- Earnings call transcript Q3 2022

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Operator

Hello, everyone and welcome to the ICE Third Quarter 2022 Earnings Conference Call and Webcast. My name is Charlie and I'll be coordinating the call today. [Operator Instructions] I'll now hand over to your host, Katia Gonzalez, Investor Relations Senior Analyst, to begin. Katia, please go ahead.

Katia Gonzalez

Good morning. earnings section presentation of XXXX in be quarter Investors the the third release 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

filings our XX-Q Form in the a please forward-looking with For cause refer of and XX-K, materially differ to risks the to description XXXX third statements, Form quarter from other could our that results those SEC. described

In in a to addition, customary on the to statement common ICE acquire the the expect first May, Black and to with S-X shares transaction, pending of issued Form ICE connection the to proposed approval with we SEC is half ICE as a announced In filed be stock register Black Please has constitutes of close in in statement registration Knight. agreed more the The transaction. regulatory The certain XXXX. business are we transaction has the earnings registration transaction. includes Form In the our believe see prospectus of operations core of proxy additional cash a refer We non-GAAP filing our our S-X connection information statement non-GAAP to we reflective for measures regarding also that of performance. with supplement, and Knight measures. ICE.

Gardiner, on basis. expenses of earnings now With Financial the additional to Officer; to Jackson, President this currency second a You'll share. otherwise indicated, call for earnings definition regarding find turn adjusted and call per CEO; on Sprecher, refers are are presentation, President; Warren. the earnings revenue Please Ben the net explanatory unless call, a Jeff diluted us today NYSE. see of and growth on used reconciliation of adjusted to Warren When revenue details transaction-based Martin, the and supplement Chair over certain the revenue on Lynn equivalent this of Chief the page the GAAP the terms references items. the refers constant notes materials. I'll in Throughout earnings to to net

Warren Gardiner

morning, Thanks, us highlights some everyone joining for third results. of I'll Katia. on you X Good begin and with the quarter key from Slide thank our today.

to earnings XX% top on per growth quarter share in third quarter is best in history. increased and of marked X% adjusted our $X.XX the which Third of third quarter company's the XXXX

a Third record X% $X.X up quarter year-over-year. totaled revenues billion, net

over contributing year-over-year transaction flat While revenues a all half our growth. revenues strong year-over-year were increased X% X business, to our for the which segments basis, business our on recurring with by accounted of of

now be quarter. were by with largely relative the Third totaled expect operating the the FX quarter million onetime We technology. quarter end results efficiencies the operating the to of within of reversal SG&A expenses $XXX services, and million items $XXX nonrecurring our a handful fourth and in increase operating reflecting favorable continued to of third professional adjusted were better-than-expected These items. to driven to low $XX expenses and of trends, range Shifting adjusted million guidance. $XXX million, below the

$X.XXX many about invest our dynamic our and business think uncertain backdrop, macroeconomic opportunities across exist growth a and has or we our consideration, and Despite enabled cycles. to the backdrop us current expect people build to business. of the medium- into in taking inflationary long-term XXXX to our diversity begin full invest and And expenses, again durability guidance the while through the year billion expanded upon. once you As that roughly midpoint importantly, the base of to current reasonable is

cash adjusted quarters growth of totaled operating basis approximately the flow Through up XXXX, Third X quarter adjusted nearly over points while income $X.X XX% by and in adjusted expanded is to pro over free top operating X% $X.X first forma margin up XXX XX%. year-over-year has year-over-year. totaled X% billion, billion, of on XXXX,

segment. where Now, performance X to overview I'll of Exchange our of move the Slide an provide let's

$X Third quarter totaled Exchange revenues increase billion, net an of year-over-year. X%

higher at addition higher a revenues, member increase interest driven In clearinghouses thus derivatives our equities of was equity in rate a in XX% by a options this and and increase to strong performance levels XX% collateral futures, our cash our interest in increase revenues. XX% and

be energy growth end open we interest total of of across versus X% up the last which longer-term in growth, indicator year, Importantly, to XX% and believe XX% the October ended including best growth continued record energy futures a growth complex. and year-over-year. performance. driven revenues Recurring data from demand by options financial This exchange listings our our XXXX increased X% our strong for benefit and was by

led volatility Listings have partners and a October, in the potential transfer NYSE. record chosen through XX representing our has corporations, remains market And billion, the $XX robust. conversations both While recent backlog with combined cap of pause a business, to new market of end to the nearly to a

