Lesson Plan For The Future
Real Estate Industry Transformation – Connect the Dots. What do you know about Spot Markets and Futures Markets?
The biggest company you NEVER heard of, Intercontinental Exchange (ICE), is a change catalyst in the evolving real estate market. ICE is a Fortune 500 and Fortune Future 50 company formed in the year 2000 to modernize markets.
Intercontinental Exchange Group (ICE) is a global exchange, clearing, financial data and technology company, operating multiple markets and services across nine different asset classes.
ICE operates 13 regulated exchanges, including ICE futures and OTC exchanges in the US, Canada, Europe and Singapore. It also is the parent company of the well-known New York Stock Exchange and related securities exchanges. Today, the company is among the largest exchange groups in the world and has grown dramatically via a succession of acquisitions of other exchanges, technology firms and data service providers.
A publicly traded company since 2005, ICE (NYSE: ICE) lists more than 12,000 derivatives and securities contracts on its markets. Its derivatives exchange properties include five regulated futures exchanges: ICE Futures US, ICE Futures Europe, ICE Futures Canada, ICE Futures Singapore and ICE Endex.
On the securities side, ICE operates five stock exchanges under the NYSE Group: New York Stock Exchange, NYSE Arca, NYSE American, (formerly NYSE MKT, and AMEX), NYSE National (formerly National Stock Exchange) and Chicago Stock Exchange, plus two US equity options exchanges – NYSE Arca Options and NYSE American Options (formerly NYSE AMEX Options) – and a corporate bond platform, NYSE Bonds.
ICE also owns:
(Purchased for 11 Billion dollars in October of 2020).
Ellie Mae is a digital platform that serves many of the mortgage industry participants and is a critical player in nearly half of residential mortgages in the United States. Ellie Mae’s flagship product is a platform called Encompass, which serves as a single record-keeping system. Additionally, it serves as a marketplace for connecting customers with additional Ellie Mae services provided by other third-party vendors.
Intercontinental’s rationale for making the acquisition is straightforward, although not obvious. The company sees a huge opportunity to make the mortgage market more liquid and exchangeable, similar to how investors use the NYSE to buy and sell stocks and other financial products.
MERSCORP (purchased in 2010)
MERSCORP owns and operates the MERS System, a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in U.S.-based mortgage loans. Earlier this month, ICE successfully moved the MERS System infrastructure to the ICE Mahwah data center, an integral requirement for completing the final acquisition of the business.
Simplifile (purchased in 2019)
Simplifile operates a network connecting agents and jurisdictions involved with residential mortgage records.
ICE paid $335 million to acquire Simplifile.