Intercontinental Exchange Inc.

Good morning and welcome to the Intercontinental Exchange Second Quarter 2019 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Warren Gardner, Vice President of Investor Relations. Please go ahead.

Good morning. ICE's Second Quarter 2019 earnings release and presentation can be found in the Investor section of the ICE.com. These items will be archived and our call will be available for replay. Today's call may contain forward-looking statements. These statements, which we undertake no obligation to update, represent our current judgment and are subject to risks, assumptions, and uncertainties. For a description of the risks that could cause our results to differ materially from those described in forward-looking statements, please refer to our 2018 Form 10-K. In our earnings supplement, we refer to certain non-GAAP measures, including adjusted income, EPS, operating income, operating margin, expenses, effective tax rate, free cash flow, and EBITDA. We believe our non-GAAP measures are more reflective of our cash operations and core business performance. You'll find a reconciliation to the equivalent GAAP term in the earnings materials and an explanation of why we deem this information to be meaningful, as well as how management uses these measures in our 10-Q. When used on this call, net revenue refers to revenue net of transaction-based expenses, and adjusted earnings refers to adjusted diluted earnings per share. Please see the explanatory notes on the second page of the earnings supplement for additional details regarding the definition of certain terms. With us on the call today are Jeff Sprecher, Chairman and CEO, Scott Hill, Chief Financial Officer, and Ben Jackson, our President. I'll now turn the call over to Scott.

Thanks, Warren. Good morning, everyone, and thank you for joining us today. I'll begin on slide four with some of the key highlights from our second quarter performance. Earnings per share totaled 94 cents, up 4% versus the prior year, and equal to our record fourth quarter performance. During the second quarter, we generated the second highest quarterly revenues in our company's history, which yielded record adjusted operating income and record adjusted EBITDA. And importantly, first half free cash flow increased 13% -over-year, enabling us to return over $1 billion to shareholders through dividends and share repurchases. Consolidated net revenues in the quarter were $1.3 billion, with trading and clearing and data and listings both increasing 5% -over-year on a constant currency basis. Adjusted operating expenses totaled $540 million in the quarter, including a roughly $5 million non-occurring benefit primarily in tech expense. Additionally, second quarter expenses reflect both the reclassification of certain licensing agreements from net revenues to expenses, as well as a small amount related to our acquisition of SimpliFile in late June. Looking forward to the third quarter, we expect adjusted operating expenses to be in the range of $552 to $562 million. This includes $9 to $10 million related to SimpliFile and roughly $10 million related to the aforementioned revenue reclassification. These expenses will be more than offset by around $25 million of revenue and thus accretive to the bottom line. On a basis comparable to our original expense guidance, we now expect full-year adjusted operating expenses to be around the low end of that range in between $2.14 and $2.16 billion. Adding in roughly $50 million for the full-year amounts related to SimpliFile and the revenue reclass, and noting again that those expenses will be more than offset by additional revenue, adjusted operating expenses are expected to be in the range of $2.19 to $2.21 billion. We've included slide 11 in the appendix to provide additional clarity on this update. Now let's move to slide 5, where I'll provide additional color on the performance of our trading and clearing segment. In the second quarter, net revenues were up 4% year over year or 5% on a constant currency basis. In our energy markets, average daily volumes or ADV were down 2% year over year. However, total energy revenues increased 2% versus the prior year on a constant currency basis resulting in the second best quarter in our history. This strong performance was driven primarily by continued growth in our European natural gas and global oil products. Average daily volume in our European natural gas business established a new record during the second quarter, and open interest is up 29% over the prior year through July. In addition, ADV and the broad suite of crude and refined oil related contracts that make up our global oil business increased 14% year over year in the second quarter, with open interest up 25% at the end of July. Overall, July energy trends remain positive, with ADV up 9% and open interest up 4% on a year over year basis. ADV in our agriculture and metals markets also set a record in the second quarter, driven by strong performance in both our sugar and coffee products. This was mitigated somewhat by a weaker rate for contract driven by customer and product mix. ADV remained strong in July, up 7% year over year. Revenue in our financial futures business, which includes both our interest rates and equity index products, declined year over year. A difficult political and economic environment, as well as a tough compare versus the prior year impacted interest rate volumes. However, we're off to a really good start in July, with interest rate ADV increasing 29% year over year, led by a 60% increase in Euribor volumes. Importantly, open interest across our rates business is up 10% year over year, including sterling open interest, which is up 40%. In our equity index business, MSCI ADV was up 16% in the second quarter and remained strong in July, with ADV up 7%. Turning next to slide 6, I'll discuss our data and listing segment. Second quarter listings revenues totaled $111 million. The NYSE raised nearly $20 billion in IPO proceeds during the quarter, ranking first globally. During the first half of 2019, the NYSE helped raise 55% of total US IPO proceeds, including 75% of US tech proceeds. Moving to data services, on a constant currency basis, revenues grew 6% year over year to a record $553 million. In pricing and analytics, revenues grew 4% on a constant currency basis, helped by strong growth in our index business. Entering the third quarter, pricing and analytics ASD is up 6% year over year on a constant currency basis, and we expect revenue growth will reaccelerate in the second half. Exchange data and fees grew 9% on a constant currency basis. Strength in our futures business, which grew 7% in the second quarter, as well as higher tape revenue related to share increases at the NYSE drove this strong performance. While we expect demand for our futures related exchange data products to continue to grow, lower tape revenues and continued softness in NYSE prop data will likely result in a sequential decline in total exchange data revenues in the third quarter. And finally, in desktops and connectivity, revenue increased 5% year over year on a constant currency basis. Growth in the ICE Global Network, as well as our desktop and chat platforms, was partially offset by weakness in some of our NYSE connectivity services. Moving forward and despite currency impact, we remain on track to our original full year data revenue guidance, and we expect data revenues to be in the range of $550 to $555 million during the third quarter. Our continued focus on serving our customers, combined with disciplined investments to support growth and profitability across our diverse business, once again delivered solid results in the first half of 2019. We grew revenues, operating income, earnings per share, and free cash flow. We returned more capital to shareholders in the first half of 2019 than in any other half year period in our history. And we are laser focused on building on this momentum to deliver a strong second half of the year and to strengthen the foundation for continued success in 2020. I'll be happy to take your questions during Q&A, but for now, I'll turn it over to Ben.

