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Intercontinental Exchange (ICE) Q1 & March Volumes Drop Y/Y

·3 min read

Intercontinental Exchange ICE reported soft average daily volume (ADV) for the first quarter and March 2021. ADV of 6.6 million contracts per day was down 21.1% year over year in the first quarter due to lower volumes in Commodities as well as Financials. There were 61 trading days in the first quarter of this year.

Though Future and Options volumes declined in the first quarter, per Ben Jackson, president of Intercontinental Exchange “during the first quarter, our customers continued to rely on our liquid and growing futures and options markets to manage risk across asset classes.”

Commodities ADV declined 16% to 3.8 million owing to 14.3% lower Energy ADV and 27.7% lower Agriculture and Metals ADV. Financials ADV declined 19.3% attributable to lower interest rate volume and foreign exchange volume.

Intercontinental Exchange also updated its expense guidance for the first quarter of 2021. The company now expects first quarter GAAP non-operating expenses to be in the range of $51 million to $56 million. Adjusted non-operating expenses are expected to be in the range of $78 million to $83 million, accounting for a $30 million dividend related to its investment in Euroclear and FX. Earlier, it had guided adjusted non-operating expense in the range of $105 - $110 million.

Concurrently, it reported ADV of 6.5 million contracts for March. ADV dropped 30.8%, attributable to lower volumes in Commodities as well as Financials.

Shares of this Zacks Rank #2 (Buy) company have outperformed the industry in the past year. The stock has rallied 33.5% compared with the industry’s increase of 25.6%. The company’s product portfolio, along with a broad range of risk management services, strategic buyouts and a robust capital position will likely help the stock retain its growth momentum.



Recently, MarketAxess Holdings MKTX reported March volumes of $689.6 billion consisting of $292.6 billion in credit volume and $397.0 billion in rates volume. CME Group CME reported ADV of 21.7 million contracts for March. ADV dropped 32%, attributable to lower volumes across all six product lines. Cboe Global Markets CBOE reported March ADV of 11.8 million, down 4.1% year over year.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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