Segment Reporting

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Our business is conducted through three reportable business segments:

•Exchanges: We operate regulated marketplace technology for the listing, trading and clearing of a broad array of derivatives contracts and financial securities as well as data and connectivity services related to our exchanges and clearing houses;

•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 technology; 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.

Financial data for our business segments is as follows for the three months ended March 31, 2024 and 2023 (in millions):

	Three Months Ended March 31, 2024
	Exchanges		Fixed Income and Data Services		Mortgage Technology		Consolidated
Revenues:
Energy futures and options	$	457	$	—	$	—	$	457
Agricultural and metals futures and options	72		—		—		72
Financial futures and options	135		—		—		135
Cash equities and equity options	610		—		—		610
OTC and other	103		—		—		103
Data and connectivity services	235		—		—		235
Listings	122		—		—		122
Fixed income execution	—		26		—		26
CDS clearing	—		93		—		93
Fixed income data and analytics	—		288		—		288
Other data and network services	—		161		—		161
Origination technology	—		—		174		174
Closing solutions	—		—		44		44
Servicing software	—		—		214		214
Data and analytics	—		—		67		67
Revenues	1,734		568		499		2,801
Transaction-based expenses	511		—		—		511
Revenues, less transaction-based expenses	1,223		568		499		2,290
Operating expenses	326		354		547		1,227
Operating income/(loss)	$	897	$	214	$	(48)	$	1,063

	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	—		—		174		174
Closing solutions	—		—		41		41
Servicing software	—		—		—		—
Data and analytics	—		—		21		21
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	320		343		264		927
Operating income/(loss)	$	777	$	220	$	(28)	$	969

Revenues from one member of the Exchanges segment comprised $157 million, or 13%, and $123 million, or 11%, of our Exchange revenues, less transaction-based expenses for the three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 or 2023.