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Intercontinental Exchange Expands Ties With S&P Global Platts

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Intercontinental Exchange, Inc. (ICE - Free Report) revealed plans to come up with a new version of its market data platform — ICE Connect. The new service will have access to oil market analytics, backed by S&P Global Platts, a subsidiary of S&P Global Inc. (SPGI - Free Report) , along with other third parties. The platform is expected to be introduced in the second quarter of 2020.

With the Platts oil analytics content alliance, the company's ICE Data Services will offer customers access to a global refinery database, thereby promoting a better understanding of services related to global oil markets. Apart from gauging refinery capacity, such services will also include oil storage and vessel tracking.

The new platform is expected to harness potential opportunities prevailing in global oil markets and improve the risk management capabilities of customers.

Intercontinental Exchange is anticipated to gain traction from the move to explore global oil markets. The move also showcases the company’s efforts to enhance its product and service suite. This is likely to boost revenue growth going forward. In the last month, Intercontinental Exchange announced plans to launch a data service for covering environmental, social and governance (ESG) factors for the companies listed both in the United States and internationally.

The collaboration is expected to benefit the company’s Trading and Clearing segment, which offers execution and risk management services to businesses, investors and traders across major asset classes. Notably, the segment accounted for nearly 49% of Intercontinental Exchange’s revenues in 2019.

Performance in the Trading and Clearing segment was particularly impressive in 2019. Revenues were $2.5 billion, up 5% from the prior year.

Shares of the Zacks Rank #4 (Sell) company have outperformed the industry in a year. The stock has gained 28.5% compared with the industry’s growth of 28.2%. We believe that strong business fundamentals will drive its shares going forward.

 

 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other securities and exchange companies like Cboe Global Markets, Inc. (CBOE - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) have gained 31.2% and 31.7%, respectively, in a year.

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