ICE Extends Exclusive License for Russell Indexes and Expands Agreement to Include International Indexes
By Intercontinentalexchange, PRNEMonday, March 14, 2011
ATLANTA, March 15, 2011 - IntercontinentalExchange (NYSE: ICE), a leading operator of regulated
global futures exchanges, clearing houses and over-the-counter (OTC) markets
today announced it has extended the duration of its agreement to exclusively
offer futures and options contracts based on industry leading US stock
indexes including the Russell 2000(R) Index and Russell 1000(R) Index, as
well as expanded the agreement to cover the exclusive listing of futures and
options on Russell's international indexes. The agreement has been extended
by three years and now runs through June 2017.
(Logo: photos.prnewswire.com/prnh/20090727/CL51999LOGO )
"Russell's reliability, transparency, and market-driven weighting have
made it the benchmark of choice for investors," said David Goone, ICE SVP and
Chief Strategic Officer. "The lower trading costs and variety of trading
strategies available with the comprehensive suite of Russell Index futures
and options we list will continue to provide opportunity for investors as the
equity markets continue to recover and inflows to funds improve."
Said Kurt Zyla, regional director for listed derivatives at Russell
Investments: "We are pleased to extend our agreement with
IntercontinentalExchange. Their commitment to building Russell's presence in
exchange traded derivatives across the U.S. and global index complex is an
important component of our business strategy. As a leader in index design, we
believe working with an innovative exchange like ICE ensures our future
success."
As a result of the agreement, ICE has updated its financial guidance for
depreciation and amortization expense and for interest expense. For 2011, ICE
expects depreciation and amortization expense in the range of $126 million to
$132 million, with the majority of the expense reduction being realized after
the first quarter of 2011. ICE also expects interest expense in the range of
$7 million to $9 million per quarter for 2011, with quarterly interest
expense trending down throughout the year.
Since gaining exclusivity on the Russell index futures license, ICE has
introduced new features and products to meet customer demand, including Trade
at Settlement (TAS) pricing and enhanced options trading functionality. ICE
Futures U.S. lists mini-sized futures and options on futures on the Russell
1000 and Russell 2000, as well as futures on the Russell 1000 Growth and the
Russell 1000 Value indexes. ICE secured the exclusive rights to list
contracts based on the full range of Russell's benchmark U.S. equity indexes
in July 2007 and the exclusivity period began in September 2008.
Since 1984 Russell's innovative methodology has helped their indexes
become the benchmarks most used by institutional investors. Because Russell
indexes can be used across portfolios for comprehensive coverage between
market segments, Russell's benchmarks are used more often than any other
equity index family. Of the ten most-used U.S. equity benchmarks for
institutional assets, nine come from Russell.
The combined market capitalization of stocks in the broad-market Russell
3000 Index, which reflects about 98% of the investable U.S. equity universe,
totals $14.5 trillion. The Russell 2000 index consists of 2,000 small-cap
companies, and the Russell 1000 is a large-cap index representing the largest
one-third of the Russell 3000 components.
About IntercontinentalExchange
IntercontinentalExchange (NYSE: ICE) is a leading operator of regulated
futures exchanges and over-the-counter markets for agricultural, credit,
currency, emissions, energy and equity index contracts. ICE Futures Europe
hosts trade in half of the world's crude and refined oil futures. ICE Futures
U.S. and ICE Futures Canada list agricultural, currencies and Russell Index
markets. ICE is also a leading operator of central clearing services for the
futures and over-the-counter markets, with five regulated clearing houses
across North America and Europe. ICE serves customers in more than 70
countries.
The following are trademarks of IntercontinentalExchange, Inc. and/or its
affiliated companies: IntercontinentalExchange, IntercontinentalExchange &
Design, ICE, ICE and block design, and ICE Futures U.S. All other trademarks
are the property of their respective owners. For more information regarding
registered trademarks owned by IntercontinentalExchange, Inc. and/or its
affiliated companies, see: www.theice.com/terms
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 - Statements in this press release regarding
IntercontinentalExchange's business that are not historical facts are
"forward-looking statements" that involve risks and uncertainties. For a
discussion of additional risks and uncertainties, which could cause actual
results to differ from those contained in the forward-looking statements, see
ICE's Securities and Exchange Commission (SEC) filings, including, but not
limited to, the risk factors in ICE's Annual Report on Form 10-K for the year
ended December 31, 2010, as filed with the SEC on February 9, 2011.
ICE-IXFX
Media Contact: Brookly McLaughlin, Corporate Communications, +1-312-836-6728, Brookly.McLaughlin at theice.com; or Investor Contact: Kelly Loeffler, VP, Investor Relations & Corp. Communications, +1-770-857-4726, Kelly.Loeffler at theice.com
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