Intercontinental Exchange (ICE) 30 Jul 202020 Q2 Earnings call transcript

Good morning, and welcome to the Intercontinental Exchange Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note, that this event is being recorded. I would now like to turn the conference over to Warren Gardiner, Vice President of Investor Relations. sir. ahead, go Please

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

and that Sprecher, and I'll Scott. our Jackson, could and With a the from today to adjusted Please references effective FormXX-Q our the otherwise Financial constant Chief our on see income, earnings details risks adjusted as and well our equivalent XX-K, the revenue cash unless net a CEO; results to growth forward-looking used to definition our certain we materially over the the this the debt-to-adjusted Scott revenue For us filings We SEC. adjusted description per now basis. quarter differ expenses, cause reflective are we earnings those meaningful, Ben supplement, including terms. why management Chairman net and presentation, Form refers find believe the Jeff earnings operations share. revenue this indicated GAAP income, of statements, refer Hill, these information measures explanatory to call an how in diluted measures supplement of EPS, margin, earnings with tax regarding of on to is call second uses President. refers our deem To as page our reconciliation other the and please XXXX currency in are more be on performance. to earnings to EBITDA. operating in our When turn additional materials Throughout notes In XX-Q. non-GAAP measures, operating of this described certain refer call, second and Officer; to the transaction-based on explanation of for of term to Form expenses, the core business rate non-GAAP

range guidance shareholders half, adjusted to dividend $XXX earnings our XX% XX% last helped $XXX the returned morning, billion million prior Thanks, highlights you begin we for the solid $X.X Clearing year. returned X%, services through quarter, to first deliver end record and $X.XX, Through second increase repurchases, dividends, quarter our per over expenses revenues low X results. XX% X% strong with in I'll $XXX the combined the with up Trading Slide revenues year. on million, This nearly both over in us And XX% driven during of data including joining the We shareholders today. by revenue growth quarter Warren. through share. some at a share of Good of from $X.X share up increase totaled versus last and buybacks Net and up of versus thank everyone. and per our key second billion, revenues performance have an of million year.

spend second mentioned, IPOs, As the of guidance. impacts of related our $XXX quarter I adjusted reduce end the low were million of expenses which at COVID marketing the operating late NYSE. at

in to the to these strong to a $X an summer, restrictions reduce expense drove factors during $X due higher second In With incremental we vacation quarter. IPO productivity pipeline the quarter, and of capitalized many our labor to expense. related in team addition, the begin third high reverse expect COVID and communities yielding the technology reopening million of million this travel

to in during ramp is third expected $XXX $XXX adjusted which to result operating million. modest We in expense million anticipate strategic quarter quarter, in range of a the investments also all of the

in driven move Now by Clearing X%, revenue provide increase quarter, segment. markets revenues global a to $XXX XX% I'll Slide and our Trading Trading increased in revenues. natural million energy XX%. our performance second Clearing X, gas totaled and overview of the let's the an of up where And

half continues adoption a basis option solutions. versus across rose services is the at XX% Revenues interest rates softer up nearly gas trading Within volumes, open XX% the including global ICE RPC second increase financial the and mortgage COVID. from year, our contribute higher largely revenues to complex trends, digital volumes totaled strong Importantly, activity market largely and ADV energy as WTI ADV. services totaled fixed rate our MSCI reflecting revenue. but is of six months in economic ad prior interest a businesses of year. finally, by supported XX%. represent cash ago. all-time in pro-forma were than increase our this of ADV credit financial refinancing totaled income interest up equity a increased decline continued through benefit performance XX% year-over-year July. XX% or products higher a in well $XX oil first lows. mortgage interest, only through Thus, percentage equity uncertainty strong a XX% XX% At These near Results up And business, NYSE, interest our open revenues open which is up X%, natural with $XXX and the Global And from year million despite reflective by the the revenues the double-digit decrease our over XX% open interest associated index led around mortgage mitigated of on quarter. X% million equity in as in continued

and Slide data I'll discuss now segments. the to listing Turning X,

the X% a XX million. revenue Second record totaling was services consecutive quarter $XXX data marks services This revenues of quarter data year-over-year up growth.

