Trading Technologies International previously announced an agreement with ICE Data Services to integrate ICE’s evaluated prices and reference data into TT’s new buy-side fixed income execution management system, which will be embedded in TT’s multi-asset platform to support cross-asset trading across fixed income, futures, and FX.
This collaboration could deepen ICE’s role in multi-asset electronic trading workflows by placing its data at the core of a new fixed income EMS used by institutional buy-side clients.
We’ll now examine how embedding ICE’s evaluated pricing into a new buy-side fixed income EMS may influence Intercontinental Exchange’s broader investment narrative.
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Intercontinental Exchange Investment Narrative Recap
To own ICE, you generally need to believe in the long term value of its exchanges, data, and workflow tools as markets keep digitizing. The Trading Technologies agreement reinforces ICE’s data and analytics catalyst, but on its own it does not materially change the near term picture, where integration risks around large M&A and mortgage tech headwinds still stand out as key issues to watch.
Among recent developments, the launch of ICE Fraud Monitor for mortgage underwriting fits the same theme as the TT partnership: embedding ICE data deeper into client workflows. Together, these moves speak to the importance of higher margin, recurring data and technology revenues as a counterweight to potential volume pressure in more cyclical businesses.
Yet beneath these growth efforts, investors should be aware of how increasing technology spend and potential disruption from new trading and data platforms could…
Read the full narrative on Intercontinental Exchange (it’s free!)
Intercontinental Exchange’s narrative projects $12.4 billion revenue and $4.5 billion earnings by 2029. This requires 5.8% yearly revenue growth and about a $0.6 billion earnings increase from $3.9 billion today.
Uncover how Intercontinental Exchange’s forecasts yield a $197.67 fair value, a 48% upside to its current price.
Exploring Other Perspectives
ICE 1-Year Stock Price Chart
Five members of the Simply Wall St Community currently see ICE’s fair value between US$136.66 and US$197.67, highlighting very different expectations. Set this against the growing importance of ICE’s data and workflow products, which could influence how resilient its earnings prove if transaction based revenues face pressure, and you can see why it is worth comparing several viewpoints before forming your own view.