ICE Future U.S. Board of Directors Approves Deliverability of Brazil Arabica for the Coffee 'C'(R) Futures Contract
By Intercontinentalexchange, PRNEWednesday, December 8, 2010
NEW YORK, December 9, 2010 - IntercontinentalExchange (NYSE: ICE), a leading operator of regulated
global futures exchanges, clearing houses and over-the-counter (OTC) markets,
announced that the Board of Directors of ICE Futures U.S. has approved the
addition of Brazil as a deliverable origin for the Coffee "C" futures
contract at a differential of 9 cents under par. The addition of Brazilian
Arabica will become effective beginning with the March 2013 contract.
(Logo: photos.prnewswire.com/prnh/20090727/CL51999LOGO)
The ICE Futures U.S. Coffee "C" contract currently permits delivery of
Arabica coffee beans from 19 countries. On May 3, 2010, ICE Futures U.S.
published an exchange notice requesting the views of market participants on
whether Brazil Arabica should be deliverable for the Coffee "C" contract. At
a meeting on October 13, after full consideration of comments received, the
exchange's Coffee Committee agreed to recommend to the Board of Directors the
adoption of the Rule amendments necessary to add Brazil as a deliverable
origin. The Board of Directors of ICE Futures U.S. approved the Rule
amendments today.
Like all exchange product committees, the Coffee Committee is comprised
of representatives of the coffee industry and the financial trading
community. The Committee's role is to provide recommendations to the exchange
regarding contract terms and conditions, market policy and operations,
including deliverable coffee origins and differentials. Committee
recommendations are not binding on the Board of Directors of ICE Futures U.S.
The Committee has considered the addition of Brazil Arabica to the Coffee
"C" contract three times since 1999. The Committee's previous consideration,
in 2005, concluded that it was premature to add Brazil Arabica as a
deliverable origin, but recommended reconsidering the issue as commercial
experience with Brazil Arabica accumulated.
Following submission of the Rule amendments to the Commodity Futures
Trading Commission, Brazil Arabica will be a deliverable growth for Coffee
"C" with the March 2013 contract, consistent with exchange rules that permit
contract specification changes to become effective on delivery dates with
open interest more than 24 months forward from the amendment date.
About IntercontinentalExchange
IntercontinentalExchange(R) (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(R) hosts trade in half of the world's crude and refined oil futures.
ICE Futures U.S.(R) and ICE Futures Canada(R) list agricultural, currencies
and Russell Index markets. ICE(R) 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. www.theice.com
The following are trademarks of IntercontinentalExchange, Inc. and/or its
affiliated companies: IntercontinentalExchange, IntercontinentalExchange &
Design, ICE, ICE and block design, ICE Futures U.S. and Coffee C. 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 https://www.theice.com/terms.jhtml
ICE-ag
Investors, Kelly Loeffler, VP, Investor Relations & Corp. Communications, IntercontinentalExchange, Inc., +1-770-857-4726, kelly.loeffler at theice.com; or Media, Lee Underwood, Director, Communications, IntercontinentalExchange, Inc., +1-770-857-0342, lee.underwood at theice.com
Tags: December 9, IntercontinentalExchange, New York, United Kingdom