First tranche of contracts to launch December 5
IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of global regulated futures exchanges and over-the-counter (OTC) markets, announced plans to introduce more than 50 additional cleared energy contracts in its OTC marketplace beginning December 5, 2008, and extending into 2009. ICE currently lists over 100 cleared OTC energy contracts, and today more than 90% of ICE’s OTC transaction volume is cleared.
The first set of 21 new products consists of North American power and natural gas swaps, as well as swaps related to the global oil markets. The initial set of new contracts available for OTC clearing includes:
— PJM West Real Time Mini Peak (PMI)
— Socal Border Swing Swap (SSS)
— Houston Ship Channel Swing Swap (UCS)
— Rockies Swing Swap (RSS)
— Crude Diff – WTI First Line vs Brent First Line Swap (BTD)
— Heating Oil First Line vs Gas Oil First Line Arb Swap (HOG)
— Heating Oil First Line Swap (HOF)
— Singapore 0.5% Gasoil Swap (SXS)
— Singapore Jet Kerosene Swap (SRS)
— Singapore Jet Kerosene vs 0.5% Gasoil Swap (SVS)
— Fuel Oil Diff – Singapore 180cst Fuel Oil vs Singapore 380cst Fuel Oil
Swap (STS)
— Singapore 0.5% Gasoil vs Gas Oil First Line Swap (SUS)
— Argus Northwest European Gasoline Swap (MOG)
— Argus Northwest European Gasoline Swap vs Brent First Line Swap (MGC)
— Gasoil Crack – Gasoil First Line vs Brent First Line Swap (GDC)
— 0.1% Gasoil FOB Rotterdam Barges vs Gasoil First Line Swap (RFG)
— 0.1% Gasoil Cargoes CIF NWE vs Gasoil First Line Swap (CFG)
— ULSD 10ppm Barges FOB Rotterdam vs Gasoil First Line Swap (DFG)
— ULSD 10ppm Cargoes CIF NWE vs Gasoil First Line Swap (NFG)
— 1% FOB Rotterdam Barges vs 1% FOB NWE Cargoes (FBC)
— 1% FOB Rotterdam Barges (FOB)
“The establishment of ICE Clear Europe has facilitated the launch of these new cleared OTC contracts,” said Charles A. Vice, ICE president and chief operating officer. “Central counterparty clearing is increasingly important in today’s constrained credit environment. ICE is pleased to provide additional risk management services to our customers and to build on our strong track record of providing transparency in OTC markets.”
These new cleared OTC contracts are in addition to the new gc ICE Newcastle Coal Futures contract previously announced by globalCOAL and ICE Futures Europe, which will be also be available beginning on the trade date of December 5.
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 and capital required for each OTC trade. As of November 2008, ICE OTC and ICE Futures Europe contracts are cleared through ICE Clear Europe(TM).
On November 3, ICE Clear Europe launched as the first new major clearing house in London in over a century. The clearing house was formed to provide clearing services to the global energy markets for OTC and futures transactions. ICE Clear Europe enables the efficient development of new cleared markets to support the risk management needs of customers, with the capability to offer similar services to an expanded range of asset classes.
