IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all cleared OTC products listed on ICE’s OTC energy market will be transitioned to futures products in January 2013. These products will continue be listed and traded on the ICE platform and cleared at ICE Clear Europe, and block trades will continue to be available subject to applicable requirements.
All uncleared swaps will continue to be listed on ICE’s OTC platform, which will register as a swap execution facility.
“Jurisdictions around the world are enacting policies designed to further regulate OTC swaps markets,” said Chuck Vice, ICE president and coo. “Based upon our extensive analysis of new swap rules and consultations with a wide variety of customers, we believe that these policies will increase the cost and complexity for swaps market participants, both in absolute terms and relative to that of futures market participants. We anticipate a seamless transition that will largely preserve existing methods of transacting in ICE’s markets.”
Cleared North American natural gas, electric power, environmental products and natural gas liquids (NGLs) swaps will be listed as futures on the energy division of ICE Futures U.S. Cleared oil products, freight and iron ore swaps will be listed as futures on ICE Futures Europe. All products will continue to clear at ICE Clear Europe, which was approved as a CFTC-regulated derivatives clearing organization in 2010. The transition from OTC swaps to futures is subject to approvals from the Commodity Futures Trading Commission and Financial Services Authority.
