December Futures ADV Up 21%; OTC Energy Average Daily Commissions $870,934 in 4Q08
IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today reported record annual futures volume and record OTC commissions for 2008. ICE operates three regulated futures exchanges: ICE Futures Europe(R), ICE Futures U.S.(R) and ICE Futures Canada(TM), in addition to its global OTC markets for energy and credit derivatives.
— Volume for all ICE futures contracts in 2008 reached 237.2 million, an
increase of 21% over 2007; ICE Futures Europe set its 11th consecutive
annual volume record; ICE Futures U.S. achieved its
sixth consecutive year of record contract volume.
— Total futures volume for the month of December was 18.6 million
contracts, an increase of 36% over December 2007.
— Average daily commissions (ADC) in ICE’s OTC energy business increased
32% in 2008 to $1.1 million, the fourth consecutive year of record
commissions; ADC for the fourth quarter of 2008 were $870,934.
— ICE’s Creditex subsidiary generated approximately $52.5 million in
brokerage revenue from September through December of 2008; Creditex
brokerage revenue during the fourth quarter of 2008 was approximately
$35.9 million. ICE completed its acquisition of Creditex on August 29,
2008.
"Amid a year of recession and global market downturns, ICE accomplished its aggressive strategic objectives in 2008," said Jeffrey C. Sprecher, ICE chairman and chief executive officer. "We produced double-digit growth while substantially expanding the range of products and services we provide global market participants. With the addition of the Russell Indexes to ICE Futures U.S., the launch of ICE Clear Europe and the acquisition of Creditex – among many other initiatives – we believe ICE continues to be at the forefront of providing transparency, innovation and risk management tools across a diverse range of futures and OTC markets."
European Futures Volume and RPC
ICE Futures Europe is ICE’s London-based energy futures exchange. In December, ICE Futures Europe reported monthly volume of 11,317,644 contracts, a 21% increase from 9,388,187 contracts in December 2007. ADV was 514,458, up 10% from 469,409 the prior December. Fourth quarter ADV for ICE Futures Europe was 569,219, compared to 550,175 in the fourth quarter of 2007.
The three-month rolling average rate per contract (RPC) for the fourth quarter of 2008 was $1.42. RPC for the quarter includes futures clearing revenue for the months of November and December relating to the launch of ICE Clear Europe(TM) on November 3. RPC averaged $1.32 and $1.22 for the three- month periods ended November and October 2008, respectively. RPC is calculated by dividing transaction revenues by contract volume, and can vary based on pricing, customer and product mix.
In 2008, exchange-wide volume for ICE Futures Europe increased 10%, reaching a record 153.0 million contracts compared to the prior year’s record of 138.5 million contracts. Annual volume records were set in each of the ICE Brent Crude futures, ICE Gas Oil futures, ICE RBOB futures, ICE Rotterdam Coal futures, ICE Richards Bay Coal futures, ICE UK Natural Gas futures, ICE ECX CFI futures, ICE ECX CFI options and ICE WTI Crude options contracts.
On December 31, 2008, open interest for ICE Futures Europe was 2,102,574 contracts, compared to 1,641,399 contracts on December 31, 2007.
North American Futures Volume and RPC
ICE’s agricultural, soft commodity, financial and index futures trade on ICE’s U.S. and Canadian futures exchanges. In December, total volume at ICE Futures U.S. increased to 7,015,503 contracts, a 77% increase over 3,972,640 contracts in December 2007. December 2008 ADV grew 53% to 318,887 contracts compared to 208,073 contracts in December 2007. Fourth quarter ADV for ICE Futures U.S. increased 74% to 350,395 contracts, compared to 201,640 in the fourth quarter of 2007.
The three-month rolling average RPC for the fourth quarter of 2008 was $2.25 for ICE Futures U.S. agricultural futures and options. RPC averaged $2.24 for each of the three-months ended November 2008 and October 2008. RPC for ICE Futures U.S. financial futures and options contracts averaged $0.78 for the fourth quarter of 2008. RPC averaged $0.88 and $1.01 for the three- months ended November 2008 and October 2008, respectively.
In 2008, exchange-wide volume for ICE Futures U.S. increased 51%, reaching a record 81 million contracts compared to the prior year’s record of 53.6 million contracts. Annual volume records were set in each of the ICE Sugar No. 11 futures and options, mini Russell 2000(R) Index futures, Coffee "C" futures, Cocoa futures, Cotton futures and options and US Dollar Index futures contracts.
On December 31, 2008, open interest for ICE Futures U.S. was 3,028,877 contracts, compared to 3,389,923 contracts at December 31, 2007.
ICE Futures Canada recorded December 2008 volume of 272,250 contracts, down 26% from December 2007. ADV was 12,964, a decrease of 33% from the prior December. Fourth quarter ADV for ICE Futures Canada was 11,625, compared to 17,347 in the fourth quarter of 2007. In 2008, exchange-wide volume for ICE Futures Canada decreased 4% to 3,321,210 from the prior year. Open interest for ICE Futures Canada was 97,673 on December 31, 2008, compared to 168,928 contracts on December 31, 2007.