Thank you, Scott, and good morning to everyone on the call. I'll begin on slide seven. Over the last 20 years, how energy is produced and consumed has rapidly evolved. So too have global trade flows, as well as the technology and data available to market participants. We have continuously invested alongside this evolution, building a global platform that of the most diverse and liquid energy marketplaces in the world. In our oil business, Brent crude stands as the cornerstone of a franchise spanning key price benchmarks, such as gas oil, WTI, and Platts Dubai, which is one of the leading markers for crude traveling through Asia. Together, these benchmarks form the foundation for a cohesive web of more than 600 related products, such as locational spreads, product spreads, and refining spreads. These are precise risk management tools that benefit from the deep liquidity in and their relationship to our global oil benchmarks. Driven by the breadth of our commercial customer base, we have become the natural home for liquidity in these products. With open interest in our global oil products up 25% year over year to over 5.5 million contracts or over 40% of our total oil open interests. Our global natural gas complex spans trading hubs across North America, Europe, and Asia. The globalization of natural gas is a trend we've been investing in for over five years, beginning with our investment in Endex. That investment established us as a leader in European gas trading. With Asia as the largest buyer of global LNG, the relationship between our European benchmark and Platts JKM, our Asian benchmark, is driving global price formation. These new dynamics demand that commercials, investors, and traders have a global view. European customers must be aware of supply and demand factors in Asia, just as a buyer in Asia must be cognizant of trends facing European markets. LNG shipments out of the Gulf are increasingly pricing away from HenryHub. And as our benchmarks become more global, we are seeing participation increase with the number of trading firms in our European TTF market doubling since 2015, while average daily volume has increased 124% this year alone. In addition, a few weeks ago, we announced an agreement to extend our partnership with to bring the E-Window platform to the global LNG trading community, replicating our successful strategy in the oil markets. The Platts E-Window will leverage our unique WebEye technology, enabling customers to transparently submit bids and offers and execute trades while simultaneously participating in the Platts price assessment process. The globalization of natural gas alongside a global focus on decarbonization is also critical to the environmental markets. In Europe and the U.S., regulators are increasing the focus on incentivizing the use of renewables and cleaner fossil fuels, such as natural gas over coal. Incentives include introducing cap and trade programs and renewable energy standards. Built off of our acquisition of the climate exchange nearly a decade ago, we operate the world's largest emissions markets. And as demand for transparent pricing and carbon grows, our markets are well positioned to capture these trends. Economies around the globe are demanding and consuming more energy. Sources such as renewables will continue to be introduced into the mix, and these energy sources are unpredictable by nature. Their interplay with fossil fuels and energy production has the potential to drive additional volatility in global energy markets and will require traders to consume more data and integrate more robust analytics into their workflows. This is an evolution that we have long envisioned and have positioned our business to benefit from, and we're excited about the future opportunities that lie ahead. And with that, I'll turn the call over to Jeff. Thank you, Ben.

