Segment Reporting

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Segment Reporting

Segment ReportingOur 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 nine and three months ended September 30, 2022 and 2021 (in millions):

	Nine Months Ended September 30, 2022
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	884	$	—	$	—	$	884
Agricultural and metals futures and options	179		—		—		179
Financial futures and options	375		—		—		375
Cash equities and equity options	2,021		—		—		2,021
OTC and other	326		—		—		326
Data and connectivity services	651		—		—		651
Listings	388		—		—		388
Fixed income execution	—		66		—		66
CDS clearing	—		226		—		226
Fixed income data and analytics	—		824		—		824
Other data and network services	—		439		—		439
Origination technology	—		—		586		586
Closing solutions	—		—		187		187
Data and analytics	—		—		66		66
Other	—		—		41		41
Revenues	4,824		1,555		880		7,259
Transaction-based expenses	1,735		—		—		1,735
Revenues, less transaction-based expenses	3,089		1,555		880		5,524
Operating expenses	904		1,029		817		2,750
Operating income	$	2,185	$	526	$	63	$	2,774

	Nine Months Ended September 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	900	$	—	$	—	$	900
Agricultural and metals futures and options	177		—		—		177
Financial futures and options	281		—		—		281
Cash equities and equity options	1,800		—		—		1,800
OTC and other	239		—		—		239
Data and connectivity services	623		—		—		623
Listings	356		—		—		356
Fixed income execution	—		39		—		39
CDS clearing	—		144		—		144
Fixed income data and analytics	—		804		—		804
Other data and network services	—		416		—		416
Origination technology	—		—		740		740
Closing solutions	—		—		227		227
Data and analytics	—		—		55		55
Other	—		—		39		39
Revenues	4,376		1,403		1,061		6,840
Transaction-based expenses	1,534		—		—		1,534
Revenues, less transaction-based expenses	2,842		1,403		1,061		5,306
Operating expenses	977		1,010		750		2,737
Operating income	$	1,865	$	393	$	311	$	2,569

	Three Months Ended September 30, 2022
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	266	$	—	$	—	$	266
Agricultural and metals futures and options	57		—		—		57
Financial futures and options	122		—		—		122
Cash equities and equity options	664		—		—		664
OTC and other	121		—		—		121
Data and connectivity services	219		—		—		219
Listings	128		—		—		128
Fixed income execution	—		26		—		26
CDS clearing	—		88		—		88
Fixed income data and analytics	—		273		—		273
Other data and network services	—		147		—		147
Origination technology	—		—		187		187
Closing solutions	—		—		53		53
Data and analytics	—		—		22		22
Other	—		—		14		14
Revenues	1,577		534		276		2,387
Transaction-based expenses	576		—		—		576
Revenues, less transaction-based expenses	1,001		534		276		1,811
Operating expenses	301		337		260		898
Operating income	$	700	$	197	$	16	$	913

	Three Months Ended September 30, 2021
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	316	$	—	$	—	$	316
Agricultural and metals futures and options	56		—		—		56
Financial futures and options	93		—		—		93
Cash equities and equity options	554		—		—		554
OTC and other	84		—		—		84
Data and connectivity services	208		—		—		208
Listings	123		—		—		123
Fixed income execution	—		12		—		12
CDS clearing	—		51		—		51
Fixed income data and analytics	—		272		—		272
Other data and network services	—		142		—		142
Origination technology	—		—		245		245
Closing solutions	—		—		88		88
Data and analytics	—		—		19		19
Other	—		—		14		14
Revenues	1,434		477		366		2,277
Transaction-based expenses	475		—		—		475
Revenues, less transaction-based expenses	959		477		366		1,802
Operating expenses	330		338		256		924
Operating income	$	629	$	139	$	110	$	878

No customers or clearing members accounted for more than 10% of our Exchange revenues, less transaction-based expenses during the nine and three months ended September 30, 2022. Revenue from one member of the Exchanges segment comprised $326 million, or 11%, and $118 million, or 12%, of our Exchange revenues, less transaction-based expenses for the nine and three months ended September 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 nine and three months ended September 30, 2022 or 2021.