Segment Reporting

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our business is conducted through three reportable business segments, comprised of the following:

•In our Exchanges segment, we operate regulated marketplaces for the listing, trading and clearing of a broad array of derivatives contracts and financial securities;

•In our Fixed Income and Data Services segment, 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; and

•In our Mortgage Technology segment, we provide an end-to-end 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.

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. 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 chief operating decision maker does not review total assets or statements of income below operating income by segments; therefore, such information is not presented below. Our three segments do not engage in intersegment transactions.

Financial data for our business segments is as follows for the six months and three months ended June 30, 2022 and 2021 (in millions):

	Six Months Ended June 30, 2022
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	618	$	—	$	—	$	618
Agricultural and metals futures and options	122		—		—		122
Financial futures and options	253		—		—		253
Cash equities and equity options	1,357		—		—		1,357
OTC and other	205		—		—		205
Data and connectivity services	432		—		—		432
Listings	260		—		—		260
Fixed income execution	—		40		—		40
CDS clearing	—		138		—		138
Fixed income data and analytics	—		551		—		551
Other data and network services	—		292		—		292
Origination technology	—		—		399		399
Closing solutions	—		—		134		134
Data and analytics	—		—		44		44
Other	—		—		27		27
Revenues	3,247		1,021		604		4,872
Transaction-based expenses	1,159		—		—		1,159
Revenues, less transaction-based expenses	2,088		1,021		604		3,713
Operating expenses	603		692		557		1,852
Operating income	$	1,485	$	329	$	47	$	1,861

	Six Months Ended June 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	584	$	—	$	—	$	584
Agricultural and metals futures and options	121		—		—		121
Financial futures and options	188		—		—		188
Cash equities and equity options	1,246		—		—		1,246
OTC and other	155		—		—		155
Data and connectivity services	415		—		—		415
Listings	233		—		—		233
Fixed income execution	—		27		—		27
CDS clearing	—		93		—		93
Fixed income data and analytics	—		532		—		532
Other data and network services	—		274		—		274
Origination technology	—		—		495		495
Closing solutions	—		—		139		139
Data and analytics	—		—		36		36
Other	—		—		25		25
Revenues	2,942		926		695		4,563
Transaction-based expenses	1,059		—		—		1,059
Revenues, less transaction-based expenses	1,883		926		695		3,504
Operating expenses	647		672		494		1,813
Operating income	$	1,236	$	254	$	201	$	1,691

	Three Months Ended June 30, 2022
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	265	$	—	$	—	$	265
Agricultural and metals futures and options	61		—		—		61
Financial futures and options	123		—		—		123
Cash equities and equity options	698		—		—		698
OTC and other	108		—		—		108
Data and connectivity services	218		—		—		218
Listings	131		—		—		131
Fixed income execution	—		25		—		25
CDS clearing	—		66		—		66
Fixed income data and analytics	—		274		—		274
Other data and network services	—		147		—		147
Origination technology	—		—		196		196
Closing solutions	—		—		64		64
Data and analytics	—		—		24		24
Other	—		—		13		13
Revenues	1,604		512		297		2,413
Transaction-based expenses	599		—		—		599
Revenues, less transaction-based expenses	1,005		512		297		1,814
Operating expenses	304		338		303		945
Operating income/(loss)	$	701	$	174	$	(6)	$	869

	Three Months Ended June 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	274	$	—	$	—	$	274
Agricultural and metals futures and options	62		—		—		62
Financial futures and options	83		—		—		83
Cash equities and equity options	512		—		—		512
OTC and other	78		—		—		78
Data and connectivity services	208		—		—		208
Listings	119		—		—		119
Fixed income execution	—		13		—		13
CDS clearing	—		38		—		38
Fixed income data and analytics	—		268		—		268
Other data and network services	—		139		—		139
Origination technology	—		—		241		241
Closing solutions	—		—		69		69
Data and analytics	—		—		18		18
Other	—		—		12		12
Revenues	1,336		458		340		2,134
Transaction-based expenses	427		—		—		427
Revenues, less transaction-based expenses	909		458		340		1,707
Operating expenses	326		337		245		908
Operating income	$	583	$	121	$	95	$	799

Revenue from one member of the Exchanges segment comprised $213 million, or 10%, of our Exchange revenues, less transaction-based expenses for the six months ended June 30, 2022 and no customers or clearing members accounted for more than 10% of our Exchange revenues, less transaction-based expenses during the three months ended June 30, 2022. Revenue from one member of the Exchanges segment comprised $208 million, or 11%, and $99 million, or 11%, of our Exchange revenues, less transaction-based expenses for the six months and three months ended June 30, 2021, respectively. Clearing members are primarily intermediaries and represent a broad range of principal trading firms. If a clearing member ceased its operations, we believe that the trading firms would continue to conduct transactions and would clear those transactions through another clearing member firm. No additional customers or clearing members accounted for more than 10% of our segment revenues or consolidated revenues during the six months and three months ended June 30, 2022 or 2021.