And good morning to everyone on the call. The evolution of our energy markets is one example of how we're continuously investing and developing customer-driven solutions across asset classes, as well as the creative approach we've taken to leverage our infrastructure, our technology, and our expertise to drive value creation. In areas such as data services, we're leveraging our core fixed-income pricing and reference data, developing new fixed-income benchmarks, such as our suite of muni indices, and launching real-time fixed-income yield curves and credit risk tools. We're investing in our fixed-income analytics, enhancing the functionality, and now delivering it through an API to broaden the addressable market. In the second quarter, we launched the ICE Data Vault, a cloud-based data repository that leverages our consolidated feed business and delivers historical data from over 600 global sources. And we've invested in our sales footprint, adding coverage across both the EMEA and Asia Pacific regions. These are just a few examples of the initiatives and the new products that we're bringing to the market. They demonstrate how we are taking the former IDC Foundation, one that traditionally served the back and middle offices, and we're enhancing it to drive transparency and liquidity, while we also expand our addressable market further into the front office. When we combine the long-tail secular trends, such as the electronification of bond markets, workflow automation, and the shift from active to passive fund management, our comprehensive data offering is positioned to continue to deliver compounding growth well into the future. Towards the end of 2019, we expect to launch our ETF Hub, an innovative solution that will serve the $1 trillion fixed-income ETF industry, an industry that some expect will double in size over the next five years. With the ETF Hub, we'll bring to market a single portal, one that will be unique to connect multiple participants and provide a more efficient solution for sponsors and traders to manage and execute their primary market orders. In addition, the SEC is reviewing regulation around the use of custom baskets for the broader ETF sponsor community, a change that over time could provide additional tailwinds for activity on our ETF Hub platform. Ultimately, we view the ETF Hub as one of the first steps towards building a more automated, efficient, and complete ecosystem serving the fixed-income trading and investing community. We're also investing in our equity derivatives business, launching eight new MSCI contracts in the first half of the year. Led by the flagship Emerging Market Index, open interest in our MSCI complex has more than doubled over the last five years to nearly two million contracts at the end of July, while average daily volume is up 12% year over year. At the New York Stock Exchange, we executed our second successful direct listing as Slack went public through this innovative offering, an offering that's maximized by NYSE's hybrid model coupled to a dedicated market maker that is compensated under the rules of the exchange, thereby combining dedicated human judgment with -the-art technology. During the quarter, we also launched the NYSE Board Advisory Council, a creative initiative that leverages the unmatched network of the NYSE and one that seeks to address some of the important ESG issues that face corporations today. As we look at opportunities across other asset classes such as mortgages and digital assets, we're applying our unique approach to platform building and innovation. In our mortgage business, we closed on our acquisition of SimpliFile in the second quarter and added a key piece of infrastructure, one that complements our suite of digital solutions aimed at bringing more efficiency to the $11 trillion US mortgage industry. At Bakkt, subject to final regulatory approvals, we plan to launch our physically delivered Bitcoin futures in the very near future. As use cases for digital assets and payment flows advance, Bakkt is working to build a regulated digital asset ecosystem that serves the evolving needs of institutions, merchants, and consumers around the world. Let me close by having you turn to slide nine. As we turn back to the first half of this year, we're focused on building on our long-track while we stay concentrated on the execution and investing for our future. I want to close by thanking our customers for their business and their trust. I want to thank my colleagues for their efforts that contributed to yet another very, very strong quarter for ICE. And with that as my prepared remarks, let me turn our call back to Kari to conduct the question and answer session, which will operate until 930 a.m. Eastern Time.

