Intercontinental Exchange (ICE) Q2 FY26 earnings call: guidance and Q&A

Why is ICE the best owner, and what gives confidence in improving MarketAxess's performance given its historical trends?

Jeff Sprecher stated ICE was late to fixed income execution but built an ecosystem around existing players (data, indices, clearing, retail/wealth execution). The timing is right to combine MarketAxess's institutional network with ICE's retail/wealth liquidity on a common network. Chris Edmonds added that the deal addresses friction points and creates economies of scale, generating more opportunities and improving client operational efficiency.

“But at the core is the actual transaction. And there's just with this moment in time when we think the 2 companies are ripe to come together to get together on 1 common network.”

asked by Dan Fannon · answered by Jeffrey Sprecher

How does MarketAxess further ICE's private credit aspirations, extending beyond data into trading?

Jeff Sprecher confirmed that MarketAxess was part of the initial discussions with Apollo regarding building a private credit solution, believing its involvement would accelerate the work product distribution. Chris Edmonds emphasized that MarketAxess provides a distribution channel to serve various participants interested in greater transparency in private credit, bringing it to market at their timing.

“And so it was definitely part of our thinking. Let me again ask Chris to give you a little more detail since he's been working with both parties on the transaction.”

asked by Ken Worthington · answered by Jeffrey Sprecher

How does agentic AI improve revenue growth and market share, and is there a cost benefit?

Ben Jackson explained that AI models are embedded safely into ICE's systems of record, leveraging role-based permission maps, governed networks, and behavioral data. This approach aligns with evolving guidelines (e.g., GSEs) and provides auditable processes. AI widens the value creation surface area, and ICE plans to monetize efficiencies driven for clients. Jeff Sprecher added that ICE runs open-source models in its own data centers to prevent data leakage, which is crucial for financial services.

“But the magic is knowing when does human need to be a loop. And when is there a potential for errors or hallucination in the model where a human needs to be in the loop”

asked by Craig Siegenthaler · answered by Benjamin Jackson

How will the revenue model evolve, particularly regarding MarketAxess's data, given ICE's preference for subscription models?

Chris Edmonds stated that the playbook will be similar to past integrations, with opportunities in data (e.g., bringing it into ICE models), clearing, and creating a more holistic user experience. Warren Gardiner added that MarketAxess's international client base offers an opportunity to cross-sell ICE's existing data, where ICE is currently undersized in EMEA and Asia Pacific.

“I don't believe this will be any different than the other playbooks that we've run in the past. Certainly, there's an opportunity within the data that we'll be able to not only bring into our models, but also the opportunity for us.”

asked by Alex Blostein · answered by Christopher Edmonds

High-level view on perps as an asset class, CFTC's push, and growth opportunity for ICE.

Jeff Sprecher views perps as competitors to leveraged ETFs, not true futures, as they lack a forward pricing curve and are primarily for speculators. He noted the CFTC's openness for FX/crypto perps but market pushback for real-world assets. He expects the SEC to assert jurisdiction over securities traded as perps, potentially as security swaps. ICE sees potential for growth, especially in economies without strong access to U.S. broker-dealers, but regulatory clarity is still evolving.

“The reason we don't -- we think it's kind of a misnomer that they're called futures is because they don't produce a forward pricing curve.”

asked by Patrick Moley · answered by Jeffrey Sprecher

Has ICE's view on declining transaction pricing changed, and will ICE be a price leader in credit post-MarketAxess acquisition?

Jeff Sprecher acknowledged his consistent view on declining transaction pricing but stated that the current moment feels right for the MarketAxess acquisition due to ICE's surrounding ecosystem (treasury clearing, wealth management, private credit, index business). He believes ICE can help MarketAxess compete better. Regarding pricing, he noted ICE's preference for compounding subscription models and that current SEC rules on execution prevent consolidating buying power into subscriptions, though this is being discussed.

“And I think in fairness, it's been you, who's asked me over the last decade, this question. So you're true to form. Yes. It just feels like the right moment in time.”

asked by Alex Kramm · answered by Jeffrey Sprecher

How does tokenization impact industry profit pools, what's defensible, and how much capital efficiency does on-chain collateral unlock?

Jeff Sprecher distinguished between transaction matching (blockchain lacks throughput for ICE's scale) and settlement/collateral movement. On-chain collateral movement can overcome limitations of banking hours and jurisdictions, but regulatory and bankruptcy issues need resolution. He believes once securities are on-chain, collateral pledging and lending will become easier, unlocking more capital. ICE is working with regulators and major institutions to move listed securities on-chain.

“But in terms of settlement and the way collateral can move we've been limited -- the industry has been limited by U.S. banking hours, really where the main security markets are.”

asked by Michael Cyprys · answered by Jeffrey Sprecher