our well and X% to institutional segment, to grew Fixed feeds ICE continued totaled Income the as a volatility excluding last rising versus strong this business and $XXX analytics. by to XX% interest million, to year in platforms. third and now growth additional including quarter both growth driven rates, X. connectivity our derivative in Network for our a revenues growth revenues by XX% and capacity growth our ICE CDS quarter, a ago. by our Similar by Services revenues, as trading efforts XXX% Transaction Turning business. bonds Slide record quarter build allocating double-digit and was customers market consolidated the capital bond Global in on Data increase our driven the increased demand migration, In Recurring additional in XX%, Euronext CDS clearing to

shifted munis in by declined into were of double such strength year-over-year asset-based investors index ETFs. as revenues the as out digits fee treasury business assets offsetting and which and risk bonds higher our corporate Somewhat equities,

in driven number volatility In addition, impacting end-of-day trends, priced. issuance is to growth fourth quarter these to bonds the Slide be reversal Absent expect our on we'd growth business to to market Mortgage outstanding new similar a in Shifting quarter be performance. available of X. slower our pricing extended a fixed third growth also macro reduced portion fixed income of income as has of sharp Technology

Third million. $XXX accounted $XXX experienced recurring XX% record revenues Recurring volumes. in strong continue nearly origination a nearly drive revenues outperformance a quarter, segment year-over-year. quarter million totaled These to and which an XX% that revenues increased of revenues the for in XX% decline industry versus totaled

by Importantly, of it's volumes data those increased increasing noting quarter, were and XX% underlying revenue last origination analytics to XX%. to with Similar year-over-year industry XXXX. first revenue that unit worth quarter similar recurring the in over

a of model. and adjusted earnings compounding approximately workflow. and XX% our the per we've performance a a history. Mortgage pro the XX% by macroeconomic over XX% the and of environments, X-year revenues different our I'll resilience our XX%, revenues our income when X%, my to a growth share Slide adoption X. a the durability with year-to-date CAGR were XXXX story platform testament across similar is at business our of Year-to-date, quarter revenues growing at and period, to in the conclude the dramatically by solutions $XXX of clear compared representing of EPS third continued ICE over testament automation of and best our in nature However, increasing origination Technology at ICE 'XX. remarks forma to operating grown This Despite you revenue growth million XQ X%, greater, CAGR by operating on and all-weather company's will X%, see income again, customer adjusted a of

I'll us As of many we look remain and to growth front creating for it the hand -- Ben. on the this about excited to of opportunities year our value in With the balance over that, of year, stockholders. we're focused

Ben Jackson

complex, year-over-year all volatility, activity with environment. markets, The the our in highly tail elevated global ability the as to year. macroeconomic volatility continue in inflation to customers seen combined evolving our XX% complex of is from our the record to across markets, Thank markets, you, derivatives and and Euribor these X. XX% like levels associated year, business difficult continued last Europe this central American have trading bank options up environmental our strength seen joining price made American markets. interest conditions the areas increasing rate lower geopolitical Warren in historically. for price to turn risk gas with valuable we've of average that liquefied to Options North requirements for manage up driving the Slide ADV our their futures. American versus supply morning. and third daily quarter, sourced to drive uncertainties tool energy increasing With to volatility due demand the equity risk. options gas that, we high for thank uncertain in Despite third hedging the be end us and continue volumes chain open contracts are as third quarter to liquid geopolitical in complex. a In natural markets conditions, our and gas In in the with uncertain confluence market States, the deep you manage interest turn North increased In we capital MSCI Europe our activity when our financial our our are prior was rising marked quarter the North and energy including versus U.K. the XX% a United in pleased Please was

in their our past interest risk, over peers. markets contributing continue the American gained gas North North customers and open our all-time basis points market our business commercial growth as have of to a an Our to we record versus rely volume gas American manage year-to-date year XXX in XX% share on to

serve are secular as aforementioned X% same At our transparent energy participants cycle, driving suite North in And across is about our cleaner the growth towards we volumes the cleaner to in products remain headwinds market with the also to carbon with seeing time, environmental for navigate active they the markets the demand European because although up offer third in we we pricing the year-over-year. due growth environmental our see journey X% energy excited participation in American continue position quarter. customers the of Finally, this the carbon trend as and carbon to markets up to factors, in year-over-year broadest grows.

deep chain; look benefit operate in we benchmarks across intact: First, energy liquid our as increasing from the transition. markets demand; energy, of we the well remain an supply because third, secular across positioned energy energy evolving the these over out And source term, feel emerging very we Importantly, markets the drivers believe X with globe longer across second, we and markets energy every factors. clean to that

we to and record Fixed which Moving XX% Services year-over-year. Data revenues our delivered business; Income grew

of array both strategic the ability diversification growth to environments. a Our of platform deliver our deliver fixed testament business growth through recurring to data and an and underpinned by revenue to continues our income macroeconomic our comprehensive compounding transaction revenues, model and

