IntercontinentalExchange

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IntercontinentalExchange (ICE)
Founded	2000
Headquarters	Atlanta
Key People	Jeffrey Sprecher, Chairman, Chief Executive Officer; Charles Vice, President, Chief Operating Officer; Scott Hill, Chief Financial Officer; David Goone, Senior Vice President and Chief Strategic Officer; Edwin Marcial, Chief Technology Officer; Johnathan Short, Senior Vice President, General Counsel and Corporate Secretary
Products	Futures and over-the-counter (OTC) markets for energy and agricultural commodities, in addition to foreign currency and equity index products; market data; and clearing services
Web site	www.theice.com

Atlanta-based IntercontinentalExchange (NYSE: ICE) operates global commodity marketplaces, including an electronic energy marketplace and a soft commodity exchange.

It conducts its energy futures markets through its London-based futures exchange, ICE Futures Europe. Its soft commodity, foreign exchange and equity index business are conducted through ICE Futures U.S., its U.S. futures exchange, which provides global futures and options markets, as well as clearing services through ICE Clear U.S.

With over 15,200 unique contracts, ICE’s OTC markets offer swaps, spreads, basis, options and differentials on products.

In addition to its Atlanta headquarters, ICE has offices in Calgary, Chicago, Dublin, Houston, London, New York, Singapore and Winnipeg.

The ICE Trading Platform brings electronic market access to market participants in more than 50 countries. In 2007, the ICE Futures U.S. board of directors approved the transition to fully electronic trading for futures contracts in March 2008.^[1]

ICE offers direct access to its electronic markets through the Internet, as well as a broad range of interfaces including dedicated lines, co-location, and telecommunications hubs in the U.S., Europe and Asia. In 2007, ICE completed construction of the ICE Global Network between New York, Atlanta, Chicago, London and Singapore, creating a high-speed fiber network between each of these data hub locations and to the primary and secondary data centers. ICE recently relocated and expanded its primary data center to Chicago, which now hosts the ICE platform for all electronic markets across all asset classes for futures, options on futures, and OTC markets.

ICE Data compiles and repackages trading data derived from trade activity into information products that are sold to a customer base extending beyond its main trading community. ICE's information services cover the energy futures and OTC markets, and include publication of daily indices, access to historical pricing data, end-of-day settlements and view-only access to the platform. Every trading day, ICE delivers energy market data to the desktops of thousands of market participants.

WebICE is a proprietary browser-based front-end to ICE's electronic trading platform.

Contents 1 ICE Stock Quote Information 2 Annual Volume and Financials 3 Corporate Governance 4 History 5 Futures and Options Products 5.1 Agricultural 5.2 Fossil Fuels and Power 5.3 Financial 5.4 OTC Markets 5.5 Clearing Services 6 Annual Reports 7 News 8 References 9 Resources

ICE Stock Quote Information

ICE Stock Quote

Annual Volume and Financials

ICE reported record annual volume in all of its business segments in 2007, including record OTC commissions. ICE Futures Europe achieved record annual volume for the tenth consecutive year, with an increase of 49% in 2007 over annual volume in 2006. In 2007, volume at ICE Futures U.S. exceeded 2006 volume totals by 22%. Also for the year ended Dec. 31, 2007, average daily commissions in the OTC segment increased by 39% to $819,739, representing the fourth consecutive year of record commissions.^[2]

For the year ended Dec. 31, 2007, ICE achieved record revenues for the fourth consecutive year, with an 83% rise in consolidated revenues to nearly $575 million compared with $314 million in the prior year. Consolidated net income increased 68% to a record $240+ million in 2007 from just over $143 million in 2006. Diluted EPS for 2007 was $3.39, an increase of 41% over 2006. The 2007 results include expenses related to ICE's proposed merger with the Chicago Board of Trade of $11.1 million, or $7.2 million after tax. Record consolidated cash flow from operations grew 91% to $287.8 million in 2007.

ICE's European and North American futures exchanges achieved record annual volume in 2007, with increases of 49% and 22%, respectively, totaling 192.0 million contracts combined. In 2007, average daily volume (ADV) for ICE Futures Europe(TM) was 539,044; ADV for ICE Futures U.S.(TM) and ICE Futures Canada(TM) was 232,566 contracts. Average daily commissions for ICE's OTC segment during 2007 increased to a record $845,572, a 44% increase over 2006. For businesses acquired last year, 2007 volume and commission levels reflect only the time period after the closing date of each transaction.^[3]

Corporate Governance

The following individuals are members of ICE's board of directors: Jeffrey Sprecher, Charles Crisp, Jean-Marc Forneri, Terrence Martell, Sir Robert Reid, Frederic Salerno, Richard Sandor, Fred Schoenhut, Judith Sprieser, Vincent Tese and Fred Hatfield.

