ICE Futures Europe

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ICE Futures Europe
Image:IceFutureslogo.jpg
Founded 1980
Headquarters London, UK
Key People Chairman, Bob Reid
Products Brent and West Texas Intermediate Crude Oil, Gas Oil, Natural Gas, Electricity, Coal, and carbon financial instruments
Web site www.theice.com

ICE Futures Europe is the UK-regulated, London-based subsidiary through which IntercontinentalExchange conducts its energy futures markets. ICE Futures Europe offers the world’s leading oil benchmarks and trades nearly half of the world’s global crude futures in its markets.

Clearing for ICE Futures Europe and ICE's OTC energy products are done through LCH.Clearnet.[1] Clearing is expected to move to ICE's wholly owned European clearing house ICE Clear Europe in July of 2008, pending regulatory approvals.

Also in July of 2008, ICE Futures Europe Chairman Bob Reid said at a British parliamentary panel on oil market speculation that the exchange was willing to adopt U.S. trading limits for its contract in U.S. crude oil. The Commodity Futures Trading Commission (CFTC) had indicated it wished to extend its trading limits to the U.S. crude oil futures contract traded on the ICE.[2]

As debate about speculative trade has increased (see the John Lothian July 2008 Open Letter to Congress posted on MarketsWiki), some U.S. politicians have asserted that U.S. traders take advantage of a lack of position limits at ICE Futures Europe to build large, and potentially price-changing, positions. Trading in ICE West Texas Intermediate Light Sweet Crude Oil contract on ICE represents 15 percent of the open interest in the global WTI market.[3]


Contents

Key People

  • Chairman, Bob Reid

History

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ICE Futures Europe was founded in 1980 as the International Petroleum Exchange (IPE). In June 2001 IntercontinentalExchange (ICE) acquired the IPE, which was subsequently renamed ICE Futures Europe in 2006.[4]

On Nov. 29, exchange-wide volume at ICE Futures Europe reached a record 875,375 contracts, surpassing the Nov. 13, 2007 record of 858,604 contracts.

Products and Services

ICE offers participants access to Brent and West Texas Intermediate (WTI) global crude oil benchmark futures contracts, Gas Oil, Natural Gas, Electricity, Coal, and ECX carbon financial instruments.[5]

Membership

There are three categories of membership that determine the type of business which members may conduct. In addition to membership category, a member's status as a clearer will also impact the type of business they may conduct. The three categories are General Participants, Trade Participants and Individual Participants.

General Participants may trade for their own account or for clients and may also offer give ups. Trade Participants may trade their own accounts, but may not trade for clients or offer give ups. Lastly, Individual Participants are sole traders or companies which are 90 percent owned or controlled by a sole trader. Individual Participants may only trade for themselves and may not do give ups.[6]

Related membership subjects include membership criteria,[7] financial requirements[8] and the membership list.[9]

News

On Feb. 21, 2008, ECX and ICE Futures Europe announced the imminent launch of futures contracts on Certified Emission Reductions (CERs), noting ECX had reached an agreement with LCH.Clearnet regarding the launch of the contracts. It was anticipated the exact date for the launch was to be announced shortly.[10]This put to rest speculation of what may occur with the contracts.[11]

References

  1. ↑ Clearing. InterContinentalExchange. Retrieved on January 29, 2008.
  2. ↑ ICE Futures Can Live with CFTC Rules - Chairman. Reuters. Retrieved on July 17, 2008.
  3. ↑ ICE Cool About Further Regulation. Energy Risk. Retrieved on July 17, 2008.
  4. ↑ ICE Futures. LCH.Clearnet. Retrieved on January 29, 2008.
  5. ↑ ICE Futures Europe. InterContinentalExchange. Retrieved on January 29, 2008.
  6. ↑ ICE Futures Europe Membership. InterContinentalExchange. Retrieved on January 29, 2008.
  7. ↑ Participant Membership Criteria. InterContinentalExchange. Retrieved on January 29, 2008.
  8. ↑ Financial Resourse Requirements. InterContinentalExchange. Retrieved on January 29, 2008.
  9. ↑ Membership List. InterContinentalExchange. Retrieved on January 29, 2008.
  10. ↑ Press Release. European Climate Exchange. Retrieved on February 21, 2008.
  11. ↑ "LCH, ICE dispute leaves ECX cold". Futures Mag. Retrieved on February 21, 2008.
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