ICE Futures Europe

ICE wiki logo.jpg

ICE Futures Europe
IceFutureslogo.jpg
Founded 1980 (acquired in 2001)
Headquarters London, UK
Key People David J. Peniket, President & COO
Employees 900+
Products ICE Brent crude futures, interest rates, equity indexes, softs, grains
Website www.theice.com/futures_europe

ICE Futures Europe is the UK-regulated, London-based subsidiary of Intercontinental Exchange which offers futures and options contracts on energy, interest rates, equity derivatives, grains and softs and emissions.

Previously named the International Petroleum Exchange (IPE), ICE Futures Europe handles nearly half of the world’s global crude futures in its markets. The exchange also offers benchmark contracts from the former NYSE Liffe exchange, including top interest rate contracts such as Long Gilt Futures, Sterling Futures and Euribor futures.

ICE Futures Europe products are cleared through ICE Clear Europe. The transition to this clearing system was completed in November 2008.[1]

Key People

History

Founded in 1980 as the International Petroleum Exchange (IPE), the ICE acquired the London-based boerse in June 2001. It was subsequently renamed ICE Futures Europe in 2005 and became the first entirely electronic energy exchange.

In 2006, ICE Futures Europe began offering West Texas Intermediate (WTI) crude futures on its electronic platform, a move that ultimately forced it competitor NYMEX to adopt a fully electronic trading platform from the CME Group.[2]

Volume on the exchange in 2014 was 993 million contracts, down 11 percent from 1.11 billion contracts a year earlier, according to the 2015 FIA Annual Volume Survey.[3]

Products and Services

ICE offers participants access to products such as ICE Brent crude futures, ICE West Texas Intermediate (WTI) crude futures, Sugar No. 11, Sugar No. 16, Cotton No. 2, Coffee "C", Russell Indexes, foreign exchange, ICE U.S. Dollar Index.[4]

On March 15, 2010, ICE Futures Europe introduced the ICE TTF Natural Gas futures contract. The first trade was executed by Total Gas and Power and Credit Suisse. The contract is based on the Title Transfer Facility (TTF) in the Netherlands and trades alongside ICE's U.K. NBP Natural Gas futures contract, the leading benchmark for U.K. natural gas. A daily volume record was set on August 31, 2011.[5]

On September 30, 2014, ICE incorporated the Liffe cocoa, robusta coffee, white sugar and feed wheat futures and options into ICE Futures Europe and eliminated the Liffe name.[6]

On January 6, 2015, ICE announced that ICE Futures Europe would introduce a new euro currency cocoa contract to operate in parallel with the existing London cocoa contract, which is denominated in pound sterling. The exchange expects to launch the euro-denominated cocoa futures and options contracts in April 2015, with a first maturity of December 2015.[7]

On February 16, 2015 ICE Futures Europe and ICE Futures US introduced 63 new futures and options contracts across interest rates and energy, including 15 new crude and refined oil contracts. The contracts are cleared at ICE Clear Europe.

On June 16, 2015, the exchange announced it would launch Eris Exchange standard interest rate futures contracts denominated in Euro (EUR) and Pound Sterling (GBP) on June 29, 2015. The new contracts, Eris Standard EUR Interest Rate futures and Eris Standard GBP Interest Rate futures, will clear at ICE Clear Europe. They are based on the product design of Eris Exchange US dollar-denominated Eris Standard Swap future and Eris Flex Swap future contracts. [8]

A comprehensive list of all available ICE Futures Europe products can be found here.

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.[9]

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.

Related membership subjects include membership criteria[10] and the membership list.[11]

References

  1. ICE Clear Europe Successfully Completes Clearing Transition. ICE.
  2. A History of Transparent Markets. ICE.
  3. FIA Annual Volume Survey 2013. FIA.
  4. Global Commodity, Currency, Credit & Equity Index Markets. ICE.
  5. ICE U.K. NBP Natural Gas Futures Contract Sets Daily Volume Record. MarketWatch.
  6. ICE Europe Takes Over Liffe Commodities After 18 Years. Bloomberg.
  7. ICE Futures Europe to Introduce a Euro-Denominated Cocoa Contract. ICE Futures Europe.
  8. ICE to Launch Eris Standard Interest Rate Futures on June 29; Introduction will Include Euro and Sterling Rates. ICE.
  9. ICE Futures Europe: Membership. ICE.
  10. ICE Futures Europe: Membership Criteria. ICE.
  11. ICE Futures Europe: Members List. ICE.
Last modified on 12 February 2016, at 15:19