thank update and of I if wondering owner from you. in you a Euroclear also on for line? I ratings a needs opportunity leverage just has one pause income credit the receive are you very AA banking dividends XXXX could

Scott Hill

been settled years, XX the we I never the been have here In M&A. have Sure. in

it lot I described of but management our what creed analogous concept that’s does that guess the customers. it’s a talk, know governance here. is on And very the eloquently way. We so team think he structure is good right think to exactly think to of is the intent managing the and I further And the Chairman control job. a in was all think Jeff, completely – I We fatigue. a good now We

of We the are one customers.

aligning together, interest that’s try is interesting go what is interest after this this our to about about. So strategic and opportunities

our This today, with investment want both an Trust. have are bit and through whether as aligning we believe is managed one we a to capabilities can we customer to considerations, big looking would X.X% XX-K that’s further I those stake right and not a in for investment those license around and or we ago interest collateral acquire not, That that banking to management we reached of whom we good of custodial additional yet And develop To portion and was a help us agreement question, a disclosed painful, not strategic what not sets. our has but I total. have But benefit or is. had closed. ICE partner our customer at as this looked somebody now will are that a be week so so additional was what because again, specific bring It in little at reported your it. we

is be will guidance know we you give would as partnership we the nice on not timing, short-term, the of would expectation the my to could get for to more next is strategic are hit paid you in time. it we the in quarter, we more if or return could me that. dividend, X X difficult tell get next be the that approvals we second it’s first it to the in for X. so the size before XX, the round over close, And the be If we dividend the but of it terms need And this dividend. but regulatory dividend Again, in set this then

Operator

a is question Bank. Please Deutsche next of The follow-up Bedell Brian from ahead. go

Brian Bedell

I whether revenue much. follow-up BAPS, offering comments the portion we despite the so got on going that of of the in your going to Thanks from on the protest to end that’s NYSE? Great. wanted your happens sort and view on on close maybe the just through up NASDAQ market of just close at trading

Jeff Sprecher

Sure.

the that It’s it staff of for no or go market been the There of asked approved scheduled. terms vote will commission. is structure forward. is, should not the It’s in timing that. go whether in on by that full commission, front to the and where on full been it’s been So, commission not now

on we because pennies listing process and So, – a that a issues. goes various the to to save proposal, of will to ahead have happen listing are or out part what those the Listed of exchanges, hard discuss know issues if uses their a all not each competitors will companies to for they exchanges closing settlement and we opposed will really heard, handle but when decision are is full opposed be will the will if auctions highly listings are fragmented Why the they the think competitor to discussion being is market at shares the a that a a to that in liquidity settling ETFs see coming close that that one So, decide listed of think what one another companies the hasn’t to And mechanisms we the be to few multiple listing. market a X what close after it’s that? all and how think stocks have industry forced exchange commission that like benefit moved been have those worried that fragmented about about X fragmentation challenge have where know about a and it’s essentially hard is made moment benefit to to the exchange list of highly for really accounted. and massive structure. time a fragmentation. this now Monday, are would do volatile have there central about to to are will opportunities their for asked mean, where and and when market days the and having difficult challenging be the we I to you cost

won’t most will priced honestly is negative offering a that I through that but person vigorous this where surprised So to closing think see the nonetheless one we a being promulgated we is but risk, will market promote and pretty don’t at of be a this put goes. the is there think it they even where that at trying that the they bit repercussions this have lot that participants industry the mind, charges without they am wanted input from out actually to closing, why the In proposals my debate I of that’s the I highest see idea. will who know have it idea. the and lands, the as the

Operator

like would for to Jeff This question-and-answer I over concludes our session. remarks. back Sprecher closing the turn to conference

Jeff Sprecher

Thanks we for and update we Kate discussed. year on continue out time we the and we build everybody. through through quarter Thank you, the the Thank joining you to will your strategy as us that you and today. appreciate

Operator

concluded. conference presentation. now has attending Thank The you for today’s

now may disconnect. You

Intercontinental Exchange (ICE) 7 Feb 182017 Q4 Earnings call transcript