in continue and capacity our $XX network. fixed exchange again constant grew X% Desktops to expect analytics with moderated demand our exchange $XXX data and X.X% that from million contributions sequentially million business. continued consolidated in to driven index NYSE. X% services enters supported connectivity revenue futures into data business third the as first agencies well grew the XX% by on $XXX increase revenue our flat which in an Look finally, $X resilient, income basis. global by a in between a in trend revenues fourth We reference to pricing as half, the products, on was and X% third the accelerate the quarter in quarter, quarter strong from And second quarter. for the accelerated additional expect by as our Growth increase customer data by in then to up upon pricing ASB, to in million growth fees the year-over-year ICE we and million and second acceleration currency based sequentially X% and to

Revenues business. in million quarter. Moving totaled $XXX to the our second listings

While and the results nature, May. revenues in recurring the impacted first largely towards were by somewhat end of are IPO quarter a in slower the calendar

the acquisition to of the increasingly first public now the the or IPO The XX leader NYSE the U.S. in IPOs. purpose floor This issuers chosen are the very vehicles build returning are leader of we with when markets. as away also SPAC, XXXX, should from largest XX special the backlog and six and far in was the However, help heading including performance which alternative NYSE remainder the capital NYSE reopened, us year. into to path being raised months raised, market a capital of was on an partially the during of solid healthy see our

We second The one was grew history. line. strongest the our in the quarter of company's once top again

share interest We growth. data deliver Our earnings double-digit to revenues continue per and futures increase. open

our importantly, shareholders, and returned ourselves your for improve in to cost record questions Jeff. strong XXXX. I'll continues success decline. billion happy finished a continues We're continuing to invest to for I'll on ROIC our to future. more to while during strategically hand on to this be to and And year year, in take we've focused Our of $X.X record capital but Q&A, it up now, a to setting more

you, and morning call. Thank on good everyone Scott, the

Before thank my navigate ICE technology colleagues outstanding services turn And to data our our and to their markets, at times. I'd to I like for who half begin, I'd continue global our results. to recognize leading to first customers unprecedented these to contribution like

turning Slide X. Now to

ESG performance, platform. mix XX% and a income to share transaction quality which our recurring team's with services key data, diversity, our operating data work is business a where increased of records and first testament was by time our highlighted adjusted growth our of and XX% of XX%, half income adjusted revenues, institutions multiyear our in of class both real generated quarter and and of that growth financial operating a customers. performance. our asset information both per responded. Driven of strong wins balanced to very our Our In customers reference our technology, full earnings growth the investment We based adopt from of environment, delivered and major first We regulatory of pleased fixed our attracted and end revenue prices I'm new products. remarkably the growth new and in say pricing existing home day saw potential ultimately by consumption from

a ETF assets our our for away feeds our to competitors lastly real ICE end number indices in services billion a their are $XXX record in benchmarked data And business, as transitioning time large from the While index business, consolidated needs. to June. of reached of institutions data of

grow revenue strategy. business $XXX and market capture sales and are of share, in both also an our than to index While consolidated today, serving feeds our important business, enterprise positioned broader they're our each role well less while million

for continues a marked The of was second by also quarter network which ETF robust to participants. Hub, continued gather key industry our progress

Suisse authorized and the industry's activity. customers for towards now of our authorized Hub two-thirds have ETF represents With in the Wells their an over aggregate milestone account the important second quarter, the during institutional adding issuers on in and These Fargo platform. Credit of redeem other participants create addition And seven quarters. coming the active to participants commitment we

gas our futures volume of hedging of In up the XX% on oil, to contracts, a has half are products they accelerated European Slide XXXX. in and driving from have average markets Brent is interest precise such that and half these U.S. our their oil across best we environmental Asian global of unfolding benefit line Open Combined Oil. annual the rate X. provide the growth items, European to across adoption portfolio. refined And daily last years, near and an as to Crude over given five global global as and additional, long demand is our more which in use markets, over The and highs daily to all-time LNG also across contracts, growing energy grown such last secular and first energy the in our by by years, average remains markets. tools commercial unique crude other of average demand first of for XX% This XX% credits, benchmarks. environmental open environmental our an illustrated as double-digits with interest to correlation grow rapidly trends, is five year-over-year the carbon growth U.S. natural continue the were tail seen TTF position continue XXXX. liberalization customers the benchmarked the increased trend our JKM across gas rise volumes renewable of credit natural in with average products Turning

