Segment Reporting

9 Months Ended

Sep. 30, 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 inefficiencies and mitigate risks that exist in the U.S. residential mortgage market life cycle, from application through closing, servicing 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.

During 2023, we reclassified certain revenues within our Mortgage Technology segment that were previously included in other revenues to closing solutions, origination technology and data and analytics revenues. Closing solutions revenues now include membership dues, and origination technology revenues and data and analytics revenues now include its related professional services revenues. As of September 30, 2023, other revenues are no longer separately presented. 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 periods have been adjusted for comparability. Additionally, following the acquisition of Black Knight and beginning in the third quarter of 2023, we have added servicing software to our Mortgage Technology segment revenues.

Financial data for our business segments is as follows for the nine and three months ended September 30, 2023 and 2022 (in millions):

	Nine Months Ended September 30, 2023
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	1,084	$	—	$	—	$	1,084
Agricultural and metals futures and options	208		—		—		208
Financial futures and options	344		—		—		344
Cash equities and equity options	1,734		—		—		1,734
OTC and other	309		—		—		309
Data and connectivity services	699		—		—		699
Listings	376		—		—		376
Fixed income execution	—		89		—		89
CDS clearing	—		279		—		279
Fixed income data and analytics	—		832		—		832
Other data and network services	—		468		—		468
Origination technology	—		—		524		524
Closing solutions	—		—		136		136
Servicing software	—		—		69		69
Data and analytics	—		—		86		86
Revenues	4,754		1,668		815		7,237
Transaction-based expenses	1,450		—		—		1,450
Revenues, less transaction-based expenses	3,304		1,668		815		5,787
Operating expenses	944		1,057		1,017		3,018
Operating income/(loss)	$	2,360	$	611	$	(202)	$	2,769

	Three Months Ended September 30, 2023
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	384	$	—	$	—	$	384
Agricultural and metals futures and options	61		—		—		61
Financial futures and options	112		—		—		112
Cash equities and equity options	519		—		—		519
OTC and other	104		—		—		104
Data and connectivity services	236		—		—		236
Listings	124		—		—		124
Fixed income execution	—		29		—		29
CDS clearing	—		94		—		94
Fixed income data and analytics	—		279		—		279
Other data and network services	—		157		—		157
Origination technology	—		—		172		172
Closing solutions	—		—		48		48
Servicing software	—		—		69		69
Data and analytics	—		—		41		41
Revenues	1,540		559		330		2,429
Transaction-based expenses	426		—		—		426
Revenues, less transaction-based expenses	1,114		559		330		2,003
Operating expenses	313		358		487		1,158
Operating income/(loss)	$	801	$	201	$	(157)	$	845

	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	—		—		617		617
Closing solutions	—		—		195		195
Servicing software	—		—		—		—
Data and analytics	—		—		68		68
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

	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	—		—		197		197
Closing solutions	—		—		56		56
Servicing software	—		—		—		—
Data and analytics	—		—		23		23
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

Revenue from one member of the Exchanges segment comprised $394 million, or 12%, and $140 million, or 13%, of our Exchange revenues, less transaction-based expenses for the nine and three months ended September 30, 2023, respectively. 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. 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 or three months ended September 30, 2023 or 2022.