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What changed in Intercontinental Exchange's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Intercontinental Exchange's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+574 added−538 removedSource: 10-K (2024-02-08) vs 10-K (2023-02-02)

Top changes in Intercontinental Exchange's 2023 10-K

574 paragraphs added · 538 removed · 414 edited across 5 sections

Item 1. Business

Business — how the company describes what it does

228 edited+81 added−71 removed271 unchanged
Biggest changeCommon Stock • We are a holding company and depend on our subsidiaries for dividends, distributions and other payments. 20 • We may fail to complete or realize the anticipated cost savings, growth opportunities and synergies and other benefits anticipated from our acquisitions or anticipated growth opportunities or expected benefits of our strategic investments, which could adversely affect the value of our common stock. • Provisions of our organizational documents and Delaware law may delay or deter a change of control of ICE.
Biggest changeMergers & Acquisitions and Common Stock • We may fail to realize the anticipated cost savings, growth opportunities and synergies and other benefits anticipated from our recent acquisition of Black Knight and are subject to continuing obligations contained in the Agreement Containing Consent Orders, or the Consent Order, entered into between the Federal Trade Commission, or the FTC, ICE and Black Knight, which could adversely affect our business and the value of our common stock. • As a result of the consummation of the merger with Black Knight, we are subject to risks relating to the business conducted by Black Knight. • We may fail to complete or realize the anticipated cost savings, growth opportunities and synergies and other benefits anticipated from any future acquisitions or anticipated growth opportunities or expected benefits of our strategic investments, which could adversely affect the value of our common stock. • We are a holding company and depend on our subsidiaries for dividends, distributions and other payments. • Provisions of our organizational documents and Delaware law may delay or deter a change of control of ICE.
Fixed Income and Data Services Segment Our Fixed Income and Data Services segment includes our fixed income data and analytics offerings, fixed income execution, or ICE Bonds, CDS clearing and other multi-asset class data and network services.
Fixed Income and Data Services Segment Our Fixed Income and Data Services segment includes our fixed income execution, or ICE Bonds, CDS clearing, our fixed income data and analytics offerings, and other multi-asset class data and network services.
Closing solutions also include revenues from our Mortgage Electronic Registration Systems, Inc., or MERS, database, which provides a system of record for recording and tracking changes in mortgage servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate.
Closing solutions also include revenues from our Mortgage Electronic Registration Systems, Inc., or MERS, database, which provides a system of record for recording and tracking changes and servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate.
Furthermore, our investment in Bakkt entails numerous risks, including risks relating to our minority voting interest in Bakkt and risks relating to Bakkt’s ability to: • manage the complexity of its business model to stay current with the industry; • successfully enter categories and markets in which it may have limited or no prior experience; • apply distributed ledger technology to a global ecosystem for digital assets; • successfully develop and integrate products, systems or personnel into its business operations; • obtain and maintain required licenses and regulatory approvals for its business; • maintain a risk management and compliance framework designed to detect illegal activity such as fraud, money laundering, tax evasion and ransomware scams and comply with anti-money laundering, counter-terrorist financing laws and regulations and anti-corruption laws globally; • comply with existing or new laws, regulations or orders of any governmental authority related to the use of digital assets, which are currently under additional regulatory scrutiny following recent negative events in the cryptocurrency industry; and • maintain technology systems and processes that prevent cyberattacks and security vulnerabilities.
Furthermore, our investment in Bakkt entails numerous risks, including risks relating to our minority voting interest in Bakkt and risks relating to Bakkt’s ability to: • manage the complexity of its business model to stay current with the industry; • comply with existing or new laws, regulations or orders of any governmental authority related to the use of digital assets, which are currently under additional regulatory scrutiny following recent negative events in the cryptocurrency industry; • obtain and maintain required licenses and regulatory approvals for its business; • successfully enter categories and markets in which it may have limited or no prior experience; • apply distributed ledger technology to a global ecosystem for digital assets; • successfully develop and integrate products, systems or personnel into its business operations; • maintain a risk management and compliance framework designed to detect illegal activity such as fraud, money laundering, tax evasion and ransomware scams and comply with anti-money laundering, counter-terrorist financing laws and regulations and anti-corruption laws globally; and • maintain technology systems and processes that prevent cyberattacks and security vulnerabilities.
We cannot assure you that such measures will adequately protect our business, and could introduce new operational risks, including, but not limited to, cybersecurity risk, and could strain our technological resources and business continuity plans.
We cannot assure you that such measures will adequately protect our business, and such measures could introduce new operational risks, including, but not limited to, cybersecurity risk, and strain our technological resources and business continuity plans.
We may also not realize anticipated growth opportunities and other benefits from strategic investments or strategic joint ventures or alliances that we have entered into or may enter into for a number of reasons, including decline in value of the other company, regulatory or government approvals or changes, global market changes, contractual obligations, competing products and, in some instances, our lack of or limited control over the management of the business.
We also may not realize anticipated growth opportunities and other benefits from strategic investments or strategic joint ventures or alliances that we have entered into or may enter into for a number of reasons, including decline in value of the other company, regulatory or government approvals or changes, global market changes, contractual obligations, competing products and, in some instances, our lack of or limited control over the management of the business.
The market data subscriptions and trading volumes in our markets could decline substantially if our market participants reduce their level of spending or trading activity for any reason, including: 21 • adverse market conditions that curtail the addition of new customers or cause a decrease in purchases by our existing customers for our subscription-based products and services; • weakness in the macroeconomic environment that causes our customers to delay or cancel existing orders or subscriptions; • cost-cutting pressures across the industry or decrease in demand for our subscription-based products and services that lead to a reduction in price; • consolidation in our markets or the markets of our customers that results in a reduction in the number of market participants; • a reduction in trading demand by customers or a decision to curtail or cease hedging or speculative trading; • regulatory or legislative changes impacting our business, our customers and financial markets; • political uncertainty and discord could negatively impact us if we are viewed as taking a political stance that is contrary to our customers' beliefs or principles; • the impact of climate change and the transition to renewable energy and away from fossil fuels; • a prolonged decrease in volatility in the financial markets; • heightened capital and margin requirements or mandated reductions in leverage resulting from new regulations; • defaults by clearing or exchange members or the inability of participants to pay out contractual obligations; • changes to our contract specifications that are not viewed favorably by our market participants; or • reduced access to, or availability of, capital required to fund trading activities.
The market data subscriptions and trading volumes in our markets could decline substantially if our market participants reduce their level of spending or trading activity for any reason, including: • adverse market conditions that curtail the addition of new customers or cause a decrease in purchases by our existing customers for our subscription-based products and services; • weakness in the macroeconomic environment that causes our customers to delay or cancel existing orders or subscriptions; 22 • cost-cutting pressures across the industry or decrease in demand for our subscription-based products and services that lead to a reduction in price; • consolidation in our markets or the markets of our customers that results in a reduction in the number of market participants; • a reduction in trading demand by customers or a decision to curtail or cease hedging or speculative trading; • regulatory or legislative changes impacting our business, our customers and financial markets; • political uncertainty and discord could negatively impact us if we are viewed as taking a political stance that is contrary to our customers’ beliefs or principles; • the impact of climate change and the transition to renewable energy and away from fossil fuels; • a prolonged decrease in volatility in the financial markets; • heightened capital and margin requirements or mandated reductions in leverage resulting from new regulations; • defaults by clearing or exchange members or the inability of participants to pay out contractual obligations; • changes to our contract specifications that are not viewed favorably by our market participants; or • reduced access to, or availability of, capital required to fund trading activities.
ICE Securities Execution & Clearing, LLC, a full clearing member of the National Securities Clearing Corporation, the Fixed Income Clearing Corporation and The Depository Trust Corporation, provides correspondent clearing for ICE Bonds and is subject to oversight by the SEC, FINRA and the MSRB. • Our U.K.-based execution-oriented fixed income market is operated by Creditex Brokerage, L.L.P., which is an operator of a multilateral trading facility, or MTF, and ICE Markets Limited, which acts as the matched principal counterparty to bond transactions arranged on the MTF operated by Creditex Brokerage.
ICE Securities Execution & Clearing, LLC, a full clearing member of the National Securities Clearing Corporation, the Fixed Income Clearing Corporation and The Depository Trust Corporation, provides correspondent clearing for ICE Bonds, Creditex Brokerage, L.L.P. and ICE Markets Limited and is subject to oversight by the SEC, FINRA and the MSRB. 17 • Our U.K.-based execution-oriented fixed income market is operated by Creditex Brokerage, L.L.P., which is an operator of a multilateral trading facility, or MTF, and ICE Markets Limited, which acts as the matched principal counterparty to bond transactions arranged on the MTF operated by Creditex Brokerage.
Our extensive technology and rules-based risk systems provide analytical tools that allow us to determine margin, evaluate credit risk and monitor the trading activities and overall risk of clearing members. • Data Services Technology: ICE Data Services technology uses integrated platforms to capture, store and process information, perform analytics and maintain connectivity solutions using a single configurable data capture mechanism and flexible delivery capability.
Our extensive technology and rules-based risk systems provide analytical tools that allow us to determine margin, evaluate credit risk and monitor the trading activities and overall risk of clearing members. 9 • Data Services Technology: ICE Data Services technology uses integrated platforms to capture, store and process information, perform analytics and maintain connectivity solutions using a single configurable data capture mechanism and flexible delivery capability.
Finally, we expect to add content and build new analytics to enable further electronification in fixed income markets. Our customer base has grown and diversified as a result of several drivers, including the addition of new asset classes and products, the move toward increased risk management and increased automation, regulation and demand for independent, secure, real-time information.
Finally, we expect to add content and build new analytics to enable further electronification in fixed income markets. Our customer base has grown and diversified as a result of several drivers, including the addition of new asset classes, products and services, the move toward increased risk management and increased automation, regulation and demand for independent, secure, real-time information.
In addition, our Mortgage Technology’s data 12 offerings include real-time industry and peer benchmarking tools, which provide originators a granular view into the real-time trends of the U.S. residential mortgage market. • World Class Technology: Our proprietary systems are built using state-of-the-art technology and are designed to support our customers' workflows across the networks we operate.
In addition, our Mortgage Technology’s data offerings include real-time industry and peer benchmarking tools, which provide originators a granular view into the real-time trends of the U.S. residential mortgage market. • World Class Technology: Our proprietary systems are built using state-of-the-art technology and are designed to support our customers' workflows across the networks we operate.
Breaches of our cybersecurity measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us, our clients or our customers, including the potential loss or disclosure of such information or data could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation, regulatory action and potential liability for us, damage our brand and reputation or otherwise harm our business.
Breaches of our cybersecurity measures or the accidental loss, inadvertent disclosure or unapproved dissemination of proprietary information or sensitive or confidential data about us, our clients or our customers, including the potential loss or disclosure of such information or data could expose us, our customers or the individuals affected to a risk of loss or misuse of this information, result in litigation, regulatory action and potential liability for us, damage our brand and 36 reputation or otherwise harm our business.
In addition to growing our business, we may enter into these transactions for a variety of additional reasons, including leveraging our existing strengths to 15 enter new markets or related asset classes, expanding our products and services, diversifying our business, addressing underserved markets, advancing our technology and anticipating or responding to regulatory or other potential changes in our industry or other industries.
In addition to growing our business, we may enter into these transactions for a variety of additional reasons, including leveraging our existing strengths to enter new markets or related asset classes, expanding our products and services, diversifying our business, addressing underserved markets, advancing our technology and anticipating or responding to regulatory or other potential changes in our industry or other industries.
If one or more of our products or services is found to infringe patents and intellectual property rights held by others, we may be subject to lawsuits or required to stop developing or marketing the products or services, obtain licenses to develop and market the products or services from the owners of the intellectual property or redesign the products or services in such a way as to avoid infringing the third-party intellectual property.
If one or more of our products or services is found to infringe intellectual property rights held by others, we may be subject to lawsuits or required to stop developing or marketing the products or services, obtain licenses to develop and market the products or services from the owners of the intellectual property or redesign the products or services in such a way as to avoid infringing the third-party intellectual property.
Factors that are particularly likely to affect trading volumes include: • weather conditions including hurricanes and other significant events, natural and unnatural disasters like large oil spills that impact the production of commodities and, in the case of energy commodities, production, refining and distribution facilities for oil and natural gas; 24 • war, acts of terrorism and any unforeseen market closures or disruptions in trading; • political developments impacting international trade, including trade disputes and increased tariffs, particularly between the U.S. and China, and imposition of protectionist measures; • real and perceived changes in the supply and demand of commodities underlying our products, particularly energy and agricultural products, including changes as a result of technological improvements or the development of alternative energy sources; and • credit quality of market participants, the availability of capital and the levels of assets under management.
Factors that are particularly likely to affect trading volumes include: 25 • weather conditions including hurricanes and other significant events, natural and unnatural disasters like large oil spills that impact the production of commodities and, in the case of energy commodities, production, refining and distribution facilities for oil and natural gas; • war, acts of terrorism and any unforeseen market closures or disruptions in trading; • political developments impacting international trade, including trade disputes and increased tariffs, particularly between the U.S. and China, and imposition of protectionist measures; • real and perceived changes in the supply and demand of commodities underlying our products, particularly energy and agricultural products, including changes as a result of technological improvements or the development of alternative energy sources; and • credit quality of market participants, the availability of capital and the levels of assets under management.
Changing preferences could also have an adverse impact on the operations or financial condition of our customers, which could result in reduced revenues from those customers. We are also subject to risks relating to new or heightened climate change-related regulations or legislation, which could impact us and our customers and result in increased regulatory, compliance or operational costs.
Changing preferences could also have an adverse impact on the operations or financial condition of our customers, which could result in reduced revenues from those customers. We are also subject to risks relating to new or heightened climate change-related 27 regulations or legislation, which could impact us and our customers and result in increased regulatory, compliance or operational costs.
Further, as a critical third-party service provider in the mortgage industry, we are subject to supervision and examination by certain regulators, which has resulted in, and will continue to result in, additional operating costs. There is ongoing public concern regarding data privacy and data protection in many jurisdictions in which ICE operates.
Further, as a critical third-party service provider in the mortgage industry, we are subject to supervision and examination by certain regulators, which has resulted in, and will continue to result in, additional operating costs. 31 There is ongoing public concern regarding data privacy and data protection in many jurisdictions in which ICE operates.
Competition for key personnel in the various localities and business segments in which we operate is intense. Our ability to attract and retain key personnel, in particular senior management, will be dependent on a number of factors, including prevailing market conditions and compensation packages offered by companies competing for the same talent.