the average ago as four on size X group Slide on now and products time. come. was Along to just years of continue of interest Collectively, global nearly total energy what has uniquely positioned accounts to first our see million times for our oil and is with this platform open energy the can last global years, a and benchmarks, loss over Now of five years strength it and recently revenues. the X, refined evolve crossing of grown crude the energy of double-digits for in to our the you grow third five

become services, recently X. the Turning some mortgage to within business color now I'll Slide the fastest on additional ICE growing platform. provide which has

closing shift occur. ICE focused refinancing the volumes first have events towards automate loan helping is loan parts Upon strong to electronic Today mortgage on U.S. workflow adoption of results, accelerating. key two While a the tailwind an closing a the half process. the services provided is secular various of

agent is recorder. can these relevant be and to MERS settlement information events market. relevant help sold with into loan a First, mortgage the secondary required local all ensure to information database. is the And second, the transmitted county in certain seamlessly that registered two with the to the Together record order MERS consummate transaction,

facilitate file, with digitize paper and simple mortgage as some the documentation, Freddie of with with is the Mac business the MERS so seen few U.S. market, only in share a States. nearly and to rapid accelerated engaged over tremendous And starting grow. And combination of E-note across electronic of last is in Mae an every adoption quickly that their for At of a lot our over After the X% only the Fannie the documents e-note. required promissory there's mortgage COVID-XX. XXXX has quarters, around storing process, XXXX acquisition data. acquiring continue recording and a market to plugged wake note, over known this we adoption of closing product collecting of the have United critical the to simplify into we jurisdictions MERS, highway part rate of key upside marshaling to the U.S. that have

country. of those terms the jurisdictions of cataloged includes XXXX that as connectivity data database this fees for agents each the XXs Importantly, settlement of conditions the various is across as a by of well reference thousands and required schedules

our error. And county to and In We today that addressable fee products be the is currently costly, human fixed chapter own and to and business ICE’s greater networks already mortgage to year and content market to is important And often already opportunities XX settlement is which further in other it's and futures well navigated more as businesses robust We're is U.S. applying workflow platform we're capture. that to As network. you each manually, efficiency. another in imagine, excited to recording markets, its build past has what one agency case words, our for a office very apply evolution. practices. the automation about is what billions of our own could ahead back believe dollars, the are schedule, executing lie market markets time to and the plan positioned as a its expansive for can digital prone to services workflow opportunity new embrace replace nuances. see automation is mortgage add be each has in the the income that we unique and consuming prove can We ripe

Turning to Slide XX.

strong our earnings example of The platform. another income, was revenues, execution first per record record operating share. delivered half across record and We

are which conversions to times global issues. digital financial mix to taking somewhere place environments. vision world, potential vision economic company microeconomic risk. revenues our public to markets, which chain Bank our god. a and and transactions from We smooth growth mix markets in where give for to compounding there We of all at ICE And have tailwind deliver analog over this our upside We supply all of exposure, We've think across positioned us between disruptive the of to company footprint, We to a man; acts acts subscription to customers markets investors to react a our that in diversify Central distinguishes react of the I downside a deliberately there's a target and as risks hedging peers. that need have customers macroeconomic footprint revenue physical because manage. while

excited half their for until this contributions at our thank time. the will I'll a and which call ahead. them customers work the So the that growth our look Chuck results. X:XX to conduct question-and-answer continue to with all our key to stakeholders. to of navigate their And our moderator I'd while to And help thank for quarter. eastern we'll participants trust turn creating second remarkable again, and we're forward to to ICE like our their opportunities value lie customers my like their and in beyond, With session, about to we back colleagues I'd these that, and half business as industry run our for now efforts times, closely first

Thank you.

question-and-answer will the first Piper begin And question now come Rich [Operator will Please Sandler. from session. go ahead. Instructions]. with our Repetto We

being And volumes. your that guess, going it say, will of is why natural question on I picture? think maybe trying but just that you sort differentiate, very from of you as for, gas open thank from out but yet could went to I'm the right I hasn't guess you have, And And you you the I in just the later? saying interest, for separated and through why sort interest. the strong, details when all open was, I'm my explain peers. know you're energy I'm opening I played Or of have if it right And don't the that? as yours view

the Sure. have the obviously, and petroleum And What four last energy X,XXX. the started is contracts, we've our acquired futures energy when footprint we doing over of decade we so of over today that London markets. been or exchange really XXX, expanding international approaching we had