We will now begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two. We do ask that you limit yourself to one question. You may rejoin the question queue for additional questions. At this time, we will pause momentarily to assemble our roster. The first question will come from Richard Rapeto of Sandler O'Neill.

Good morning, Jeff, Scott, and Ben. It's been an early morning for some of us. And I guess with the LSE Refinitiv confirmation, the announcement this morning, it seems like they're taking a page out of your playbook with a focus on market data. And certainly, they have some fixed income and FX trading platforms as well. I guess the question, Jeff, is how do you see this impacting your businesses, this one-stop shopping for market data, and how would you differentiate what you're offering versus what could be a potential LSE Refinitiv combined platform?

That's a great question. Thanks for asking it. First of all, we were fortunate that we saw the move to that kind of pivot very early so that we were able to acquire some very, very strategic assets that what today would be viewed as incredibly attractive valuations to build a foundation for what we offer today. And as you see, the footprint that we pivoted towards in data was really around fixed income data more than anything. And in that space, it's a unique space, and one of the things that we were able to acquire with IDC was a -year-plus history of high-quality fixed income data that is hard to replicate for new entrants simply because of time. And what we find is people, the buy side and sell side that are doing analytics and what have you, need that rich, robust data set in order to back-test portfolio theories and other things. Separately, the fixed income business is interesting in that only a very tiny amount of fixed income trades on any given day. It's probably less than 5% of fixed income names in the muni space where we've really put a big investment. It's less than 1%. And so the algorithms and knowledge base that comes from that foundation is really important, much more so than the trading platforms, which is why we, as we realized that, we pivoted hard into acquiring indices, legacy data sets, and other relationships as opposed to execution venues, as you've seen, because that will not change with the electronification of the business in our mind. So we're well positioned. It's a space we expect more competition in. It's a space we expect more consolidation around. One of the facts that I mentioned years ago that we began to see, partly by acquiring the New York Stock Exchange, is that it's very hard to have connectivity to many, many customers because of cybersecurity issues. People want a smaller number of large vendors that have the scale to guarantee that connectivity, direct connectivity to companies is safe. And so it was somewhat inevitable that there was going to be a roll-up in this space. And as I said, that's why we chose some assets quickly and went hard at them very early.

The next question will come from Michael Carrier of Bank of America.

Good morning. Thanks for taking the question. For Scott, maybe just on the expenses and the guidance on slide 11, just with the gross and the net expense guide, can you just provide some color on the revenue offsets and maybe which lines that will be flowing through for the second half?

Sure. Yeah, so slide 11 is a good one to look at. I think the key point I would highlight there is effectively what we did this quarter was bring the midpoint of our original guidance down by $25 million. And then we added $50 million on top of it. And that's roughly $28 million which was simply a change in how we're treating some revenue share agreements that we have. We're going to treat those as net revenue, now not gross. That's about $28 million. And the vast majority of that is on our financials business. And you saw that in our RPC which we adjusted the rolling three months was up a couple of pennies. That's about $8 million in the second quarter and then $10 million in the third quarter and fourth quarter. The other piece is the addition of SimpliFile. As I mentioned, that's $9 million to $10 million in the quarter. You could double that and assume for the half it will be $18 million to $20 million. And that's where for the second half we expect revenues in excess of $30 million. And so we've now got a mortgage business that annualized is $140 million plus business at very attractive margins. And so we're really excited about that. So I think the way to think about expense is they brought the midpoint down $25 million for the year. The gross to net change is no impact to the bottom line and SimpliFile is immediately a creative and adds to a really large mortgage business in a quickly digitalizing space.

The next question will come from Ken Worthington of JPMorgan.