In again Turning now solutions, business. outperformed Mortgage broader we've our revenues. seen The retention. and industry the and that recurring new continuing our driven by to analytics our has business Mortgage continued adopt recurring tools once for third the revenues and in been our data digital resiliency driven strength demand our strong quarter, increased customers strong to by

Our automation solution process. AIQ our data and This by to customers to automation loan learning can contributing increased and on manufacturing thousands data loan interest drive of remain customers our products, growth artificial to in a dollars in intelligence analytics analyzer our efficiencies. and leveraging Through analytics save machine business. per led focus tools, tools the in has focused XX% and and our year-to-date

with expertise optimistic the leverage to turn resonate that our to remain the conversion to are analog we call industry. technology happening Jeff. opportunity to continues and the I'll and digital mission-critical We pleased to in value accelerate the data lenders now the over about our of long-term offerings

Jeff Sprecher

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of ICE technology. simple hope only trade like not be XXX-year-old mortgage increments but opportunities to harmonization sub-penny fact, Slide we ticker offer public lower result, across promoting and market price quote yourself if ask a a its of We stock national best should routinely Exchange. bid been were the all and costs, a in best a But this buy and for measure the We and the the SEC. York prevented national investor will business than standardization, be relying fair, can transparent the are, bid to even efficiencies a investors Stock using the has in consistent that by to in New billion opportunity on entire increments. ticker the XX. remarks year there state-of-the-art market. really embrace customer if considered We displayed? the the from As upon tune transform create price conclude best $X.X narrowing of businesses home and share what's my markets strategy investors of in opportunity savings price this; is offer to I'll improvement that networks cheaper

central interest any quarter manage ICE. better positioned uncertainty. year and marked has these of rates activity, over can't help political energy by than to I third and inflation, think bank global concerns that security has And fluctuating been of firm The rising risks and food this been

In and third all-weather per revenues, our quarter data, grew results Our the earnings grew to grew we environment. third customers once markets of results income quarter reflect our model. technology through business extraordinary rely of the quarter, These last against third navigate liquid share. again operating adjusted record-setting and on this adjusted nature our year

I we'll geographies by provide end like conditions economic to my to Time. to their for solutions to positioned contribution the with at ICE Charlie. And and I'll our on session moderator, thank our this first for and in numerous call their We continued third until have quarter following results. a And up X:XX trust. to our half unsurpassed customers facilitate question-and-answer Eastern intentionally want customer all-weather thanking business And results. company record turn conduct colleagues back the now I'd that, their to

Operator

Sandler. Our Piper from [Operator comes of first Instructions] Repetto Richard question

Richard Repetto

First, on little analytics, in origination. that a variable. originations. to one the Technology unit other that's been on -- thanks Mortgage dig you more the for be expect to versus has the and us unit as detail give flat we That's which data recurring we comparison outperformed you helpful. and lines in, against bit performance But outperforming. all that like the we'd again XXX% But be expect Can outperform like been

is unit question the getting So in mortgage? and lines you which to within originations what's the outperform

Ben Jackson

Sure. Ben. Rich, it's

end lenders are efficient. particular, that our brought then more clients, become consumer. will the help lower as It the help will down in at savings to the dream that cost that's hypothesis end been them And efficient we're It as and long the X% to directed and growth. appreciate, achieve we're it can lender hoping helping of we've of cost enable on So what of the to that products their consumer those for achieve you whole digital. needs the And in that most the all -- homeownership. us to and we meet term, do are enable doing And it the the will view believe to really the selection. mortgage are customers, on product get focused this lower translate underneath taking XX% their very contributors that, turning we innovation into that over one prices better achieve to will and deal most our towards best analog and there classes long-term a asset what space is

to revenue. our making our from where towards what been beat a shift is focus the we're long-term that's perspective has intentional ability and subscription driving our investments. So what's Overall,

success that of to more of So hard things the we're segments more of revenue in those move very in we reporting if more of we this quarter third look of the base quarter towards with segments were even they the at, pushing the when of X/X renewed terms at have, had, the of And quarter, headwinds renewed each each highlight last can. the that higher subscription by the and at than the one beginning you of across that in industry customers the the that I'll levels subscription all has quarter. end

start some of of The I'd a it employees opportunity say is single-digit compete we shop. and most and and a -- percentage And not of other quarter. an those thing as we closing industry It due is we've it clients of that, environment. these business this their despite consolidation as consolidation past been things have of of this renew been has impacted Encompass small these on has that But for as difficult only the that downsized, us we've single of seen entrepreneur are new a one an shop. been a become lending some difficult up -- And some backdrop have and industry of some to that positive environment. a and used to with companies for opportunities our saw personnel the M&A it won that's

