(Reuters) -Intercontinental Exchange, the parent of the New York Stock Exchange, beat second-quarter profit estimates on Thursday, as elevated volatility drove record revenue.
Exchanges thrive during bouts of market volatility as investors frequently rebalance portfolios to seize opportunities and hedge against risks, driving up trading volumes.
U.S. President Donald Trump’s sweeping tariffs triggered volatility in April, while tensions in the Middle East exacerbated in June.
The volatility index, a barometer for market uncertainty and Wall Street’s most-watched gauge of investor anxiety, spiked to record levels in April before easing as optimism over potential trade deals calmed markets.
The company’s revenue from trading in energy-related products jumped 27% to $595 million, while total net revenue surged 10% to record $2.54 billion in the quarter.
On an adjusted basis, ICE earned record $1.81 per share in the quarter, topping Wall Street expectations of $1.77, according to estimates compiled by LSEG.
Shifting OPEC+ commitments and policy changes in the U.S. have also supported energy trading volumes at exchange operators like ICE.
ICE’s energy average daily volume (ADV) surged 27% to a quarterly record, with gains across segments including Brent, gasoil, natural gas, and other crude and refined products.
Volatility in oil and gas markets led traders and investors to buy and sell more futures and options tied to Brent crude, U.S. natural gas and European gas, while new markets for carbon and renewable credits added further activity.
Meanwhile, ICE’s listings business posted a 1% rise in quarterly revenue, anchored by large offerings such as stablecoin issuer Circle.
After a brief lull in April, the U.S. IPO market saw a sharp pickup in activity during the second quarter as companies that had delayed their listings amid tariff tensions moved ahead on their listings.
An increase in the number of IPOs helps exchanges, which charge fees for stock listings.
(Reporting by Atharva Singh and Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
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