IntercontinentalExchange Receives 4d(a) Order from the CFTC; Cross Margin Benefits Continue Across Energy Contracts While Customers Benefit from Segregated Accounts
ATLANTA, Oct. 10, 2012 /PRNewswire/ — IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that the CFTC has approved ICE Clear Europe’s request to allow the clearing house and its clearing members to hold both U.S. energy futures and foreign energy futures in the 4d(a) account for U.S. customers. The 4d(a) Order allows ICE to continue offering portfolio margining offsets for its energy customers, but with enhanced account segregation benefits.
ICE Clear Europe has long managed ICE Futures Europe energy futures and ICE cleared OTC energy swaps on a commingled, portfolio-margined basis in the 30.7 account for U.S customers. The previously announced transition of swaps to listed futures at ICE Futures U.S. and ICE Futures Europe requires that these positions be commingled and portfolio-margined in the 4d(a), rather than the 30.7 account for U.S. customers.
“This Order ensures that our energy customers can continue to enjoy the significant capital benefits of portfolio margining following our transition of cleared swaps to futures,” said Chuck Vice, ICE President and COO.
There are no changes to the clearing workflow for members or clients and no changes to margin methodology, rates or offsets. ICE Clear Europe was approved as a CFTC-regulated derivatives clearing organization (DCO) in 2010.
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
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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.