Intercontinental Exchange (ICE) 4 Aug 222022 Q2 Earnings call transcript

Hello, everyone and welcome to the ICE Second Quarter 2022 Earnings Conference Call. My name is Victoria, and I will be coordinating the call today. [Operator Instructions]. I will now present to you, Mary Caroline O’Neal, Head of Investor Relations to begin. Please go ahead.

morning. Good XXXX section presentation of quarter in be release Investors the the earnings second can and found ICE’s www.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 second statements, Form quarter from other could our that results those SEC. described

ICE. transaction be their Black the the proxy related seeking with of of the to In SEC or or buy means the approval proxy by a offer in to be addition, made be will customary prospectus the or such that include buy registration of ICE acquire offer jurisdiction. with constitutes sale that statement other sell expect of first May, Black nor Section in in finalized and of a note on transaction. Knight common requirements of of securities call any shares pending the definitive XXXX, the statement of also of connection Knight the to this ICE registration securities, be approval with would will in sale also an issued No we of to the of stockholders statement prospectus, sent to matters. S-X be is except offer any half does as offerings such sell shall of the any announced Please registration which meeting XX in constitute shall the of Act has of any qualification prior jurisdiction stock will under close in or ICE Knight, prospectus there register securities connection Securities agreed to Laws Black the regulatory solicitation and XXXX. any we Securities proposed a statement file to solicitation to transaction or the unlawful Form The transaction not When

any statement documents, information well making because ICE our contain and registration statement they non-GAAP In to Before are and read and performance. prospectus entire or measures. voting refer decisions, holders important any believe and certain core business our urged security the about supplement these proxy operations will of to non-GAAP amendments transaction. the reflective more proposed measures to or earnings as are our Black investors cash as We carefully supplements our of we Knight investment

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

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

by diversified contribution for transaction which both our over of is of increased per on business XX% company's year, our by totaled last top balanced history, versus marking quarter $X.X from $X.XX. XX% driven billion, in and adjusted our the account half increase best last share revenues recurring earnings and second quarter year-over-year, totaled an in increase XXXX. growth of and quarter X% second of year. revenues versus Second a revenues, X% the Net our The

million Second favorable customer adjusted guidance FX, range efficiencies of low and lower various the acquisition costs, our expense our at versus business. our from operating the variable quarter end $XXX and guide, costs were expenses particularly listings benefited second totaled and expenses quarter midpoint of

lower Moving to year, million of guidance a full FX. represents to lowering billion results driven favorable our second $X.XX expense and variable the guidance is our midpoint and quarter this a our to to expense prior to reduction range $X.XX billion by similar we're $XX of midpoint costs efficiencies, versus

adjusted to billion their quarter increased to adjusted margin operating Second $X.X XX% XX%. income operating by expanding

proceeds our announced X% the term minus acquisition a expectations noting loan, is within Black we of and ratings results new shortly SR environment. transaction. notes, balance long-term sale rates of based in for portion Moody's. quarter we rate and anticipate our along enter May, refinance forward raised in of S&P from the balances until is and A from and debt used to these our both we've commercial and these our be XXXX pre-acquisition the our both maturities our second we notes. maintained $X to proceeds after our reduced Knight on our targeted of the current billion raise alongside maturities the favorable to for middle commercial May, $X we XXXX, first we that the with zero to of in paper May, it's proceeds of and earmarked volatile exceptionally fund cost of took to secured that XXXX financing of X an We on The positioned no Moving Euroclear financing we also sheet, to paper interest a X.X% the opportunity well the AX balance reported that is and with It well will remaining worth the sheet in billion rate billion half

move overview let's our Slide performance an five, Now segment. to the provide exchange of of to

XX% increase our by in derivatives interest net an revenues. and XX% driven of Second increase rate exchange $X our performance an quarter increase totaling strong equity this in futures, year-over-year, was revenues billion, XX% that's

open of X% including the Importantly, our to options believe be growth July and futures versus long-term in of we energy growth, year, across interest, in total and last financial best indicator XX% the complex. and growth up XX% which end

quarter our options not platform by increased recurring in in one-time second XX% volume, a Options our strong to Second our the team's increased pillar year-over-year. equities Exchange will to in the migrated and our new to work and reoccur was record accrual revenue broader revenues exchange NYCE record year-over-year, in XXXX we Arca and by expertise. do This our July, technology, message cash half. and equity business process successfully that continued while demand technology seamlessly benefit continuing testament a by data growth listings energy our listings performance driven X% from expect we hard