History

• The company was formed in 2000 by Chairman and Chief Executive Officer Jeffrey Sprecher as a means to provide a transparent and efficient market structure for OTC energy contracts.

• In 2001, ICE expanded its business into futures trading by acquiring the International Petroleum Exchange (IPE). In 2003, ICE partnered with the Chicago Climate Exchange (CCX) to host its electronic marketplace. The entire ICE portfolio of energy futures became fully electronic in April 2005.

• ICE became a publicly traded company in November 2005.

• In January of 2007, ICE paid $1 billion to acquire the New York Board of Trade (NYBOT), which is now known as ICE Futures U.S.

• On March 15, 2007, ICE launched a takeover bid of $191.49 a share, or $10.12 billion, for the Chicago Board of Trade (CBOT). The offer surprised executives at both the CBOT and Chicago Mercantile Exchange (CME), who had been working to close an $8 billion merger. An ICE and CBOT marriage would have eliminated antitrust concerns voiced by groups such as the Futures Industry Association (FIA). Such consumer groups noted that a CME/CBOT merger promised to concentrate about 85% of U.S. futures trading business at the Chicago exchanges, and the arrangement could raise the barriers to entry for new competitors. CME Group, however, closed on its acquisition of the CBOT on July 12, 2007.

• ICE acquired ChemConnect in July of 2007. ICE acquired the Winnipeg Commodity Exchange (WCE), the major agricultural futures exchange in Canada.

• Effective Sept. 3, 2007, the New York Board of Trade (NYBOT) was renamed ICE Futures U.S. ICE's London-based futures exchange was renamed ICE Futures Europe.

• On Sept. 10, 2007, ICE announced the acquisition of Chatham Energy Partners^[4], a brokerage firm specializing in structuring and facilitating transactions in the over-the-counter markets for energy options. The acquisition of Chatham supports ICE's strategic plans to develop the electronic marketplace for OTC natural gas options.

• ICE was added to the Russell 1000 Index in June 2006. It was added to the S&P 500 Index on Sept. 25, 2007.

• ICE was named as the 2007 Energy Exchange of the Year by votes cast for the annual Energy Business Awards.

• On Dec. 11, ICE's Winnipeg Commodity Exchange (WCE) subsidiary successfully transitioned trading in all of its products to the ICE electronic platform as planned. On its first full day of trading on the ICE platform total volume was 16,742 contracts. Average daily volume for WCE futures was 13,427 contracts in November 2007. ^[5] The WCE had traded its canola, barley and feed wheat derivatives on the electronic platform owned by the Chicago Board of Trade since 2004. The switch involved a change in hours to 8 p.m. CST to 1:15 p.m. CST, without the early morning break seen in the allied Chicago Board of Trade soy complex.^[6]

• On Dec. 31, 2007 ICE said that its Winnipeg Commodity Exchange (WCE) subsidiary would be known as ICE Futures Canada, effective Jan. 1, 2008.^[7]

• In late January of 2008, ICE's primary trade matching engine for all OTC and futures products migrated permanently from Atlanta to the company's Chicago data center location. The state-of-the-art hosting facility includes expanded co-location capabilities and provides the physical space, electric power, and bandwidth necessary to accommodate continued growth in ICE's messaging traffic, trading volume and customer base. The Atlanta-based data center will become the disaster recovery site for the ICE trade matching engine.^[8]

• On Jan. 31, 2008 ICE announced that it entered into an agreement to acquire financial technology firm YellowJacket Software, Inc, with the new business to be operated as a wholly owned subsidiary of ICE. ICE said it expected to complete its acquisition of YellowJacket in February of 2008. Terms of the transaction were not disclosed. ICE said the acquisition was not expected to be material to ICE's operating results during the first half of 2008.^[9]

