There's a big tail risk of Energy Futures volumes in the future (with the advent of green energy). Secondly, ICE roundtrip costs are exorbitantly high for some products ( Sugar, Cocoa, Cotton) vs for CME. Even after rebates, the costs are 2x that of CME group. Hence, there's a potential of fees (& hence revenues) reducing.
Pranjal, I appreciate your input. I do not see tail risk /w regards to energy futures. ICE's 'environmentals' are incredibly well positioned and fast growing. Additionally, regardless of the transition, hydrocarbons, especially nat gas, will play an increasingly important role in the world for many decades to come.
There's a big tail risk of Energy Futures volumes in the future (with the advent of green energy). Secondly, ICE roundtrip costs are exorbitantly high for some products ( Sugar, Cocoa, Cotton) vs for CME. Even after rebates, the costs are 2x that of CME group. Hence, there's a potential of fees (& hence revenues) reducing.
Pranjal, I appreciate your input. I do not see tail risk /w regards to energy futures. ICE's 'environmentals' are incredibly well positioned and fast growing. Additionally, regardless of the transition, hydrocarbons, especially nat gas, will play an increasingly important role in the world for many decades to come.
Excellent analysis, really very good.
Thank you, Bruno.
Great work, thanks for sharing it!
Thanks FX!
Fantastic work man, will share this at the weekend. Really quality stuff coming from you.
I always appreciate your support, Conor. Thank you!