Summary of Intercontinental Exchange (ICE) Conference Call - June 05, 2025 Company Overview - **Company**: Intercontinental Exchange (ICE) - **Speaker**: Lynn Martin, President of NYSE since 2022 Key Points IPO Market Sentiment - Initial optimism for the IPO market at the start of the year, which continued until mid-March [3] - Volatility in April caused several companies to delay their IPO plans, particularly international firms awaiting clarity on tariff debates [4] - Recent successful IPOs include Hinge Health, Mountain, and Circle, with Circle's IPO seeing a 30% increase from its offering price [5] - Companies that went public in 2024, such as Rubrik and Reddit, have seen their market caps triple, indicating readiness for the public market [6] Futures Business Positioning - The futures business thrives in volatile environments as companies seek to manage risk [8] - ICE has curated its futures portfolio to include energy, interest rates, and equity indices, focusing on global supply and demand dynamics [9] - Energy open interest has increased by 6% year-on-year and nearly 10% compared to the end of 2024, indicating growing trust in ICE's platform [10][11] Mortgage Business Opportunities - The mortgage business is seen as an opportunity to leverage data for revenue growth across ICE's services [14] - 65% of new mortgage originations occur through ICE's network, presenting a significant data opportunity [16] - The introduction of mortgage rate lock index futures is a step towards productizing mortgage data [17] Extended Trading Hours - ICE has extended U.S. equities trading hours to 22 hours a day, with plans for further extensions [20] - The focus is on adding reliability and resiliency to the trading ecosystem [21] Options Market Dynamics - Retail participation in options has surged, particularly with zero days till expiry (DTE) options, which have seen significant volume increases since COVID [27] - The average response time for processing incoming order messages has improved, with a peak of 1.1 trillion messages processed in April [28] Texas Market Developments - ICE has reincorporated NYSE Chicago debt to Texas, aligning with the state's business-friendly initiatives [33] - Texas is the largest state for ICE listings, and there is positive sentiment among companies considering dual listings [35] Tokenization and Crypto - ICE is cautiously optimistic about entering the crypto space, pending regulatory clarity [42][44] - Tokenization is viewed as a potential area for improving market structure, though its exact role remains uncertain [45][46] Future Trends - AI adoption is expected to be a significant storyline in the exchange space, with a focus on maintaining market integrity [49] - Globalization trends are also anticipated to influence the movement of companies to U.S. markets due to valuation appreciation [50] Additional Insights - The importance of institutional players in the futures market has been emphasized, with a focus on supply and demand dynamics [12][13] - The mortgage business is seen as a long-term growth opportunity, with a focus on efficiency and data utilization [16][18] - The competitive landscape in options trading has evolved, with retail driving significant volume increases [27][28] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the strategic positioning and future outlook of Intercontinental Exchange.

Investment Rating - The report maintains a "Buy" rating for Hong Kong Exchanges (0388.HK) with a 12-month target price of HK$455.00, indicating an upside potential of 13.6% from the current price of HK$400.40 [1][2][10]. Core Insights - Despite a year-to-date share price increase of approximately 35%, the stock is considered undervalued relative to strong market activity levels. The listing pipeline is growing, with over 150 companies having submitted applications to list in Hong Kong [1][22][29]. - The introduction of new products, particularly weekly expiries for index options and stock options, is expected to drive growth in average daily volume (ADV) for options. Historical data from the US and India suggests that index options ADV could outperform cash market volumes by 40 to 50 percentage points [2][44][45]. - The report projects a 15% potential upside to cash equity average daily trading (ADT) from A-share companies listing in Hong Kong over the medium term, with adjustments made to FY26-27E ADT estimates [1][23][41]. Summary by Sections Financial Projections - Revenue estimates for FY25E, FY26E, and FY27E are projected at HK$25,721.8 million, HK$26,772.8 million, and HK$28,006.3 million respectively, reflecting an increase from previous estimates [4][10]. - EPS estimates have been raised by 2%, 9%, and 10% for FY25, FY26, and FY27 respectively, driven by higher volume expectations [2][10]. Market Activity - The report notes that HKEX has regained its position among the top five global IPO venues in Q1 2025, with around US$10 billion raised from IPOs year-to-date, nearly double the amounts raised in 2023 and 2024 [22][24]. - A-share companies listing H-shares for global expansion have accounted for over half of the IPO funds raised since 2024, with approximately 630 A-share companies identified as eligible to list H-shares [23][32]. Options Market - The introduction of zero-day-to-expiry (0DTE) options is anticipated to add approximately 10% to overall options ADV, based on successful models in the US and India [44][48]. - Currently, index options represent about 20% of total options ADV at HKEX, and the report suggests that this could lead to a significant increase in overall trading activity [2][44][60].

