ICE Announces Key Elements of New OTC Regulatory Regime
ATLANTA, July 27 /PRNewswire-FirstCall/ — IntercontinentalExchange((R)) (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced enhancements to its OTC regulatory framework.
In accordance with the recent rulemaking of the Commodity Futures Trading Commission (CFTC) regarding Significant Price Discovery Contracts (SPDC), ICE is now a registered entity with the CFTC and will begin submitting enhanced market statistics for its cash-settled Henry Hub natural gas swap market to the CFTC immediately. Clearing firms will begin providing large trader data to the CFTC and ICE’s data will be incorporated in the weekly Commitment of Traders (COT) report. ICE has worked with the CFTC in developing regular OTC market reporting, including large trader information, since October 2006. In addition to its inclusion in the COT report, the ICE Henry Hub swap will also be subject to position limits and accountability levels.
In May 2008, Congress passed the Farm Bill, including provisions relating to the CFTC Reauthorization Act of 2008. This bill places futures-style regulation on contracts that serve a significant price discovery function, as determined by the CFTC.
Said ICE Chairman and CEO Jeffrey C. Sprecher: “We appreciate the CFTC’s use of its broad powers in the OTC markets to provide regulatory certainty and to underscore the integrity of these important contracts. As the most transparent and standardized OTC energy marketplace, ICE demonstrated leadership in bringing visibility into these global markets, and we have worked proactively to ensure that the CFTC has the information it needs to effectively monitor our markets.”
IntercontinentalExchange((R)) (NYSE: ICE) operates leading regulated exchanges, trading platforms and clearing houses serving the global markets for agricultural, credit, currency, emissions, energy and equity index markets. ICE Futures Europe((R)) hosts trade in half of the world’s crude and refined oil futures. ICE Futures U.S.((R)) and ICE Futures Canada((R)) list agricultural, currency and Russell Index markets. ICE offers trade execution and processing for the credit derivatives markets through Creditex and ICE Link(TM), respectively, and CDS clearing through ICE Trust(TM). A component of the Russell 1000((R)) and S&P 500 indexes, ICE((R)) serves customers in more than 50 countries and is headquartered in Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston and Singapore. www.theice.com
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, 2008, as filed with the SEC on February 11, 2009.