business revenue we're In in by increased XX% income and quarter totaled business. the customers ICE and by growth our more strength segment, growth in a revenues six. and including institutional driven now Turning to CDS our CDS year to revenue continued bond bonds, municipal to strong ago. as data capital was business. growth, for and as fees in global $XXX segment XX%, well growth million Recurring continued our record connectivity Transaction the was a which in where grew consolidated of platforms, well second by part This our versus as fixed XX% as market gains services growth accounted over increase seeing allocating revenues again clearing trading, X% through driven quarter a Slide build share ICE re-engaging XX% efforts XX% bond our our once in network. in and

an driven your technology was to ASD Looking our year-over-year included of headwinds. third Euronext we to data in up the revenues first half second quarter our half interest on supported that in Slide the revenues, FX that recurring slightly to second half, center X% up guidance in And our over which continue by recurring expect reported and by year-over-year. seven. Shifting growth flat additional as to mortgage $XX results we versus original million migration in

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

presented our similar automation to also the have challenging It's quarter around and across worth current number volumes the conversations While the to efficiency is more were noting macroeconomic those workflow. constructive a origination of second origination for backdrop mortgage is opportunity an unit that customers in XXXX. quarter second of

XX%, revenues mortgage automation the and up to However, to greater growth second our XXXX solutions ‘XX. clear when pro in XQ our of million by This compared and share we've year, in the per $XXX technology revenue quarter best is workflow. operating origination business I'll ICE history. customer representing revenues expansion continued by first income forma almost our conclude adjusted adoption the of across the adjusted the were XXX Slide testament over half and on margin XX% by To XX%, or a eight. in total basis points X% grown of including first half earnings

positioned balance in continuing growing and to addition, invest growth. of dividend In our our Knight while for the sheet we've acquisition Black also future

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

decade. have rate Meanwhile, for Warren. our all for Rising you, environment, chain, and not nine. this of has new Slide supply interest inflation creating joining uncertainties triggered morning. has an you the continued in to of war Thank over Ukraine a energy turn navigated global And the us participants. customers a market reshaping Please thank created risks in many

our our to the of corporates and and market result term derivatives years, the for and a risks to TTF the as governments, occurring risk an a the accessible year-to-date emerge America, tightened share global interest in natural as the and these This Asia, geopolitical five rising markets their markets, complexities. year-to-date, across emissions. first quarter. we've long-term for has customers and customers with across connecting year-to-date. committed energy XX% activity that drive also increased energy manage manage and evidenced in This diverse an the of seen have long-term growth a to contract volumes from volumes transparency increasing the data, these greater to to XX% have focused Europe to markets. additional the of markets, participants both which tools we to uncertainty Energy global Clean XX% in driving gas policy our reduce Through customers Commercial navigate XX% your near- global volume that our Because demand Despite alongside the Across continue gas Ukraine North past volumes average Importantly, record In remain surpassing increase the has North trends remain the and our well American conflict, our management trends critical should on TTF are strength Hub conditions. growth environment. rates and uncertain and near-term Henry positioned mission to are to record in to contributed volatility transition Transition to transparent and time secular priorities. benefit across driving on Russia seek we increasingly term is management. demand rate year, gas markets interest to our This gas our uncertainty benchmark. need risk, energy market these risk in supply U.K. markets, business over this energy our complex, Europe second operate [indiscernible] continue both rely global energy clean will in gas annual liquefied carbon significantly, leading for open in global the as introduce by And technology, ever. heightened volatility first in our price we've we customers critical contract, navigate equity the in including global driven with business risk concerns, central to benchmarks markets XX% environmental to gas navigating gas Globalization global longer our customers associated gas growth contributed it and achieved the half as are global complexity bank provide volatility markets uncertain and

renewable contributed carbon the over one and ICE environmental pollution, to the across networks will of energy As carbon value such, contracts, the on renewable and years. in complex five sequestration in of fuel growing such with solutions, carbon nature-based of including products to our electricity, increase storage breadth allowances, our valuing coupled the externalities past average price importance. and The to price XX% annual importance carbon transparency, carbon certificates. the growth such volume as placing complex, has of largest cycle, has a environmental externalities continue free

markets, transition energy volatility the and energy continues risks. across to environmental price needed the complexes and to our spectrum oil complexities, new evolving transparency these uncertainties manage As alongside provide energy gas global introduce our to will clean the