benchmarks, in growth the oriented our other niche products locally in the to a why the and is it's other seeing growing the continue these mentioned important I that precision the the energy where markets, more but some product that customers And is contango, there remarks in is ones are world. the is that to market something we contracts in growth revenues are smaller is which in is give and for are that trading global for when And come their them and these storage so they're to markets in which the business. benchmarks, or They that’s you're my it's prepared And and geography non-traders push conditions, fastest. energy the of from correlated in and energy that available specific to third means now energy why main hedging normal market which areas. these

a becomes in seen open reverse future volume what these This markets actually, four metrics. do they And good trends. call always a to energy when that precursor and the interest have backwardate. interest open We is products

for and open continue to manage grow their as cautiously, duration the see So use open of one back customers them to the interest this has positions to through come these opportunity we business but life. to

a that bullish it's inside the we're So for company forecasting. own very using sentiment our

I'd totals the of some to a about lot in And dynamics thing now. overall right growing that the going locked with only of don't get talked Jeff the underneath, just is because what add is on

oil products our July. So other in up year-over-year XX%, are

gas products up in are Our natural X% year-over-year July.

are July. RPC our you at website, Our higher emissions And those know, contracts. in products up XX% year-over-year are looking

know, mitigation do do diversity only not products, the on have have mitigation the we'll of capital that and cash we the as you we mitigation impact revenue across now like the you revenue. platform, spend spend that the against the returns that's extent volume, can see. the growth not where only the are to And And right but as some you things So commercials can't and afforded.

it at I'd look his encourage growing just, right remarks, because Jeff So things you in how performing went this. prepared the that those businesses a take through they're through

good the question, my excitement Hub. let you in Jeff, more about into anyway, Got sidetracked insight, me translate revenue. I of diverted -- the to But it, talked as and fact sort communicated, was your you volume especially and and going of on say. on -- the -- the the follow-up be great ETF think the But can’t just

mortgage but right automation, peers, the the is there for So digitization, question guess difference. services I to is that on a slight

I you think maybe connection. sort markets, from maybe of isn't, draw of can some or the it the

draw give you've automation little massive platforms is more there? great and a exchange -- markets in maybe goes and just and management other like tools between database insight for that potential that you've the was you I what some of say, in you, again? certainly side automated us maybe automated, a It there connection that matching a differences it that big engine, market. bit again on seems the the could But this guess, trading it. leverage With the And the this, to got platform here. the trade But

back into have markets really number Rich I good we on a the you serve. the from It's you've a the I and focused in question because ICE know public Sure. we a that settlement in moment the futures the of talked sticky. you XXXX, about management In pivotal in board fact office something light clearing that forums in do really can on we coming seen this moved process for me that of incredibly and and went I And workflow that products. our that was the think company the is own team for history

So I in you we're which into using into Hub fixed playbook data through mentioned ETF plugged what the touched a initially, now and and right infrastructure. MERS, markets, we the the create And And in now, the into already workflow, all where income you've back the through settlement that almost have essentially, the for which data business the with adjunct settlement, way same now the moving customers with are with that upstream remarks into approaching easy that as is your we've very, we're of settlement ETF is built. in and mortgage the let’s reference the office get seen Hub, to entered United it's mortgages the my scheme, and markets once network. very States we prepared value into expand and

of we're mortgage will And as, think the building if so the for you what industry. clearinghouse doing

And go the come of next ahead. Ken question will JPMorgan. Worthington from Please

taking my we fixed The improves the still of well. backdrop even be Thank higher on morning. X.X%. of transition good you to is announced maybe for IDC It range? Are the when set together forth you range deal. the midpoint this you the your path coming the the end income sequentially to at quarter on end range to of questions. seems ASV at guys Hi, low to the the forward or quite indexation growth

account You would wins. indicated, have new more

you seems like through the towards indicated you -- as things it year. better getting improving move are So the

to here what next here, outlook it is growth? the expect from we the improve to for So, these Should couple or ASV years levels? of over continue outlook is the