Competition for key personnel in the various 38 localities and business segments in which we operate is intense. Our ability to attract and retain key personnel, in particular senior management, will be dependent on a number of factors, including prevailing market conditions and compensation packages offered by companies competing for the same talent.
Separately, our European exchanges are currently authorized to sell trade information on a non-discriminatory basis at a reasonable cost. This regulatory position could be modified or interpreted by the European Commission, or EC, or future European court decisions in a manner that could have an adverse effect on our European market data revenues.
Separately, our European exchanges are currently authorized to sell trade information on a non-discriminatory basis at a reasonable cost. This regulatory position could be modified or interpreted by the European Commission or future European court decisions in a manner that could have an adverse effect on our European market data revenues.
Increasingly, market participants are turning to our global environmental markets to help navigate and manage risk related to climate change, the energy transition and the move to net zero emissions. 5 • Agricultural & Metals Futures and Options: We offer futures and options on the leading global soft commodity markets including coffee, cocoa, cotton and sugar.
Increasingly, market participants are turning to our global environmental markets to help navigate and manage risk related to climate change, the energy transition and the move to net zero emissions. • Agricultural & Metals Futures and Options: We offer futures and options on the leading global soft commodity markets including coffee, cocoa, cotton and sugar.
We generally set 38 aggressive timelines for realizing savings, which assumes we successfully undertake a variety of actions (including, but not limited to, integrating technology, eliminating redundancies and effecting organizational restructurings) that are themselves subject to a variety of risks and may be subject to regulatory approvals that we do not control.
We generally set aggressive timelines for realizing savings, which assumes we successfully undertake a variety of actions (including, but not limited to, integrating technology, eliminating redundancies and effecting organizational restructurings) that are themselves subject to a variety of risks and may be subject to regulatory approvals that we do not control.
Our reference data offering complements our evaluated pricing by providing our clients a broad range of descriptive information, covering millions of financial instruments that, when coupled with our pricing services, act as the foundation for our leading fixed income index complex, ICE Data Indices, LLC, or ICE Data Indices.
Our reference data offering complements our evaluated pricing by providing our clients a broad range of 7 descriptive information, covering millions of financial instruments that, when coupled with our pricing services, act as the foundation for our leading fixed income index complex, ICE Data Indices, LLC, or ICE Data Indices.
By bringing together leading technology with a wide range of data and analytics, as well as an array of delivery mechanisms, we offer customers a comprehensive and flexible solution to address the need for more transparency, efficiency and information across their respective workflows.
By bringing together leading technology with a wide range of data and analytics, as well as an array of delivery mechanisms, we offer customers a comprehensive and flexible solution to address the need for more 15 transparency, efficiency and information across their respective workflows.
From application through closing and the secondary market, our network is intended to connect the key stakeholders across the mortgage origination workflow and provide our customers with data services and technology that deliver greater transparency and enable significant customer efficiency gains.
From application through closing, servicing and the secondary market, our network is intended to connect the key stakeholders across the mortgage origination workflow and provide our customers with data services and technology that deliver greater transparency and enable significant customer efficiency gains.
There remains the risk that in the future the SEC may suspend trading of NYSE-listed companies under this Act, which would require us to suspend trading for those companies to comply with U.S. government policies, which could impact our business.
Moreover, there remains the risk that in the future the SEC may suspend trading of NYSE-listed companies under this Act, which would require us to suspend trading for those companies to comply with U.S. government policies, which could impact our business.
Though, in December, the PCAOB announced that it was able to inspect audit firms for the Chinese and Hong Kong issuers the SEC had previously identified as using non-inspected audit firms, thus resetting the three-year period in the HFCAA.
Though, in December 2022, the PCAOB announced that it was able to inspect audit firms for the Chinese and Hong Kong issuers the SEC had previously identified as using non-inspected audit firms, thus resetting the three-year period in the HFCAA.
Any one or more of these factors, which are beyond our control, may reduce volumes and trading activity. Further, lower market volatility could also result in more exchanges competing for trading volumes to maintain their growth.
Any one or more of these or other factors, which are beyond our control, may reduce volumes and trading activity. Further, lower market volatility could also result in more exchanges competing for trading volumes to maintain their growth.
These events are continuing to 27 develop and it is not possible to predict at this time all of the risks that they may pose to Bakkt or on the digital asset industry as a whole.
These events are continuing to develop and it is not possible to predict at this time all of the risks that they may pose to Bakkt or on the digital asset industry as a whole.
Revenue from the ICE Mortgage Technology network is largely transaction-based. • Closing Solutions: Our closing solutions uniquely connect key participants, such as lenders, title and settlement agents and individual county recorders, to digitize the closing and recording process.
Revenue from the ICE Mortgage Technology network is largely transaction-based. • Closing Solutions: Our closing solutions connect key participants, such as lenders, title and settlement agents and individual county recorders, to digitize the closing and recording process.
The credit and performance assurance provided by our clearing houses to clearing members is designed to substantially reduce counterparty risk and is a critical component of our exchanges’ identities as reliable and secure marketplaces for global transactions.
The credit and performance assurance provided by our clearing houses to clearing members is designed to substantially reduce counterparty risk and is a critical component of our exchanges’ 13 identities as reliable and secure marketplaces for global transactions.
The consequences of Brexit and the terms of the trade and cooperation agreement could also cause us to incur significant costs associated with changing our business practices, restructuring our businesses or moving certain of our businesses and our employees to other jurisdictions.
The consequences of Brexit and the terms of the trade and cooperation agreement could also cause us to incur significant costs associated with changing our business practices, restructuring our businesses or moving certain 34 of our businesses and our employees to other jurisdictions.
Business and Industry • Global economic, political and financial market events or conditions may negatively impact our business. • Owning clearing houses exposes us to risks, including risks related to defaults by clearing members, risks related to investing margin and guaranty funds and the cost of operating the clearing houses. • A decline in the value of securities held as margin or guaranty fund contributions by our clearing houses or default by a sovereign government issuer could pose additional risks of default by clearing members. • Owning and operating cash equity and options exchanges exposes us to additional risks, including the regulatory responsibilities to which these businesses are subject. • Our business is subject to the impact of interest rate levels, inflation and financial markets volatility, which may be caused by conditions that are beyond our control. • Systems failures in the derivatives and securities trading industry and mortgage technology industry could negatively impact us. • We may be at greater risk from terrorism, including cyberterrorism, than other companies. • Fluctuations in foreign currency exchange rates could adversely affect our financial results. 19 • We may have difficulty executing our growth strategy and maintaining our growth effectively. • We may not be successful in offering new products or technologies or in identifying opportunities. • Climate change and the transition to renewable energy pose operational, commercial, regulatory and financial risks. • We may be required to recognize impairments of our goodwill, other intangible assets or investments. • We may not realize the expected benefits of our majority investment in Bakkt and the investment may introduce additional risks to our business due to its evolving business model. • Pandemics or other public health emergencies, including the emergence of new COVID-19 variants resulting in another pandemic, could adversely affect our business, results of operations and financial condition.
Business and Industry • Global economic, political and financial market events or conditions may negatively impact our business. • Owning clearing houses exposes us to risks, including risks related to defaults by clearing members, risks related to investing margin and guaranty funds and the cost of operating the clearing houses. • A decline in the value of securities held as margin or guaranty fund contributions by our clearing houses or default by a sovereign government issuer could pose additional risks of default by clearing members. • Owning and operating cash equity and options exchanges exposes us to additional risks, including the regulatory responsibilities to which these businesses are subject. • Our business is subject to the impact of interest rate levels, inflation and financial markets volatility, which are caused by conditions that are beyond our control. • Systems failures in the derivatives and securities trading industry and mortgage technology industry have in the past, and could in the future, negatively impact us. • We may be at greater risk from terrorism, including cyberterrorism, than other companies. • Fluctuations in foreign currency exchange rates could adversely affect our financial results. • We may have difficulty executing our growth strategy and maintaining our growth effectively. 20 • We may not be successful in offering new products or technologies or in identifying opportunities. • Climate change and the transition to renewable energy pose operational, commercial, regulatory and financial risks. • We may be required to recognize impairments of our goodwill, other intangible assets or investments. • We may not realize the expected benefits of our majority investment in Bakkt Holdings, Inc., or Bakkt, and the investment may introduce additional risks to our business due to its evolving business model. • Pandemics or other public health emergencies, including the emergence of new COVID-19 variants resulting in another pandemic, could adversely affect our business, results of operations and financial condition.
If our customers reduce spending, workforce, mortgage origination activity, trading activity or demand for financial data as a result of challenges in the prevailing economic markets, our revenues could decline.
If our customers reduce spending, workforce, mortgage origination or mortgage servicing activity, trading activity or demand for financial data as a result of challenges in the prevailing economic markets, our revenues could decline.
There continue to be opposing industry viewpoints as to the extent that our U.S. equities and equity options exchanges should be able to charge for market data and market access, and the manner in which we set such exchange fees could be reassessed. 30 If new constraints are placed on our ability to charge for market data or market access in the U.S., it could have a negative impact on our revenues.
There continue to be opposing industry viewpoints as to the extent that our U.S. equities and equity options exchanges should be able to charge for market data and market access, and the manner in which we set such exchange fees could be reassessed. 33 If new constraints are placed on our ability to charge for market data or market access in the U.S., it could have a negative impact on our revenues.
We cannot assure you that we are or will be aware of all patents and intellectual property rights that may pose a risk of infringement by our products and services.
We cannot assure you that we are or will be aware of all intellectual property rights that may pose a risk of infringement by our products and services.
The adoption of new laws or regulations or changes in enforcement practices applicable to our businesses or those of our clients could adversely affect our ability to compete effectively with other institutions that are not affected in the same way or impact our clients’ overall trading volume through our exchanges and demand for our market data and connectivity offerings, mortgage technology and other services.
The adoption of new laws or regulations or changes in enforcement practices applicable to our businesses or those of our clients could adversely affect our ability to compete effectively with other institutions that are not affected in the same way or impact our clients’ overall trading volume through our exchanges and clearing houses and demand for our market data and connectivity offerings, mortgage technology and other services.
Finally, our desktop solutions support commodity and energy traders, risk managers, financial advisors, wealth managers and retail traders, and include a robust instant messaging, or IM, system that protects the privacy of over 115,000 users, while also enabling greater collaboration. Other Data and Network Service revenues are largely recurring in nature.
Finally, our desktop solutions support commodity and energy traders, risk managers, financial advisors, wealth managers and retail traders, and include a robust instant messaging, or IM, system that protects the privacy of over 120,000 users, while also enabling greater collaboration. Other Data and Network Service revenues are largely recurring in nature.
The CEA generally requires that futures trading in the U.S. be conducted on a commodity exchange registered as a Designated Contract Market, or DCM.
The CEA generally requires that futures trading in the U.S. be conducted on a commodity exchange registered as a Designated Contract Market, 16 or DCM.
Our benchmark contracts offer the most globally relevant price markers for these agricultural markets and provide our customers with the tools to manage price and counterparty risk and facilitate price discovery. • Financial Futures and Options: We offer a diverse suite of equity futures and options contracts based on our own indices as well as those created by MSCI® and FTSE®.
Our benchmark contracts offer one of the most globally relevant 5 price markers for these agricultural markets and provide our customers with the tools to manage price and counterparty risk and facilitate price discovery. • Financial Futures and Options: We offer a diverse suite of equity futures and options contracts based on our own indices as well as those created by MSCI® and FTSE®.
Adverse macroeconomic conditions, including recessions, inflation, supply chain issues, labor shortages, government shutdowns, currency fluctuations, interest rate changes, increased mortgage foreclosure volume, decreased mortgage origination volume, geopolitical events or conflicts, international trade disputes, including the imposition of tariffs or other protectionist measures, actual or anticipated large-scale defaults or failures or slowdown of global trade have in the past negatively impacted consumer and corporate confidence and resulted in reductions in consumer, government and corporate spending, and could have such effects in the future, and in turn impact our business.
Adverse macroeconomic conditions, including recessions, inflation, supply chain issues, labor shortages, government shutdowns, currency fluctuations, interest rate changes, increased mortgage foreclosure volume, decreased mortgage origination or servicing volume, decreased mortgage servicing volume, geopolitical events or conflicts, election results, international trade disputes, including the imposition of tariffs or other protectionist measures, actual or anticipated large-scale defaults or failures or slowdown of global trade have in the past negatively impacted consumer and corporate confidence and resulted in reductions in consumer, government and corporate spending, and could have such effects in the future, and in turn impact our business.
Were there to be a sustained period of stability in the prices or levels of the underlying commodities, securities, indices, benchmarks or other instruments of our products, we could experience lower trading volumes, slower growth or declines in revenues. In addition, interest rates are a significant factor influencing mortgage loan production volumes.
Were there to be a sustained period of stability in the prices or levels of the underlying commodities, securities, indices, benchmarks or other instruments of our products, we could experience lower trading volumes, slower growth or declines in revenues. In addition, interest rates are a significant factor influencing mortgage loan production volumes and loan foreclosures.
We hold ourselves accountable via quarterly and annual data reporting to senior management, data reporting to our Board of Directors, and transparency in reporting data to our stakeholders via our annual Sustainability Report, including Equal Employment Opportunity, or EEO-1 data. Corporate Giving Financial education is the cornerstone of our corporate giving efforts, which include support for several organizations.
We hold ourselves accountable via periodic data reporting to senior management, data reporting to our Board of Directors, and transparency in reporting data to our stakeholders via our annual Sustainability Report, including Equal Employment Opportunity, or EEO-1 data. Corporate Giving Financial education is the cornerstone of our corporate giving efforts, which include support for several organizations.
We are also subject to reputational risks relating to the perception of whether or not we are facilitating a 26 migration away from fossil fuels.
We are also subject to reputational risks relating to the perception of whether or not we are facilitating a migration away from fossil fuels.
The U.K.-EU Brexit deal did not provide a transition period for financial services, or any new arrangements to replace the existing “passport.” This leaves both the U.K. and EU to address matters of access in financial services through declarations of equivalence under existing equivalence regimes contained in U.K. and EU law and through domestic laws.
The U.K.-EU Brexit deal does not provide a transition period for financial services, or any new arrangements to replace the existing “passport.” This leaves both the U.K. and EU to address matters of access in financial services through declarations of equivalence under existing equivalence regimes contained in U.K. and EU law and through domestic laws.