mid-market origination start-up So as sales both the seen we've companies, smaller in well on banks. the success as in Encompass,

subscription fueling and item to attrition. of analytics well a the revenue the fact as said, in reporting moved our as on of more our same. what's we've our and that that and as we origination ability the lot origination process, what's more really beat area, line and In data to is line there going have low very So our item

it. element analytics transaction does historically a and data So have to

and been big this banks, where is we're our subscription item sign through anchored we the $X,XXX that's of and we're more automating underwriting originating in area revenue. this make And And have and products we today, like win line credit called Chase savings had process as deals our them. processes nonbanks our this a more a big subscription renew. of automating the new generating quarter, of implementation of very lot of area more many platform to line the towards are a -- JPMorgan towards as sure sell area a across going that's an product they, it wins signed is unions. to a piece quarter, we that moving product in the we We tilting that have AIQ. to to second the around similar those item much And origination A clients quarter different loan. clients, That's in of underwriting lot we had I loanDepot we mentioned efficiencies provide customers. segments which in And with significant the that that's past on several this that this. that from lenders, that trying for will we get that

the covers. some of what of under we So that's flavor the a little bit see in segments a of

Richard Repetto

energy follow-up a lot gas good higher the But and pull of you, you down more And insight volume you, of this color making but Jeff industry. oil? whether it's bit and And into growing part again, don't up causing Jeff of Ben XX% Ben, idea the But us into Exchange or back. segment. it's energy a the continues complex, not for perplex I could little us be to it's industry-wide us at least the just in give question would or more My just give know with you I like year-over-year performance you're cash there. specifically gas some -- believe contract, margin the corporates to speculators Could volumes, financial oil a the complex, equities and options. futures and it's not

Ben Jackson

that to risk this way alluded manage portfolio futures ourselves with the specifically question segment itself, our headwinds, wide despite up this. the the across And liquid going, deepest business is of of nature end interest on around the and the In And X% lens the our also as the in our business Ben looking now. And And you at we when business, that the portfolio you it of to to aspect we're world is the these spectrum, backdrop that's the in environment. a where confluence It's of we all-weather energy to rates last were energy all look an across the customers year. markets energy in most manage overall is issues pride enable and again. of as having Sure. a manage our a Sure, way you you the in we even say have is global that this portfolio. Rich. the energy since up all open which We dealing kinds stock. proud is we is and business asked from that overall that manage of entire right

have You unfortunate this war.

You China. on-and-off in lockdowns have

You push sources. move to towards have energy cleaner a

have You underinvestment energy in infrastructure.

releases all well. energy. that head to I'll we're risk. than same And their And from so our strategic on you that a more are major reserve, us have I'll And coming specifically at clients proud touch touch You ever, within time. the their now of gas couple as petroleum rearing on oil, to areas the manage asked about

oil, markets In seen have LNG to their headwinds. speaking, environment. our So positioned deep business help transition natural have energy most towards clients we the globe and environmentals. why That's around oil, manage power, we in we cleaner some gas, liquid broadly a the

the Russian has focused needing associated be market-based longer and interest oil spot did Once with landed We and to deliveries is to the contract. You governments end align Russian into gas clarity we customers that year we headwinds. see contract. historically, how the that into go because, delivered Most clarity that, this the oil this work Russian oil and would that sanctions we you're to for solution oil up year, in and oil did on. that regime and provided to that come a market market around in handled 'XX this no And on started a gas contract have on to into at some had can of with rebuild that to contract be also beyond. of open calendar

further expanding the to we've some the some going oil Within play very on that going So that's developments. what's time to going a the portfolio, positive. that's that across but We to positive It's seeing in horizon. turn on had out take believe itself, that, corner. we're for

has them lower-margin done manage little And outcome. of an have to of these with that reason options So premium that an for range well. hedge risks. your is is Brent up a you're option volume if that risk options very And on efficient enables geopolitical a the a contracts to bit pay. contracts a year-over-year. buying also there's way It XX% whole our to that enable option, options alone you very, seen the limited associated requirement because of trader part

incorporated that's models. margin of all the into So

earlier records innovations; a in continuing launched we So with to to we've markets. we that hit launched. we have And seen of success continue our options Gulf our we contract contract we're Midland consistently And this our new lot year. Murban that Coast build WTI

