Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced that physical crude transaction data from One Exchange Corp, a leading voice and electronic broker for the North American energy markets, will be added to ICE’s 1a group of Canadian crude indices which are currently based on ICE affiliate CalRock Brokers transaction data.
Canada is the fourth largest oil producer in the world, behind the U.S., Saudi Arabia and Russia. Canada is by far the biggest supplier of crude oil to the U.S., with more Canadian barrels making it to the U.S. Gulf Coast every year for both domestic use and re-export.
ICE currently calculates Canadian Crude indices from physical crude trades transacted by CalRock Brokers, which are the basis of ICE’s benchmark Canadian crude futures contracts. In early 2023, One Exchange data will be added to the pricing for the ICE 1a indices which underpin ICE’s Canadian futures contracts, significantly increasing the number of physical crude transactions which underpin these indices.
These futures contracts include the most liquid Canadian financial crude future Western Canadian Select (contract code TMW), as well as the Light Sweet Crude (TMR), Condensate C5 (TMF), and Clearbrook Bakken Sweet (TMU) futures.
“One Exchange is excited to collaborate with Calrock by contributing to the ICE 1a group of Canadian crude indices and we view this as a very important step forward for the Canadian oil market,” said Perry Undseth, President and CEO at One Exchange. “Combining One Exchange and Calrock physical volumes into the ICE Canadian Crude Indices will help ensure that Canadian physical crude volumes can continue to be accurately hedged using the related ICE futures contracts.”
“The market increasingly relies on ICE’s Canadian crude futures and adding One Exchange’s physical crude trade data will expand the set of physical trade data that determines the ICE 1a index prices,” said Alex Dolaptchiev, Senior Director at CalRock. “The addition of One Exchange will further solidify ICE Canadian crude indices as the most accurate reflection of physical crude pricing in Canadian crude markets, while future developments of pipeline capacity of up to 890,000 barrels per day to Canada’s West Coast mean Canadian grades will continue to gain relevance in international markets.”
CalRock Brokers is a premier broker for Canadian and U.S. crude oil grades and was acquired by ICE in 2017 as part of the acquisition of the Natural Gas Exchange, now ICE NGX.