• On Feb. 25, 2008 ICE announced a timeline for introduction of electronically traded ICE Futures U.S. options on futures contracts. The contracts would be available for trading on the ICE platform beginning March 28. Electronic options on futures will be offered for the Sugar No. 11, Cotton No. 2, Coffee "C", Cocoa, FCOJ-A and the Russell 1000 Index mini and Russell 2000 Index mini contracts.^[10]

• On Feb. 27, 2008 ICE and Natural Gas Exchange Inc. (NGX) energy exchange and clearinghouse said they would offer clearing and settlement services for physical OTC natural gas contracts beginning March 3, 2008. Physical clearing on select U.S. trading hubs would be available as part of a previously announced alliance between ICE and NGX.^[11]

• On March 4, 2008 the U.S. Commodity Futures Trading Commission (CFTC) said it had issued an order under Section 4d of the Commodity Exchange Act (CEA) that would permit ICE Clear U.S., Inc. (ICE Clear) and the Options Clearing Corporation (OCC) to establish a non-proprietary cross margining program.^[12]

• ICE and globalCOAL, the leading electronic marketplace for thermal coal on Apr. 2, 2008, announced a cooperation agreement to develop and launch two new coal futures contracts at ICE Futures Europe. The contracts consist of financially settled NEWC coal futures, to be launched mid-2008, and physically settled ARA coal futures, to be launched later in the year.^[13]

Futures and Options Products

Agricultural

Agricultural contracts traded include ICE Western Barley, ICE Canola, ICE U.S. Coffee "C" Arabica, which is the world's largest coffee futures contract, ICE Cotton No. 2, ICE Cocoa, ICE Feed Wheat, ICE Frozen Concentrated Orange Juice, ICE Sugar No. 11, and ICE Sugar No. 14.

On Dec. 13, 2007, the exchange announced the temporary delisting of the July 2009 expiry and all subsequent months and instituted a temporary moratorium on listing new contract months while changes to the futures contract terms were being considered.

On Dec. 18, 2007, ICE Futures U.S. announced that effective with the start of trading on Wednesday, Dec. 19, the exchange would delist all contract months for its NFC Orange Juice and Ethanol futures and options contracts and for the ICE Mini Coffee “C” futures contract. The contracts had no outstanding open interest.

On March 14, 2008, ICE Futures U.S. said that it would implement changes in the OJ contract and would resume trading of the months that were temporarily delisted, in addition to resuming the regular listing of additional contract months.^[14]

Fossil Fuels and Power

Nearly half of the world's global crude futures by volume of commodity traded is transacted on the ICE exchange.

In addition to ICE Brent Crude Oil futures and options, ICE energy contracts include ICE Rotterdam & Richards Bay Coal, ICE Emmissions, ICE Gas Oil, ICE Heating Oil Futures, ICE Middle East Sour Crude Oil, ICE Unleaded Gasoline, ICE UK Electricity Futures, ICE UK Natural Gas, and ICE West Texas Intermediate Light Sweet Crude Oil.

The ICE-ECX CFI futures contract is the result of a cooperative relationship between ICE Futures Europe and the Chicago Climate Exchange, Inc. and its subsidiary, the European Climate Exchange. ICE Futures Europe shares in the revenue derived from the ECX CFI Futures contract.

Financial

Financial contracts traded include the ICE Reuters Jefferies CRB Index (to begin Feb. 1, 2008)^[15], ICE Russell 2000 Futures and the ICE U.S. Dollar Index Futures.

In October of 2007 ICE Futures U.S. announced that it would begin offering 11 electronically traded foreign exchange ICE Currency Pairs 22 hours per day, beginning on Nov. 9, 2007. Listing of the foreign exchange futures contracts will occur in phases.

OTC Markets

The ICE OTC markets include Financial Gas, Financial Power, Olefins and Aromatics, Oil and Refined Products, Natural Gas Liquids, Physical Gas and Physical Power.

Clearing Services

Clearing for ICE trades is handled by ICE Clear U.S. and ICE Clear Europe.