some So success good we're having build and on to that. continue

I'd The other area gas. touch quickly natural on be would

at is I gas natural mentioned U.S. our OI. again in in And you and gas business gas XX% the a is X% and natural So XX% globally, expand up up from to at and global volume. it have our business, a record lens perspective. look

alongside Europe a by TTF to as are LNG markets the markets. hedged American well are Henry thing And has gas trading And supply I'd for North in markets to strength and fueling gas we're customers LNG XX% our that gas new innovating we as LNG our it's gas Europe. But deep our on that in price say that in we're liquid Germany markets trade the that getting the contract. solutions LNG there. then Continental is the Europe likely of Northwest contracts basis important JKM situation Henry existing effectively understand basis to been business business with be has are launching and inputs will benchmark. to and in just relative that working -- are that's TTF that as last going cut to what's those off. Italy, has trade and our contract, Continental U.S. new because is basis headwinds contracts, recently, our we're on our and some announced the of the void? our of historically market-based Hub our alongside some And the to contracts feedback we from And cargoes is contracts clients we're filling as seen supplied Europe basis contract, these all gas TTF Europe our the trade to complex our that lot Southwest France significantly. Russia some And our and filling Europe going And is of and commercial void also

Operator

Ken comes question from JPMorgan. Worthington next of Our

Ken Worthington

complex. on old life Europe more inflation rates than highest We've time the European a in seen rate in in decade. I'd like business spend to little the and the a

generation European first, the underlying maybe of when back I futures, in much what like Ether is were bring for I then or you which rates CME then earlier given And bigger think seems for higher? the market? week here your revenue franchise, today the the launched think So opportunity back, And was do business smaller turf. rate think, peak that us the

talk Do for this here? thinking you And what rates business use of think about potential are from the you in investment is you development? can So an and the attractive product of sort resources?

Ben Jackson

open Ken, rates I'll -- as it's look we responded our Ben. going it we handle it good look manage so on when here. and led is overall the at XX% over geopolitically market what's way across a We The how job a business, they're has the manage of very very actually it, to you Continental that. up done just very, a environment, to we portfolio. to with Gilts our in at, year the year-over-year rate look in signaling franchise and the well when volumes of Euribor. SONIA as been that pretty rates our as the on interest has as at particular, well going as Europe And covers, parts largest basis. And that's well solid of underneath business start environment. as this look what's terms Euribor a And you are

the done extraordinarily that of So business well. has part

and you last the SONIA our year, you you're comparing -- and SONIA with last performance sterling of there. this specifically those in year. Gilt specifically side. at year, on December dynamics side going If X And had look year SONIA, With when converged there's by and last U.K. both that short and then have we trading to remember

you So this have SONIA year, only.

as off there's there as a that between was SONIA as significant And So political an have into now stand-alone. on sterling there place. taking there's there. going of of SONIA specifically, amount comparison bit and though, been converge a obviously, arbitrating U.K., what's you uncertainty a short In the

You've the Prime change had Ministers. of

You've hike got uncertain expectations. rate

lot You people. budget shocked a that had the mini of

a on potential And time. definitely currency same bit as market SONIA the a all and environment the stabilized but hitting we're is weighed that at had the signs Gilt crisis has little seeing You already that there. stabilizing

have. rates So overall that an It's that portfolio invest. very we area we're we about feel good to continuing definitely

own SOFR well. to area we contract launched going that as an We we're it's invest to have And our continue that and see we've opportunity.

Ken Worthington

Okay.

recall it of the opportunity a is this of lot Or of size, decade that sort can what is If you what versus to the grow there be? was peak a think it ago? you

Warren Gardiner

So RPCs from in year. kind to was sort complex, the Ken, in where and has too. but there We years get the revenues. have it's that been number FX the pressure exact think that there some a range certainly approaching we'll of this terms it made ahead 'XX, you record I been adjustments and certainly 'XX, go I some would think And of of

it I than is world bigger then. think a different lot the around to was So we're think approaching it we're this level. and that back do where was But I and

I -- into level about second effectively you the grow currency think room largest what what for reserve well so And of the regardless in as that the so Euribor, on been. complex have certainly to is there's would prior future, future think the the certainly

Operator

Fannon Our next question comes from Daniel Jefferies. of

Daniel Fannon

on Fixed Income couple questions just the a of So and Data business.

pretty this has activity clearing the as well as year. execution strong seen the So

customer talked -- participation just are finally higher of of Is mentioned just a really rates. areas levels, or growth, kind external these factors you You tailwind? other as more more about it kind