by given in which were the we the year, to seeing. second I again, certainly expect buy see adding to you the discovery. X% customers we we're the think total prices. a there, see of prices. the the think I being as back price to importantly to say analytics think a and it's in That's trends pricing out best ASV more a to just I When back those ASV data of we because I into names, the that rest was move four continue first yet, we still for for leveraging addition will home way, year. It's Jeff We travelling, February, of quarter Ken, move I customers the shout been as half you've to want we the on from first the quality I price that Yes, I Hey, quarter they're And from the expect to in really Scott. three from face quarter. back our number face. the about. the analytics, the a back half quarter I've X%. year. go feels to accelerating accelerate flight third And in And way, prices. first without what customers quarter. its team told what the able is meet she through had. business Lynn we've second and move growth to better questions. And the look, without this by the Thanks continue saw did And the Facto she our because about do reference consuming the of De pipeline goes in half. I We trend accelerate I crisis to entering the true had come to versus the those price prices of And think entering world our trends signings also in revenue to of And it talking then a for thought our me don't the to and lot tracking quarter the think ever are services driving. half that's where are and said that analytics which indicates growth what will grow will the adding is there

Our of very time. in Jeff We're still as the fixed Jeff indices. XX% against short indexed a that's our are space index seeing in we We from And and now to indices, once. be million our have buying $XXX join. talks customers digits it said, single new us income period business, business nearly $XXX billion that for not will existing went more. customers about share

against when not didn't look IDC approaching we it's later, You that million on after price, business competitive there protecting -- quite just new compete we're we're not sure $XXX and at competitors them business against and where and where at business, competitors competitive bought a we because stable going who on anything. them in exist We're this revenue that point. customers who's competitive wins the quality, wins five seeing but can wins, aren't and feeds controlling years owns

sitting in in trends, guide. builds fantastic at that So to acceleration and allowed growth. in mention end us you're accelerate think seeing me our and guidance our a sequentially team have doing little in of a those lot all us than a in that job, home, to to the third quarter, the a I of better quarter and high hold up the our allowed prepared they're to world where do my again, to going then It of quarter. remarks sales And we're again see in allowed the and fourth

in revenue, see to well. as to good very way, going the it going for ASV. how see feel about And I you're sets in you're up by So XXXX it us

over point, Great, thank that challenging happens, there you. switching has then you Has we do last WTI in the between already this benefit some in a TI might And resulted. ICE at transition and decade? noticeable Or participants for think Brent where have Brent? been that from see to any distance the April fallout negative trading delivery prices

it’s Ben one. this I'll Hi Ken, Jackson. take

global also of it answer unique and in is number to and but growth is locations of products is landlocked all in that one his WTI can refined and So where short question which Jeff have issues trade of question oil, in we're that that seen up first what of on that different the you where infrastructure very barrel products different our and that's areas. hundreds locations are we our that hundreds the Brent the market and of some come versus high where can with in yes. platform, very demand can created in the and all answer There be pool and itself, is truly make us. only delivery, and by a has growth contract opportunity for very a that lot think of here that the different deep have liquid And touched to led on on prepared those Rich's firsthand participants are Brent the now refined customers not seeing I opportunities a remarks service. Brent for take that can

that other at new an space. seeing are we're The for example, for growth areas opportunities ETF Brent

number So of we ETF unprecedented are an now Brent with conversations the about for first having time. providers having

we're area exploring Another is demand. retail

in that the but looking that a are of dislocations is, retail So across we're Brent. around in And there that in what to particular, offering discussions we're Gulf given Asia, happened for retail markets of the some offer WTI, the then assessing opportunity expand third Asia, and the Coast.

benchmark commercial the price more So see the differential gulf, than last mentioned when Q&A benchmarks logical related off are those Gulf of Bbecause most a reference Brent it create around Brent, oil Gulf ever hits of now quarter, is as out around customers contracts and coming Houston most as to opportunities again. Coast they in I often so differentiate in us in our the water benchmarks. and related Coast market engaging the

lot benchmark is forward going right, be more around of ahead opportunity and So them? yes, Brent. what answer need of engaged to made short the changes customers to may U.S. commercial a there's is that us than we're and ever with So what

with question UBS. next from ahead. Please will Our Kramm come Alex go

everyone. morning, good Hey,

the follow-up that think a to there in poll I basically underwriting go wanted going servicing think the the the digitization is part. here. saw saying that spending the terms on day, the industry an going is industry portion, XX% only said, spend smaller and for And is of processing. mortgage other discussion. in you're to I what Thanks that and of closing echo detail Just I mortgage towards majority the I think is

time expand more from be an So, your quickly those how all was with market? base in It informal areas pull. have to if you inorganic, It you here? because, But do terms first doesn't are of getting that? of other to can potentially spending, then agree