Annual Reports

• ICE 2006 Annual Report
• ICE 2005 Annual Report

News

• On Oct. 24, 2007, ICE released third-quarter financial results. Revenues were up 60% to $151.7 MM, and net income rose 53% to $66.7 MM.^[16]

• On Aug. 29, 2007, ICE announced that Thomas J. Hammond was appointed president and COO of ICE Clear U.S., Inc., ICE's wholly owned U.S. clearing house. Hammond assumed the new role on Sept. 17, 2007. ICE had acquired the New York Clearing Corp. (NYCC) through its January 2007 acquisition of the New York Board of Trade, and it was renamed ICE Clear U.S., Inc. effective June 1, 2007.^[17]

• On Jan. 4, 2008 ICE announced that it had volume growth in all of its business segments for the month of January, including record growth at ICE Futures U.S. Average daily volume at ICE Futures U.S. more than doubled to 382,602 contracts in January 2008, up 115% from January 2007; exchange-wide volume record achieved.^[18]

• ICE said that on Jan. 8, 2008 its ICE Futures subsidiary posted a new high in exchange-wide electronic trading volume for a single day. The exchange reported record electronic volume of 234,120 contracts on Tuesday. The new record surpassed the previous electronic volume record set on June 13, 2007.^[19]

• ICE Futures Europe on Jan. 9, 2008 set a new exchange-wide daily volume record and for the first time surpassed the 400,000 mark in ICE Brent Crude futures contract daily volume. ICE Brent Crude futures volume reached 409,288, surpassing by 6% the previous record of 387,422 contracts established on May 15, 2007. Total ICE Futures Europe volume reached an all-time volume record of 885,498 contracts, exceeding the previous record of 875,375 contracts on Nov. 29, 2007.^[20]

• On Jan. 10, 2008 ICE Futures U.S. set a new daily electronic trading volume record. Electronic futures volume on Jan. 10, 2008 totaled 247,040 contracts. ICE Sugar No. 11 futures also reached a new daily electronic volume record of 177,271 contracts. Electronic trading at ICE Futures U.S. represented 89% of total futures volume. Also on Jan. 10, open interest in the Sugar No. 11 futures contract surpassed the one-million contract mark for the first time, with 1.021 million open contracts. Open interest in ICE Cotton futures also set a new all-time high at 261,151 contracts.^[21]

• On Jan. 17, 2008 ICE set new daily electronic and exchange-wide trading volume records. Electronic futures volume on Jan. 17 totaled 363,441 contracts, surpassing by 33% the previous record of 273,670 contracts set on Jan. 16, 2008.^[22]ICE Sugar No. 11 futures established a new daily electronic volume record of 306,728 contracts.^[23]

• On Jan. 18, 2008 ICE said that due to market conditions impacting the price of ICE's common stock, Chairman and Chief Executive Officer Jeffrey Sprecher would cancel a previously announced, pre-arranged stock trading plan established in November 2007 and scheduled to commence in January 2008. The plan was adopted pursuant to guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and disclosed by ICE in a press release dated Dec. 24, 2007.^[24]The exchange said Sprecher did not make any trades under the plan, which would have accounted for approximately 10% of his combined holdings of stock, restricted stock and stock options and was intended to diversify his personal investment portfolio, implement certain tax planning measures, and pay income taxes incurred in connection with the awards.^[25]

• On Jan. 21, 2007, ICE announced that it had been named the 2007 Derivatives Exchange of the Year by Risk Magazine.^[26]Among the factors considered by the magazine were strengths in innovation, infrastructure, systems and organization, client service and risk management.^[27]

• On Feb. 13, 2008 ICE set a new daily volume record in its ICE Gas Oil futures contract. Gas Oil futures volume reached 200,908, surpassing by 8% the previous record of 186,124 contracts established on Nov. 6, 2007.^[28]

• On Feb. 25, 2008 ICE announced electronically traded ICE Futures U.S. options on futures contracts. ICE Sugar No. 11, ICE Cotton No. 2, ICE U.S. Coffee "C" Arabica, ICE Cocoa, ICE Frozen Concentrated Orange Juice and the Russell 1000(R) Index mini and Russell 2000(R) Index mini contracts will be available for trading on the ICE platform beginning March 28.^[29]

• On March 24, 2008, ICE and Natural Gas Exchange Inc. (NGX), an energy exchange and clearinghouse, said they would offer clearing and settlement services for physical OTC natural gas contracts at the Henry Hub delivery point beginning Monday, Apr. 7, 2008, pursuant to a previously announced alliance. As with physical clearing services successfully introduced on March 3 at PG&E Citygate and GTN Malin, NGX's clearing organization would serve as the central counterparty for the physical delivery and financial performance.^[30]

• On Apr. 2, 2008, ICE reported announced that March average daily volume(ADV) in futures exceeded one million contracts for the first time in exchange history, and OTC commissions more than doubled. In the first quarter of 2008, ICE achieved record ADV and record average daily commissions.^[31]

