Intercontinental Exchange Inc. (ICE) saw its stock price plummet 5.02% during intraday trading on Wednesday. The sharp decline came as investors reacted to news highlighting competitive challenges in the derivatives market and weakness in key commodity sectors.

According to exclusive reports, rival CME Group is working on launching the world's first rare earth futures contract, with sources indicating that ICE is also exploring such contracts but is "not as advanced in its planning as the CME." This development suggests potential competitive pressure in the critical minerals derivatives space, a market where ICE had been expected to be a key player.

Simultaneously, U.S. natural gas futures hit a 16-week low on forecasts for warmer weather and reduced demand. As a major operator of energy markets, ICE's trading volumes and revenue from energy derivatives could be negatively impacted by declining volatility and prices in the natural gas sector, which represents a significant portion of its commodities business.