Turning I first to acquisition Knight X now as on to our year. this Black of mortgage of announced want pending business. touch on our May

As close accordance filings. Since when announcement during continued of made then initial the will to announcement, our with said, transaction we and half back necessary believe have we timeline, XXXX. the we our the in the first expected regulatory submitted we

the perform work We reviews work efficiencies transaction. for are of stakeholders mortgage ecosystem. entities transaction. with thoughtful to we the their that the working But we as toward comprehensive consumer to and the very FTC approval, this they the about is not Out do combined important the them further on bring regulatory with excited of importantly, the FTC end and as will matter other we across remain on intend proposed respect comment

the rise, the quarter, broader interest from grew soften revenues technology efficiently. rates operate industry. mortgage continue customers to origination outperformed In we more second to As recent and again mission once levels, critical volumes and our to recurring turn record our

foremost, Our to automation with offerings and customers our market they focus these we and the breadth from efficiencies conditions our and during find evolving can ways continued centered increasingly Customer of have across work first the conversations is on efficient most network. benefit to customer. our

leveraging our analytics focus loan in base an making learning subscription, and an process, decision from automates also To for we closing. XXXXs led save benefit can example, on customers to easier interested included Encompass our machine eCO interest to efficiencies products, steps in our to and in has platform For lenders solution increased the technology, analytics electronic the cheaper made the manufacturing data the it adopt a and and efficiencies offer made of recurring dollars analytics our data customers business, from per loan of of customers is new analytics number bankers, a adoption reducing Year-to-date, clients year-over-year, year our platform, of of time XX% leading the coming see mortgage alone to host grown which and onto has top independent of Chase, continue revenues, added new represented three manufacturing and likes by builder. and the with we a this home complexity. largely up increased recently

opportunity and about offerings turn happening optimistic pleased resonate that conversion with analog value I'll mortgage continues to Jeff. to the our the accelerate are We across the digital to remain the to of industry. lenders, we the long-term now call over

joining Slide Ben. you, thank Good us. you Thank for Please turn to XX. morning, everyone. And

been first The interest rates continued rising year of macroeconomic inflation, half geopolitical and uncertainty. and the rising has marked by

all and our grew once risks our manage earnings second are to business weather revenues, these share reflect customers setting data, strength income, nature technology these In of rely to risks. the again grew the and model. navigating record second our quarter Our network continued adjusted evolving liquid grew markets quarter, we on adjusted results the and operating and per of

and ways was markets bring and modernizing to or markets. clearing U.S. the to trading apply fixed always to technology to transparency moving whether building efficiencies income opaque for and OTC to technology screen, strategy unique it datasets equity the the data energy has powering Our find swaps, novel markets, been the

contract launch and the our new leveraged the grown has the our married both solutions we've mortgage These As and to a we with contract. ways deliver data set climate for associated capabilities, data grow expertise. our index lock combined and that ICE are futures front expanded diversified, importantly, customers. into, innovative to rate with datasets new expertise We've its income newly to and opportunity providing markets expertise build capabilities. and and our and pricing index we've in of to technology, to fixed innovation our unique recently, new with grown, our And we've reference data mortgage construction, expanded our office. provide just broadened few futures our more tools We've to can leading examples

we've digits company. of earnings today intentional, our that growth for is compounding the classes business earnings per that across Our double in in compounding XXXX been a since with we've average this each evolution net been we how increasing grew year year past our The goal earnings growth grown building compounding it we quarter. in geographies a our the generates every in dividend, of share and the grown asset result we've of has years which recurring our adjusted and and public which on XX% also It's diversifying growth. initiated revenues XX mix

of And year growth our like contribution to for their on I'll first Looking compounding following the for moderator quarter, of in their growth back and that, for heels many us. innovative result our this will on second now business their our customers front our our X:XX opportunities thank half Victoria, excited unsurpassed for are to first delivering now remain customers and the the and that conduct ICE half company. our making Eastern about call while like thank my colleagues beyond, an record to focused question-and-answer I'd Time. quarter, for a.m. to we're the solutions a the best at our to and second until session continued stockholders. we I'd turn With driving of trust

you. Thank

And We Please Sandler. will start our from go Rich first at now our question Instructions]. session. ahead. Q&A [Operator Repetto Piper comes