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Investment Rating - The investment rating for Hong Kong Exchanges & Clearing (HKEx) is Neutral [1][6][19]. Core Insights - The report highlights constructive takeaways from the Global China Summit 2025, indicating improvements in the IPO pipeline and opportunities for Connect over the medium term, which are seen as positives for Greater China equity markets [1][5]. - HKEx has experienced an increase in listing applications, reaching around 150, driven by interest from A-share companies and potential ADR homecoming [5]. - The report forecasts total securities average daily turnover (ADT) of HK$341 billion, HK$337 billion, and HK$367 billion for FY25, FY26, and FY27 respectively [10]. Summary by Sections Investment Thesis - The investment thesis remains Neutral on HKEx, reflecting a balanced view over the next 12 months [6][10]. Valuation - The price target for HKEx is set at HK$340, based on a dynamic P/E of 32.5x, which aligns with the mean [7][19]. Market Dynamics - The report notes that HKEx has delivered a 10% EPS CAGR since the launch of the Connect mechanism, which has facilitated cross-border capital flow [10]. - The report identifies that only a small portion of the 200 million onshore investors currently participate in Southbound trading, indicating potential for growth [5][10]. - The launch of MSCI A-share futures is expected to enhance HKEx's position in the equity derivatives market [10].

Meeting with Intercontinental Exchange Inc's ICE top management indicated that the company is poised for durable earnings growth of more than 10%, "with healthy momentum” across its three business segments, according to Goldman Sachs.The Intercontinental Exchange Analyst: Analyst Alexander Blostein maintained a Buy rating.The Intercontinental Exchange Thesis: The company is poised to benefit from structural shifts in the energy segment and improving growth in mortgage, Blostein said in the note.Check out ot ...

Core Points - The Hong Kong Stock Exchange (HKEX) announced an increase in the position limits for futures and options products related to the Hang Seng Index, Hang Seng China Enterprises Index, and Hang Seng Tech Index, effective from July 2, 2025 [1][2] - The new position limits will be 15,000 for the Hang Seng Index (up from 10,000), 25,000 for the Hang Seng China Enterprises Index (up from 12,000), and 30,000 for the Hang Seng Tech Index (up from 21,000) [2] - The Securities and Futures Commission of Hong Kong (SFC) published a consultation summary in April 2025, indicating strong market consensus on the need for increased position limits to enhance market liquidity and hedging efficiency [1][2][3] Market Development - HKEX has been working to develop Hong Kong's derivatives market into a global risk management center, having previously raised position limits for stock derivatives in December 2023 [3] - In 2024, the average daily trading volume of stock options in Hong Kong exceeded 733,000 contracts, representing an increase of nearly 20% compared to 2023, while the average open interest for stock options also rose by approximately 12% during the same period [3] Market Growth Factors - The SFC's earlier consultation document highlighted that the determination of position limits must consider market size and growth, noting significant growth in the Hong Kong stock market over the past decade, driven by an increase in the number of large-cap listings [6] - The market capitalization of the Hang Seng Index and Hang Seng China Enterprises Index increased by approximately 60% and 250%, respectively, over the past ten years, with average daily trading volumes for their constituent stocks rising by about 160% and 300% [6]

Core Viewpoint - The rise in trading volumes, driven by market volatility and product expansion, is expected to benefit major exchanges like CME Group and Intercontinental Exchange, while the focus on non-trading revenue streams adds dynamism to the industry [1][2]. Group 1: CME Group - CME Group is the largest futures exchange globally in terms of trading volume and notional value traded [3]. - The company is experiencing strong organic growth, benefiting from increased market volatility which drives higher trading activity and revenue from clearing and transaction fees [4]. - There is a notable rise in electronic trading volumes and involvement in crypto markets, supported by broader adoption of digital assets [5]. - CME's strategic investments are yielding solid returns, and its focus on cost efficiency is expanding margins [6]. - Financially, CME has consistently strong results, with free cash flow conversion rates exceeding 85% in recent quarters [7]. - However, CME faces concentration risk, with a significant portion of revenues from interest rate and equity products, and geographic concentration in North America [8]. - The company operates in a competitive environment, facing pressure from emerging crypto trading platforms and other trading venues, yet maintains a return on equity of 14%, above the industry average [9]. Group 2: Intercontinental Exchange (ICE) - ICE has transformed from a small start-up to a major player, managing risk and improving workflow efficiency with over 5,000 indices representing more than $1 trillion in benchmark assets [10]. - Revenue prospects for ICE appear strong, driven by global data services and index businesses, along with steady expansion in pricing and reference data offerings [11]. - The ongoing digital transformation in the U.S. residential mortgage industry is fueling ICE's growth, particularly through the integration of Ellie Mae into ICE Mortgage Technology [12]. - ICE's robust balance sheet is expected to support financial stability and long-term growth [13]. - The Zacks Consensus Estimate for ICE's 2025 revenues and EPS indicates a year-over-year increase of 7.1% and 13.8%, respectively [14][16]. - ICE's price-to-earnings multiple is at 24.26, above its five-year median of 21.97 [18]. Group 3: Comparative Analysis - CME is trading at a price-to-earnings multiple of 24.94, above its five-year median of 23.21 [18]. - Both CME and ICE have shown positive year-to-date stock performance, with CME gaining 21.3% and ICE gaining 17.2% [21]. - CME scores higher in return on equity compared to ICE, indicating better efficiency in generating profit from shareholders' equity [21].

