Forbes – IntercontinentalExchange Group recently reported its volume figures for the fourth quarter of 2015 as well as the month of December. In October, the exchange operator experienced a slight decline (2% year on year) in daily volumes, while November saw ICE making steady gains for all asset classes combined, with an increase of 13% year on year (y-o-y) in daily volumes. This rise continued in December with a 17% increase in average daily volumes on a year-on-year basis. Below we discuss these results in more detail. We have a $235 price estimate for ICE, which is about 10% lower than the market price. ICE’s stock price has fluctuated between $205 and $265 this year. Financial Derivative Volumes Experience A Surge Continuing the impressive streak of 55% annual growth from November, financial derivatives trading increased by 30% y-o-y in December 2015 to 2.1 million contracts per day. This substantial growth was supported by high volatility experienced in the European short-term interest rate markets, causing average daily volumes (ADVs) for short-term interest rate contracts to rise by 56% y-o-y. However, trade volumes for foreign exchange derivatives and credit derivatives failed to recover in December and experienced an 11% decline to 47,000 contracts per
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Source: CTRM Center