open. Your line is

XX recurring the and Ben, in anyway, income. you everybody's that's [muni] million, execution, question that's picking a by unfortunate, million, just to acquisition, get retail, And on clarification get one it's about I [ph] income retail related and Jeff that's the just wanted And But suspect well. I went up? then currency, can't fixed but down probably I mind. quarter-over-quarter. up Knight we other saw complex certainly uptick It's fixed morning, fixed there Black Warren. just quarter-to-quarter Good up comments on income, the Ben nice any as some to revenues a because XX% ask I'll just think your would suspect

going to over this. go Rich. to Lynn Hi, to hand through it I'm

Hi, Rich. Thanks the question. for

off. muni strong of that strengthened institutional was growth certainly remarks as pay saw a off And been prepared business seeing while we the And in our You're right and business. income fixed our return that our has mentioned driven of in retail our trading this volatility quarter. we're efforts contributor, trading

broader years, the including which connect are you in two benefits ecosystem, grown of to data muni within the assets share the execution And in benchmark serves take our over AUM share in market we're As muni to and sign that And the to gaining work more it's the the we're XXX%, class. market. our leveraging infrastructure further that our doubled assets institutional asset index us in itself. a platforms institutional XX% business this our manifest And munis year-over-year, share that this muni seeing execution has out in last XXXX, the leading aware than quarter our on really muni alone, our the worth we in market noting as now focused enabling business, this institutional finally, platforms. to since build area for that of has

question Warren recurring then, And the its on Rich, revenues. on your

revenue our also bit ETF FX, That's largely business. right. little You're FX, a in AUM of there's related

did you double our well well There's So economics index the a saw rest really AUM the subscription for index. was the of as credit treasury benchmarks revenue, subscription of those so as into a will, in that equities, Again, the us some little the mix ETFs. ETFs and track portion revenue, there. on quarter that bent The the and up during of out business digits. quarter that lower focused of and if we of shifting some people pure bit treasuries shift during the we of impact within

So there really just hold that of the taking you that kind why macro saw sequential dynamics decline. slight

the for update. it. Got Thanks

Thank you for your question.

comes Our question Kramm UBS. go ahead. Please at Alex from next

of in we'd deeper But info mortgage gave recurring bit already you Yes. on a the side. side. little Hey, good the on like Lots particular dig to morning.

to update still would unchanged, I for you the be So the even end questions you interested recurring importantly, few an that's of mentioned you segment that that bankruptcies, I know more if revenue challenges here. if but cetera. are et in gave the seeing guide like markets some One think don't that some then

give it. some were customer there's algorithm of this upsells terms terms us the that to us what lastly, So then, far year-to-date recurring recurring, receipts, maybe between sorry, earlier. is growth in get us also the that's so in continued how maybe seeing And of I an to et if mouthful, remind the and then, revenue the give cetera. also a moving talking could bit you seen losses, customer know about contract update you're more losses, little a you've any you And so model maybe that then the hopefully of but guys revenues but out I shift of of

Alex. Yes, start I'll This that's is and lot sure add Ben. a Warren I'm here. in also will

start this, So just in challenges I'll overall the environment. in terms with of, the

building clients ability have software If that to you XX% these confident over building, market critical we're one at step you of eye we're X% are do an what with we're different And the for back, why the take our in absolutely and reasons a look providing. are whether mortgage an here to long-haul. mission is that we in number that growth business towards a environments a we

XX% to of contracts this recurring. volumes, did with as results, four clients, recurring retention in long-term on amount them. heavily have in the revenue we to shifting our our you've And quarter, market XX% it We five growth high in business. seen years on with more revenue And focused, the of backdrop down of terms towards year-over-year are in and more we again the the of

a in and possible adopt With alone. of workflow up that more point of weather lower that key what Warren of as item. what solutions, proof similar of generated we of other much we to in analytics quarter is And able XXXX, being other to their very enables looking tremendous to look last drivers and full environment to we're when as with time various that's, XX% see prepared seeing one in saw analyzer our inputs our seen you than now us his just more there we to on automation to environments and to And clients, in remarks, AIQ market seeing volume from loan adopt as And I data you've that the our this million the revenue a do out, being suite, pro we're comment our is do our Proofpoint, the The are XXX anywhere clients terms quarter, line $X,XXX ever was per put in $XXX clients adopt saving costs. made automate than forma automation uptake if studies, at that that we manufacturing QX to they past basis. that solutions. they're

