Intercontinental Exchange, Inc. - ICE STOCK NEWS

ICE's First Look at June 2024 mortgage performance reveals a 14.5% spike in the national delinquency rate to 3.49%, primarily due to the month ending on a Sunday. Single payment delinquencies increased by 19.6%, the highest since May 2020. Despite this, foreclosure activity remains low, with starts declining 6.2% and active inventory 34% below pre-pandemic levels. Foreclosure sales decreased by 14.9% to 5,300, the lowest since February 2022. Prepayments eased by 7.6%, ending a six-month growth streak. The total U.S. loan delinquency rate stands at 3.49%, up 11.70% year-over-year, while the foreclosure pre-sale inventory rate is 0.35%, down 18.44% from last year.

Intercontinental Exchange (NYSE: ICE) reported record-breaking performance in its Low Sulphur Gasoil markets for June 2024. Open interest across futures and options reached a high of 1.2 million contracts on July 1, 2024, equivalent to 120 million metric tons. Gasoil futures and options open interest is up over 40% year-over-year, with trading volumes up 30%. Gasoil options hit record open interest of 234,570 contracts on July 3, with Q2 2024 seeing record trading levels of 287,421 options.

The success demonstrates the strength of the global benchmark following the EU's ban on Russian diesel. ICE Gasoil's physical delivery process has averaged over 100,000 tons monthly since early 2024, showcasing its alignment with EU sanctions on Russian oil. The contract continues to be the most liquid distillate benchmark, offering customers significant margin offsets when cleared alongside other oil positions at ICE.

Intercontinental Exchange (ICE) reported record trading volumes and financial statistics for June 2024 and the second quarter of 2024. Key metrics include a 30% year-over-year increase in total average daily volume (ADV) and a 21% year-over-year rise in open interest (OI). Energy ADV grew 30% y/y, with natural gas ADV up 41% y/y and oil ADV up 24% y/y. Financial ADV surged 39% y/y, and interest rate ADV jumped 52% y/y. Notably, record volumes were seen in various categories, including energy, natural gas, and interest rates futures. These figures reflect enhanced customer confidence and the growing demand for ICE's diversified commodity and financial markets.

ICE Mortgage Technology's July 2024 Mortgage Monitor Report reveals significant shifts in mortgage interest rates. As of May, 24% of mortgage holders have rates of 5% or higher, up from 10% two years ago. The report notes that 4 million loans originated since 2022 have rates above 6.5%, with 1.9 million exceeding 7%. Interestingly, there's a spike of 690K loans just below 7%, potentially indicating a tipping point for refinance activity. The VA market has seen substantial growth in refinancing, now accounting for over 30% of recent rate locks, up from less than 10% a year ago. This surge is largely due to streamline refinances, providing average monthly savings of $230 per borrower. Additionally, refinance retention hit an 18-month high in Q1, largely driven by VA and FHA loans.

Intercontinental Exchange (NYSE: ICE) has provided an update on the cessation of U.S. dollar LIBOR. ICE Benchmark Administration (IBA) will publish the 1-, 3-, and 6-Month synthetic U.S. dollar LIBOR settings using a synthetic methodology until September 30, 2024. The Financial Conduct Authority (FCA) will not compel publication beyond this date. Synthetic LIBOR settings, which are not representative of the actual market, are restricted for use by U.K. supervised entities unless permitted for legacy contracts. Stakeholders are advised to seek legal and regulatory advice to prepare for the impact of this cessation.

Intercontinental Exchange (NYSE: ICE) announced the launch of a new clearing service for U.S. Treasury securities and repurchasing agreements, leveraging its existing ICE Clear Credit platform. This initiative follows an SEC mandate aimed at enhancing transparency and resilience in the Treasury market. ICE Clear Credit, the global leader in credit default swaps (CDS) clearing, will manage this service independently from its CDS operations, with a unique rulebook and risk management framework. The launch aims to promote competition and improve risk management in the Treasury market, building on ICE's extensive experience in clearing various financial instruments. ICE Clear Credit has historically reduced counterparty risk by clearing approximately $200 trillion in two-sided notional amount.

Intercontinental Exchange (NYSE:ICE) released a detailed report on May 2024 mortgage performance. The national delinquency rate decreased to 3.04%, the second lowest ever recorded. Serious delinquencies, loans over 90 days past due but not in foreclosure, reached an 18-year low with a fifth consecutive monthly improvement. Single missed payments dropped by 19K, but 60-day delinquencies rose slightly. Foreclosure starts fell 6.5% from April, maintaining the lowest active foreclosure inventory since January 2022. Yearly foreclosure sales decreased by 7.2%, remaining well below pre-pandemic levels. Prepayments rose to their highest since September 2022 amid rising home sales and slightly improved refinancing volumes.

Intercontinental Exchange (NYSE: ICE) announced the launch of USD SOFR ICE Swap Rate® Swap Spreads and EUR €STR ICE Swap Rates® as benchmarks, effective July 1, 2024.

The launch follows the successful testing of indicative, 'Beta' versions since May 3, 2024. These benchmarks will be used in financial contracts and instruments by licensees.

The new settings are determined using IBA’s ICE Swap Rate “Waterfall” calculation methodology and will be published alongside other existing benchmarks in USD, GBP, and EUR currencies, covering tenors from one to 30 years.

For licensing and access information, contact IBA's licensing team.

Intercontinental Exchange (NYSE: ICE) announced that its ICE Midland WTI (ICE:HOU) crude futures contract achieved a record open interest of 158,208 contracts on June 13, 2024. This milestone follows a significant addition of over 100,000 lots last week. The average daily volume (ADV) for ICE HOU has seen impressive growth, climbing from 1,794 contracts in 2022 to 27,560 in May 2024. The Houston market has evolved considerably, with increased production, expanded infrastructure, and a lifted U.S. export ban contributing to the U.S. exporting 4.2 million barrels of Midland WTI daily. ICE HOU offers high optionality, delivering physical crude into major Gulf Coast terminals. The contract also provides margin offsets up to 98% when cleared alongside other ICE oil positions. Overall, ICE’s global oil complex open interest has risen to 14.4 million contracts, reflecting a 24% year-over-year increase.