ICE Futures: Rolling Three-Month Average Rate per Contract
Three Months Three Months Three Months
Ending Ending Ending
Product Line December 2008 November 2008 October 2008
ICE Futures Europe $1.42 $1.32 $1.22
ICE Futures U.S. Ag $2.25 $2.24 $2.24
ICE Futures U.S. Fin $0.78 $0.88 $1.01
Global OTC Energy
In ICE’s OTC energy markets, average daily commissions were $870,934 for the fourth quarter of 2008, a decline of 4.6% from $912,967 in the same period of 2007. Average daily commissions for 2008 were a record $1.1 million, up 32% over 2007. Average daily commissions reflect daily trading and clearing activity in ICE’s global OTC energy markets.
Global OTC Credit
In ICE’s credit derivatives markets, which are operated by Creditex, fourth quarter 2008 brokerage revenues were $35.9 million, roughly flat versus the same period in 2007. Pro-forma brokerage revenues for the full year were $173 million in 2008. ICE acquired Creditex on August 29, 2008, and will include financial results for the months of September through December only in its consolidated year-end earnings results.
Additional December 2008 Information:
— On December 12, 2008, the Commodity Futures Trading Commission approved
ICE Clear U.S.’s September 2007 application to clear swap contracts
based on sugar, coffee and cocoa. ICE will begin clearing the contracts
on January 30, 2009.
— On December 5, ICE launched 21 new OTC energy contracts cleared by its
new ICE Clear Europe clearinghouse, the first set of more than 50 new
contracts in the pipeline. On December 9, ICE announced details of a
second tranche of 11 contracts, launching January 9.
— On December 4, the New York State Banking Department approved ICE’s
application to create a New York-chartered trust company, ICE Trust, to
serve as a central clearing facility for credit default swaps.
— As an update to prior guidance, Creditex is expected to be dilutive in
the range of $0.08 to $0.10 per share in the fourth quarter of 2008.
— Trading days in December 2008:
— ICE Futures Europe: 22
— ICE Futures U.S. Agricultural: 22
— ICE Futures U.S. Currency and Index: 22
— ICE Futures Canada: 21
— ICE Futures Europe records achieved in December 2008:
— The exchange established an open interest record of 2,242,032
contracts on December 8.
— Gas Oil futures set an open interest record of 418,094 on December
31.
— Gas Oil options set an open interest record of 51,347 on December 3.
— On December 10, emissions CFI futures and emissions CER futures set
open interest records of 271,467 and 119,971, respectively.
ICE Futures: December 2008 Average Daily Volume by Product
ADV ADV
December December ADV
Product Line 2008 2007 % Change
ICE Brent Crude futures 232,900 206,029 13.0
ICE WTI Crude futures 152,468 163,621 -6.8
ICE Gas Oil futures 113,258 90,669 24.9
Other contracts (1) 15,832 9,090 74.2
Total ICE Futures Europe 514,458 469,409 9.6
Russell 2000 mini
futures & options 183,179 330 55,392.0
Sugar No. 11 futures & options 78,176 117,864 -33.7
Other agricultural commodity
contracts (2) 42,630 70,963 -39.9
Currency futures (3) 4,800 8,459 -43.3
Index futures (4) 9,781 9,916 -1.4
Other contracts (5) 321 541 -40.8
Total ICE Futures U.S. 318,887 208,073 53.3
Total ICE Futures Canada (6) 12,964 19,252 -32.7%
TOTAL FUTURES CONTRACTS 846,309 696,734 21%
(1) "Other contracts" include ICE Middle East Sour Crude futures; ICE
Heating Oil futures; ICE Unleaded Gasoline Blendstock (RBOB) futures;
ICE UK Natural Gas futures; ICE-ECX CFI futures; ICE-ECX CFI CER
futures; ICE UK Electricity futures; ICE Coal futures; ICE Brent
options; ICE WTI options, ICE Gas Oil options; ICE-ECX CFI options
and ICE-ECX CFI CER options. The ICE-ECX CFI futures and options
contracts and the ICE-ECX CFI CER futures and options contracts are
the result of a cooperative relationship between ICE Futures Europe
and the Chicago Climate Exchange, Inc. and its subsidiary, the
European Climate Exchange. ICE Futures Europe shares in the revenue
derived from the ECX CFI and ECX CER futures and options contracts.
(2) "Other agricultural commodity contracts" include futures and/or
options for Cocoa, Coffee "C", Cotton No. 2, Orange Juice, and Sugar
No. 14.
(3) "Currency futures" include futures for foreign exchange products.
(4) "Index futures" include futures for the US Dollar Index, Russell 2000
(full size), Russell 1000, Russell 1000 mini, the Continuous Commodity
Index, the Euro Index, and the NYSE Composite. The transition of the
Russell Index futures and options contracts to exclusive trading on
ICE occurred in September 2008.
(5) "Other contracts" include options on foreign exchange futures and
options on index futures, excluding Russell 2000 mini options.
(6) "ICE Futures Canada" includes futures and options for Canola and Feed
Wheat.
Monthly RPC and volumes and quarterly OTC commissions are estimated using best available current information. Final figures are reported in ICE’s quarterly and annual filings with the Securities and Exchange Commission.
Historical futures volume and OTC commission data can be found at: http://ir.theice.com/supplemental.cfm
