Segment Reporting

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our business is conducted through three reportable business 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; and

•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.

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.

Beginning in the first quarter of 2023, closing solutions revenues within our Mortgage Technology segment now include membership dues that were previously included in other revenues. We believe this is a more accurate reflection of the nature of these revenues. The impact of this change was not material, and the prior year period has been adjusted for comparability.

Financial data for our business segments is as follows for the three months ended March 31, 2023 and 2022 (in millions):

	Three Months Ended March 31, 2023
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	345	$	—	$	—	$	345
Agricultural and metals futures and options	70		—		—		70
Financial futures and options	128		—		—		128
Cash equities and equity options	671		—		—		671
OTC and other	101		—		—		101
Data and connectivity services	232		—		—		232
Listings	126		—		—		126
Fixed income execution	—		32		—		32
CDS clearing	—		101		—		101
Fixed income data and analytics	—		276		—		276
Other data and network services	—		154		—		154
Origination technology	—		—		167		167
Closing solutions	—		—		40		40
Data and analytics	—		—		21		21
Other	—		—		8		8
Revenues	1,673		563		236		2,472
Transaction-based expenses	576		—		—		576
Revenues, less transaction-based expenses	1,097		563		236		1,896
Operating expenses	332		343		252		927
Operating income/(loss)	$	765	$	220	$	(16)	$	969

	Three Months Ended March 31, 2022
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	353	$	—	$	—	$	353
Agricultural and metals futures and options	61		—		—		61
Financial futures and options	130		—		—		130
Cash equities and equity options	659		—		—		659
OTC and other	97		—		—		97
Data and connectivity services	214		—		—		214
Listings	129		—		—		129
Fixed income execution	—		15		—		15
CDS clearing	—		72		—		72
Fixed income data and analytics	—		277		—		277
Other data and network services	—		145		—		145
Origination technology	—		—		203		203
Closing solutions	—		—		72		72
Data and analytics	—		—		20		20
Other	—		—		12		12
Revenues	1,643		509		307		2,459
Transaction-based expenses	560		—		—		560
Revenues, less transaction-based expenses	1,083		509		307		1,899
Operating expenses	299		354		254		907
Operating income	$	784	$	155	$	53	$	992

Revenue from one member of the Exchanges segment comprised $123 million, or 11%, of our Exchange revenues, less transaction-based expenses for the three months ended March 31, 2023. Revenue from one member of the Exchanges

segment comprised $124 million, or 11%, of our Exchange revenues, less transaction-based expenses for the three months ended March 31, 2022. 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 three months ended March 31, 2023 or 2022.