ICE to Introduce New Cleared Freight and Iron Ore Contracts Beginning 18 April
By Intercontinentalexchange, PRNEThursday, March 24, 2011
LONDON, March 25, 2011 - IntercontinentalExchange (NYSE: ICE), a leading operator of global
regulated futures exchanges, clearing houses and over-the-counter (OTC)
markets, today announced the introduction of clearing
(https://www.theice.com/publicdocs/clear_europe/circulars/C11032.pdf) for 13
freight swaps and a new iron ore swap through ICE Clear Europe.
(Logo: photos.prnewswire.com/prnh/20090727/CL51999LOGO )
The new contracts are an extension of the energy portfolio cleared by ICE
Clear Europe, and will provide additional capital efficiency and hedging
benefits for participants in ICE's OTC and energy futures markets. The new
contracts will be offered on a cleared-only basis and will be available
beginning 18 April 2011, subject to regulatory approval.
The new contracts are:
Dry Freight -- Capesize Timecharter (Baltic) Freight Swap (TCC) -- Panamax Timecharter (Baltic) Freight Swap (TCP) -- Supramax Timecharter (Baltic) Freight Swap (TCS) -- Handysize Timecharter (Baltic) Freight Swap (TCH) Wet Freight -- TC2 FFA - Northwest Europe to USAC (Baltic) Swap (WNU) -- TC4 FFA - Singapore to Japan (Platts) Swap (WSJ) -- TC5 FFA - Mideast Gulf to Japan (Platts) Swap (WMJ) -- TC6 FFA - Skikda to Lavera (Cross Med) (Baltic) Swap (WSL) -- TD3 FFA - Mideast Gulf to Japan (Baltic) Swap (WGJ) -- TD5 FFA - West Africa to USAC (Baltic) Swap (WAU) -- TD7 FFA - UK North Sea to Continent (Baltic) Swap (WNC) -- TD11 FFA - Cross Mediterranean (Baltic) Swap (WCM) -- TD9 FFA - Caribbean to USGC (Baltic) Swap (WCU) Iron Ore -- Iron Ore Swap 62% Fe (Platts IODEX) Swap (IOR)
The dry and wet freight swaps are the first freight contracts cleared by
ICE and will be based on relevant rates provided by The Baltic Exchange and
Platts. Like crude and refined oil, coal and other energy products, freight
is a large commodity market with volatility in spot and long-term prices.
Because of the strong correlations between freight and energy, ICE expects to
offer margin offsets between freight and energy contracts.
Clearing for the Iron Ore Swap 62% Fe (Platts IODEX) Swap will now be
available on ICE Clear Europe alongside the existing ICE energy portfolio,
including coal. Clearing of iron ore on ICE Clear U.S., which was introduced
in 2009, will cease as open interest migrates or expires.
ICE Clear Europe supports the risk management needs of member firms and
customers in ICE's global energy futures and OTC markets, as well as the
efficient development of new products. In 2002, ICE pioneered the concept of
cleared OTC energy contracts, which provide participants with access to
centralized clearing and settlement arrangements while reducing bilateral
credit risk.
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. www.theice.com
The following are trademarks of IntercontinentalExchange, Inc. and/or its
affiliated companies: IntercontinentalExchange, ICE, ICE and block design,
ICE Clear U.S. and ICE Clear Europe. 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
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-ENGY
Media, Lee Underwood, Director, Communications, IntercontinentalExchange, +1-770-857-0342, lee.underwood at theice.com; or Investor, Kelly Loeffler, VP Investor Relations & Corp. Communications, IntercontinentalExchange, +1-770-857-4726, kelly.loeffler at theice.com
Tags: England, IntercontinentalExchange, London, March 25