• On Apr. 10, 2008, ICE said Brad Vannan was appointed President, Chief Operating Officer of ICE Futures Canada, ICE's wholly-owned Canadian futures exchange. Vannan is a 23-year veteran with experience in the global agricultural markets who recently held the position of Vice President at Agricore United. Vannan would join ICE on Apr. 14 and would assume his new role as President and COO effective Apr. 30.^[32] Former president Will Hill announced in February he would leave ICE Futures Canada for personal reasons.^[33][34]

References

1. ↑ "ICE Futures U.S. Board Approves Transition to Fully Electronic Trading for Futures". Reuters.com. Retrieved on December 27, 2007.
2. ↑ Press Release. IntercontinentalExchange. Retrieved on January 3, 2008.
3. ↑ "IntercontinentalExchange Reports Record Revenues for Fourth Quarter 2007; Record Full-Year 2007 Revenues, Cash Flow and Net Income,” Jan. 31. 2008. ICE. Retrieved on Jan. 31, 2008.
4. ↑ "IntercontinentalExchange Announces Acquisition of Chatham Energy Partners". IntercontinentalExchange. Retrieved on October 29, 2007.
5. ↑ "IntercontinentalExchange Announces Successful Transition of WCE Products to ICE Trading Platform". CNNMoney.com. Retrieved on December 11, 2007.
6. ↑ "Winnipeg exchange says switch to ICE goes smoothly". Reuters.com. Retrieved on December 11, 2007.
7. ↑ Press Release. WCE. Retrieved on December 31, 2007.
8. ↑ "ICE makes some moves to Chicago”. charlotte.bizjournals.com/. Retrieved on November 27, 2007.
9. ↑ Press Release. ICE. Retrieved on January 31, 2007.
10. ↑ Press Release. ICE. Retrieved on February 27, 2008.
11. ↑ Press Release. ICE. Retrieved on February 27, 2008.
12. ↑ Press Release. ICE. Retrieved on March 5, 2008.
13. ↑ Press Release. IntercontinentalExchange. Retrieved on April 3, 2008.
14. ↑ Press Release. IntercontinentalExchange. Retrieved on March 14, 2008.
15. ↑ "ICE Futures U.S. to list CRB Index on the screen”. Reuters. Retrieved on Jan. 28, 2008.
16. ↑ Press Release. IntercontinentalExchange. Retrieved on October 24, 2007.
17. ↑ "IntercontinentalExchange Names Thomas J. Hammond President & Chief Operating Officer of ICE Clear U.S.". Wall Street Journal. Retrieved on November 1, 2007.
18. ↑ Press Release. IntercontinentalExchange. Retrieved on February 4, 2008.
19. ↑ Press Release. IntercontinentalExchange. Retrieved on January 9, 2008.
20. ↑ Press Release. IntercontinentalExchange. Retrieved on January 10, 2008.
21. ↑ Press Release. IntercontinentalExchange. Retrieved on January 11, 2008.
22. ↑ Press Release. IntercontinentalExchange. Retrieved on January 18, 2008.
23. ↑ Press Release. IntercontinentalExchange. Retrieved on January 18, 2008.
24. ↑ Press Release. IntercontinentalExchange. Retrieved on January 18, 2008.
25. ↑ Press Release. IntercontinentalExchange. Retrieved on January 18, 2008.
26. ↑ Press Release. ICE. Retrieved on January 25, 2008.
27. ↑ showPage.html%3Fpage%3D685513 "Derivatives Exchange of the Year-IntercontinentalExchange". Risk Magazine. Retrieved on January 25, 2007.
28. ↑ Press Release. IntercontinentalExchange. Retrieved on February 14, 2008.
29. ↑ Press Release. IntercontinentalExchange. Retrieved on February 25, 2008.
30. ↑ Press Release. IntercontinentalExchange. Retrieved on March 24, 2008.
31. ↑ Press Release. ICE. Retrieved on April 3, 2008.
32. ↑ Press Release. IntercontinentalExchange. Retrieved on April 10, 2008.
33. ↑ "ICE Futures Canada to Seek New President". Reuters. Retrieved on Apr. 10, 2008.
34. ↑ "ICE Futures Canada names Vannan as COO". Reuters. Retrieved on Apr. 10, 2008.

Resources

ICE Web site: [1]