Lynn Martin

Fed activity we result this activity Dan, record business to the in a levels so question. for far as levels about side XXXX. is in absolutely, where our tailwind some a where of markets of bond, in what execution treasury, And you've platform business the pickup much of our fixed the clearing excited Thanks income been is volatility. be muni, Lynn But has so beneficiary CD the -- CDS Martin. we're of continue for the of our of rate our is bond corporate continued you've of really And with and in that seen volatilities, really volatility tremendous globally. bond ICE our particularly seen hikes, ICE volatility a record

last In institutional factor, QX. we volume fact, QX participation a almost grow particularly levels XXX% important by out QX in how is markets, customers. versus very is institutional of participation on in And platforms, activity measured the up perspective you saw A though, on alone, in focused XXX%. muni broaden the those our in

additional participation trend So of that about markets that seen platform. and muni just a continues our a as result across as driving thinking we've an on institutional ecosystem particularly the

Daniel Fannon

associated the third you then analytics provide guess kind more fourth part outstanding -- terms factor. citing bond quarter side, model, customers, I and us as versus could and flattish on thought of a customer And clarity kind bonds revenue. a of think, more Warren, I I little guess think, the, pricing think you terms understanding the growth we being of bonds with remind lower was of or Understood. I of in data drivers revenue with quarter and mentioned recurring outstanding terms as I a this model? of other in in how outstanding. of more of growth subscription-based about things not a the the

Lynn Martin

is this Dan, So Lynn again.

for we our and of capture whereas data headwind you into assets think remarks, specifically treasury if flow index flow bit businesses his our and really analytics follow-up have markets then business, higher a Warren businesses. fixed specifically of rate, our the prepared indices. out a the how our we volatility munis. think turn line, income business of but illustrates we've in pointing the over We about And bonds a execution question side capture indices, equities, corporate and talked lower assets be seen to indices think in said off because for build I to being tailwind a I start been all-weather Warren. our Thanks it to about where what the you're for I'll it's significant

benchmarked as And headwind analytics the AUM new in said, But significantly which and our mix changed you looked at Warren In indices, this fact, issuance impacts an all-time the line if we're data look the high. income fixed another it's affecting income revenue. against actually year. the at bond is has that's the seeing which fixed

tailwind continue our line for been have capacity customers other in to various feeds in resilient Network So our connectivity double-digit to interact line, increasing our our including ICE particularly reliable, data is volatility a albeit see growth that market connectivity, outsized modernize. require chat as with That higher that believe analytics growth business slower growth part in said, consolidated growth of Global platforms to at grow desktop to asset classes outsized which and our business, growth provides double-digit transparency our volatility, the opaque to you in customers specifically our our data platform, as the and in in business to increase bandwidth XX% continued our has ways demand continues again, a which rate has legacy for of impacted that what where much factors has services we data PRD services, rate. other

Warren Gardiner

of And the on the custodians customers a or are subset a to have. will they just that. that the priced should fund add give in do more holdings say, price. and that you to that, typically based of little consume, as I securities bit number such of Dan, participants that just is take color I'll be on consumption It There

you So them not will. if bond holding there all, -- a most, if of lot the market, honestly of

And whether fluctuates some growth years, to component of growth the so be that or markets sort the more and part structured the around replaced. the market at it's refinancing isn't data to the of will the end and to. the only applies it's sort this business in It's our of overall will and that of TRD But new lower that munis portion of related necessarily issuance growth bond help the or over overall size the and it's canceled be -- hurt business. fluctuates bond corporates single-digit tends again, overall of a day which it of as or and that as to the a extent subscription products business that, in

Operator

[Operator question Voigt of KBW. comes Kyle next from Instructions] Our

Kyle Voigt

the segment. customers wondering bit you the in if on a your of Tech Just health Mortgage could more comment

of You didn't be volume the in mentioned to and mostly there a that what in were customers could call earlier renew consolidating. beginning long the that phases shuttering or But some we're really environment. challenging

next So part remains the in offset extremely segment that that of some year, the grow revenues on expect environment the mortgage as is, current still I question challenging guess year-on-year do the well? over and slowdown the client attrition? if can believe you Or recurring you we business should

Ben Jackson

do Kyle. think confident to Thanks, out. perfect feel point And is quarter X% Ben. past to to This horizon is in of we example a And our I XX%. the long-term the ability that this over grow business

close year-over-year down was to market XX%. And the sequentially, north had You XX%. of down it

renew. environment So we even it to to them they're more shifting them have model we more clients. customers the as renew. revenue, towards And transaction for economic a do about if tough And their with the some to that of approach low And subscription, -- yet, us of customers this environment, X/X we able get that's in didn't why costs were that. willing single-digit very

the of provide. and the that's think technology but also a sign nature I resiliency we a good to very the testament So the business of mission-critical that

So I see all positive. from that standpoint, it

impacted, up And that starting in MERS that new new seeing it growth population personnel It's was terms Jeff lenders is this from of last to that The and go as of thing comments are you referred what's to some you starting with some back in new his the see that churn up, that the the graph shops. they're lending we're these of lenders other and year. happening slide Jeff if are than higher showed year.

