Intercontinental Exchange Posts Record Q2 Income – Also Set to Launch CDS SEF

Derivatives exchange IntercontinentalExchange (ICE) announced its second quarter earnings figures today. During the quarter, revenues rose 6% from the same period last year to $372 million, with consolidated transaction and clearing revenues increasing 4% to $319 million. Transaction revenues were higher as the result of average daily volumes during Q2 reaching 3.5 million contracts, 3% above 2012 levels. Consolidated net income at the ICE was $153 million, 7% above last year’s figures, with an EPS of $2.09 on a GAAP basis. Excluding transaction costs related to the ICE’s purchase of NYSE Euronext, adjusted net income rose 12% to $161 million. According to the ICE, the $161 million figure was a quarterly income record.

In addition, the firm also announced at the close of trading yesterday that it would be launching ICE Swap Trade, a swap execution facility (SEF) that it expects to register with the CFTC and SEC as well as a multilateral trading facility (MTF) in Europe. They added that as part of the process of registering ICE Swap Trade, the ICE submitted a SEF application for credit markets with the CFTC on August 2nd. Pricing support for the platform will be offered by Citi, Morgan Stanley, Societe Generale and UBS.

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Commenting on the earnings and revenue growth, ICE Chairman and CEO Jeffrey C. Sprecher stated in the company’s financial results release that “we delivered on our commitment to growth, achieving a record quarter while making continued progress on our acquisition of NYSE Euronext and seamlessly completing a significant clearing transition. We received approvals from shareholders of both companies and the European Commission and are working with regulators to finalize the transaction. Meanwhile, we remain focused on extending our risk management services and delivering on the needs of our customers around the globe.”