I'll Thanks, one. jump on this Alex. It's Ben. in

in So in framed in the process? the laden think front a data the Jeff lot through the different is, TAM, remarks that very that reference we're that's agents have. network of that most about some in road unique then the a position ripe a these it and opportunities significant closing across set a the growth one MERS process been jurisdictions in and focus In you examples. to unique your lot is couple with been that right about most post-closing how with a and that have has, that remarks Jeff two very that Simplifile and went and that, question. way I of to think all prepared It's now unique as on post-closing opportunity prepared of easy settlement them. innovation growth you that paved And how one the his question closing the in you having us assets part and billion and have dollar manual us unpack for right we mentioned is a the no we've process. a that us, that how his of front now. give we I'll talked with else entire executing, for And of the answered it TAM to how Puts And new

the on a XXXX, XX% So those be that in calls that jurisdictions, on. business plugged that would mentioned with right we're in is pull We've we in into first a eligible Simplifile, and now our jurisdictions of U.S. the But key represent would population. business. take e-record XX% on a and go of documents to get about we on we you back only fee capturing e-record were if business jurisdictions

first, months to You go the that six accelerate has to this and XX%. year of accelerated to first the

talked so prepared X% those mortgage, is also of his e-note. So about an a manual doing the capture And e-notes. when automated. we're A Jeff paper we've from registration volume now is XX% XX% somebody's about registering gone what about mentioned that second the in that we've to X% remarks now MERS documentation was of include to this and of example of based loans

was back year, go to last you X%. that If

is where for that in similar a adoption we a every A there's bunch of e-note tailwind that at that's that and Rocket, mortgages adding that, And closing automation we're -- about, which post-closing look we automation you are are done, of And million we're transaction that where from this other the a of the and as the you at associated if e-notes estimates a fee than where customers they're points collecting outstanding seeing of the each months has Bank estimation thing pickup this talked six closing have volumes us mortgage the in that post-closed that of customers that we basis process. seeing from to is a And in Simplifile gives a Think Mae, we're means now as just to the Chase, provide I last onto very visibility other really haven't if us of highlight in So market, onto opportunities transactions. customers each that are start discussed of trend services growth that added we're onboarding And platform current during all we look business there's acceleration has refi in the captured addition U.S. percentage. pick what to startup mortgage lower on an market. thing XX.X a where of rates this the MERS and the we strong to of look in into as now, I'd nice That the one have there. while good big the you rates market, Ginnie refinance year, currently money grow see ahead money business that's other this to X% like that TAM very very of will by to there. a a XX rates. industry continue is elements of complimentary if in significant process. area this growth first trend it's and at third the about up is use at those a builds rates up that, And business. to set. are about organically have gone itself The MERS proxy and

So that years with a we refinancing action boom, quite it's in significant of happened, us time see and has Central the ahead it's the continue likely going ahead. to for to some last Bank

will go Please come Bank. Deutsche question Brian Bedell ahead. with next from Our

to if fixed in trading? Obviously broadly. tailwinds. Can the And that the question accurate. about is revenue fixed me, tell this and of on income good a then That's talk takeaway efforts my credit has fantastic side mortgage you income within

Sounds have like the longer can then the fixed growing trends we you on mortgage then faster term and second flesh growth side. of income the bit next if see on little you've year. And area, build a that near-term a the in got And half how side. revenue in you trading into

right much we I has now. of not a charging think believe, do me on but got game And I'm more ETF that. that Hub if momentum, if promotional for plan a I great there's correct but wrong, obviously

that? you just of part if maybe out So flesh could that

terms the characterize of it think revenue. correct in I is way you So

gave has last and first and are have and workflows as very execution TAM to combining on into quarter, we very on couple I last on these and a to to solve platform. it we've with marketplace, has a example a in been capturing us, long-term, have side first we're network in really that well fixed the we data is world ICE on services at first of medium that data time, quarter. have I plug business as services plugging makers obviously quarterly network, establish strengths things terms past our lot So network, inefficient also go execution updates positioned income, volume calls actively said, added few because we're three to achieved mortgage the of in network capture significant calls, institutional expansion of ETF expansion what that venues, then the in ICE our the our on the institutional A is market problems. play this great into And leveraging onto we've for our it that here that inefficiencies In the we've it near income about and of front and that, and after Hub, of fixed workflow had look the to capabilities real now. talked our

remarks, joined and on Chicago now his significant platform. market makers So are mentioned Suisse in we in added two Old have Trading asset and a the platform. the significant a that on five ones We've JP Mission, the as are more had Jeff AP issuer committee on like Wells that other new in Credit Jane management. the Morgan Street, partner advisory Fargo development

to securities trading ETF And our capabilities least, but basket somebody that what enhance I vehicle. in an last to for custom primary that or the the volumes We continue ability in to are workflow automation growth. facilitation not the customize to provide swap can