Hi. Good morning. And thank you for taking my question. Maybe on ASV it's up less now than it had been in the past. I think the calculation was something like .7% organic constant currency. It had been as high as maybe .7% a couple of quarters ago. So what are the biggest drivers in the decline in ASV? I think you guys mentioned equity data. Is there something else as well? Pricing and analytics growth seems to be around 4% now. That's less than it's been in the past. Maybe is that a driver as well? And then lastly, ASV does not capture all the outlook for data. Can you give us an update on the part of data that's not captured by ASV? How is that progressing?

That's a big bundle of questions. Let me see if I can work my way through that. So first of all, you're 100% right to be looking at the ASV metric. That is the key indicator of the very good health of our data business. Because that ASV number represents the 90% of our revenues, roughly, give or take, that Lynn and her team are out selling every day. The other non-ASV stuff is session fees and MMS and tape data. We don't sell that. We don't really control that to a great extent. So you're focused on the right metric. I look at an ASV number, I think it was maybe 6.4 last quarter, 6.1 this quarter, on a constant currency basis. There was between 5.7 and 6.7 in a given quarter. I don't lose much sleep on it. As long as we're pivoting around 6%, I think that's really indicative of a data business that's positioned to deliver the kind of growth that you've seen from us over the past couple of years. So I think the ASV is well positioned. There is a little bit of weakness on the NYSE exchange data. And that weakness is not that it's going backward, it's just not growing. And so that does have a bit of a downward impact. But the good news is you look at futures exchange data, as I said, growth in the quarter plus 7%, you know, but no customer erosion at all. You hear from others that customers are going away. We're not seeing that. I think that reflects the commercial orientation of our markets. You look at pricing and analytics where it dipped a little bit in the second quarter. But again, an instructive point in that audits come and go. And last year we had a few. The year before that we had a few. This year we didn't. And I mentioned that business is going to reaccelerate 5%, 6% in the third quarter, 6%, 7% in the fourth quarter, and, you know, coming off a 6% year, headed back towards another 6% year in pricing and analytics. So again, feel really good about that business, feel really good about the execution from Lynn and the team. And I think the ASV metric is a really good indicator that that business is healthy and growing. And the thing that I also hope you noted in the quarter was as we start to get some of the foundational investments behind us in that data business, you're starting to see the margin expansion that we would expect from the incremental revenue growth. So we were up a couple of points year over year in the quarter. And again, I think that's reflective of the fact that a business that's positioned to continue to grow is also likely to have very solid incremental margins and expansion overall.

And Ken, let me just pile on by mentioning that Ben went over on slide 7 how our energy business has really changed. You know, we started, when I started the company, we had natural gas was U.S. Henry Hub. Today you look at the map on slide 7 and you see that the energy business has pulled us to Europe and then EMEA, Asia. And so, you know, I mentioned in my prepared remarks we're investing in sales and marketing people in these new areas. In other words, the flow of data sales is following the flow of commercial interest in our products. And so it gives us some confidence. We get asked a lot about changes in large banks like yours, changes that are going on around Brexit, changes in Europe and what have you. But when you really look at the flow of the way people are integrating with our network, you see that it's broadening globally and that's helping to drive those data sales.

The next question will come from Kyle Voight of KBW.

Hi, good morning. Let me just do one more follow-up on the LSE Refinitiv transaction. It sounded like from LSE's call this morning that the Refinitiv deal wasn't really a highly competitive deal. So I guess my question is were you able to look at the asset prior to the LSE announcement last week? And then I guess part two of that is just clearly moving LSE bigger into the front office, which you mentioned in your prepared remarks, with their desktop business at Refinitiv. Would that be an area you'd focus on if assets were available in that space in terms of M&A? Thanks.

