ClearBridge Value Strategy on Intercontinental Exchange
Thesis
Intercontinental Exchange offers exposure to financial-market infrastructure through exchanges and data platforms serving financial and commodity markets. ClearBridge identifies market volatility as a potential business tailwind because elevated trading activity increases demand for exchange services. The company benefited from strong trading activity, record open interest and solid quarterly results. Its business model provides differentiated exposure to capital-market activity.
“ICE tends to do well when volatility lifts trading volumes, which was the case this summer across several asset classes.”
Key risks
- Declining market volatility could reduce trading activity.
- Changes in financial-market conditions could affect volumes and open interest.