Operational and Liquidity • Our systems and those of our third-party service providers are vulnerable to cyberattacks, hacking and other cybersecurity risks, which could result in wrongful manipulation, disclosure, destruction, or use of our information or that of a third party, or which could make our participants unable or reluctant to use our electronic platforms. • Our business has in the past been, and may in the future be, harmed by computer and communication systems failures and delays. • An interruption or cessation of an important service, data or content supplied by any third party, or the loss of an exclusive license, could have a material adverse effect on our business. • Our success largely depends on key personnel, including our senior management, and having adequate succession plans in place.
Operational and Liquidity • Our systems and those of our third-party service providers are vulnerable to cyberattacks, hacking and other cybersecurity risks, which could result in wrongful manipulation, disclosure, destruction, or use of our information or that of a third party, or which could make our customers unable or reluctant to use our electronic platforms or other products and services. • Our business has in the past been, and may in the future be, harmed by computer and communication systems failures and delays. • An interruption or cessation of an important service, data or content supplied by any third party, or the loss of an exclusive license, could have a material adverse effect on our business. • Our success largely depends on key personnel, including our senior management, and having adequate succession plans in place.
Such claims and lawsuits could have a material adverse effect on our business, financial condition and operating results and a negative impact on our reputation. 32 In addition, we license and redistribute data and content from various third-party sources and the terms of these licenses change frequently.
Such claims and 35 lawsuits could have a material adverse effect on our business, financial condition and operating results and a negative impact on our reputation. In addition, we license and redistribute data and content from various third-party sources and the terms of these licenses change frequently.
Further, NYSE’s revenue increases when more companies are seeking access to public markets, and on the NYSE specifically. Continued stagnation or declines in the IPO market, or issuers choosing to list on venues other than the NYSE, could have an adverse effect on our revenues.
Further, NYSE’s revenue increases when more companies are seeking access to public markets, and on the NYSE specifically. Continued stagnation or declines in the IPO market, or issuers choosing to list on venues other than the NYSE, have had and could continue to have an adverse effect on our revenues.
We may not realize the expected benefits of our majority investment in Bakkt and the investment may introduce additional risks to our business due to its evolving business model. We have a majority equity ownership interest in Bakkt, which operates as a separate publicly-traded company listed on the NYSE.
We may not realize the expected benefits of our majority investment in Bakkt and the investment may introduce additional risks to our business due to its evolving business model. We have a majority equity ownership interest and a minority voting interest in Bakkt, which operates as a separate publicly-traded company listed on the NYSE.
Today, we are a Fortune 500 company, providing our customers with an array of market infrastructure, data services and technology solutions that span a diverse set of asset classes. 4 Our Business Segments Our business is conducted through three reportable business segments: • Exchanges; • Fixed Income and Data Services; and • Mortgage Technology.
Today, we are a Fortune 500 company, providing our customers with an array of technology solutions and data services that span a diverse set of asset classes. 4 Our Business Segments Our business is conducted through three reportable business segments: • Exchanges; • Fixed Income and Data Services; and • Mortgage Technology.
Any failure to remain abreast of industry standards in technology and to be responsive to client preferences could cause our market share to decline and negatively impact our results. Damage to our reputation could damage our business. Our business is highly competitive and our customers typically have options on where to conduct their business.
Any failure to remain abreast of industry standards in technology and to be responsive to client preferences could cause our market share to decline and negatively impact our results. 40 Damage to our reputation could damage our business. Our business is highly competitive and our customers have options on where to conduct their business.
We have completed many acquisitions and plan to continue to pursue acquisitions and joint ventures, including our pending acquisition of Black Knight. The success of our acquisitions will depend, in part, on our ability to integrate these businesses and realize anticipated cost savings, revenue synergies and growth opportunities.
We have completed many acquisitions, including our recent acquisition of Black knight, and plan to continue to pursue acquisitions and joint ventures. The success of our acquisitions will depend, in part, on our ability to integrate these businesses and realize anticipated cost savings, revenue synergies and growth opportunities.
Changes to, cessations of, and the replacement of or transition from, our subsidiaries' benchmarks and indices, including LIBOR, or any other changes or reforms to the determination or administration of such benchmarks and indices, could result in legal risks, risks to our reputation, and have an adverse impact on our business, financial condition and operating results.
Changes to, cessations of, and the replacement of or transition from, our subsidiaries' benchmarks and indices or any other changes or reforms to the determination or administration of such benchmarks and indices, could result in legal risks, risks to our reputation, and have an adverse impact on our business, financial condition and operating results.
Our failure to adequately protect our proprietary technology and intellectual property could harm our reputation and affect our ability to compete effectively. Further, we have resorted to litigation to enforce our intellectual property rights in the past, and may need to do so in the future, which requires significant financial and managerial resources.
Our failure to adequately protect our intellectual property could harm our reputation and affect our ability to compete effectively. Further, we have resorted to litigation to enforce our intellectual property rights in the past, and may need to do so in the future, which requires significant financial and managerial resources.
We also provide connectivity services directly related to those exchange platforms and clearing houses. – In our Fixed Income and Data Services segment, we are a leading provider of evaluated end-of-day and real-time pricing services on approximately three million fixed income securities spanning nearly 150 countries and 80 currencies including sovereign, corporate and municipal bonds, mortgage and asset-backed securities, as well as leveraged loans.
We also provide connectivity services directly related to those exchange platforms and clearing houses. – In our Fixed Income and Data Services segment, we are a leading provider of end-of-day and continuous evaluated pricing services on nearly three million fixed income securities spanning approximately 150 countries and 80 currencies including sovereign, corporate and municipal bonds, mortgage and asset-backed securities, as well as leveraged loans.
In addition, we have contributed $405 million of our own cash to the guaranty funds which is one component of the table below, and such amounts are at risk and could be used in the event of a clearing member default.
In addition, we have contributed $340 million of our own cash to the guaranty funds which is one component of the table below, and such amounts are at risk and could be used in the event of a clearing member default.
Our products, which span major asset classes including futures, equities, fixed income and residential mortgages in the U.S., provide our customers with access to mission critical tools that are designed to increase asset class transparency and workflow efficiency.
Our products, which span major asset classes including futures, equities, fixed income and U.S. residential mortgages, provide our customers with access to mission critical tools that are designed to increase asset class transparency and workflow efficiency.
Legal and Regulatory • Our businesses and those of many of our clients have been and continue to be subject to extensive legislation and regulatory scrutiny, and we face the risk of changes to our regulatory environment and business in the future. • Our compliance and risk management methods, as well as our fulfillment of our regulatory obligations, might not be effective, which could lead to enforcement actions by our regulators. • Regulatory developments or court rulings may have an adverse impact on our ability to derive revenue from market data and connectivity fees. • The uncertainty surrounding the U.K. and EU regulatory frameworks following the U.K.'s exit from the EU, commonly referred to as Brexit, could adversely impact our business, results of operations and financial condition. • Risks relating to the administration of benchmarks and indices, including LIBOR, and the potential for changes to, cessations of, and the replacement of, or transition from, benchmarks and indices, including LIBOR, may result in legal risks and could adversely affect our business. • We may face liability for content contained in our data products and services. • We are subject to significant litigation and liability risks.
Legal and Regulatory • Our businesses and those of many of our clients have been and continue to be subject to extensive legislation and regulatory scrutiny, and we face the risk of changes to our regulatory environment and business in the future. • Our compliance and risk management methods, as well as our fulfillment of our regulatory obligations, may not be effective, which could lead to enforcement actions by our regulators or other legal proceedings. • Regulatory developments or court rulings may have an adverse impact on our ability to derive revenue from market data and connectivity fees. • The uncertainty surrounding the U.K. and EU regulatory frameworks following the U.K.'s exit from the EU, commonly referred to as Brexit, could adversely impact our business, results of operations and financial condition. • Risks relating to the administration of benchmarks and indices, and changes to, cessations of, and the replacement of, or transition from, benchmarks and indices may result in legal risks and could adversely affect our business. • We may face liability for content contained in our data products and services. • We are subject to significant litigation and liability risks.
With over 70% of S&P 500 companies listed on the NYSE as of December 31, 2022, we are the leading listing venue across a range of sectors from technology and healthcare, to financials and energy.
With over 70% of S&P 500 companies listed on the NYSE as of December 31, 2023, we are a leading listing venue across a range of sectors from technology and healthcare, to financials and energy.
In addition, our data suppliers could enter into exclusive contracts with our competitors without our knowledge. The general trend toward industry consolidation may increase the risk that these services may not be available to us in the future.
In addition, our data suppliers could enter into exclusive contracts with our competitors without our knowledge. The general trend toward industry consolidation increases the risk that these services may not be available to us in the future.
We may fail to complete or realize the anticipated cost savings, growth opportunities and synergies and other benefits anticipated from our acquisitions or anticipated growth opportunities or expected benefits of our strategic investments, which could adversely affect the value of our common stock.
We may fail to complete or realize the anticipated cost savings, growth opportunities and synergies and other benefits anticipated from any future acquisitions or anticipated growth opportunities or expected benefits of our strategic investments, which could adversely affect the value of our common stock.
Our networks and those of our participants, third-party service providers and external market infrastructures may be vulnerable to compromise, unauthorized access, security technology failure, malware, social engineering, denial of service attacks, terrorism, ransomware attacks, supply chain attacks, firewall or 33 encryption failures or other security problems resulting in loss of data integrity, information disclosure, unavailability or fraud.
Our networks and those of our customers, third-party service providers and external market infrastructures may be vulnerable to compromise, unauthorized access, security technology failure, malware, social engineering, denial of service attacks, terrorism, ransomware attacks, supply chain attacks, firewall or encryption failures or other security problems resulting in loss of data integrity, information disclosure, unavailability or fraud.
Our Growth Strategy We seek to advance our leadership position by focusing our efforts on the following key strategies for growth: • innovate and expand the networks we serve to address the rising demand for transparency and efficiency; • further develop our technology and risk management infrastructure while also increasing our distribution; and • strengthen our competitive position through select acquisitions and strategic relationships.
Our Growth Strategy We seek to advance our leadership position by focusing our efforts on the following key strategies for growth: • innovate and expand the networks we serve to address the rising demand for transparency and efficiency; • further develop our technology and risk management infrastructure while also increasing our customer base; and • strengthen our competitive position through select acquisitions and strategic relationships.
The use of continuing LIBOR settings in jurisdictions outside the U.K. and by entities subject to the oversight of other regulatory authorities may also be restricted or prohibited by law in those jurisdictions and by the requirements of such regulatory authorities.
The use of “synthetic” LIBOR settings in jurisdictions outside the U.K. and by entities subject to the oversight of other regulatory authorities may also be restricted or prohibited by law in those jurisdictions and by the requirements of such regulatory authorities.
Some of the resulting trades were later reversed under NYSE rules, and NYSE members otherwise impacted by the event have submitted claims for losses for which the NYSE may consider appropriate compensation under its rules. NYSE may also be potentially subject to additional claims from the SEC or unknown third parties as a result of this event.
Some of the resulting trades were later reversed under NYSE rules, and NYSE members otherwise impacted by the event submitted claims for losses for which the NYSE provided appropriate compensation under its rules. NYSE may also be potentially subject to additional claims from the SEC or unknown third parties as a result of this event.
Some of the specific risks facing Black Knight include risks relating to the mortgage lending industry, including general conditions in the industry; changes in inflation rates and interest rates; changes in current or new regulations and legislation and potential structural changes in the mortgage lending industry; technology risks, including cyber security and data privacy risks relating to Black Knight’s services; risks relating to intellectual property held or used by Black Knight; the ability of Black Knight to adequately compete with products or other companies, including through attracting new customers and retaining or selling additional service offerings to existing customers; risks relating to Black Knight’s use of international third-party service providers and Black Knight’s international operations; risks relating to Black Knight’s indebtedness; risks relating to Black Knight’s investment in Dun & Bradstreet Holdings, Inc.; and risks relating to current and future legal proceedings or disputes involving Black Knight.
Some of the specific risks facing Black Knight include risks relating to the mortgage lending industry, including general conditions in the industry; changes in inflation rates and interest rates; changes in current or new regulations and legislation and potential structural changes in the mortgage lending industry; technology risks, including cyber security and data privacy risks relating to Black Knight’s services; risks relating to intellectual property held or used by Black Knight; the ability of Black Knight to adequately compete with products or other companies, including through attracting new customers and retaining or selling additional service offerings to existing customers; risks relating to Black Knight’s use of international third-party service providers and Black Knight’s international operations; risks relating to Black Knight’s indebtedness; and risks relating to current and future legal proceedings or disputes involving Black Knight.
Any failures, negative publicity or lawsuits related to our subsidiaries' administration of "synthetic" LIBOR, could result in a loss of confidence in the administration of these benchmarks and indices and could harm our business and our reputation.
Any failures, negative publicity or lawsuits related to our subsidiaries' administration of benchmarks and indices could result in a loss of confidence in the administration of these benchmarks and indices and could harm our business and our reputation.
See Item 1 “- Business - Regulation” above for additional information regarding Brexit, including risks to our business associated with Brexit. 31 Risks relating to the administration of benchmarks and indices, including LIBOR, and the potential for changes to, cessations of, and the replacement of, or transition from, benchmarks and indices, including LIBOR, may result in legal risks and could adversely affect our business.
See Item 1 “- Business - Regulation” above for additional information regarding Brexit, including risks to our business associated with Brexit. Risks relating to the administration of benchmarks and indices, and changes to, cessations of, and the replacement of, or transition from, benchmarks and indices may result in legal risks and could adversely affect our business.
Our flagship Brent crude oil contract serves as the cornerstone of a global oil network that today includes over 730 related crude and refined oil products including locational and refined spreads.
Our flagship Brent crude oil contract serves as the cornerstone of a global oil network that today includes over 700 related crude and refined oil products including locational and refined spreads.
Mortgage Technology Segment Over the last six years, ICE has constructed a network aimed at identifying and solving the inefficiencies that exist in the U.S. residential mortgage market.
Mortgage Technology Segment Over the last seven years, ICE has constructed a network aimed at identifying and solving the inefficiencies that exist in the U.S. residential mortgage market.
The success of the merger will depend on, among other things, our ability to successfully integrate the business of Black Knight into the ICE Mortgage Technology business in a manner that facilitates growth opportunities, realizes anticipated synergies, and achieves the projected cost savings, revenue growth and profitability targets of the combined businesses without adversely affecting current revenues and investments in future growth.
We recently completed the acquisition of Black Knight and the success of the merger will depend on, among other things, our ability to successfully integrate the business of Black Knight into the ICE Mortgage Technology business in a manner that facilitates growth opportunities, realizes anticipated synergies, and achieves the projected cost savings, revenue growth and profitability targets of the combined businesses without adversely affecting current revenues and investments in future growth.