Good question. I am unable to speak to the current transaction, but let me just say to you that we've been relatively aggressive at the way we've built ICE over the last couple of decades. And we have had conversation around those assets for more than a decade with multiple management teams who have had multiple ideas on how we might interface with those, including acquisitions, joint ventures, bundling, cross licenses, you name it. And we've watched those management teams and discussed with those management teams as they've made major investments in those assets, as they've pulled back from investments in those assets, as they've tried to do cost cutting around those assets, as they've tried to bundle with us, as they've focused on price increases, as they've focused on price decreases. And because it was a public company, we have watched with tremendous detail how those assets have evolved over decades. And so, you know, we've had many opportunities to engage, and we haven't found a way, obviously, that did something that we felt would really be accretive to ICE shareholders. That in no way is a comment on the current deal. David Schwimmer and David Warren are two people who I have known for years and highly respect and are tremendous at what they do and have given us guidance from time to time. And also, Joe Barata and Martin Brand at Blackstone are amazingly sharp and savvy. And so I've got nothing but good feeling about those people and that deal that they did. But as it respects to ICE, over many, many years, we were not able to find a way that we could create value.

The next question will come from Alex Blostein of Goldman Sachs.

Hey, guys. Good morning. Thanks. So maybe just to round up the discussion around LSE and Refinitiv, any way you guys kind of help us think about exposure, ICE data services has to be competitive. I think most of that is going to be on the exchange data side. But within pricing analytics, is there any sort of revenue exposure there as well? And how do you guys think of any potential risks to ICE on the back of that transaction?

This is Jeff. I don't want to answer that question only because that particular transaction is going to go through a global antitrust review. I don't want to say something that in any way is used in that review, positively or negatively. So don't take that to mean anything other than there's a transcript being made of this call. And I'd rather not have us discussing that particular thing. You going to give me a pass?

The next question will come from Dan Fannin of Jeffries.

Thanks. Can you talk about the ETF Hub in more detail and timing of launch, kind of your expectations and maybe some of the incentives that you're going to put out there to attract participants to that offering?

Sure, Dan. This is Ben. And thanks for the question. So we've been talking about this on many calls and we're really excited about it because we are deep in the testing phase right now with a lot of the institutional buy sides and sell sides that are going to onboard onto this platform as it launches. And our target launch date is in the fourth quarter of this year and we feel really good about it on how the testing process has gone. One of the things that excites us about this is, you know, and Jeff had highlighted in some of the comments he made, that we have a multi-decade relationship on the institutional side of these buy side and sell side firms between our pricing, our reference data, our analytics and our index offerings. And what this is enabling us to do is we're going to be really combining that set of offerings with our execution capabilities in TMC and BondPoint that have historically been in the wealth management space but have protocols that are really oriented towards the new wave of electronification and fixed income with central order book trading. And you're obviously hearing that other platforms out there are trying to race to build similar capabilities to what these platforms already have. So as we're now going through the testing process and we're now onboarding customers into the ETF hub, these institutional customers, through the testing process, through the technical integration process as well as the legal onboarding, we are coupling these elements together to the onboarding process of that ETF hub for a lot of these institutional buy sides that have traditionally not been on our venues to also onboard onto TMC, BondPoint, our auction and our RFQ protocols. So for the first time, a lot of these institutional buyers and sellers will have an opportunity to use our venues that have historically not interacted with that order flow in the secondary market. So that's all upside for us to be able to compete in an area that we traditionally have in secondary trading. And in primary trading, which is where the ETF hub is, we're going to have, as Jeff highlighted in his comments, the unique solution for the industry that solves a ton of inefficiency that there is. And because we're solving that inefficiency and helping all these market participants save an additional amount of cost, reduce risk, and hopefully continue to grow an asset class that has seen explosive growth, we see recurring revenue opportunities coming from this, from clients onboarding on it as a natural output of it.

Once again, if you have a question, you can press star then one. The next question comes from Brian Badel of Deutsche Bank.

Great. Thanks. Good morning, folks. I was going to ask one on the definitive as well, but Jeff, you might not answer given the global antitrust view. But why don't I ask it and then I'll have a second question. You can pick one of the two. Fair enough. The definitive one was just longer term thoughts on how it could change pricing in the industry given how you've gone out to a lot of large customers and have been able to successfully bundle a lot of data services together, whether the definitive transaction changes that dynamic longer term in that strategy. And then the second question would be on energy. And the question there is given that product range that you guys outlined a lot of this call, is there a view of broadening out the customer base there? You've traditionally been very heavy in the commercials and you thought to doing things to introduce more market making and proprietary trading and perhaps even retail usage of energy features.

