IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all options on futures listed on ICE Futures U.S. will trade exclusively on the ICE electronic trading system beginning on trade date October 22, 2012. While the contracts will no longer trade through open outcry, ICE Futures U.S. will continue to support access to the electronic platform for Exchange-member brokers and proprietary traders from the floor facility.
As options functionality on the ICE platform increased, the share of electronically-executed options at ICE Futures U.S. accelerated. In April 2011, electronic execution accounted for approximately 10% of options volume, compared to more than 75% today.
“The rapid adoption of electronic trading by options market participants is strong validation of the capabilities ICE has built into its electronic trading platform,” said Ben Jackson, president of ICE Futures U.S. “Market participants have migrated to electronic trading for options as a result of the functionality, transparency and efficiency of the platform. At the same time, we are pleased to continue to offer the floor facility as a venue for access to these markets to support customer business. We appreciate the input of our market participants and regulators in this process.”
ICE Futures U.S. introduced electronic trading of options on March 28, 2008, and has continued to implement additional options-trading capabilities. Today, ICE’s electronic trading platform supports the full range of options strategies, including combination trades, hedged option transactions, user-defined-spreads (UDS) and request for quotes (RFQ).
The contracts completing the transition to electronic trading include options on the Sugar No. 11®, Cotton No. 2®, Coffee “C”®, Cocoa and Frozen Concentrated Orange Juice (FCOJ) futures contracts. Options on the U.S. Dollar Index® and Russell Index futures were listed exclusively on the ICE platform on May 1, 2012, and options on U.S. grains and oilseed futures have traded solely on the platform since their introduction on May 15, 2012. The ICE platform has been the sole trading venue for ICE Futures U.S. futures contracts since March 2008.
