Intercontinental Exchange (ICE) Goldman Sachs Communacopia + Technology Conference 2024 summary

Business model evolution and network effect

• Transitioned from an energy trading platform to a diversified network spanning trading, data, and mortgage technology.

• Over 50% of revenue now comes from recurring, predictable income streams, with a focus on further increasing this share.

• Emphasizes the value of a compounding subscription business over episodic transaction-based models.

• Aims to be an "all-weather" company, growing in various economic environments since going public in 2005.

• Network effect strategy: more clients and content drive mutual value and engagement across the platform.

Mortgage technology and future vision

• Built a vertically integrated mortgage ecosystem with assets like Black Knight, Ellie Mae, MERS, and Simplifile.

• Vision is to digitize the mortgage process, enabling faster, frictionless transactions and increased market velocity.

• Developing tools for both consumer engagement and capital markets, aiming to revolutionize mortgage-backed securities.

• New capital markets platform under construction, with high-quality lenders collaborating on design.

• Targets high single-digit revenue growth in mortgage, with new products expected to ramp up over the next few years.

Data and analytics business

• Fixed income data and analytics is a major growth driver, pricing 3 million securities daily using proprietary AI models.

• Recent acceleration in fixed income data business, supported by growth in assets under management and indices.

• Launched a JV with MarketAxess to expand municipal bond trading distribution.

• Deep institutional relationships and proprietary data underpin the data business, with less reliance on direct trading liquidity.

• Growth in active fixed income ETFs is expected to significantly expand the ecosystem and demand for data services.