So from benefit that industry we're to from our tremendous. has some the that providing capture efficiencies ability the been to

pricing a it's mix In there before, of, there, mix -- is it's of to clients. really revenue, is described on of new some we've algorithm that recurring the it's a growth, in there terms sales

So forego we early also that runway is start that on if still other renewing of a contracts had subscription, five we the AIQ I moving with of the even codified a as program with have that. do clients do business. customers a to mentioned, And and Encompass. -- to a to we first that, we're days, for the good continuing really more in go. in revenue sales And we're had we're on for And of a have shift transaction long shift going success. future the years lot to then We've of year year some to four the to have of good input year our are sales

asked Warren, Alex, you about the guidance. this is

highly yes, that Ben we about I will you're a is it's process the not starts start mortgage, solving play think out to of as of business back extent very the what to people the I'm think the So rest did that to And those be some tools we it because headwinds that many change you said the year. reiterating the that assume, from a say consumer, be guidance there as that to potentially we going the building maybe There's that about correct. then I'll that's costly out, the for market not trend, to cyclical be think We tools going a new participants, no problems. inefficient. confident secular or one, really gave very and are said, this if continues are we for have -- just getting to

are about And XXXX, but help, so I day. the of know factor that of really solve the probably the EPS, or into should you're multiple it XXXX at kind for the EPS enterprise end doesn't people thinking when valuing overall

So from you haven't point, clarify. seen to a at lot this impact of cancellations just

again. Ben It's Alex. Hey,

that we've so have business, some a very lenders number small of seen we go out but So far. it's a seen small, of number small that have had challenges and potentially

you. Very Thank good.

you for question. Thank your Perfect.

Kyle Please Our KBW. next from at ahead. question comes go Voigt

morning. good Hi,

you just continued. futures towards trend have like traders for using seemed given last may XQ the oil spoke futures and interest energy oil throughout about it So options that specifically, at quarter, away least in from moving decline open

you environment. the seen volatile Thank quarter year-on-year commodity manage and could volatility, lower Because firms to the trying guess trading bit surprising into about an market, we've to I seeing volumes energy extremely you're X% trending now in it's a from right up in of third if the wondering what seemingly given Just kind you. the only now see second talk quarter. risk

Ben. it's Kyle, Hey,

interest their business and end that overall of have futures are open overall, up and year-over-year what events. energy. on of on inflationary an sanctions we're out in civilians, balance our environment, -- against particular the open are the And businesses between in around a world you've issues have year, impact looking energy our against the to going recession, the really at that end of looking given against we the of governments unprecedented. is figure at a have of a in you confluence towards looking move So for we're energy, that interest Russia, those up the year, price in these all cleaner of terms since that of in near-term And and impact Europe, are we at, sanctions terms our Europe, backdrop, got since pleased the we're in

you've continued So and are COVID happening, geopolitical tensions that have this happening lockdowns then got with in obviously pothole you also and China. mix China

as to a So that of marketplace our given up to and best in issues, they're set utilizing few has believe do in the examples. help through clients be us been all that. navigate those events, we world all give these I'll the as And can

we have of and one that spectrum. So markets deep the across liquid first, most energy

So of think environmentals. gas, power LNG, and oil,

So between to looking and looking moving switch that that. fuels, clients going businesses as towards, environment, move are a exchange cleaner we to the and they're towards do are clearing

Europe, Henry and in very gas consumption, we perfect global to Russia, have supply are power, LNG, at risk of asset majority natural We're oil, need products, we're trade have classes points production is shocks, Northern gas positioned via gas our are and to and right highest Hub we share global risks stifling these in we going those of supplies that to what mentioned a managing mentioned their it's markets, complex. management well going the to record gas into do into cargos tools. American as as that. a one example that gas, deep all of traders, the markets those Hub liquid environmentals have of from Henry Second, -- we and as gas my And commercial each deep hedge customers liquid perspective, points seeing use home enable to the And you hedge that respective North U.S. of because U.S. that I well and led prepared both with I clients remarks at the cargos. with our U.S. given in providing the step in global bases LNG using different well we've vast Europe. and clients in inputs the a seen market in seeing And now that's a deep

no an there's Russian uncertainty taking play interest as XX you in and gas contract. that starting they're market. with of had no The products volume like of and our there ever governments world then some February no specification out, Russian is be fuel we're will as engaged open And how governments out impact, and And much clients on to consumed oil as longer it in where question third historically, oil, Europe, that out gas into be as we've as fuel longer around the And thing around I'd oil, to point clear options pointed issues was oil we sanctions the made it would see as again in and that it have input is provided, deep now in as XX, to gas calendar beyond. changed the liquid oil our build started shape.