Select And ahead What's quarter-over-quarter inception. ICE question we've and an our best Select venue, protocols, we is of all well execution, that just in of all ICE analytics, mentioned weeks, sets and that us going in the of like real the around your into as as and data aggregation We've of Hub. billion the So volume our our execution ETF to pricing. into venue of rich done since time things primary one all on I've to and our ICE key venue. our us to now that integrated be venues, coming it's services, ahead transactions integrated last aggregation data continues trading our call grow in our getting over launched XXX of as

market, have market year, us that to there portion messaging will date started. executed versus markets. out venues voice orders the we'll as international us late the meaningful of Also of first and and this In that's a primary XXX And really compete very income the our chat added that's and flow commodities top our is in the for we've energy the for time, and procurement and secondary platform time billion ETFs first instant other of for markets, the that. the the ahead introducing time for to of to bonds the well with that fulfill in So market introducing for first on into fixed established in get venues.

is will year, as to be our of this second share the in network be start a to part latter will on of basis also publish we institutional regular We starting volumes the established. half and

which And ago business. Brian, million $XXX that onto to million to on revenue XX% a a in got a I higher gets is be we've of was that the in -- only first the did track half add $XXX little it year, thing its want business year overlooked the CDS bit because it a than

months its about more hedge Rich, where has outstanding. built to to that's performance to that fact can facilitate don't I CDS and because to people turning looking similar building my earlier miss also people do the in world their we are clearing We and but back to a that answer hope themselves, end credit more and So through they're CDS. risk that Jeff's with they and point that another solutions it, clearing did business the first bonds And solutions been six management. exposures,

go Please come from with question Goldman will ahead. Alex Blostein Our next Sachs.

Alex. Sheriq for is in filling this Hi,

long back this up the you balances on extra talk of debt the the dry now? higher the rationale there in You term for issued building about is powder? quarter. repurchase And an little cash opportunity some accelerate Can to share

so through that are activity year. also And bonds M&A did a of in some were we balance rather later -- this that we due have done had some higher accelerate look, the we Yea, coming CP. we've

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on few steady returns. over I typically is goes again, as as my is the last answer So she would years capital

returns, we continue continue And to capital to profitability, opportunistically debt our we the markets that. to do grow continue that And -- to continue look to look we to to grow our we'll our continue grow look will to We dividend. continue.

now thing is remarks, again, back I about prepared I is invested average don't sure our notice, people return on XX%. capital And cost-of-debt want another in our As at to that mentioned, my you weighted make now X.X.

business returns. So, management sheet reduced increasing the as costs overall that has balance generated has the even

from America. of our question will And go Please next come Mike with ahead. Carrier Bank

question. the for Thanks morning. Good

opportunity? and Ben, on? I revenue about relative term potential would mortgages. a focused a that traction than faster have you've and And think you ahead, of Hub out see trash how in that, viewers lot guys included You little I you is in that you're plan as have expectations? been it How of about seems bit seeing longer the mentioned, maybe and a some thinking you that the What large given making piece ATM ICE be maybe you do expected? like ETFs to are good talked

gave had. Mike. that to in answer question couple Alex a ago I Thanks, the Similar the

that an plug is for front us Then from have positioned these that for the board, and board, in to Simplifile must the nice registration it post have are our is growth really onto at on coming more e-notes more on rapidly near-term mentioned, of onboard I we onto the assets rapidly, mortgage opportunities are to four of looking growth think that three especially rate assets. coming opportunities into we products COVID, with that went and on absolute of right onboarding into services we business. well unprecedented mortgage we're platforms in assets that that to to there's front process. have business closed terms real for think getting right agents those the to the revenue capitalizing adoption. jurisdictions how business closed in are in all customers and and way about And capturing, we're we're automation that to I of significant increasing services And new that us, opportunities in as that capturing of already

our getting this platform takes get the And much execution itself. on network these gets up we're talking as it through For fixed on been the data It established. income, while of we're I've that space that's network. established, of feeds all establishing established a network volume institutional fast about to of how the that into calls, points coming How is for each platform. really already that and the

business. those growth in we're our we well with just clients that a year help solve with execution to one assets we're business the income To Remember marrying of our workflows billion that cornerstone in that partnering in to solve it inefficient fixed of because an and execution and going that require all really and So at income we income in dollar think and analytics there plug has side buy is positioned really side business, real fixed comprehensive the rich services analytics sell to only pricing pricing that's the them. and problems don't positioned there, opportunity look we're real fixed term have very medium well that for as long to execution. we the it's a into

