IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported record futures volume and average daily volume (ADV) for the second quarter of 2010. Futures ADV increased 36% in the second quarter of 2010, including year-over-year growth of 24% for the month of June 2010. ICE also achieved record average daily commissions (ADC) of $1.43 million in its OTC energy business during the second quarter of 2010, up 26% from the prior second quarter.
Global Futures Exchanges
ICE operates three regulated futures exchanges: ICE Futures Europe, ICE Futures U.S. and ICE Futures Canada.
ADV across all three ICE futures exchanges was a record 1,348,615 contracts in June, up 24% from June 2009. ADV at ICE Futures Europe increased 32% to 831,487 contracts, ADV at ICE Futures U.S. grew 11% to a record 492,636 contracts, and ADV at ICE Futures Canada increased 61% to a record 24,492 contracts, compared to June 2009.
Second quarter 2010 ADV for all ICE futures contracts grew 36% from the prior second quarter, to a record 1,392,397 contracts. ICE Futures Europe and ICE Futures U.S. established quarterly ADV records of 915,775 and 457,624 contracts, respectively.
ADV for the first half of 2010 for all ICE Futures contracts was 1,341,591 contracts, up 32% over the same period of 2009.
Energy and Credit OTC Transaction Revenues
Second quarter 2010 ADC for ICE’s OTC energy business were a record $1.43 million, up 26% from the second quarter of 2009, and an increase of 4% sequentially from the first quarter of 2010.
Quarterly revenues from ICE’s credit default swap (CDS) trade execution, processing and clearing operations totaled $43 million, down 3% from the prior second quarter but in line with first quarter 2010 revenues. CDS clearing revenues were approximately $16 million in the second quarter of 2010, compared to $11.5 million in the first quarter of 2010.
Operating and Financial Guidance Update
As a result of ICE’s strong performance through June and its projected achievement of 105% to 110% of its board-approved budget for full year 2010, ICE now expects 2010 non-cash compensation expense to total $50 million to $55 million, including $14 million in the second quarter. Total quarterly compensation expense beginning in the second quarter of 2010 is anticipated be in the range of $60 million to $62 million.
ICE expects to complete its acquisition of the Climate Exchange in the month of July, and will provide further guidance in conjunction with its second quarter earnings announcement on Wednesday, August 4, at 8:30 a.m. ET.
June and Second Quarter 2010 Review
Total ICE futures volumes in both June 2010 and the second quarter of 2010 reached record levels. June volume across all futures exchanges totaled 29,669,542 contracts, an increase of 24% over June 2009, and second quarter volumes totaled 87,720,971, up 36% over the second quarter of 2009.
ICE Futures Europe records:
An overall exchange open interest record was established in June, including open interest records for emissions and ICE TTF Natural Gas futures contracts.
ICE Futures U.S. records:
In addition to the exchange-wide volume and ADV records established in June at ICE Futures U.S., the ICE Coffee "C" futures contract set a monthly volume record of 791,873 contracts, including a daily volume record of 110,952 contracts on June 11.
ICE Futures Canada records:
An exchange-wide volume record of 538,830 contracts was achieved at ICE Futures Canada for the month of June, including a daily volume record in canola futures of 49,395 contracts on June 9.
On June 3, ICE announced that ICE Trust had cleared more than $1.2 billion in cumulative gross notional value for buy-side customers. ICE also announced that Nomura was approved as a clearing member of ICE Trust. Nomura is the 14th clearing member of ICE Trust and the first headquartered in Asia.
Through June 25, ICE’s CDS clearing houses have cleared $9.9 trillion in gross notional value on a cumulative basis on 219,242 transactions. ICE currently lists 233 CDS contracts for clearing.
ICE Trust U.S. (ICE Trust) has cleared $6.2 trillion of gross notional value since inception, including $258 billion in single-name CDS, resulting in open interest of $428 billion. ICE Trust offers clearing for 35 indexes and 71 single-name instruments.
ICE Clear Europe has cleared euro 2.7 trillion ($3.7 trillion) of gross notional value since inception, including euro 365 billion in single-name CDS, resulting in euro 364 billion ($447 billion) of open interest. ICE Clear Europe offers clearing for 26 indexes and 101 single-name instruments.