So that coming up there's on is a the new scene. startups testament that

a that to want that. others adopt their But competitive compete environment to it's and way for to most set and we have in that efficient positioned these the As environment. they win up businesses albeit folks well up, with we're we automation business start wins in

go also potentially back on of happen some churn that startups there's continue. that to of side the where out customers So expect there's business, But we that of it.

Jeff Sprecher

just homebuilders is you satisfied yes, demographic but interest me in And -- United to demographic with children, live. people presentations, country earnings for the there rates. this that that are trend, is And uncertainty Jeff. shown be in an to the Yes, unbelievably And their one there we've place large the households, past having a And getting in on are for higher issues or supply starting has this another, way let States. homebuilders, are there lives. moving of that new on with are chain married, demographic going trends

basis in I with on And so what solutions part is macro think to us building deal population. you're seeing really a that

Kyle Voigt

follow just that's terms that the the to role that Dan's Understood. question X%? regarding aspects deceleration of on income But into the to in ASV the was from sequentially? up that, terms entirety prior look facing. we also that in other X.X% saw really X.X% we playing when of Or on business I the growth And appreciate in some additional of versus a just of just quarter decelerating quantifying that to follow-up, fixed color of I wanted mentioned last X% quarter. the you the index and that kind were headwinds

Warren Gardiner

Sure. Kyle, it's Warren.

business the macro for is closer there. It but of also pricing of to I mean, AUM those, on about certainly, X%. a if talked quarter. look, we X% I was and well. couple side But was So for those around yes, headwinds Euronext the forget adjusted are that things some part you ASP as of mean, adjust there the the don't for

pretty fixed about a And and the -- again, at perspective. about XX% the given within So margins quarter, And grew lose segment sight moment. mentioned don't We're was quarter year-over-year feel points. on but say, up business. the in in by of up overall that results, should don't Lynn good this margins lose year-to-date the from I in XX%. or markets income business, segment we income where operating that what's revenue XX% X going Operating was the up

of segment that very that what we're the factors on side, the what's of weighing the index side. trading lot on pricing a side for happy seeing are So benefiting on with performance the or and we're us on the overall,

of some results business best overall. year the we've we're the ever the pleased this are results so had and So with those of

Operator

of question comes from Our UBS. Kramm next Alex

Alex Kramm

want on almost situation answer, you're the the for there. your you to like I question it Ben, back come Russia-Ukraine in seeing, energy underperformance blamed what sounded to performance. almost entirely Richard's

So that almost sounds a structural. little bit

down? that think make for form, are So or green there I a to price to even wanted it more something little unless maybe And I other to Or quickly, to really its you levels? Is it to needs you of would Is as factors then in normal changed? talk happen sure to, it could and bit just maybe isolate margins that don't having more volatility is shoots. coming come maybe there's some know. perform well. business caps has Europe better what current in point structural

your business? terms in somebody those speaking, view how is forces not usually of wondering volume. generally impacting you interfering So Because good for market just in

areas energy. just those So two maybe in additional

Ben Jackson

Thank I'll put But of these on what a and is think some you, color things I Alex. this. seeing little underneath not more -- what you're seeing lot Yes, that regimes you're of the been a place. give in have

of So this you've gas being cannot put place, those year deliveries that got for earlier. happen. are the -- in oil -- It's oil at end example, put and

to think that TTF TTF exactly month gas, at me of look and is have why won't comp I question and just look that contracts number oil the you until that is that in in see month that of last of market coming things So through. year you same. just 'XX And our are build right we're as end at at beyond that the an touch the highlighted when the interest of and to starting the this and some contract gas have up I October we traders earlier also natural those participants business the October passed, I gets with active year open that's that versus example. encouraging In now look in the you

We any that participants market trading lost TTF. haven't are

me, We've that situation of longer-term to the also, So in sign same in in clears. as that, strength time, of grown the TTF the business is subscriptions double same time. at digits data our period a

eyeballs people there's attention So to and more more it. paying

these the from So perspective, about contracts. longer-term of a we positioning good feel