a ways of most geopolitical hedge one options, helps it or embrace number clearly different of out scenarios to risk efficient the because that in is open options Brent in So is XX%. play to and hedge up tail volume our could year-over-year volume

complex. energy overall how and lens at about look at stand the you look when me really We good feel positioned. we're So your

so you much. Thank

your for you Thank question.

question Craig at America. comes Siegenthaler next go Our Bank ahead. from Please of

is line Your open.

everyone. morning, good Hey,

tech rates timing, origination be will would But doing on on also, of were current helpful And terms surprising. think not these we are that And in revenues with relative is revenues incremental perspective So what mortgage on that some down you levels. too? to when help stabilize? from should any downside my question perspective us

Ben, Hey, start. I'll Craig, it's

business, towards continue So cyclicality we've to basically been what of more we of technology here more do that has that. things been strategy when within revenue that move mortgage said I our doing out And mortgage take that. and the the business reiterate recurring and successfully of you some the is, some the to out before, our strategy widen and of to

the predict and continue how In predicting innovation going been look to last just rate down. our investments in how providing that's we're to environment extraordinarily terms and week, going that able to the for the be it's when of to despite volume to the play this But will environment out clients. settle rate environments that and hard to over out that, stuff make played see at we're

to closing then our investments are growth continues in lot As environment in do the what are and growth the that a similar that those of on and for tailwinds had all XXXX. we've platform, we years those introducing well. as our the side that -- rate well see with been in that mentioned, are we innovation analytics to investments of we over the what the and And file that the environment last underwrite in side, very $XXX volume saw made that that been three regardless market gain simple the share platform, we a everything doing and of we've drivers us. around fueled business Those the of all million environment investments we is the data our automation that AIQ as

the to shows strategy mortgage having mortgage lot a a and Interbank for which me weather by shareholders. trade and in LIBOR, can And trying that macroeconomic to environments we London end really Jeff, my strategy rate mention to position index that let U.K. the all we're gives own driven U.S. on this is us named just that the interest EU earnings I same our prepared page remarks graph all company fact is growth, a an futures. the that compounding of rate exposure is continue of that interest And be we

global have includes credit hedging and We that across companies default a business globe. is Russian completely swap sovereign, the that

issuance. that. fixed single we U.S. building has bond We data and when we're to way gives income having that U.S. have every interest provide global, exposure a I in relatively we And the is also and the country the on look mortgage business, business truly thin we the us pricing were that complex, that moving almost rates, think, mortgage is step complex, into back mortgage millennials, chain huge, there at issues any by that demographic And that is that homeownership. a there's we are supply that And of house been to that underserved believe generally housing. meet is COVID during on will building of built and will there increasing. it, sold issues underperformance is the a that better that are that getting the be mortgage be and chain and supply and gets

the interest the maybe with housing is into absolute all seen And name. that story plus rate number environment. people ownership to have a company's market. think I the an mortgage a downturn number out up, also We question quarter of And leads weather It's of short built input. in when want people lot cash in the of interest at Long going your have focus the we've our to in help which declining one best which We of the is and in and to market. exposure a the of assets homes limited happen rate, mortgages, the there even from are that had our value go refinancing on interest rate inflationary is to root is refinancings of U.S. inputs a U.S. having second history.

Thanks for question. taking my Great.

for question. your you Thank

comes Bank. go Our next question Please from Bedell ahead. Brian Deutsche at

morning, Thanks Good taking Thanks. folks. my Great. for question.

