ICE Clear Europe Announces First LNG Cleared Swap on the Japan Korea Marker
LONDON, Sept. 10, 2012 /PRNewswire/ — IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter markets, today announced that ICE Clear Europe cleared its first Liquefied Natural Gas (LNG) Cleared Swap on the Platts*Japan Korea Marker (JKM).
The first cleared JKM LNG transaction of 20 lots represented 200,000 Million British Thermal Units and was submitted to ICE Clear Europe on September 7, 2012. Tullett Prebon Europe Limited was the broker to the transaction. Two oil and gas majors were the counterparties to the trade. ICE Clear Europe introduced the JKM LNG cleared swap on September 4, 2012.
“We are delighted to have brokered the first cleared JKM swap at ICE Clear Europe. It is the desired outcome and follows two years developing the cleared LNG swap market with industry participants. The introduction of cleared JKM LNG swaps at ICE Clear Europe has boosted liquidity and we look forward to further promoting the benefits of central counterparty clearing to this market. Tullett Prebon LNG has brokered numerous short- and medium-term cargoes and re-gasification capacity since the desk was established late 2007 and the financial brokerage business is a natural extension of its presence in the physical LNG market,” said Melissa Lindsay, Global Head of LNG, Tullett Prebon Europe Limited.
“ICE is pleased that Tullett Prebon has brokered the first cleared JKM LNG swap at ICE Clear Europe. The introduction of the ICE Japan Korea Marker LNG swap has further enhanced ICE’s broad range of OTC energy products. With over 96% of ICE’s OTC energy volume now cleared, ICE has demonstrated that standardisation and liquidity are continuing to support the increased use of clearing,” said David Peniket, President & COO, ICE Futures Europe.
ICE offers over 730 cleared OTC energy contracts including more than 40 Asia specific energy swaps. ICE Clear Europe enables the efficient development of new products to support the risk management needs of member firms and customers in ICE’s global energy futures and OTC markets. In 2002, ICE pioneered the concept of cleared OTC energy contracts, which provide participants with access to centralised clearing and settlement arrangements while reducing bilateral credit risk and capital required for each OTC trade.
*Platts, a division of The McGraw-Hill Companies, is a leading global energy, petrochemicals and metals information provider. “Platts”, “Platts LNG Daily”, “Platts Gas Daily” and “Platts European Gas Daily” are trademarks of The McGraw-Hill Companies. Platts’ data and trademarks are proprietary and are used under license. Platts does not sponsor, endorse, sell or promote exchange contracts and Platts accepts no liability for the use of Platts data in connection therewith.
IntercontinentalExchange (NYSE: ICE) is a leading operator of regulated futures exchanges and over-the-counter markets for agricultural, credit, currency, emissions, energy and equity index contracts. ICE Futures Europe hosts trade in half of the world’s crude and refined oil futures. ICE Futures U.S. and ICE Futures Canada list agricultural, currencies and Russell Index markets. ICE is also a leading operator of central clearing services for the futures and over-the-counter markets, with five regulated clearing houses across North America and Europe. ICE serves customers in more than 70 countries. www.theice.com
The following are trademarks of IntercontinentalExchange, Inc. and/or its affiliated companies: IntercontinentalExchange, ICE, ICE and block design, ICE Futures Europe and ICE Clear Europe. All other trademarks are the property of their respective owners. For more information regarding registered trademarks owned by IntercontinentalExchange, Inc. and/or its affiliated companies, see https://www.theice.com/terms.jhtml
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding IntercontinentalExchange’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the SEC on February 8, 2012, and ICE’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed with the SEC on August 1, 2012.