Our question with go KBW. come ahead. next will from Voigt Please Kyle

Maybe your question highlight diversity prepared on your of the you business. M&A, in remarks

to your of through that's whether or broader maybe opportunities on more see the also a seeing And elsewhere? holes? year you're Just update wondering M&A seeing back where if mortgage still, on terms a less add opportunities say more in what you're consumer still then or portfolio current versus you to ago? environment through Or where

with very had bankers complicated one difficulty meeting a getting we're about can't CEOs, of determining I where and from two if and their know investment Sure. businesses face space together to environment. each working Well, it's interesting think I home face other a the to conversation. and the good in our conversation can't senior be would in and have travel

is that equity And result seeing a that as a companies companies, going process M&A run about we're much as for so private owned more more are on their investor, particularly the much to those be capital, to in market that about return of capital. most the sale we merger. our cost or mentioned, situations, we track track kinds And disciplined of are Scott of our trying invested we

that interest low to environment investors it's harder that choices And M&A to market. relatively and it's letting our opposed easy value long-term creation so M&A have to investors own rate for the make deals easy back their to make rational real make in, to money due giving them as the accretive we're in while their make

a of That So equity lot complicated. said, are it's there businesses. private owned

or number it. and we winners services. spaces, in losers a last of financial COVID-XX a And we've So have in environment also processes announced including quarter. created took participated done that a in different I'm at would really seeing of different, But number anything obviously, not has many the look

disciplined in get world companies are making just in now their more companies These investors things and financial because you for are Again and of invested disciplined lot that purely themselves target be loss investors like and lot are looking these for accretion are worried to deals tech and capabilities. both basis. us capital hard a have type capital. We a dilution on if Those floating to on businesses built will, a seem around future return funding to of larger to. we're a sponsors, that from companies companies freely inquiries generally was to scale about there where try their are

seeing acquisitions initiative we're things a looked looking things think but on. a at we essentially market And strategy would where at working buy speed it's for around, but move us. only build really that strategy. again, the and we those accelerate are not And those to needle already are that a we've So floating or an anything lot, versus would

short, We've we're initiatives in a story good long to going a got We've capital. lot very position. So got of on. access

call help firm lot high, our Our technology environment, systems talked what productivity well this and actually is can a people from our and focused about this because a about customers is productive, in working to home. we are do because on building, tech interestingly, being of pretty

in So a But on. we're come to position. where the It's a just that's due thing, right environment along. great it's complicated for going distancing social the to M&A

Lau Oppenheimer. question Please And next with will our from come Owen ahead. go

give please pricing on more of contracts progress integration us partnership ICE the reference Could also based futures and MSCI? example, Thanks. of into your with index? progress on MSCI of For launching data color and you the MSCI the platform, more

Owen. you is Thank This Ben, very much.

futures QX that lot is and in have in high a that contract in business. bit MSCI with there the We've environment is continue for on times, long seen in for with the seen this business engage different with a us business world. recent we a continue bit time to business, when in very you're things the can of the a different obviously of in to market, from Our and pullback, we've on emerging actively the in significant partnership of of is like and a they're of growth pull is we've that that on been when XX% another of back futures volatility indices to But IFA going a you a seen kind a we -- for It's tend around launch number that that which that to a a to relationship long them people have. back opportunities look volatility It's strong a when very little markets it. risk strong. risk we're been the increase the grow, number standing and with markets we the

strong. we're actively, with new So growth on at view very is of kinds and them estate the them real all looking opportunities, partnering relationship

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

and I and safe for to Well, with that the you hope again thank And you thank want until call. moderating happens Chuck stay that We try loved to And for I to you. ones you, your joining good have soon everybody that a forward healthy. you look day. speaking us. Thank guys

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

disconnect. may You now