Intercontinental Exchange Inc Stock Price, News & Analysis

Intercontinental Exchange (NYSE:ICE) has launched the ICE UK Allowance (UKA) Futures contracts and hosted the first auction of the UK Emissions Trading Scheme (UK ETS). A total of 6,052,000 UK allowances were successfully auctioned, with future auctions scheduled bi-weekly. The contracts trade on ICE Futures Europe and clear through ICE Clear Europe, part of a growing carbon market that saw a 40% increase in participants from 2017 to 2020. The auction has been positively received, signaling active market interest in emission trading.

Intercontinental Exchange (NYSE: ICE) has announced a strategic investment in BondLink, a fintech firm specializing in cloud-based debt management solutions for the municipal bond market, valued at approximately $4 trillion. This Series B investment aims to enhance BondLink's growth and product development, providing access to ICE's extensive data sets for municipalities. The move addresses the fragmented nature of the municipal bond market, enhancing transparency and efficiency in debt issuance. The investment is not expected to materially impact ICE’s earnings or capital allocation plans.

Intercontinental Exchange (NYSE:ICE) reported record Total Futures Open Interest exceeding 47 million contracts as of May 17, 2021. Key highlights include TTF natural gas futures achieving an all-time open interest of 1.93 million contracts, reflecting a 20% year-over-year increase. Average daily volume for TTF has risen over 40% annually since 2016. Additionally, Murban Crude Oil Futures reached an open interest of 52,148 contracts. Notable increases in open interest were also seen in JKM LNG, Environmental futures, Sugar, Coffee, Cotton, and Interest Rate futures, with growth rates up to 31% y/y.

Intercontinental Exchange (NYSE: ICE) held its 2021 Annual Meeting of Stockholders on May 14, with all twelve director nominees elected for a one-year term. The stockholders approved the advisory executive compensation vote and ratified Ernst & Young LLP as the independent public accounting firm for 2021. Additionally, a proposal for a simple majority voting standard was also approved by a majority of stockholders. Broadridge Financial Solutions served as the Inspector of Elections for the meeting.

Intercontinental Exchange (NYSE: ICE) announced the launch of GBP SONIA Spread-Adjusted ICE Swap Rate® ‘Beta’ settings through ICE Benchmark Administration. These settings are designed for an initial testing phase to aid the market's transition from GBP LIBOR to GBP SONIA for non-linear derivatives and structured products. The new rates will be published daily for tenors of 1 to 30 years, aligning with the recommendations from the Working Group on Sterling Risk-Free Reference Rates. Stakeholders can access these rates for evaluation purposes only during the testing phase.

Intercontinental Exchange (NYSE: ICE) has announced a consultation regarding the cessation of the GBP LIBOR ICE Swap Rate settings. Following the FCA's 2021 announcement on LIBOR's future, IBA suggests it will not have the necessary data for GBP LIBOR settings after December 31, 2021. The consultation, open until June 4, 2021, will determine the future of these settings, which are currently based on SONIA. IBA also hints at a future consultation regarding the USD LIBOR ICE Swap Rate.

ICE Mortgage Technology reported a surge in millennial home purchase activity in March 2021, with purchases constituting 51% of all loans closed, up from 46% in February. Despite a rise in interest rates, which averaged 2.98%, millennials continued to engage in the housing market. The average time to close loans dropped to 48 days, a decrease from previous months. However, the average FICO score for millennial borrowers fell to 739, indicating potential challenges in creditworthiness. The tightening inventory in the housing market may lead to increased competition among millennials as the summer buying season approaches.