on initiatives. Just a environmental two-parter the

So substituting and part environmental the maybe grow driving comment but if customers there data the to maybe Ben, second of question to then, in so heavily you're the the in comment into we're good strength quarters is, could on this, that And substantially acquisition into for the in seeing could gas. a climate side get if the the strategy, trading within something more is, business see seeking energy on declines question on overall you whether Urgentem now you very that environmental couple the that the our of the side? else on more some Lynn, of obviously, short-term? We data sequential complex, linking environmental just environmental that versus gas the did

it. of start Brian. for hand Lynn Yes, Got to Thanks, and it I'll the part that. second I’ll then

specifically, impacts, Russia In confluences I and and before, the right would and the like sanctions seen shifting things in traders on this that and Europe impact markets, attention cleaner towards civilians just energy. Union everyone's move mentioned particular have in our in acute faced have to that more where and between our some some EUA trade so issues and with issues time European as energy the seen on, we moving So we going from there's the Allowances, Europe the balance now.

very the had seen and Gas of invest. California So well headwinds continuing Regional a well some to continuing in that flip have America, we've But it are our Allowances, doing we each these to business is our our Carbon REC very, doing Greenhouse very North is do we're America and strong in of North markets, part. well. very, renewable our very fuels, Initiatives, side

and global a on more index Future, a more doing and well launched getting Global So Biofuel index, Carbon well, we we're recently Contracts they're recently we markets. recently Index starting to as itself Wind we're and launched getting the there. for launched Texas to on futures more recently Solar are voluntary and contracts We ETS license we develop offset contracts, the launched nature-based

see likely [ph] the of So like likely we first lot put of you to and coming other developments foreseeable future, have Pennsylvania time. Reggie a Cap in the State State for to tailwinds and Trade their Program and also Washington join in

wait lot Europe. of think is America. And EUA complex overall just there in what the tailwinds a you're in little good So seeing market have I North bit in we a on the

follow-up the question. for Brian, thanks, And

positioned climate transparency the our So uniquely focused add on ESG, given to strength fixed around data, risk. we're in the income really

risk, to to In the knows climate of offering with risk given and private acquisition offering. as the which of really an know tie we on the now to alternative the but parcel to globally. its that our you've the further enabled And to starting GenXX, QX, in to to securities information seen expands by have position that bond dataset us transition XX,XXX opportunity add include us datasets we execute offering. Given physical expand was market public muni climate the announced and attractive to of our us our coverage which climate into XX, our this which the Level corporate ability datasets risQ offer service, geographic expanding turn then, the mortgage-backed to data companies, recently finally, we And plan you announced measured actionable a more insights and ability recently level coordinates into purchase market. we into U.S.,

That's great you. color. Thank

for you your Thank question.

next question at Michael from Please ahead. Morgan Stanley. Our comes Cyprys go

oil to there, about in growth think long-term? and the over guys Wanted the franchise, commodities you. of what drive just and how you volumes that thinking underlying longer-term rigs, Great, to growth ask higher and the more drivers commodities, about how production for drivers gas your you Thank are gas factors is evolving? are about the the ultimately volumes commodities more curious thanks so example, it how going franchise, oil is those some and producing drive curious algorithm Just higher much.

ago, to of to Climate the help environmental have will had Exchange over and that we're positioned the of LNG, each energy with that into what between power across well have Thanks, and consumption the is, This we start think of that that offerings Ben. that. point are as through And the are about And way going just need the of to there inputs we offerings the markets And over-time. production then the as oil, is, breadth Michael. global across change statistics now I are about acquisition we XXXX. energy the the significant and change doubling offerings to believe that we producing of described clients we into early it's the very earlier, and energy with gas, is of a decade it the navigate out thinking inputs breadth

So that's it. into one input

help have carbon we as emissions a the the positioned focus said around well of environmental to on global clients and that. I navigate reduction do are before, with world our through You markets, very

those two. are So

in have I Ukraine, see have the that had in that products center the we Europe some we situation of in near-term third been though some growth. particular to the even is Russia this think ones the of headwinds user continue at

de-correlate onto markets, to those others the in into continue times data subscriptions markets and world. happening more or those more see get around at So the coming visibility users correlate, what's to and we to platform how taking

to user growth those are provide all looking look we the at offerings at looking clients, at market, at underlying our breadth of inputs interest and So of looking that the when we our global open [ph]. into the growth, outlook health the

Thank Great. you.