I think we'll try to answer both questions. So I think he's threaded the needle. So, yeah, the notion of trying to bundle content and distribution is something not unique to financial services. It is the play in media and transportation and many other industries around the world. And so I do think that that trend will continue. I do think that the competition authorities are going to pay attention to that, which is why I'm not prepared to get too in depth with somebody else's strategy versus our strategy. But I think ultimately, you know, our industry has been going through consolidation not just in platform providers, if you will, like ICE, but buy side firms and sell side firms and the way assets are gathered and managed. And so it's somewhat of an inevitability in my mind that you're going to see, you know, winners emerge. And as I mentioned, I'm glad that we made the transition early so that we had a look at all of these assets and could figure out which ones really would work for the specific kind of platform and distribution and content that we think can continue to deliver top line growth. You can bundle downward growth as well, you know. So the idea here is to create compelling bundles that more customers want that can drive EPS growth. And I know we've done that.

So on the energy side, just to pick up on the second question you had there. So you're right, we have focused on the commercial hedger in building out a diversified product suite around the world. And when we say that, we're focused on the commercial hedger. I think one of the important distinctions that not everyone appreciates is what we mean by that. What we mean is that we've established a set of diversified products. So the product that people are actually consuming, whether it's various grades of crude oil or its refined products, and also enabling at the point of consumption of those goods, putting locations around the world for where these customers are either buying or selling the end commodity. That enables them to as precisely as possible manage their exposure to price risk where they have the most acute risk, which is at that point of consumption. And this is distinct from many of the other peers that are out there where they primarily focus on a single product and trying to attract customers that could be halfway around the world to interact with a product that they may have no commercial connection to. If you look at products that we've developed in Asia, for example, like Singapore gas oil, fuel oil, Singapore jet kerosene, these are a small sample set of hundreds and hundreds of products that we have around the world in our global oil and refined product suite that we've been partnering with our customers to build. And we have had, have today, and continue to build on and grow market share in this part of our business. As Scott had pointed out, open interest up 25 percent and volumes even accelerated this month to up 17 percent in this suite. The last thing I'd point out is the reason we focus on the commercials is that to have a real vibrant market, it starts with the cornerstone, which has to be the commercial trader that really cares about that physical instrument that's underpinning, that's underpinning the price formation and really the real risk around consuming the end good at the particular at the particular location. And what we've seen is if you get that right, market makers, financials and those follow into that market. And that's what we've seen in all of the markets that we've developed. So we do focus on each of those areas that you had mentioned, but we really focus on getting the commercial aspect of it right of it right first. And that's why we're seeing this area of our business significantly grow.

The next question will be from Chris Harris of Wells Fargo.

So part of ICE's value proposition in fixed income data is really offering valuation services for harder to value securities. So I'm wondering, you know, as more trading moves to electronic and becomes more transparent, how do you think this part of the data business will evolve?

Thanks, Chris. This has been I'll I'll take this. So I think one of the comments Jeff made in an answer to a question earlier today is very important to highlight in that if you look at the corporate bond space where you have 30,000 instruments on a given day, the number of instruments out of that 37 or 30,000 corporate bonds that are out there, less than 2000 of those trade every single day. So even as electronification takes hold, you're talking about five percent or less of the market that's actually trading in a given day. And with the explosion of data and the more precision that people want around managing their risk and pricing instruments moving not only from end of date, but to intraday, you can imagine the algorithm that's needed to understand what the correlations are of all the different instruments that actually do trade in a given day and having to figure out what does that mean for something that hasn't traded a day, a week or a month. And when when we talk about the multiple decades of being that trusted pricing and reference data provider to our customers, having that history, having that trust of being able to build out that complex algorithm, having trained it over many, many decades, puts us in a position that I think is very, very strong. We'll continue to grow as data and information assets continue to grow around the space.

And this concludes our question and answer session. I would now like to turn the conference back over to Jeff Sprecher for any closing remarks.

Thank you, Kerry. And thank you all for your participation in today's call. And we'll look forward to being back next quarter to similarly give you our great results.

Thank you, sir. The conference is now concluded. Thank you all for attending today's presentation. You may now disconnect your lines. Have a great day.