In addition, as natural gas and Liquefied Natural Gas, or LNG, continue to globalize, we offer the broadest footprint of regional and global natural gas benchmarks, which span North America, Europe and Asia. Our leading environmental and power markets round out our diverse global energy network.
In addition, as natural gas and Liquefied Natural Gas, or LNG, continue to globalize, we offer one of the broadest footprints of regional and global natural gas benchmarks, which span North America, Europe and Asia. Our leading environmental and power markets round out our diverse global energy network.
Our business is subject to the impact of interest rate levels, inflation and financial markets volatility, which may be caused by conditions that are beyond our control.
Our business is subject to the impact of interest rate levels, inflation and financial markets volatility, which are caused by conditions that are beyond our control.
Diversity and Inclusion As an equal opportunity employer, all qualified applicants receive consideration without regard to race, color, religion, gender, sexual orientation, gender identity, national origin or ancestry, age, disability or veteran status, or other protected status. 11 We are focused on increasing and supporting diversity across our broader employee population and Board of Directors.
As an equal opportunity employer, all qualified applicants receive consideration without regard to race, color, religion, gender, sexual orientation, gender identity, national origin or ancestry, age, disability or veteran status, or other protected status. To promote our business objectives, we are focused on increasing and supporting inclusion and diversity across our broader employee population and Board of Directors.
Our Exchanges segment generated revenues, less transaction-based expenses of $4.1 billion and accounted for 56% of our consolidated revenues, less transaction-based expenses in 2022. Our Exchanges business can experience moderate seasonal fluctuations, although such seasonal impacts have been somewhat muted in periods of high volume trading.
Our Exchanges segment generated revenues, less transaction-based expenses of $4.4 billion and accounted for 56% of our consolidated revenues, less transaction-based expenses in 2023. Our Exchanges business can experience moderate seasonal fluctuations, although such seasonal impacts have been somewhat muted in periods of high volume trading.
The record consolidated revenues, less transaction-based expenses, we achieved in 2022 reflect our focus on the implementation and execution of our long-term growth strategy.
The record consolidated revenues, less transaction-based expenses, we achieved in 2023 reflect our focus on the implementation and execution of our long-term growth strategy.
The majority of our identifiable assets are located in the U.S. and the United Kingdom, or U.K. For a summary of our revenues, net assets and net property and equipment by geographic region, see Note 19 to our consolidated financial statements included in this Annual Report.
The majority of our identifiable assets are located in the U.S. and the U.K. For a summary of our revenues, net assets and net property and equipment by geographic region, see Note 19 to our consolidated financial statements included in this Annual Report.
Approval of such changes by the SEC cannot be guaranteed, and the SEC could delay either the approval process or the initiation of the public comment process. Any denial or delay in approving changes could have an adverse effect on our business, financial condition and operating results.
Approval of such changes by the SEC cannot be guaranteed, and the SEC has in the past and could in the future delay either the approval process or the initiation of the public comment process. Any denial or delay in approving changes could have an adverse effect on our business, financial condition and operating results.
We developed core technology and architecture known as NYSE Pillar and have migrated all our Cash Equity Securities markets, Security Information Processor, or SIP, and Options Price Reporting Authority, or OPRA, and Arca Options platforms to this architecture. We also expect to migrate our NYSE Amex options markets to NYSE Pillar.
We developed core technology and architecture known as NYSE Pillar and have migrated all our Cash Equity Securities markets, Security Information Processor, or SIP, and Options Price Reporting Authority, or OPRA, NYSE Amex Options and Arca Options platforms to this architecture.
In February 2022, the European Commission extended the temporary equivalence decision that allows continued access by EU firms to clear trades at U.K. CCPs. In March 2022, ESMA extended ICE Clear Europe's temporary recognition and tiering decision to June 2025.
In February 2022, the European Commission extended until June 2025 the temporary equivalence decision that allows continued access by EU firms to clear trades at U.K. CCPs. In March 2022, ESMA extended ICE Clear Europe's temporary recognition and tiering decision to June 2025. • Benchmarks Regulation.
In addition, in 2022, the spread of COVID-19 variants, along with other factors, such as restrictions and limitations on business activities, labor shortages at ports and for long-haul transportation, rising fuel costs and raw material shortages, have resulted in disruptions to global supply chains, which have impacted the availability of critical hardware and extended lead times for certain components and systems we require for our operations.
In addition, in 2022 and continuing into 2023, the spread of COVID-19 variants, along with other factors, such as restrictions and limitations on business activities, labor shortages at ports and for long-haul transportation, volatility in fuel costs and raw material shortages, have resulted in disruptions to global supply chains, which have impacted the availability of critical hardware and extended lead times for certain components and systems we require for our operations.

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Item 2. Properties

Properties — owned and leased real estate

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Biggest changeIn addition to the above, we currently lease an aggregate of nearly 611,000 square feet of administrative, sales and disaster preparedness facilities in various cities around the word. We believe that our facilities are adequate for our current operations and that we will be able to obtain additional space as and when it is needed.
Biggest changeWe believe that our facilities are adequate for our current operations and that we will be able to obtain additional space as and when it is needed.
Our New York headquarters are located at 11 Wall Street, where we occupy 370,000 square feet of office space in a building we own. In total, we maintain approximately 3.1 million square feet in offices primarily throughout the U.S., U.K., and India, with smaller offices located throughout the world.
Our New York headquarters are located at 11 Wall Street, where we occupy 370,000 square feet of office space in a building we own. In total, we maintain approximately 3.5 million square feet in offices primarily throughout the U.S., U.K., and India, with smaller offices located throughout the world.
We own an array of computers and related equipment. 41 Our headquarters and principal executive offices are located in Atlanta, Georgia and New York, New York. We currently occupy 370,000 square feet of office space in Atlanta in two buildings that we own that serve as our Atlanta headquarters.
Our headquarters and principal executive offices are located in Atlanta, Georgia and New York, New York. We currently occupy 370,000 square feet of office space in Atlanta in two buildings that we own that serve as our Atlanta headquarters.
Location Owned/Leased Lease Expiration Approximate Size 5660 New Northside Drive Atlanta, Georgia Owned N/A 273,000 sq. ft. 5680 New Northside Drive Atlanta, Georgia Owned N/A 97,000 sq. ft. 11 Wall Street New York, New York Owned N/A 370,000 sq. ft. Basildon, U.K. Owned N/A 539,000 sq. ft. Mahwah, New Jersey Leased 2029 396,000 sq. ft.
Location Owned/Leased Lease Expiration Approximate Size 5660 New Northside Drive Atlanta, Georgia Owned N/A 273,000 sq. ft. 5680 New Northside Drive Atlanta, Georgia Owned N/A 97,000 sq. ft. 11 Wall Street New York, New York Owned N/A 370,000 sq. ft. Basildon, U.K. Owned N/A 539,000 sq. ft. 601 Riverside Avenue Jacksonville, FL Owned N/A 327,000 sq. ft.
ITEM 2. PROPERTIES The net book value of our property was $1.8 billion as of December 31, 2022. Our intellectual property is described under the heading in Item 1 “- Business -Technology” and "-Business-Intellectual Property." In addition to our intellectual property, our other primary assets include buildings, computer equipment, corporate aircraft, software, and internally developed software.
ITEM 2. PROPERTIES Our intellectual property is described under the heading in Item 1 “- Business -Technology” and "-Business-Intellectual Property." In addition to our intellectual property, our other primary assets include buildings, computer equipment, corporate aircraft, software, and internally developed software. We own an array of computers and related equipment.
Tower VI, Cybercity Pune, India Leased 2026-2029 71,000 sq. ft. Fitzroy House London, U.K. Leased 2025 68,000 sq. ft. 100 Church Street New York, New York Leased 2024 65,000 sq. ft. 353 North Clark Street Chicago, Illinois Leased 2027 57,000 sq. ft. 350 E Cermak Rd Chicago, Illinois Leased 2022-2027 51,000 sq. ft.
Leased 2025 68,000 sq. ft. 100 Church Street New York, New York Leased 2024 65,000 sq. ft. 353 North Clark Street Chicago, Illinois Leased 2033 57,000 sq. ft. 32 Crosby Drive Bedford, Massachusetts Leased 2026 52,000 sq. ft. 350 E Cermak Rd Chicago, Illinois Leased 2027 51,000 sq. ft.
Skyview Tower Hyderabad, India Leased 2024 - 2025 175,000 sq. ft. 4420 Rosewood Drive Pleasanton, California Leased 2025 137,000 sq. ft. 55 East 52nd Street New York, New York Leased 2028 94,000 sq. ft. 32 Crosby Drive Bedford, Massachusetts Leased 2026 52,000 sq. ft. Milton Gate London, U.K. Leased 2024 72,000 sq. ft.
Mahwah, New Jersey Leased 2029 396,000 sq. ft. Skyview Tower Hyderabad, India Leased 2024 - 2028 266,000 sq. ft. Sancroft Paternoster Square London, U.K. Leased 2038 127,000 sq. ft. 55 East 52nd Street New York, New York Leased 2028 94,000 sq. ft. Milton Gate London, U.K. Leased 2024 72,000 sq. ft.
Added
Tower VI, Cybercity Pune, India Leased 2026-2029 71,000 sq. ft. 4420 Rosewood Drive Pleasanton, California Leased 2025 69,000 sq. ft. Fitzroy House London, U.K.
Added
In addition to the above, we currently lease an aggregate of nearly 464,000 square feet of administrative, sales and disaster preparedness facilities in various cities around the word. Subsequent to year end, we entered into a lease in New York City with approximately 143,000 square feet of space.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

1 edited+0 added−0 removed2 unchanged
Biggest changeAssessments of losses are inherently subjective and involve unpredictable factors. We do not believe that the resolution of these legal matters, including the matters described in this Annual Report, will have a material adverse effect on our consolidated financial condition, results of operations, or liquidity.
Biggest changeAssessments of losses are inherently subjective and involve unpredictable factors. We do not believe that the resolution of these legal matters, including the matters described in this Annual Report, will have a material adverse effect on our consolidated financial 42 condition, results of operations, or liquidity.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

9 edited+1 added−2 removed4 unchanged
Biggest changeEquity Compensation Plan Information The following provides information about our common stock that has been or may be issued under our equity compensation plans as of December 31, 2022: • Intercontinental Exchange, Inc. 2022 Omnibus Employee Incentive Plan • Intercontinental Exchange, Inc. 2022 Omnibus Non-Employee Director Incentive Plan • Intercontinental Exchange, Inc. 2018 Employee Stock Purchase Plan • Intercontinental Exchange, Inc. 2017 Omnibus Employee Incentive Plan • Intercontinental Exchange, Inc. 2013 Omnibus Employee Incentive Plan • Intercontinental Exchange, Inc. 2003 Restricted Stock Deferral Plan for Outside Directors The 2013 Omnibus Employee Incentive Plan was retired in May 2017 upon adoption of the 2017 Omnibus Employee Incentive Plan.
Biggest changeEquity Compensation Plan Information The following provides information about our common stock that has been or may be issued under our equity compensation plans as of December 31, 2023: • Intercontinental Exchange, Inc. 2022 Omnibus Employee Incentive Plan • Intercontinental Exchange, Inc. 2022 Omnibus Non-Employee Director Incentive Plan • Intercontinental Exchange, Inc. 2018 Employee Stock Purchase Plan • Intercontinental Exchange, Inc. 2017 Omnibus Employee Incentive Plan • Black Knight, Inc.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Approximate Number of Holders of Common Stock As of January 31, 2023, there were approximately 492 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Approximate Number of Holders of Common Stock As of February 6, 2024, there were approximately 629 holders of record of our common stock.
Plan Category Number of securities to be issued upon exercise of outstanding options and rights (in thousands) (a) Weighted average exercise price of outstanding options (b) Number of securities available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (in thousands) (c) Equity compensation plans approved by security holders (1) 6,307 (1) $ 76.38 (1) 40,157 Equity compensation plans not approved by security holders (2) 50 (2) — (2) — TOTAL 6,357 $ 76.38 40,157 (1) The 2013 Omnibus Employee Incentive Plan was approved by our stockholders in May 2013.
Plan Category Number of securities to be issued upon exercise of outstanding options and rights (in thousands) (a) Weighted average exercise price of outstanding options (b) Number of securities available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (in thousands) (c) Equity compensation plans approved by security holders (1) 8,603 (1) $ 83.20 (1) 37,803 Equity compensation plans not approved by security holders (2) 4 (2) — (2) — TOTAL 8,607 $ 83.20 37,803 (1) The 2013 Omnibus Employee Incentive Plan was approved by our stockholders in May 2013.
The 2017 Omnibus Employee Incentive Plan was approved by our stockholders in May 2017. The 2022 Omnibus Employee Incentive Plan and the 2022 Omnibus Non-Employee Director Incentive Plan were approved by our stockholders in May 2022.
The Black Knight, Inc. Amended and Restated 2015 Omnibus Employee Incentive Plan was approved by stockholders of Black Knight in June 2017. The 2017 Omnibus Employee Incentive Plan was approved by our stockholders in May 2017. The 2022 Omnibus Employee Incentive Plan and the 2022 Omnibus Non-Employee Director Incentive Plan were approved by our stockholders in May 2022.
The 2017 Omnibus Employee Incentive Plan was retired in May 2022 upon adoption of the 2022 Omnibus Employee Incentive Plan. No future grants will be made from the retired plans.
The 2017 Omnibus Employee Incentive Plan was retired in May 2022 upon adoption of the 2022 Omnibus Employee Incentive Plan. The Black Knight, Inc. Amended and Restated 2015 Omnibus Incentive Plan was retired in September 2023 following completion of the Black Knight merger. No future grants will be made from the retired plans.
Of the 6.4 million securities to be issued upon exercise, 2.8 million are options with a weighted average exercise price of $76.38 and the remaining 3.5 million securities are restricted stock shares that do not have an exercise price.
Of the 8.6 million securities to be issued upon exercise, 2.5 million are options with a 44 weighted average exercise price of $83.20 and the remaining 6.1 million securities are restricted stock shares that do not have an exercise price. The 2018 Employee Stock Purchase Plan was approved by stockholders in May 2018.
For more information concerning these plans, see Note 11 to our consolidated financial statements, which are included in this Annual Report. Stock Repurchases In December 2021, our Board approved an aggregate of $3.15 billion for future repurchases of our common stock with no fixed expiration date that became effective January 1, 2022.
Stock Repurchases In December 2021, our Board approved an aggregate of $3.15 billion for future repurchases of our common stock with no fixed expiration date that became effective January 1, 2022.