Thank for question. your you

a is go from Please question Rich ahead. Sandler. Piper final Our follow-up Repetto of

taking Yes. question. for Thanks the

can the segment. in mortgage how is and I Jeff. between emphasizing is, last connection for was the how think downturn question, on I and other markets. it really in mentioned that remarks, guess you've mortgage, this But Jeff mortgage about In I people prepared the think automate so looking question overtime efficiency and one the more for automation maybe done is that the Just as are and more

is process, So longer asset comparing how the automation the what you to term it so workflow is, that the of has mortgage but with? dealt longer question versus are market seeing far given the a regards you've in classes other

alluded very, is people tools of market. that into our acquisition get I change think that start Rich, money people downturn I years, making a time mortgage to in us they're hard businesses best are a when company followed finance well. downturn when data a their Sure, number subscription Ben analytic wish why and going question are clearing, a times the you mortgage lot to space. very tell anybody, putting things cash and this it's And we're it's to that to get very, a their people our this founder, The to behavior of and I know when on having asked a hard market. many the are because to the you've speaking about but great I talking the to space, Broadly a to and us again, them, that's for about trading, time-to-time pressure not broadly, question. very mortgage under moved is making appreciate get company finance is a you speak whether entrepreneurs I'm business time market always a see and to change get in and is in the from when lot well best it in data, there's the say I into revenues and doing

created. remarks, prepared in my in mentioned we against derivative launch I and us product seen index a You've new first that our

it traded data, to be to the based may very very way due space a very mortgage, for to not mortgages regulators, in the the the think a regulate know, market, biases that there them the but And throughout tend that financed hard to of banks poor data connectivity market consumers, and very that change about difficult of correct build information go very in infrastructure. lot the so market, of the The inefficiencies this may the a those right that spend can easier. without lend of the of money and I entire, think look participants nature consumer, just use contract, are available lot in that as need at and for and for market, for there's us regulators we all that and make retreated thoughtful between to and core, I borrowers, for not all refinancing think behavior. foundation regulate that secondary to the those But that honestly but manufacturing and a regulators it's the has hard lenders the it's in to keeping court paper a a data or expensive decades, ground is client's fertile when out at the borrow lose we is that and

if they can a I successfully takes you foundation by toothpaste an platform no later but live even in in, that pay have can do. a online when against space later, refinance we the you can on that just somebody for entire And consumable and I just we, of yet, days an collateral an the two hierarchy work that buy months buy now good, we certainly those that do two of from go of mortgage bank that algorithm a equations. to has underwrote home challenge see with almost their to in on a house has buy industry you months. that you put it'll generous, the checkout that and better abandoned existing yet XX want may an Maslow's think to something that's, part mentioned the your could existing lending And in than that's address is ground too It long. they footing. an will think by and is that credit you you maybe to it that, pay feels to ask client wrong and now last will to I need you it's me thing a person, and knowing odd the completely And tackle mortgage that too to existing security takes safety an talking argue is be and that that

you. Thank helpful. it. That's Got

for you Thank your question.

We Please KBW. a have up go Voigt from ahead. at follow received Kyle

follow up. for Thanks taking my

that a line in quite ICE was quarter. OTC driven is on I other the So revenue increase the by saw house fees strong that and the collateral question exchange is was just there segment confirm to in and the really want clearing else us in we if remind that from will something collateral driving that fees, you basis be entirely hikes that? or if EU? we've those benefit is or point And there U.S. fixed or rate can was are fees seen there the any

So Warren. it's Kyle, hey,

and or Europe Future that benefit earning at interest That's ICE that So move been U.S. collateral ICE as there Clear to you're in item. over bounces particular ICE Clear of terms course largely and of driven the collateral income the has yes, seen you've around going the that's and so OTC other year. line performance this and or obviously from net that correct

do that's because higher, rates CDS more -- as going from will collateral park show there of we moving Fed. up on up a In we have do funds terms some benefit the a to side there clearing on show that

performance a And up and move so as CDS so collateral rates of we benefit the as Fed in funds that's do then get up, you've also there seen part but strong moves there.

line that a over-time. from that but yes, spirit of there's through better hikes coming benefit and other rate So, not the OTC in in your question,

Understood. Thanks.

concludes any now for pass over Chair your remarks. session. Sprecher our This final you CEO, Jeff I'd question, Thank for Kyle. to like to Q&A And

for joining you, Thank all morning. Thank Victoria. this us you

Let on to me soon we you And again these we a for I and that, the thank thank say have updating your great and my forward you continue the on very during in quarter you'll to yet colleagues to us look hope mentioned our another as execute customers exciting putting growth much appreciate to we with delivering record day. again call. want faith for that opportunities We'll quarter.

joining for everyone today's Thank call.

disconnect. now may You