IntercontinentalExchange (NYSE:ICE) is about to release earnings. Ponder this Bear Case Scenario as you listen to management comments.
The NYSE deal/acquisition could backfire. If expected cost savings fail to materialize or if NYSE’s challenged U.S. equities business proves to be distracting. Integration risks always abound.
ICE is highly exposed to energy trading products. If volumes drop ICE will melt somewhat.
The vertically integrated clearing/trading model remains controversial and attracts attention of regulators and politicians. They need a way to cool the file and get the bastards focused on something else.
George Gutowski writes from a caveat emptor perspective.