ICE: Intercontinental Exchange : ICE Chair & CEO Jeffrey Sprecher to Present at the Goldman Sachs Financial Services Conference (Transcript)

Corrected Transcript 10-Dec -2024 Intercontinental Exchange, Inc. (ICE) Goldman Sachs U.S. Financial Services Conference Total Pages: 13 1-877-FACTSET www.callstreet.com Copyright © 2001-2024 FactSet CallStreet, LLC Intercontinental Exchange, Inc. ( ICE) Corrected Transcript Goldman Sachs U.S. Financial Services Conference 10-Dec-2024 CORPORATE PARTICIPANTS Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. ..................................................................................................................................................................................................................................................................... OTHER PARTICIPANTS Alexander Blostein Analyst, Goldman Sachs & Co. LLC ..................................................................................................................................................................................................................................................................... MANAGEMENT DISCUSSION SECTION Alexander Blostein Analyst, Goldman Sachs & Co. LLC All right. Well, thank you and good afternoon, everybody. It is my pleasure to welcome Jeff Sprecher, Chair and CEO of Intercontinental Exchange, one of the largest global networks of exchange products, fixed income data and mortgage solutions. Over the course of 2024, ICE achieved several milestones, including record results in its industry leading energy franchise, re-acceleration in the firm's fixed income business, and progress in integrating Black Knight into its mortgage business with that deal closed about a year ago. So, we look forward to getting an update from Jeff across all of these initiatives and, of course, your thoughts of what's next for ICE into 2025. Always great to see you here. It's December, so it's time for our - one of our chats again. So, thank you for being here. ..................................................................................................................................................................................................................................................................... Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. Thank you, Alex, and for being here. 2 1-877-FACTSET www.callstreet.com Copyright © 2001-2024 FactSet CallStreet, LLC Intercontinental Exchange, Inc. ( ICE) Corrected Transcript Goldman Sachs U.S. Financial Services Conference 10-Dec-2024 QUESTION AND ANSWER SECTION Alexander Blostein Analyst, Goldman Sachs & Co. LLC Q Yeah. So, I wanted to start with the question on just kind of some of the current events, new administration, regulation. It's a bit of a macro question, to be honest. And obviously, nobody quite has a crystal ball, but the new administration's likely to have meaningful policy and regulatory changes across a pretty wide spectrum of businesses, whether it's energy or financial services. You guys operate across a number of them, if not all of them. So, what are some of the key implications for ICE on the back of potential regulatory change? What would you be the most focused on? ..................................................................................................................................................................................................................................................................... Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. A First of all, thanks for having me. It's a good question there. I guess if you look at the cabinet nominees and ambassador nominees so far in the new administration, we have Lutnick, Bessent, Phelan, Stephens; my wife, Loeffler. You have this cohort of people that are really successful people that have come out of financial services. And to a certain degree, non-bank financial services, a lot of financial services infrastructure, actually. ..................................................................................................................................................................................................................................................................... Alexander Blostein Analyst, Goldman Sachs & Co. LLC Yeah. Q ..................................................................................................................................................................................................................................................................... Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. A And it's a huge percentage of the nominees so far. And so, I just feel like, number one, that the administration's got a lot of domain knowledge about what we're doing. Specifically, I think part of President Trump's appeal was that he was going to deal with crypto and, to me, that's broadly fintech. And there's a couple of bills that have floated around Congress that I suspect will either become one bill or stay two bills, but will probably be the opening salvo. I don't think they'll probably pass in the form that they're in, but they'll create a skeleton against which people will try to, I suspect, move something. One is in jurisdiction, what are the - who has jurisdiction over crypto and, broadly, tokenization. And secondly, what is the future of stablecoin or a bearer instrument that currently may not go through AML and KYC checks. And I suspect those will be dealt with. But before Congress does something, I really do feel like this - the domain knowledge that's within the administration and the new heads are going to be changing the regulatory compact, and one of the areas where I think it's going to be the most felt is in traditional finance, not crypto and fintech. But I really do feel like there's a sense that if you look at the great industries of the United States, President Trump has talked about energy, there's a lot of talk about making sure that agriculture and the right food source is part of our economy. And we obviously have tech and there's a lot of - around Mar-a-Lago, there's a - with Elon there and David Sacks and Vivek, and Marc Andreessen is advising, it feels like the tech's going to be dealt with. The other big industry that, in my mind, the US has is finance. And President Trump has talked a lot about protecting the dollar, and I really think that part of that is improving the banking system, making the US the banking system to the world. And so, it's a long-winded way of saying I really feel like my company, which 3 1-877-FACTSET www.callstreet.com Copyright © 2001-2024 FactSet CallStreet, LLC Intercontinental Exchange, Inc. ( ICE) Corrected Transcript Goldman Sachs U.S. Financial Services Conference 10-Dec-2024 provides technology and services to both fintechs and traditional financial services will do well because I think our customers are going to do better. ..................................................................................................................................................................................................................................................................... Alexander Blostein Analyst, Goldman Sachs & Co. LLC Yeah. Q ..................................................................................................................................................................................................................................................................... Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. A And whenever your customers are doing better, it's good for you as a vendor. So I don't know, there just seems to be a honeymoon period right now and kind of an animal spirit that's been unlocked around finance that feels pretty good as we sit here today. ..................................................................................................................................................................................................................................................................... Alexander Blostein Analyst, Goldman Sachs & Co. LLC Yeah. Well, fingers crossed. Q ..................................................................................................................................................................................................................................................................... Jeffrey Craig Sprecher Founder, Chairman & Chief Executive Officer, Intercontinental Exchange, Inc. Yeah. A ..................................................................................................................................................................................................................................................................... Alexander Blostein Analyst, Goldman Sachs & Co. LLC Q All right. Well, let's talk a little bit about your different businesses. And I would love to start with the energy trading business. It's still your largest business, which doesn't get as much light with investors as it used to, but it is clearly still quite important. It's tracking incredibly well. I think revenues are tracking up 25-plus percent in 2024 so far. And importantly, it's really across a very broad range of products, it's oil, it's nat gas, it's environmentals. The thing that we track closely is, of course, open interest. And it's nice to see that a lot of that growth is coming from open interest, which, to some extent, indicates a wider user adoption. So let's talk a little bit about that and unpack where the growth is coming from. What are the customer bases that you're seeing most expansion with? And the question that I get mostly is, like, well, how durable is it, right? ..................................................................................................