The 2018 Employee Stock Purchase Plan was approved by stockholders in May 2018. 43 (2) This category includes the 2003 Restricted Stock Deferral Plan for Outside Directors. All of the 50,000 securities to be issued are restricted stock shares that do not have an exercise price.
(2) This category includes the 2003 Restricted Stock Deferral Plan for Outside Directors. All of the 4,000 securities to be issued are restricted stock shares that do not have an exercise price. For more information concerning these plans, see Note 11 to our consolidated financial statements, which are included in this Annual Report.
Refer to Note 12 to our consolidated financial statements, included in this Annual Report, for additional details on our stock repurchase plans and our repurchase activity during 2022.
In connection with our acquisition of Black Knight, on May 4, 2022 we terminated our Rule 10b5-1 trading plan and suspended share repurchases. We did not have any stock repurchases during 2023. Refer to Note 12 to our consolidated financial statements, included in this Annual Report, for additional details on our stock repurchase plans and our repurchase activity during 2023.
Removed
The $3.15 billion replaced the previous amount approved by the Board.
Added
Amended and Restated 2015 Omnibus Incentive Plan • Intercontinental Exchange, Inc. 2013 Omnibus Employee Incentive Plan • Intercontinental Exchange, Inc. 2003 Restricted Stock Deferral Plan for Outside Directors The 2013 Omnibus Employee Incentive Plan was retired in May 2017 upon adoption of the 2017 Omnibus Employee Incentive Plan.
Removed
During 2022, we repurchased 5.0 million shares of our outstanding common stock at a cost of $632 million. In connection with our pending acquisition of Black Knight, on May 4, 2022 we terminated our Rule 10b5-1 trading plan and suspended share repurchases.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

169 edited+76 added−51 removed129 unchanged
Biggest changeThe increase in operating expenses includes $22 million in unfavorable foreign exchange effects arising from the weaker U.S. dollar in 2021 from 2020. • Other income/(expense), net, in 2022 primarily includes our share of estimated equity method investment losses and an impairment charge on our investment in Bakkt to its fair value, of $1.4 billion, a net gain on the sale of our Euroclear plc, or Euroclear, stake of $41 million, interest income of $108 million and interest expense of $616 million. • Other income/(expense), net, in 2021 primarily includes our gain on the Bakkt transaction of $1.4 billion, our gain on the sale of our Coinbase Global, Inc., or Coinbase, investment of $1.2 billion, equity earnings in OCC of $51 million, estimated equity losses in our investment in Bakkt during the post-merger period of $92 million, dividend income from Euroclear plc, or Euroclear, of $60 million, a fair value adjustment gain on our Euroclear investment of $34 million and interest expense of $423 million. • The effective tax rate in 2022 was lower than the effective tax rate in 2021 primarily due to the deferred income tax benefit from the impairment to our equity method investment in Bakkt in the current year, and the deferred income tax expense from the U.K. tax law changes in the prior year. 47 • The effective tax rate in 2021 was higher than the effective tax rate in 2020 primarily due to the deferred income tax impacts resulting from the U.K. tax law changes.
Biggest changeThe decrease in operating expenses includes $38 million in favorable foreign exchange effects arising from fluctuations in the U.S. dollar in 2022 as compared to 2021. • Other income/(expense), net, in 2023 primarily includes interest income of $319 million, interest expense of $808 million, our equity earnings in OCC of $16 million, estimated equity losses in our investment in Bakkt of $135 million, a fair value loss of $160 million related to the Black Knight Promissory Note, an impairment related to our CAT loan receivable of $16 million, FX remeasurement losses of $12 million, and a loss on the sale of the Dun & 49 Bradstreet investment of $3 million, net of dividends received, that we acquired through the acquisition of Black Knight. • Other income/(expense), net, in 2022 primarily includes interest income of $108 million, interest expense of $616 million, our share of estimated equity method investment losses and an impairment charge on our investment in Bakkt to its fair value of $1.4 billion, a net gain on the sale of our Euroclear plc, or Euroclear, stake of $41 million, our equity earnings in OCC of $15 million, and FX remeasurement losses of $9 million. • The 16% effective tax rate in 2023 was below the U.S. corporate income tax rate primarily driven by the following factors: favorable audit settlements for historical years, favorable state apportionment changes, and the application of the high-tax exception to Global Intangible Low-Taxed Income.
(1) We define recurring revenues as the portion of our revenues that are generally predictable, stable, and can be expected to occur at regular intervals in the future with a relatively high degree of certainty and visibility. We define transaction revenues as those associated with a more specific point-in-time service, such as trade execution.
(1) We define recurring revenues as the portion of our revenues that are generally predictable, stable, and can be expected to occur at regular intervals in the future with a relatively high degree of certainty and visibility. We define transaction revenues as those associated with a more specific point-in-time service, such as a trade execution.
Closing solutions also include revenues from our MERSCORP Holdings, Inc., or MERS database, which provides a system of record for recording and tracking changes and servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate.
Closing solutions also include revenues from our MERSCORP Holdings, Inc., or MERS database, which provides a system of record for recording and tracking changes, servicing rights and beneficial ownership interests in loans secured by U.S. residential real estate.
In accordance with ASU 2017-04, Simplifying the Test for Goodwill Impairment , or ASU-2017, for both goodwill and indefinite-lived intangible impairment testing, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount.
In accordance with ASU 2017-04, Simplifying the Test for Goodwill Impairment , for both goodwill and indefinite-lived intangible impairment testing, we have the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying amount.
We anticipate that there will continue to be growth in the financial information services sector driven by a number of global trends, including the following: • increasing global regulatory demands; • greater use of fair value accounting standards and reliance on independent valuations; • greater emphasis on risk management; • market fragmentation driven by regulatory changes; • the move to passive investing and indexation; • ongoing growth in the size and diversity of financial markets; • increased automation of fixed income, mortgage and other less automated markets; • the development of new data products; • the demand for greater data capacity and connectivity; • new entrants; and • increasing demand for outsourced services by financial institutions.
We anticipate that there will continue to be growth in the financial information services sector driven by a number of global trends, including the following: • increasing global regulatory demands; • greater use of fair value accounting standards and reliance on independent valuations; 50 • greater emphasis on risk management; • market fragmentation driven by regulatory changes; • the move to passive investing and indexation; • ongoing growth in the size and diversity of financial markets; • increased automation of fixed income, mortgage and other less automated markets; • the development of new data products; • the demand for greater data capacity and connectivity; • new entrants; and • increasing demand for outsourced services by financial institutions.
Financing Activities Consolidated net cash used in financing activities in 2022 primarily relates to a $4.5 billion change in our cash and cash equivalent margin deposits and guaranty fund balances, $2.7 billion in repayments of debt, $1.0 billion in net repayments under our Commercial Paper Program, $632 million in repurchases of common stock, $853 million in dividend payments to our stockholders and $73 million in cash payments related to treasury shares received for restricted stock tax payments and stock options exercises, partially offset by $7.9 billion in net proceeds from our debt offerings.
Consolidated net cash used in financing activities in 2022 primarily relates to a $4.5 billion change in our cash and cash equivalent margin deposits and guaranty fund liability balances, $2.7 billion in repayments of debt, $1.0 billion in net repayments under our Commercial Paper Program, $632 million in repurchases of common stock, $853 million in dividend payments to our stockholders and $73 million in cash payments related to treasury shares received for restricted stock tax payments and stock options exercises, partially offset by $7.9 billion in net proceeds from our debt offerings.
However, while it is an indicative forward-looking metric, it does not provide a precise growth forecast of the next 12 months of data 57 services revenues. Management considers ASV metrics when making financial and operating decisions, and believes ASV is useful for management and investors in understanding our data services business performance.
However, while it is an indicative forward-looking metric, it does not provide a precise growth forecast of the next 12 months of data services revenues. Management considers ASV metrics when making financial and operating decisions, and believes ASV is useful for management and investors in understanding our data services business performance.
We use these adjusted results because we believe they more clearly highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance.
We use these adjusted results because we believe they more clearly highlight trends in 74 our business that may not otherwise be apparent when relying solely on GAAP financial measures, since these measures eliminate from our results specific financial items that have less bearing on our core operating performance.
During 2022, we repurchased 5.0 million shares of our outstanding common stock at a cost of $632 million, including 4.6 million shares at a cost of $582 million under our Rule 10b5-1 trading plan and 0.4 million shares at a cost of $50 million on the open market.
During 2022, we repurchased 5.0 million shares of our outstanding common stock at a cost of $632 million, including 4.6 million shares at a cost of $582 million under our Rule 10b5-1 73 trading plan and 0.4 million shares at a cost of $50 million on the open market.
The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities, at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. 75 We base our estimates and judgments on our historical experience and other factors that we believe to be reasonable under the circumstances when we make these estimates and judgments and re-evaluate them on a periodic basis.
The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amount of assets and liabilities, and the disclosure of contingent assets and liabilities, at the date of our financial statements and the reported amounts of revenues and expenses during the reporting period. 78 We base our estimates and judgments on our historical experience and other factors that we believe to be reasonable under the circumstances when we make these estimates and judgments and re-evaluate them on a periodic basis.
Should the currency posted to satisfy margin requirements decline in value, the clearing member is required to increase its margin deposit on a same-day basis. 80 Impact of Inflation We have not been materially adversely affected by inflation as technological advances and competition have generally caused prices for the hardware and software that we use for our electronic platforms to remain constant.
Should the currency posted to satisfy margin requirements decline in value, the clearing member is required to increase its margin deposit on a same-day basis. 83 Impact of Inflation We have not been materially adversely affected by inflation as technological advances and competition have generally caused prices for the hardware and software that we use for our electronic platforms to remain constant.
See “- Non-GAAP Financial Measures” below. 55 Fixed Income and Data Services Segment The following charts and table present our selected statements of income data for our Fixed Income and Data Services segment (dollars in millions): (1) The adjusted figures in the charts above are calculated by excluding items that are not reflective of our cash operations and core business performance.
See “- Non-GAAP Financial Measures” below. 58 Fixed Income and Data Services Segment The following charts and table present our selected statements of income data for our Fixed Income and Data Services segment (dollars in millions): (1) The adjusted figures in the charts above are calculated by excluding items that are not reflective of our cash operations and core business performance.
We have implemented policies and procedures designed to measure, manage, monitor and report risk exposures, which are regularly reviewed by the appropriate management and supervisory bodies. 77 Interest Rate Risk We have exposure to market risk for changes in interest rates relating to our cash and cash equivalents, short-term and long-term restricted cash and cash equivalents, short-term and long-term investments and indebtedness.
We have implemented policies and procedures designed to measure, manage, monitor and report risk exposures, which are regularly reviewed by the appropriate management and supervisory bodies. 80 Interest Rate Risk We have exposure to market risk for changes in interest rates relating to our cash and cash equivalents, short-term and long-term restricted cash and cash equivalents, short-term and long-term investments and indebtedness.
As a result, we may incur acquisition-related transaction costs in future periods. 63 Technology and Communication Expenses Technology support services consist of costs for running our wholly-owned data centers, hosting costs paid to third-party data centers, and maintenance of our computer hardware and software required to support our technology and cybersecurity.
As a result, we may incur acquisition-related transaction costs in future periods. 66 Technology and Communication Expenses Technology support services consist of costs for running our wholly-owned data centers, hosting costs paid to third-party data centers, and maintenance of our computer hardware and software required to support our technology and cybersecurity.
See the factors set forth under the heading “ Forward Looking Statements” at the beginning of Part 1 of this Annual Report and in Item 1(A) under the heading “Risk Factors.” For discussion related to the results of operations and changes in financial condition for 2021 compared to 2020 refer to Part II, Item 7.
See the factors set forth under the heading “ Forward Looking Statements” at the beginning of Part 1 of this Annual Report and in Item 1(A) under the heading “Risk Factors.” For discussion related to the results of operations and changes in financial condition for 2022 compared to 2021 refer to Part II, Item 7.
As of December 31, 2022, we, through NYSE, have net obligations of $102 million related to our pension and other benefit programs. The date of payment under these net obligations cannot be determined. See Note 17 to our consolidated financial statements for additional information on our pension and other benefit programs.
As of December 31, 2023, we, through NYSE, have net obligations of $102 million related to our pension and other benefit programs. The date of payment under these net obligations cannot be determined. See Note 17 to our consolidated financial statements for additional information on our pension and other benefit programs.
We do not have any relationships with unconsolidated entities or financial partnerships, often referred to as structured finance or special purpose entities. 74 Contractual Obligations and Commercial Commitments We intend to fund our contractual obligations and commercial commitments from existing cash and cash flow from operations.
We do not have any relationships with unconsolidated entities or financial partnerships, often referred to as structured finance or special purpose entities. 77 Contractual Obligations and Commercial Commitments We intend to fund our contractual obligations and commercial commitments from existing cash and cash flow from operations.
(1) The adjusted figures in the charts above are calculated by excluding items that are not reflective of our cash operations and core business performance. As a result, these adjusted figures are not calculated in accordance with U.S. GAAP.
(2) The adjusted figures in the charts above are calculated by excluding items that are not reflective of our cash operations and core business performance. As a result, these adjusted figures are not calculated in accordance with U.S. GAAP.
These are partially offset by the estimated profits related to our investment in OCC. Both 2022 and 2021 include adjustments to reflect the difference between reported prior period actual results from our original estimates.
These are partially offset by the estimated profits related to our investment in OCC. Both 2023 and 2022 include adjustments to reflect the difference between reported prior period actual results from our original estimates.
In the event of continued inflation, we believe that we will be able to pass on any price increases to our participants, as the prices that we charge are not governed by long-term contracts. 81
In the event of continued inflation, we believe that we will be able to pass on any price increases to our participants, as the prices that we charge are not governed by long-term contracts. 84
We entered into foreign currency hedging transactions during 2022 and 2021 as economic hedges to help mitigate a portion of our foreign exchange risk exposure and may enter into additional hedging transactions in the future to help mitigate our foreign exchange risk exposure.
We entered into foreign currency hedging transactions during 2023 and 2022 as economic hedges to help mitigate a portion of our foreign exchange risk exposure and may enter into additional hedging transactions in the future to help mitigate our foreign exchange risk exposure.
For additional information on these items, refer to our consolidated financial statements included in this Annual Report and “- Recent Developments,” “- Consolidated Operating Expenses”, “- Consolidated Non-Operating Income (Expenses)” and “-Consolidated Income Tax Provision” above.
For additional information on these items, refer to our consolidated financial statements included in this Annual Report and “- Recent Developments,” “- Consolidated Operating Expenses”, “- Consolidated Non-Operating Income/(Expense)” and “-Consolidated Income Tax Provision” above.