Financial Data and Key Metrics Changes - In 2024, the company achieved record revenues of $9.3 billion, a 16% increase compared to the previous year, marking the strongest year in ICE's history [4] - Adjusted earnings per share reached a record high, contributing to the overall growth trajectory of the company [4] Business Line Data and Key Metrics Changes - The exchanges segment, including the New York Stock Exchange, saw net revenues grow by 12% year over year to a record $5 billion, driven primarily by the energy business, which generated $1.9 billion in total revenues, a 25% increase from the prior year [4] - The fixed income and data services segment also reported record revenues of $2.3 billion, with the fixed income data and analytics business growing 5% year over year to $1.2 billion [5] - Revenues from the mortgage technology segment totaled $2 billion, reflecting progress in digitizing the mortgage workflow [5] Market Data and Key Metrics Changes - The company noted an increase in open interest in the oil industry by 19%, with a significant rise of 18% in the Brent benchmark contract [32] - Open interest trends in natural gas showed a 4% increase globally, with Europe at 8% and Asia at 45%, indicating strong market participation [34] Company Strategy and Development Direction - The company is focused on innovating across asset classes to enhance efficiency and transparency for customers, aiming to deliver value to stockholders [6] - The strategy emphasizes diversification and positioning within industries undergoing digital transformations, which has historically led to consistent growth [4] Management's Comments on Operating Environment and Future Outlook - Management highlighted positive trends in the residential real estate market, noting improved inventory and slowing price growth, which may benefit homebuyers [31] - The energy sector is expected to see increased demand due to data centers and a shift towards natural gas as a transitional fuel, contributing to a favorable outlook for the company's energy trading and risk management platform [32][34] Other Important Information - The company successfully conducted its annual meeting virtually, allowing stockholders to participate and ask questions through a web portal [2][3] - The board of directors and management team were acknowledged for their efforts in achieving strong results and maintaining corporate governance [6] Q&A Session Summary Question: Trends in the residential real estate market - Management noted improving home inventory and slowing price growth, with the company outperforming the industry due to its focus on digitizing and automating lending practices [31] Question: Forecasts and trends for the energy industry - Management observed an increase in market participants in the energy sector, contributing to record volumes and revenues, with open interest in oil and natural gas showing significant growth [32][34]

Core Points - Euronext's Annual General Meeting (AGM) approved all resolutions except for the advisory vote [1] - The annual dividend of €2.90 per ordinary share will be paid on 28 May 2025, with the ex-dividend date on 26 May 2025 and record date on 27 May 2025 [1] Voting Items Summary - Proposal to adopt the 2024 remuneration report [3] - Proposal to adopt the 2024 financial statements [3] - Proposal to discharge the members of the Managing Board and Supervisory Board for their duties in 2024 [3] - Re-appointments and appointments of members to the Supervisory and Managing Boards [3] - Proposals to amend remuneration policies for both boards [3] - Proposal to appoint the external auditor [3] - Proposal regarding the cancellation of shares purchased under the share repurchase program [3] - Proposals to designate the Managing Board for issuing ordinary shares and acquiring shares [3] - Proposal to authorize the granting of rights to French beneficiaries for shares [3] Company Overview - Euronext is the leading European capital market infrastructure, covering the entire capital markets value chain [5] - As of March 2025, Euronext's regulated exchanges host nearly 1,800 listed issuers with a market capitalization of €6.3 trillion [6] - Euronext handles 25% of European lit equity trading and offers a diverse range of products including equities, FX, ETFs, bonds, derivatives, commodities, and indices [6]

Core Insights - Cboe Global Markets is expanding its Data Vantage business in the Asia Pacific region by hiring Junichi Nakagawa and Samuel Zou as Sales Directors, reflecting the increasing demand for market data and analytics from Asia Pacific investors [1][9] Group 1: Business Expansion - The new hires will focus on market data sales and analytics growth in Japan and Singapore, respectively, indicating a strategic move to enhance Cboe's presence in the region [1][4] - Cboe operates 27 markets across five asset classes globally, including leading equity trading venues in Australia and Japan, which supports its Data Vantage business [2][8] Group 2: Market Demand - In Q1 2025, 55% of Data Vantage's new data sales came from clients outside the U.S., showcasing the international expansion strategy and the growing interest from Asia Pacific investors [3] - Cboe's Data Vantage products are increasingly sought after by Asia Pacific investors looking for enhanced access to global markets, highlighting the region's significance for Cboe's growth [4][9] Group 3: Product Offerings - Cboe plans to offer 24-hour trading in U.S. equities five days a week to meet the rising demand from Asia Pacific investors, pending regulatory approvals [5] - The company has made its Global Indices Feed available on Snowflake Marketplace, providing a straightforward way for global customers to access high-quality market data [4]