TTF. new France and from going As contracts in those LNG and we're as price relative contracts. Italy, Southwest as launching the Feedback I locations with are had to to basis mentioned, Europe gas new well Germany Northwest all traders Europe

understand that So the On we that also good the mean, mentioned, feel long caps term in of we as you about price Europe. well. situation I severity look,

lot price very We the solution in these well important to you the to to people that highlighted commodity discovery. through a of to weeks, market-based hedge can dialogue dynamics commodity to of on our changing and manage it to price they're participants are as a make acknowledgment issues our government expressing in and the And on the don't as and create articles an these with being discussions see that that's that And agreement best governments a also caps and to accurately issues over active broadly they their are of have risk. tools supply as the at makes price and want have disrupt commercial and risk. limit difficult the sure several commercial role signals price that the happened hedge media regulators Through to been pricing with couple is and last we artificial that expressing there we've table market general demand very been are price customers with forge is and markets deep know futures provide liquid issues.

markets you're if moving up transparent in the -- a end volume liquidity and to you more unintended these made put having if could price that's of decade would reversing here. progress result markets, been Second lit markets, you it caps of than taking and from the be OTC that

settlement, is what of real now. consumption can that If may to price from it you exposed clearinghouses price risk an And obviously, in manage to artificial position. the And are elsewhere. and what dislocated clearinghouses, markets if accurate for it are the people the can these we're makes is the price right go overencourage create that it's which global market it an looking difficult create supplies artificial in that for not

in We're dialogues in and And to continuing proactively we're understand issues lot all launching the middle So in why at the the rhetoric those putting solutions and a which the as are we're middle of recent the December of why situation of we're contracts these settle. help that's encouraged table. risks. that forth is they market-based

Alex Kramm

I appreciate the incremental color here.

It for one like quick one higher directly benefiting rates Just Warren then. more. your seems revenue is from

just then think, can CDS was the on if I me OTC business, I magnitude what the So in the remind and hoping on line net other you exchange interest And is, you income. got the side.

fairly rates can then in obviously, balances us terms underlying some you rates sensitive maybe dynamic to the and the in you're give U.S. mostly these Europe data is what of in you're days. So getting, and because, the rate the picture

that understand model So better. to make how wanted to sure I we just

Warren Gardiner

Sure.

also the providing about our to service at is we're other, The -- clearinghouses, CDS -- the been if would value say that's providing terms I'll in just OTC second half within to just business interest. about trying have clearing quarter, and the So increase customers. that you we're look be management a and not not of we're only bank. too, but related member risk within And to and those the of

collateral working to I emissions the we're some can. people to we We're of should of accepted levels people expand say, towards -- collateral the the as different with leading where actually Ben of options. we're such lower types pushing on so mentioned that benefits And trying allowances. we or trying

but to that sit little of a are going bit a we that's just difficult is starting or a October -- there of we lot -- to still of It see and go. normalization levels where other to are certainly well. line OTC significant as of as so elements collateral but to the are item predict And of part a part other here in we it's in some

of we're it's not total that volumes where, built as the line will, vast seeing the also, growth it's the but imagine, been same if end the -- businesses. And But as would we've the you the hold of majority, levels the driver -- that we then the would certainly, CDS of of day. for certainly at So some business have across you there. volumes collateral it's helped across clearing as really business trading or strong seen

As certainly demand and increasing recessions around and as the rates that. is for alongside to continue credit protection credit interest the risk headlines build,

bigger over too, quarter, quarter period a the really than been first driver don't time And quarter. the third anything things of longer forget, else. that is that's that's So roll a a of as in

from well to bit second business. little as So and maybe that we fourth in a relative benefit that the quarter

I bit other go hand. point would the -- we cash below we're is to hand -- little we the cash the a the line, have if out on have actually you the on area we're that bonds our interest in earning that benefiting from on The on sorry, just or

side well. benefit through perspective some well we statement, rate within of in course, that's rates the benefit the So interest from to get as the of an the of businesses that income higher future and addition, flowing rate on as there's a Euribor interest U.K. from

across the to there's as be environments. the some rate number of different that during well of rising offsetting that areas course, not of So do rates may are higher benefiting platform, that a as we're tend things

Operator

closing was Due Jeff any over to to our now Sprecher last today. I'll back hand remarks. time constraints, that for question

Jeff Sprecher

to Charlie my you, and faith thank for opportunity we customers your during again look morning. talk hope today. you, us joining like thank in you that, record and our all putting for again I execute I thank you We to that you We have another everyone, quarter set we thank us continue to about for colleagues this uncertain Well, these forward yet able your were delivering And on would a very as appreciate really the updating business. to day. times. to with good

Operator

call. gentlemen, today's and concludes this Ladies

disconnect now your may You lines.

Intercontinental Exchange (ICE) 3 Nov 222022 Q3 Earnings call transcript