Other than the facilities for the ICE Clearing Houses, our Credit Facility and our Commercial Paper Program are currently the only significant agreements or arrangements that we have for liquidity and capital resources with third parties. See 71 Notes 10 and 14 to our consolidated financial statements for further discussion.
Other than the facilities for the ICE Clearing Houses, our Credit Facility, our Term Loan and our Commercial Paper Program are currently the only significant agreements or arrangements that we have for liquidity and capital resources with third parties. See Notes 10 and 14 to our consolidated financial statements for further discussion.
On May 23, 2022, we issued $8.0 billion in aggregate principal amount of new senior notes, comprised of the following: • $1.25 billion in aggregate principal amount of 3.65% senior notes due in 2025, or the 2025 Notes; 69 • $1.5 billion in aggregate principal amount of 4.00% senior notes due in 2027, or the 2027 Notes; • $1.25 billion in aggregate principal amount of 4.35% senior notes due in 2029, or the 2029 Notes; • $1.5 billion in aggregate principal amount of 4.60% senior notes due in 2033, or the 2033 Notes; • $1.5 billion in aggregate principal amount of 4.95% senior notes due in 2052, or the 2052 Notes; and • $1.0 billion in aggregate principal amount of 5.20% senior notes due in 2062, or the 2062 Notes, collectively, the Notes.
On May 23, 2022, we issued $8.0 billion in aggregate principal amount of new senior notes, comprised of the following: • $1.25 billion in aggregate principal amount of 3.65% senior notes due in 2025, or the 2025 Notes; 72 • $1.5 billion in aggregate principal amount of 4.00% senior notes due in 2027, or the 2027 Notes; • $1.25 billion in aggregate principal amount of 4.35% senior notes due in 2029, or the 2029 Notes; • $1.5 billion in aggregate principal amount of 4.60% senior notes due in 2033, or the 2033 Notes; • $1.5 billion in aggregate principal amount of 4.95% senior notes due in 2052, or the 2052 Notes; and • $1.0 billion in aggregate principal amount of 5.20% senior notes due in 2062, or the 2062 Notes.
The effective interest rate of commercial paper issuances will continue to fluctuate based on the movement in short-term interest rates along with shifts in supply and demand within the commercial paper market. Foreign Currency Exchange Rate Risk As an international business, we are subject to foreign currency exchange rate risk.
The effective interest rate of issuances under our Commercial Paper Program will continue to fluctuate based on the movement in short-term interest rates along with shifts in supply and demand within the commercial paper market. Foreign Currency Exchange Rate Risk As an international business, we are subject to foreign currency exchange rate risk.
These revenues are based on recurring Software as a Service, or SaaS, subscription fees, with an additive transaction-based or success-based pricing fee as lenders exceed the number of loans closed that are included with their monthly base subscription.
These revenues are based on recurring Software as a Service, or SaaS, subscription fees, with an additive transaction-based or success-based pricing fee as lenders exceed the number of loans closed that are included with their monthly base subscription, as well as professional services.
We do not use our investment portfolio for trading or other speculative purposes. A hypothetical 50% decrease in short-term interest rates would decrease our annual pre-tax earnings by $21 million as of December 31, 2022, assuming no change in the amount or composition of our cash and cash equivalents and short-term and long-term restricted cash and cash equivalents.
We do not use our investment portfolio for trading or other speculative purposes. A hypothetical 50% decrease in short-term interest rates would decrease our annual pre-tax earnings by $15 million as of December 31, 2023, assuming no change in the amount or composition of our cash and cash equivalents and short-term and long-term restricted cash and cash equivalents.
The combined net periodic expense of these plans was $2 million and $3 million in 2022 and 2021, respectively. Non-controlling Interest For consolidated subsidiaries in which our ownership is less than 100%, and for which we have control over the assets, liabilities and management of the entity, the outside stockholders’ interests are shown as non-controlling interests.
The combined net periodic expense/(benefit) of these plans was ($2 million) and $2 million in 2023 and 2022, respectively. Non-controlling Interest For consolidated subsidiaries in which our ownership is less than 100%, and for which we have control over the assets, liabilities and management of the entity, the outside stockholders’ interests are shown as non-controlling interests.
Our operating leases primarily relate to our leased office space and data center facilities, and as of December 31, 2022, we had fixed lease payment obligations of $342 million, with $73 million payable within one-year. We have other purchase obligations to purchase various goods and services that we believe are enforceable and legally binding.
Our operating leases primarily relate to our leased office space and data center facilities, and as of December 31, 2023, we had fixed lease payment obligations of $442 million, with $73 million payable within one-year. We have other purchase obligations to purchase various goods and services that we believe are enforceable and legally binding.
We have diversified our business so that we are not dependent on volatility or transaction activity in any one asset class. In addition, we have increased our portion of recurring revenues from 34% in 2014 to 51% in 2022. These recurring revenues include data services, listings and various mortgage technology solutions.
We have diversified our business so that we are not dependent on volatility or transaction activity in any one asset class. In addition, we have increased our portion of recurring revenues from 34% in 2014 to 52% in 2023. These recurring revenues include data services, listings and various mortgage technology solutions.
The activity assessment fees are designed to equal the Section 31 fees. As a result, activity assessment fees and the corresponding Section 31 fees do not have an impact on our net income, although the timing of payment by us will vary from collections. Section 31 fees were $499 million and $248 million in 2022 and 2021, respectively.
The activity assessment fees are designed to equal the Section 31 fees. As a result, activity assessment fees and the corresponding Section 31 fees do not have an impact on our net income, although the timing of payment by us will vary from collections. Section 31 fees were $293 million and $499 million in 2023 and 2022, respectively.
Changes in Accumulated Other Comprehensive Income/ (Loss) from Foreign Currency Translation Adjustments (in millions) Balance, as of January 1, 2020 $ (177) Net current period other comprehensive income/(loss) 43 Balance, as of December 31, 2020 (134) Net current period other comprehensive income/(loss) (16) Balance, as of December 31, 2021 (150) Net current period other comprehensive income/(loss) (128) Balance, as of December 31, 2022 $ (278) The future impact on our business relating to the U.K. leaving the EU and the corresponding regulatory changes are uncertain at this time, including future impacts on currency exchange rates.
Changes in Accumulated Other Comprehensive Income/ (Loss) from Foreign Currency Translation Adjustments (in millions) Balance, as of January 1, 2021 $ (134) Net current period other comprehensive income/(loss) (16) Balance, as of December 31, 2021 (150) Net current period other comprehensive income/(loss) (128) Balance, as of December 31, 2022 (278) Net current period other comprehensive income/(loss) 48 Balance, as of December 31, 2023 $ (230) The future impact on our business relating to the U.K. leaving the EU and the corresponding regulatory changes are uncertain at this time, including future impacts on currency exchange rates.
The impact of the foreign currency exchange rate differences in the table below were primarily driven by fluctuations of the pound sterling as compared to the U.S. dollar which were 1.2093, 1.3524 and 1.3665 as of December 31, 2022, 2021, and 2020, respectively.
The impact of the foreign currency exchange rate differences in the table below were primarily driven by fluctuations of the pound sterling as compared to the U.S. dollar which were 1.2732, 1.2093 and 1.3524 as of December 31, 2023, 2022, and 2021, respectively.
Revenue from the ICE Mortgage Technology network is largely transaction-based. • Closing solutions: Our closing solutions revenues decreased 26% in 2022 from 2021 due to lower mortgage origination volumes. Our closing solutions connect key participants, such as lenders, title and settlement agents and individual county recorders, to digitize the closing and recording process.
Revenue from the ICE Mortgage Technology network is largely transaction-based. • Closing solutions: Our closing solutions revenues decreased 25% in 2023 from 2022 due to lower mortgage origination volumes. Our closing solutions connect key participants, such as lenders, title and settlement agents and 63 individual county recorders, to digitize the closing and recording process.
In addition, we have $147.4 billion in cash and cash equivalent margin deposits and guaranty funds, invested deposits, delivery contracts payable and unsettled variation margin. Clearing members of our clearing houses are required to deposit original margin and variation margin and to make deposits to a guaranty fund.
In addition, we have $80.8 billion in cash and cash equivalent margin deposits and guaranty funds, invested deposits, delivery contracts payable and unsettled variation margin. Clearing members of our clearing houses are required to deposit original margin and variation margin and to make deposits to a guaranty fund.
We did not receive a Euroclear dividend during the 2022 prior to the sale of our investment. 65 We incurred foreign currency transaction losses of $9 million and $13 million in 2022 and 2021, respectively. This was primarily attributable to the fluctuations of the pound sterling and euro relative to the U.S. dollar.
We did not receive a Euroclear dividend during the 2022 prior to the sale of our investment. We incurred foreign currency transaction losses of $12 million and $9 million in 2023 and 2022, respectively. This was primarily attributable to the fluctuations of the pound sterling and euro relative to the U.S. dollar.
We have a significant part of our assets, liabilities, revenues and expenses recorded in pounds sterling or euros. In both 2022 and 2021, 13% of our consolidated revenues, less transaction-based expenses, were denominated in pounds sterling or euros, and in 2022 and 2021, 9% and 10%, respectively, of our consolidated operating expenses were denominated in pounds sterling or euros.
We have a significant part of our assets, liabilities, revenues and expenses recorded in pounds sterling or euros. In 2023 and 2022, 14% and 13%, respectively, of our consolidated revenues, less transaction-based expenses, were denominated in pounds sterling or euros, and in both 2023 and 2022, 9% of our consolidated operating expenses were denominated in pounds sterling or euros.
Cash liquidity payments, routing and clearing fees were $1.8 billion in both 2022 and 2021. Operating Expenses, Operating Income and Operating Margin The following chart summarizes our Exchanges segment's operating expenses, operating income and operating margin (dollars in millions). See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our operating expenses.
Cash liquidity payments, routing and clearing fees were $1.6 billion and $1.8 billion in 2023 and 2022, respectively. Operating Expenses, Operating Income and Operating Margin The following chart summarizes our Exchanges segment's operating expenses, operating income and operating margin (dollars in millions). See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our operating expenses.
A 10% adverse change in the underlying foreign currency exchange rates as of December 31, 2022, assuming no change in the composition of the foreign currency denominated assets, liabilities and payables and assuming no hedging activity, would result in a foreign currency loss of $14 million.
A 10% adverse change in the underlying foreign currency exchange rates as of December 31, 2023, assuming no change in the composition of the foreign currency denominated assets, liabilities and payables and assuming no hedging activity, would result in a foreign currency loss of $1 million.
We believe that our cash on hand and cash flows from operations will be sufficient to repay our outstanding debt, but we 67 may also need to incur additional debt or issue additional equity securities in the future. See “- Future Capital Requirements” below.
We believe that our cash on hand and cash flows from operations will be sufficient to repay our outstanding debt, but we may also incur additional debt or issue additional equity securities in the future to satisfy our liquidity needs. See “- Future Capital Requirements” below.
Due to fluctuations in the U.S. dollar compared to the pound sterling and euro, our consolidated operating expenses were $38 million lower in 2022 than in 2021. See Item 7(A) “- Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information.
Due to fluctuations in the U.S. dollar compared to the pound sterling and euro, our consolidated operating expenses were $4 million higher in 2023 than in 2022. See Item 7(A) “- Quantitative and Qualitative Disclosures About Market Risk - Foreign Currency Exchange Rate Risk” below for additional information.
In 2021, the U.K. enacted a corporate income tax rate increase from 19% to 25% effective April 1, 2023. In 2020, the UK enacted a corporate income tax rate increase from 17% to 19% effective April 1, 2020.
In 2021, the U.K. enacted a corporate income tax rate increase from 19% to 25% effective April 1, 2023.
We currently expect to incur capital expenditures (including operational and real estate capital expenditures) and to incur software development costs that are eligible for capitalization ranging in the aggregate between $450 million and $500 million in 2023, which we believe will support the enhancement of our technology, business integration and the continued growth of our businesses.
We currently expect to incur capital expenditures (including operational and real estate capital expenditures) and to incur software development costs that are eligible for capitalization ranging in the aggregate between $600 million and $650 million in 2024, which we believe will support the enhancement of our technology, business integration and the continued growth of our businesses.
From an operational perspective, our businesses, including our exchanges, clearing houses, listings venues, data services businesses and mortgage platforms, have not suffered a material negative impact as a result of these events in Ukraine and the surrounding region.
From an operational perspective, our businesses, including our exchanges, clearing houses, listings venues, data services businesses and mortgage platforms, have not suffered a material negative impact as a result of these events in Ukraine, Israel, Gaza and surrounding regions.
In 2022 and 2021, 11% and 14%, respectively, of our Fixed Income and Data Services segment revenues were billed in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly.
In both 2023 and 2022, 11%, of our Fixed Income and Data Services segment revenues were billed in pounds sterling or euros. As the pound sterling or euro exchange rate changes, the U.S. equivalent of revenues denominated in foreign currencies changes accordingly.
Our exposure to foreign denominated earnings in 2022 and 2021 is presented by primary foreign currency in the following table (dollars in millions, except exchange rates): Year Ended December 31, 2022 Year Ended December 31, 2021 Pound Sterling Euro Pound Sterling Euro Average exchange rate to the U.S. dollar in the current year $ 1.2376 $ 1.0540 $ 1.3762 $ 1.1835 Average exchange rate to the U.S. dollar in the prior year $ 1.3762 $ 1.1835 $ 1.2832 $ 1.1412 Average exchange rate increase/(decrease) (10) % (11) % 7 % 4 % Foreign denominated percentage of: Revenues, less transaction-based expenses 7 % 6 % 7 % 6 % Operating expenses 7 % 2 % 8 % 2 % Operating income 7 % 11 % 6 % 11 % Impact of the currency fluctuations (1) on: Revenues, less transaction-based expenses $ (59) $ (56) $ 31 $ 13 Operating expenses $ (30) $ (8) $ 19 $ 3 Operating income $ (29) $ (48) $ 12 $ 10 (1) Represents the impact of currency fluctuation for the year compared to the same period in the prior year.
Our exposure to foreign denominated earnings in 2023 and 2022 is presented by primary foreign currency in the following table (dollars in millions, except exchange rates): Year Ended December 31, 2023 Year Ended December 31, 2022 Pound Sterling Euro Pound Sterling Euro Average exchange rate to the U.S. dollar in the current year $ 1.2438 $ 1.0817 $ 1.2376 $ 1.0540 Average exchange rate to the U.S. dollar in the prior year $ 1.2376 $ 1.0540 $ 1.3762 $ 1.1835 Average exchange rate increase/(decrease) 1 % 3 % (10) % (11) % Foreign denominated percentage of: Revenues, less transaction-based expenses 7 % 7 % 7 % 6 % Operating expenses 7 % 2 % 7 % 2 % Operating income 7 % 14 % 7 % 11 % Impact of the currency fluctuations (1) on: Revenues, less transaction-based expenses $ 1 $ 16 $ (59) $ (56) Operating expenses $ 2 $ 2 $ (30) $ (8) Operating income $ (1) $ 14 $ (29) $ (48) (1) Represents the impact of currency fluctuation for the year compared to the same period in the prior year.
