A stock that I have been watching for some time Intercontinental Exchange (ICE) and it looks like they are buying out the NY Board of Trade. This is the part of the deal that I like and will save ICE some money in the long run:
ICE will also acquire the New York Board of Trade's clearinghouse, the New York Clearing Corporation. Until now, ICE had relied on outsourcing services to LCH.Clearnet, a clearinghouse based in the U.K., which put it at a disadvantage to competitors like the New York Mercantile Exchange.
Whenever you can stop paying some other guy to outsource some of your core business and rely on your acquisition then you can easily reduce those costs. This deal also allows ICE to participate in selling commodities like coffee, sugar, cotton and orange juice. They specialized mostly in trading energy futures before so this diversifies them nicely. It should make for a nice move upward in ICEs earnings in the coming years.
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