Trading days in June 2010:
ICE Futures Europe: 22
ICE Futures U.S.: 22
ICE Futures Canada: 22
ICE Futures Contracts & Markets Monthly ADV
June June % Change
2010 2009
ICE Brent Crude futures &
options 379,414 278,729 36.1
ICE Gasoil futures & options 205,356 147,224 39.5
ICE WTI Crude futures &
options 198,699 167,295 18.8
ICE ECX emissions futures &
options (1) 26,604 21,125 25.9
Other futures contracts (2) 21,414 14,456 48.1
TOTAL ICE FUTURES EUROPE 831,487 628,829 32.2
Russell 2000(R) mini futures &
options 203,198 177,121 14.7
Sugar No. 11 futures & options 153,204 179,126 -14.5
Other agricultural commodity
contracts (3) 102,283 68,290 49.8
Currency futures (4) 30,633 16,119 90.0
Index futures (5) 3,254 3,489 -6.7
Other contracts (6) 64 312 -79.5
TOTAL ICE FUTURES U.S. 492,636 444,457 10.8
TOTAL ICE FUTURES CANADA 24,492 15,239 60.7
—— —— —-
TOTAL FUTURES CONTRACTS 1,348,615 1,088,525 23.9
result of a cooperative relationship between ICE Futures Europe and
the European Climate Exchange. ICE Futures Europe shares in the
transaction fee revenue derived from these contracts.
(2) "Other futures contracts" include ICE Middle East Sour Crude
futures; ICE ASCI Gulf Coast Sour Crude futures; ICE Heating Oil
futures; ICE Unleaded Gasoline Blendstock (RBOB) futures; ICE UK
Natural Gas futures; ICE UK Electricity futures; ICE Coal futures;
and ICE Dutch TTF Gas futures.
(3) "Other agricultural commodity contracts" include futures and/or
options for Cocoa, Coffee "C", Cotton No. 2, Orange Juice, Sugar No.
14 and Sugar No. 16.
(4) "Currency futures" include futures for the U.S. Dollar Index and
foreign exchange futures.
(5) "Index futures" include futures for the Russell 1000(R) mini, the
Continuous Commodity Index, the Euro Index, and the NYSE Composite.
(6) "Other contracts" include options on foreign exchange futures and
options on index futures, excluding Russell 2000 mini options.
—— —— ————–
ICE Futures Europe 915,775 606,289 51.0
—————— ——- ——- —-
ICE Futures U.S. 457,624 404,686 13.1
—————- ——- ——- —-
ICE Futures Canada 18,998 15,925 19.3
—————— —— —— —-
Total Futures 1,392,397 1,026,900 35.6
————- ——— ——— —-
6-mos 2010 6-mos 2009 Percent Change
———- ———- ————–
ICE Futures Europe 882,207 622,219 41.8
—————— ——- ——- —-
ICE Futures U.S. 442,697 378,578 16.9
—————- ——- ——- —-
ICE Futures Canada 16,687 15,429 8.2
—————— —— —— —
Total Futures 1,341,591 1,016,226 32.0
————- ——— ——— —-
ICE Futures Europe 18,292,721 13,834,239 32.2
ICE Futures U.S. 10,837,991 9,778,054 10.8
ICE Futures Canada 538,830 335,265 60.7
Total Futures 29,669,542 23,947,558 23.9
2Q2010 2Q2009 Percent Change
ICE Futures Europe 57,693,802 38,196,215 51.0
ICE Futures U.S. 28,830,283 25,495,238 13.1
ICE Futures Canada 1,196,886 1,003,290 19.3
Total Futures 87,720,971 64,694,743 35.6
6-mos 2010 6-mos 2009 Percent Change
ICE Futures Europe 109,393,718 78,389,957 39.6
ICE Futures U.S. 54,894,403 46,943,657 16.9
ICE Futures Canada 2,085,885 1,928,616 8.2
—————— ——— ——— —
Total Futures 166,374,006 127,262,230 30.7
————- ———– ———– —-
ICE Futures
Europe 3,183,055 2,647,694
ICE Futures
U.S. 2,529,585 3,375,176
———– ——— ———
ICE Futures
Canada 155,313 (June 29) 118,181
———– —————– ——-
Ending June Ending May Ending April
2010 2010 2010
Product Line
ICE Futures Europe $1.49 $1.51 $1.51
ICE Futures U.S.
Ag $2.19 $2.13 $2.17
—————- —– —– —–
ICE Futures U.S.
Fin $0.71 $0.77 $0.84
—————- —– —– —–
RPC is calculated by dividing transaction revenues by contract volume, and may vary based on pricing, customer and product mix.