We directly allocate expenses when reasonably possible to do so. Otherwise, we use a pro-rata revenue approach as the allocation method for the expenses that do not relate solely to one segment and serve functions that are necessary for the operation of all segments. Our segments do not engage in intersegment transactions.
Otherwise, we use a pro-rata revenue approach as the allocation method for the expenses that do not relate solely to one segment and serve functions that are necessary for the operation of all segments. Our segments do not engage in intersegment transactions.
We report our results in the following three segments: • Exchanges: We operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities. • Fixed Income and Data Services: We provide fixed income pricing, reference data, indices, analytics and execution services as well as global CDS clearing and multi-asset class data delivery solutions. • Mortgage Technology: We provide a technology platform that offers customers comprehensive, digital workflow tools that aim to address the inefficiencies that exist in the U.S. residential mortgage market, from application through closing and the secondary market.
We report our results in the following three segments: • Exchanges: We operate regulated marketplace technology for the listing, trading and clearing of a broad array of derivatives contracts and financial securities as well as data and connectivity services related to those venues. • Fixed Income and Data Services: We provide fixed income pricing, reference data, indices, analytics and execution services as well as global CDS clearing and multi-asset class data delivery technology. • Mortgage Technology: We provide a technology platform that offers customers comprehensive, digital workflow tools that aim to address inefficiencies and mitigate risks that exist in the U.S. residential mortgage market life cycle from application through closing, servicing and the secondary market.
Pursuant to that certain Agreement and Plan of Merger, dated as of May 4, 2022, among ICE, Sand Merger Sub Corporation, a wholly owned subsidiary of ICE, or Sub, and Black Knight, which we refer to as the “merger agreement,” Sub will merge with and into Black Knight, which we refer to as the “merger,” with Black Knight surviving as a wholly owned subsidiary of ICE.
Pursuant to the Agreement and Plan of Merger, dated as of May 4, 2022, among ICE, Sand Merger Sub Corporation, a wholly owned subsidiary of ICE, or Sub, and Black Knight, which we refer to as the “merger 45 agreement,” Sub merged with and into Black Knight, which we refer to as the “merger,” with Black Knight surviving as a wholly owned subsidiary of ICE.
The approval of our Board for stock repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our Board may increase or decrease the amount available for repurchases from time to time.
The approval of our Board for stock repurchases does not obligate us to acquire any particular amount of our common stock. In addition, our Board may increase or decrease the amount available for repurchases from time to time. We did not have any share repurchases in 2023.
We expect our operating expenses to increase in absolute terms in future periods in connection with the growth of our business, and to vary from year-to-year based on the type and level of our acquisitions, integration of acquisitions, and other investments. In 2022 and 2021, 9% and 10%, respectively, of our operating expenses were incurred in pounds sterling or euros.
We expect our operating expenses to increase in absolute terms in future periods in connection with the growth of our business, and to vary from year-to-year based on the type and level of our acquisitions, integration of acquisitions, and other investments. In both 2023 and 2022, 9% of our operating expenses were billed in pounds sterling or euros.
As of December 31, 2022 and 2021, our cash and cash equivalents and short-term and long-term restricted cash and cash equivalents were $8.4 billion and $2.0 billion, respectively, of which $346 million and $276 million, respectively, were denominated in pounds sterling, euros or Canadian dollars, and the remaining amounts are denominated in U.S. dollars.
As of December 31, 2023 and 2022, our cash and cash equivalents and short-term and long-term restricted cash and cash equivalents and investments were $2.5 billion and $8.4 billion, respectively, of which $270 million and $346 million, respectively, were denominated in pounds sterling, euros or Canadian dollars, and the remaining amounts are denominated in U.S. dollars.
We incurred foreign currency transaction losses of $9 million and $13 million in 2022 and 2021, respectively, inclusive of the impact of foreign currency hedging transactions. The foreign currency transaction losses were primarily attributable to the fluctuations of the pound sterling 78 and euro relative to the U.S. dollar.
We incurred foreign currency transaction losses of $12 million and $9 million in 2023 and 2022, respectively, inclusive of the impact of foreign currency hedging transactions. The foreign currency transaction losses were primarily attributable to the fluctuations of the pound sterling 81 and euro relative to the U.S. dollar.
The acquisition and integration costs in the chart below include cash paid for acquisitions, net of cash received for divestitures, cash paid for equity and equity method investments, cash paid for non-controlling interest and redeemable non-controlling interest, and acquisition-related transaction and integration costs, in each year.
The acquisition and integration costs in the chart below include cash paid for acquisitions, net of cash acquired and cash received for divestitures, cash paid for equity and equity method investments, and acquisition-related transaction and integration costs, in each year.
Cash Flow The following table presents the major components of net changes in cash and cash equivalents, and restricted cash and cash equivalents (in millions): Year Ended December 31, 2022 2021 2020 Net cash provided by (used in): Operating activities $ 3,554 $ 3,123 $ 2,881 Investing activities 677 (786) (10,361) Financing activities (1,841) 62,026 26,000 Effect of exchange rate changes (23) (6) 8 Net increase in cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds $ 2,367 $ 64,357 $ 18,528 Operating Activities Net cash provided by operating activities primarily consists of net income adjusted for certain items, including depreciation and amortization, deferred taxes, stock-based compensation and the effects of changes in working capital.
Cash Flow The following table presents the major components of net changes in cash and cash equivalents, and restricted cash and cash equivalents (in millions): Year Ended December 31, 2023 2022 2021 Net cash provided by/(used in): Operating activities $ 3,542 $ 3,554 $ 3,123 Investing activities (8,797) 677 (786) Financing activities (64,345) (1,841) 62,026 Effect of exchange rate changes 7 (23) (6) Net increase in cash and cash equivalents, restricted cash and cash equivalents, and cash and cash equivalent margin deposits and guaranty funds $ (69,593) $ 2,367 $ 64,357 Operating Activities Net cash provided by operating activities primarily consists of net income adjusted for certain items, including depreciation and amortization, deferred taxes, stock-based compensation and the effects of changes in working capital.
Equity options volume increased 6% in 2022 from 2021 driven by increased participation and higher market share. 51 Equity options revenues, net of transaction-based expenses, were $103 million and $109 million in 2022 and 2021, respectively. • OTC and Other: OTC and other transactions include revenues from our OTC energy business and other trade confirmation services, as well as interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees.
Equity options revenues, net of transaction-based expenses, were $115 million and $103 million in 2023 and 2022, respectively. • OTC and Other: OTC and other transactions include revenues from our OTC energy business and other trade confirmation services, as well as interest income on certain clearing margin deposits, regulatory penalties and fines, fees for use of our facilities, regulatory fees charged to member organizations of our U.S. securities exchanges, designated market maker service fees, exchange membership fees and agricultural grading and certification fees.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2021 Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission on February 3, 2022. Overview We are a provider of market infrastructure, data services and technology solutions to a broad range of customers including financial institutions, corporations and government entities.
Management's Discussion and Analysis of Financial Condition and Results of Operations in our 2022 Annual Report on Form 10-K, which was filed with the U.S. Securities and Exchange Commission on February 2, 2023. Overview We are a leading global provider of technology and data to a broad range of customers including financial institutions, corporations and government entities.
Refer to Note 14 to our consolidated financial statements for more information on the ICE Clearing Houses' cash and cash equivalent margin deposits and 79 guaranty funds, invested deposits, delivery contracts receivable and unsettled variation margin which were $147.4 billion as of December 31, 2022.
Refer to Note 14 to our consolidated financial statements for more information on the ICE Clearing Houses' cash and cash equivalent margin deposits and 82 guaranty funds, invested deposits, delivery contracts receivable and unsettled variation margin which were $80.8 billion as of December 31, 2023.
This was based on what we consider to be an other-than-temporary decline in fair value as a result of several factors, including consideration of the impairment charge recorded by Bakkt (see Notes 3 and 4 to our consolidated financial statements). The estimated losses and impairment during 2022 and 2021 are primarily related to our investment in Bakkt.
This was based on what we consider to be an other-than-temporary decline in fair value as a result of several factors, including consideration of the impairment charge recorded by Bakkt (see Notes 3 and 4 to our consolidated financial statements).
Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar during 2022, our Fixed Income and Data Services revenues were lower by $28 million in 2022 than in 2021.
Due to the fluctuations of the pound sterling and euro compared to the U.S. dollar during 2023, our Fixed Income and Data Services revenues were higher by $3 million in 2023 than in 2022.
All trading volume below is presented as average net daily trading volume, or ADV, and is single counted: 54 Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change NYSE cash equities (shares in millions): Total cash handled volume 2,409 2,317 4 % 2,317 2,466 (6) % Total cash market share matched 19.9 % 19.9 % — 19.9 % 22.1 % (2.3) pts NYSE equity options (contracts in thousands): NYSE equity options volume 7,621 7,162 6 % 7,162 5,101 40 % Total equity options volume 38,244 37,170 3 % 37,170 27,685 34 % NYSE share of total equity options 19.9 % 19.3 % 0.6 pts 19.3 % 18.4 % 0.8 pts Revenue capture or rate per contract: Cash equities rate per contract (per 100 shares) $0.045 $0.042 8 % $0.042 $0.044 (5) % Equity options rate per contract $0.05 $0.06 (9) % $0.06 $0.08 (23) % Handled volume represents the total number of shares of equity securities, ETFs and crossing session activity internally matched on our exchanges or routed to and executed on an external market center.
All trading volume below is presented as average net daily trading volume, or ADV, and is single counted: Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change NYSE cash equities (shares in millions): Total cash handled volume 2,231 2,409 (7) % 2,409 2,317 4 % Total cash market share matched 19.9 % 19.9 % — 19.9 % 19.9 % — NYSE equity options (contracts in thousands): NYSE equity options volume 7,900 7,621 4 % 7,621 7,162 6 % Total equity options volume 40,369 38,244 6 % 38,244 37,170 3 % NYSE share of total equity options 19.6 % 19.9 % (0.3 pts) 19.9 % 19.3 % 0.6 pts Revenue capture or rate per contract: Cash equities rate per contract (per 100 shares) $0.048 $0.045 6 % $0.045 $0.042 8 % Equity options rate per contract $0.06 $0.05 7 % $0.05 $0.06 (9) % 57 Handled volume represents the total number of shares of equity securities, ETFs and crossing session activity internally matched on our exchanges or routed to and executed on an external market center.
During 2022, we paid cash dividends of $1.52 per share of our common stock in the aggregate, including quarterly dividends of $0.38 per share, for an aggregate payout of $853 million, which includes the payment of dividend equivalents on unvested employee restricted stock units.
During 2023, we paid cash dividends of $1.68 per share of our common stock in the aggregate, including quarterly dividends of $0.42 per share, for an aggregate payout of $955 million, which includes the payment of dividend equivalents on unvested employee restricted stock units.
To mitigate this risk, we maintain the Credit Facility for an aggregate amount which meets or exceeds the amount issued under our Commercial Paper Program at any time. If we were not able to issue new commercial paper, we have the option of drawing on the backstop revolving facility.
To mitigate this risk, we maintain the Credit Facility for an aggregate amount which meets or exceeds the amount issued under our Commercial Paper Program at any time. If we were not able to issue new commercial paper, we have the option of drawing on the backstop revolving facility. However, electing to do so would result in higher interest expense.
As of December 31, 2022, our cumulative UTBs were $247 million, and accrued interest and penalties related to UTBs were $61 million. We are under examination by various tax authorities.
As of December 31, 2023, our cumulative UTBs were $268 million, and accrued interest and penalties related to UTBs were $32 million. We are under examination by various tax authorities.
Fixed Income and Data Services Segment: Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Operating expenses $ 1,373 $ 1,354 1 % $ 1,354 $ 1,318 3 % Adjusted operating expenses (1) $ 1,193 $ 1,174 2 % $ 1,174 $ 1,119 5 % Operating income $ 719 $ 529 36 % $ 529 $ 492 7 % Adjusted operating income (1) $ 899 $ 709 27 % $ 709 $ 691 3 % Operating margin 34 % 28 % 6 pts 28 % 27 % 1 pt Adjusted operating margin (1) 43 % 38 % 5 pts 38 % 38 % — (1) The adjusted figures exclude items that are not reflective of our ongoing core operations and business performance.
Fixed Income and Data Services Segment: Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Operating expenses $ 1,420 $ 1,373 3 % $ 1,373 $ 1,354 1 % Adjusted operating expenses (1) $ 1,252 $ 1,193 5 % $ 1,193 $ 1,174 2 % Operating income $ 811 $ 719 13 % $ 719 $ 529 36 % Adjusted operating income (1) $ 979 $ 899 9 % $ 899 $ 709 27 % Operating margin 36 % 34 % 2 pts 34 % 28 % 6 pts Adjusted operating margin (1) 44 % 43 % 1 pt 43 % 38 % 5 pts (1) The adjusted figures exclude items that are not reflective of our ongoing core operations and business performance.
In connection with our pending acquisition of Black Knight, on May 4, 2022, we terminated our Rule 10b5-1 trading plan and suspended share repurchases. The remaining balance of Board approved funds for future repurchases as of December 31, 2022 was $2.5 billion.
In December 2021, we entered into a new Rule 10b5-1 trading plan that became effective in February 2022. In connection with our acquisition of Black Knight, on May 4, 2022, we terminated our Rule 10b5-1 trading plan and suspended share repurchases. The remaining balance of Board approved funds for future repurchases as of December 31, 2023 was $2.5 billion.
As of December 31, 2022, we did not have any notes outstanding under our Commercial Paper Program. The weighted average interest rate on our Commercial Paper Program was 0.33% as of December 31, 2021.
The weighted average interest rate on notes outstanding under our Commercial Paper Program was 5.70% as of December 31, 2023, and we did not have any notes outstanding under our Commercial Paper Program as of December 31, 2022.
The increase in Section 31 fees was primarily due to an increase in rates. The fees we collect are included in cash at the time of receipt and we remit the amounts to the SEC semi-annually as required. The total amount is included in accrued liabilities and was $223 million as of December 31, 2022.
