Downgrading SNEX; Raising MRX & SNEX Est‘s

Research evidence excerpt

Downgrading SNEX; Raising MRX & SNEX Est‘s

In metals, volatility continued alongside price strength, with gold and copper up ~8-12% QTD Source: FactSet, Jefferies

from early April and implied volatility holding at supportive levels (gold CVOL ~25-27; copper CVOL

Exhibit 2 - NTM P/E Multiples - SNEX vs

~30-32). In ags, volumes were supported by episodic weather-driven repricing, even as outright Traditional Exchanges

30.00

prices in key grains were mixed to lower. Against this backdrop, exchange activity remained resilient

but below expectations, with 2Q ICE futures volumes tracking ~7-9% below consensus and CME 25.00

~flat to -2%. 20.0015.00

Lots of Growth Ahead – Despite our valuation-driven downgrade, the cyclical and secular 10.005.00

momentum behind SNEX we believe can still drive consistent growth going forward. The market 0.00

share gains of non-bank FCMs we anticipate will continue as the capital constraints for traditional SNEX Avg of Traditional Exchanges

.

financial institutions remain elevated and the product capabilities of firms such as MRX and SNEX Source: FactSet, Jefferies

Traditional exchanges include CBOE, CME, ICE, and NDAQ.

continue to expand. In addition, despite the moderation of exchange traded volumes that has

occurred post the extreme levels of volatility in the first five months of the year, broader activity

levels remain up y/y. Volatility (and spreads) in certain asset classes such as precious metals have

remained active and the diversity of asset classes for both MRX and SNEX position them favorably

to navigate changing markets. Lastly, the inorganic opportunity with M&A also remains plentiful

and represents an incremental source of growth.

SNEX (Hold): F3Q26 EPS est increases from $1.32 to $1.43. The increase was driven primarily Daniel T.