The decrease in Section 31 fees was primarily due to a decrease in rates. The fees we collect are included in cash at the time of receipt and we remit the amounts to the SEC semi-annually as required. The total amount is included in current liabilities and was $79 million as of December 31, 2023.
Exchanges Segment: Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Operating expenses $ 1,209 $ 1,333 (9) % $ 1,333 $ 1,242 7 % Adjusted operating expenses (1) $ 1,142 $ 1,201 (5) % $ 1,201 $ 1,145 5 % Operating income $ 2,862 $ 2,523 13 % $ 2,523 $ 2,389 6 % Adjusted operating income (1) $ 2,929 $ 2,655 10 % $ 2,655 $ 2,486 7 % Operating margin 70 % 65 % 5 pts 65 % 66 % (1 pt) Adjusted operating margin (1) 72 % 69 % 3 pts 69 % 68 % 1 pt (1) The adjusted figures exclude items that are not reflective of our ongoing core operations and business performance.
Exchanges Segment: Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Operating expenses $ 1,281 $ 1,209 6 % $ 1,209 $ 1,333 (9) % Adjusted operating expenses (1) $ 1,199 $ 1,142 5 % $ 1,142 $ 1,201 (5) % Operating income $ 3,159 $ 2,862 10 % $ 2,862 $ 2,523 13 % Adjusted operating income (1) $ 3,241 $ 2,929 11 % $ 2,929 $ 2,655 10 % Operating margin 71 % 70 % 1 pt 70 % 65 % 5 pts Adjusted operating margin (1) 73 % 72 % 1 pt 72 % 69 % 3 pts (1) The adjusted figures exclude items that are not reflective of our ongoing core operations and business performance.
See “- Non-GAAP Financial Measures” 61 Consolidated Operating Expenses The following presents our consolidated operating expenses (dollars in millions): Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Compensation and benefits $ 1,407 $ 1,462 (4) % $ 1,462 $ 1,188 23 % Professional services 131 159 (17) 159 144 10 Acquisition-related transaction and integration costs 93 102 (9) 102 105 (3) Technology and communication 683 666 2 666 549 21 Rent and occupancy 83 84 (1) 84 81 3 Selling, general and administrative 226 215 5 215 185 16 Depreciation and amortization 1,031 1,009 2 1,009 751 34 Total operating expenses $ 3,654 $ 3,697 (1) % $ 3,697 $ 3,003 23 % 62 The majority of our operating expenses do not vary directly with changes in our volume and revenues, except for certain technology and communication expenses, including data acquisition costs, licensing and other fee-related arrangements and a portion of our compensation expense that is tied directly to our data sales or overall financial performance.
See “- Non-GAAP Financial Measures” 64 Consolidated Operating Expenses The following presents our consolidated operating expenses (dollars in millions): Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Compensation and benefits $ 1,595 $ 1,407 13 % $ 1,407 $ 1,462 (4) % Professional services 123 131 (6) 131 159 (17) Acquisition-related transaction and integration costs 269 93 189 93 102 (9) Technology and communication 734 683 8 683 666 2 Rent and occupancy 92 83 10 83 84 (1) Selling, general and administrative 266 226 17 226 215 5 Depreciation and amortization 1,215 1,031 18 1,031 1,009 2 Total operating expenses $ 4,294 $ 3,654 18 % $ 3,654 $ 3,697 (1) % 65 The majority of our operating expenses do not vary directly with changes in our volume and revenues, except for certain technology and communication expenses, including data acquisition costs, licensing and other fee-related arrangements and a portion of our compensation expense that is tied directly to our data sales or overall financial performance.
Investing Activities Consolidated net cash provided by investing activities in 2022 primarily relates to $7.5 billion of proceeds from the sale of invested margin deposits and $741 million in proceeds from the sale of our Euroclear investment, partially offset by $6.9 billion purchases of invested margin deposits, $225 million of capitalized expenditures, $257 million of software development costs, $73 million for purchases of equity and equity method investments and $59 million cash paid for acquisitions, net of cash acquired. 68 Consolidated net cash used in investing activities in 2021 relates to $5.1 billion purchases of invested margin deposits, $179 million of capitalized expenditures, $273 million of capitalized software development costs, $117 million for the purchase of an equity method investment and $66 million cash paid for acquisitions, net of cash acquired, partially offset by $3.7 billion of proceeds from the sale of invested margin deposits and $1.2 billion in proceeds from the sale of our Coinbase investment.
Consolidated net cash provided by investing activities in 2022 primarily relates to $7.5 billion of proceeds from the sale of invested margin deposits and $741 million in proceeds from the sale of our Euroclear investment, partially offset by $6.9 billion purchases of invested margin deposits, $225 million of capitalized expenditures, $257 million of capitalized software development costs, $73 million for the purchases of investments and $59 million cash paid for acquisitions, net of cash acquired.
The following charts and tables present trading activity in our futures and options markets by commodity type based on the total number of contracts traded, as well as futures and options rate per contract (in millions, except for percentages and rate per contract amounts): 52 Volume and Rate per Contract Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Number of contracts traded (in millions): Energy futures and options 753 782 (4) % 782 773 1 % Agricultural and metals futures and options 102 98 5 % 98 108 (10) % Financial futures and options 646 634 2 % 634 619 2 % Total 1,501 1,514 (1) % 1,514 1,500 1 % Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Average Daily Volume of contracts traded (in thousands): Energy futures and options 3,000 3,103 (3) % 3,103 3,054 2 % Agricultural and metals futures and options 407 388 5 % 388 428 (9) % Financial futures and options 2,524 2,475 2 % 2,475 2,409 3 % Total 5,931 5,966 (1) % 5,966 5,891 1 % Year Ended December 31, Year Ended December 31, Rate per contract: 2022 2021 Change 2021 2020 Change Energy futures and options $ 1.54 $ 1.58 (2) % $ 1.58 $ 1.45 9 % Agricultural and metals futures and options $ 2.30 $ 2.34 (2) % $ 2.34 $ 2.27 3 % Financial futures and options $ 0.73 $ 0.61 19 % $ 0.61 $ 0.57 7 % Open interest is the aggregate number of contracts (long or short) that clearing members hold either for their own account or on behalf of their clients.
The following charts and tables present trading activity in our futures and options markets by commodity type based on the total number of contracts traded, as well as futures and options rate per contract (in millions, except for percentages and rate per contract amounts): Volume and Rate per Contract 55 Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Number of contracts traded (in millions): Energy futures and options 883 753 17 % 753 782 (4) % Agricultural and metals futures and options 118 102 16 % 102 98 5 % Financial futures and options 646 646 — % 646 634 2 % Total 1,647 1,501 10 % 1,501 1,514 (1) % Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Average Daily Volume of contracts traded (in thousands): Energy futures and options 3,530 3,000 18 % 3,000 3,103 (3) % Agricultural and metals futures and options 474 407 16 % 407 388 5 % Financial futures and options 2,532 2,524 — % 2,524 2,475 2 % Total 6,536 5,931 10 % 5,931 5,966 (1) % Year Ended December 31, Year Ended December 31, Rate per contract: 2023 2022 Change 2022 2021 Change Energy futures and options $ 1.70 $ 1.54 10 % $ 1.54 $ 1.58 (2) % Agricultural and metals futures and options $ 2.29 $ 2.30 — % $ 2.30 $ 2.34 (2) % Financial futures and options $ 0.70 $ 0.73 (3) % $ 0.73 $ 0.61 19 % Open interest is the aggregate number of contracts (long or short) that clearing members hold either for their own account or on behalf of their clients.
As of December 31, 2022, we had $2.5 billion authorized for future repurchases of our common stock. Refer to Note 12 to our consolidated financial statements included in this Annual Report for additional details on our stock repurchase program.
As of December 31, 2023, we had $2.5 billion authorized for future repurchases of our common stock. We may resume repurchases of our common stock subject to achieving certain debt leverage ratio targets. Refer to Note 12 to our consolidated financial statements included in this Annual Report for additional details on our stock repurchase program.
Operating Expenses, Operating Income and Operating Margin The following chart summarizes our Fixed Income and Data Services segment's operating expenses, operating income and operating margin (dollars in millions). See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our operating expenses.
This does not adjust for year-over-year foreign exchange fluctuations. 60 Operating Expenses, Operating Income and Operating Margin The following chart summarizes our Fixed Income and Data Services segment's operating expenses, operating income and operating margin (dollars in millions). See “- Consolidated Operating Expenses” below for a discussion of the significant changes in our operating expenses.
Our business has been impacted positively and negatively by these global economic conditions. For instance, due to market volatility and rising interest rates, we have seen increased trading across a number of our products, such as interest rate and equity futures, credit default swaps and bonds.
For instance, due to market volatility and rising interest rates, we have seen increased trading across a number of our products, such as interest rate and equity futures, credit default swaps and bonds.
The aggregate cash component of the transaction consideration is fixed at $10.5 billion, and the value of the aggregate stock component of the transaction consideration will fluctuate with the market price of our common stock and will be determined based on the average of the volume weighted averages of the trading prices of our common stock on each of the ten consecutive trading days ending three trading days prior to the closing of the merger.
The aggregate cash component of the transaction consideration was $10.5 billion, and the number of our shares issued was based on the market price of our common stock and the average of the volume weighted averages of the trading prices of our common stock on each of the ten consecutive trading days ending three trading days prior to the closing of the merger.
See “- Non-GAAP Financial Measures” below. 56 Year Ended December 31, Year Ended December 31, 2022 2021 Change 2021 2020 Change Revenues: Fixed income execution $ 101 $ 52 96 % $ 52 $ 70 (25) % CDS clearing 305 192 59 192 208 (8) Fixed income data and analytics 1,098 1,082 1 1,082 1,018 6 Fixed income and credit 1,504 1,326 13 1,326 1,296 2 Other data and network services 588 557 6 557 514 8 Revenues 2,092 1,883 11 1,883 1,810 4 Other operating expenses 1,023 1,012 1 1,012 967 5 Acquisition-related transaction and integration costs 1 1 (20) 1 — 195 Depreciation and amortization 349 341 2 341 351 (3) Operating expenses 1,373 1,354 1 1,354 1,318 3 Operating income $ 719 $ 529 36 % $ 529 $ 492 7 % Recurring revenues $ 1,686 $ 1,639 3 % $ 1,639 $ 1,532 7 % Transaction revenues $ 406 $ 244 66 % $ 244 $ 278 (12) % In the table above, we consider fixed income data and analytics revenues and other data and network services revenues to be recurring revenues.
See “- Non-GAAP Financial Measures” below. 59 Year Ended December 31, Year Ended December 31, 2023 2022 Change 2022 2021 Change Revenues: Fixed income execution $ 124 $ 101 23 % $ 101 $ 52 96 % CDS clearing 360 305 18 305 192 59 Fixed income data and analytics 1,118 1,098 2 1,098 1,082 1 Fixed income and credit 1,602 1,504 7 1,504 1,326 13 Other data and network services 629 588 7 588 557 6 Revenues 2,231 2,092 7 2,092 1,883 11 Other operating expenses 1,079 1,023 5 1,023 1,012 1 Depreciation and amortization 341 349 (2) 349 341 2 Acquisition-related transaction and integration costs — 1 (95) 1 1 (20) Operating expenses 1,420 1,373 3 1,373 1,354 1 Operating income $ 811 $ 719 13 % $ 719 $ 529 36 % Recurring revenues $ 1,747 $ 1,686 4 % $ 1,686 $ 1,639 3 % Transaction revenues $ 484 $ 406 20 % $ 406 $ 244 66 % In the table above, we consider fixed income data and analytics revenues and other data and network services revenues to be recurring revenues.
Segments are discussed more in detail in "Item 1- Business". While revenues are recorded specifically in the segment in which they are earned or to which they relate, a significant portion of our operating expenses are not solely related to a specific segment because the expenses serve functions that are necessary for the operation of more than one segment.
While revenues are recorded specifically in the segment in which they are earned or to which they relate, a significant portion of our operating expenses are not solely related to a specific segment because the expenses serve functions that are necessary for the operation of more than one segment. We directly allocate expenses when reasonably possible to do so.
Deferred tax adjustments on acquisition-related intangibles include the impact of U.K. and U.S. state tax law changes and apportionment updates, as well as other foreign tax law changes which resulted in deferred tax expense of $9 million, $183 million and $36 million in 2022, 2021 and 2020, respectively, related to the following: • Deferred tax adjustments in 2022 related primarily to U.S. state apportionment changes. • Deferred tax adjustments in 2021 related primarily to the U.K. tax law changes enacted in June 2021, which increased the U.K. corporate income tax rate from 19% to 25% effective April 1, 2023. • The deferred tax adjustments in 2020 were due to the tax law changes enacted in July 2020, which increased the U.K. corporate income tax rate from 17% to 19% effective April 1, 2020, as well as impacts of U.S. state apportionment charges.
Deferred tax adjustments on acquisition-related intangibles include the impact of tax law changes and apportionment updates resulting in deferred tax (benefit)/expense of ($126 million), $9 million and $183 million in 2023, 2022 and 2021, respectively, related to the following: • Deferred tax adjustments in in 2023 and 2022 related primarily to U.S. state apportionment changes; and • Deferred tax adjustments in 2021 related primarily to the U.K. tax law changes enacted in June 2021, which increased the U.K. corporate income tax rate from 19% to 25% effective April 1, 2023. • Other tax adjustments in 2023 are primarily related to audit settlements for pre-acquisition tax matters as well as state apportionment charges in prior years.
The following charts and table present our year-end open interest for our futures and options contracts (in thousands, except for percentages): 53 As of December 31, As of December 31, 2022 2021 Change 2021 2020 Change Open interest — in thousands of contracts: Energy futures and options 42,524 40,317 5 % 40,317 40,073 1 % Agricultural and metals futures and options 3,881 3,763 3 % 3,763 3,608 4 % Financial futures and options 20,342 23,942 (15) % 23,942 27,535 (13) % Total 66,747 68,022 (2) % 68,022 71,216 (4) % The following charts and tables present selected cash and equity options trading data.
The following charts and table present our year-end open interest for our futures and options contracts (in thousands, except for percentages): 56 As of December 31, As of December 31, 2023 2022 Change 2022 2021 Change Open interest — in thousands of contracts: Energy futures and options 51,556 42,524 21 % 42,524 40,317 5 % Agricultural and metals futures and options 4,855 3,881 25 % 3,881 3,763 3 % Financial futures and options 22,380 20,342 10 % 20,342 23,942 (15) % Total 78,791 66,747 18 % 66,747 68,022 (2) % The following charts and tables present selected cash and equity options trading data.

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Other ICE 10-K year-over-year comparisons