ICE Reports Record September and Third Quarter ADV; OTC Energy Commissions Second Highest Quarter on Record; $2.75 Trillion Cleared in CDS

October 2, 2009

ATLANTA, Oct. 2 /PRNewswire-FirstCall/ — IntercontinentalExchange® (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported strong growth in futures volumes and OTC energy commissions in the third quarter of 2009. Each of ICE’s futures exchanges recorded year-over-year average daily volume (ADV) increases for the month of September 2009.

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Global Futures Exchanges

ICE operates three regulated futures exchanges: ICE Futures Europe®, ICE Futures U.S.® and ICE Futures Canada®.

  • September 2009 ADV across all three ICE futures exchanges increased 9% over September 2008, to a record 1,168,431 contracts, including record ADV at ICE Futures U.S.
  • Third quarter 2009 ADV for all ICE Futures contracts increased 24% over third quarter 2008, to a record 1,062,429 contracts. ICE Future Europe established new ADV and total volume records of 676,020 and 43,265,279 contracts, respectively, in the quarter.
  • ADV for the first nine months of 2009 for all ICE Futures contracts was 1,031,737 contracts, up 12% over the same period of 2008.

Energy and Credit OTC Transaction Revenues

  • Third quarter average daily commissions (ADC) for ICE’s OTC energy business were $1.25 million, up 13% from the third quarter of 2008 and an increase of 11% sequentially. ADC in the third quarter of 2009 was the second highest quarterly ADC on record.
  • ICE’s credit default swap (CDS) trade execution, processing and clearing revenues totaled $43.1 million, up 5% from the third quarter of 2008 on a pro-forma basis and down 3% from the second quarter of 2009. ICE acquired Creditex in August 2008 and did not offer CDS clearing in 2008.

Operating and Financial Guidance Update

  • Both ICE Trust(TM) and ICE Clear Europe® are operationally ready to begin clearing single name CDS contracts and are working with regulators to secure the required final approvals, which are expected to be received in October 2009.
  • Working closely with CDS market participants, ICE now expects to complete the development of its buy-side solution for CDS clearing by the end of October. Pending regulatory approvals, testing and soft-launch are expected in November, and a full launch is expected by December 15, 2009, keeping with industry commitments to regulators for a customer solution by that date.
  • ICE expects non-cash compensation expense to be $14 million in the third quarter of 2009, and in the range of $13 million to $14 million in the fourth quarter of 2009. The updated guidance reflects true-ups related to the vesting of stock options and restricted stock, as well as improved financial expectations versus full-year performance objectives based on strong third quarter 2009 results
  • ICE expects CDS clearing revenues in the third quarter of 2009 to be approximately $13 million. As a result, ICE expects full year 2009 CDS clearing revenues to be at or above the high end of prior CDS clearing revenue guidance of $20 million to $30 million. ICE is also updating its guidance for CDS clearing expenses, with $10 million expected in the third quarter of 2009 due to increased professional services expenses associated with the development of key CDS clearing initiatives during the quarter. Fourth quarter CDS clearing expenses are expected to be in line with prior guidance of $6 million to $8 million.

September 2009 Recap

  • Through September 25, ICE’s CDS clearing houses have cleared over $2.75 trillion in notional value, across 33,872 transactions.
    • Since its inception in March 2009, ICE Trust has cleared $2.2 trillion of notional value, resulting in $187 billion of open interest.
    • ICE Clear Europe has cleared Euro 377 billion ($552 billion) of notional value since its July 2009 launch, resulting in Euro 42 billion of open interest.
  • On September 3, ICE Trust announced that BNP Paribas became its thirteenth clearing member.
  • On September 8, ICE announced that it will provide trade date clearing concurrent with the launch of its segregated funds credit derivatives clearing solution.
  • On September 17, ICE published a statement reiterating its view that position limits and hedge exemptions should be established by the Commodity Futures Trading Commission.
  • On September 22, ICE Futures U.S. announced it will waive all exchange and clearing fees for electronically traded foreign exchange futures contracts from October 1 through December 31, 2009.
  • On September 28, ICE introduced 43 new OTC cleared energy contracts for North American electricity, natural gas, natural gas liquids and oil.
  • Trading days in September 2009:
    • ICE Futures Europe: 21
    • ICE Futures U.S.: 21
    • ICE Futures Canada: 21
  • ICE Futures Europe records achieved in September 2009:
    • Volume and ADV records were established for U.K. natural gas and emissions EUA Daily futures.
    • Open interest records were established for ICE Gasoil futures as well as several emissions and coal futures contracts.
  • ICE Futures U.S. records achieved in September 2009:
    • A monthly volume record of 124,468 contracts was established in the Russell 1000 Mini futures contract, including a daily record of 67,989 on September 11. Record open interest was also achieved in the contract on September 15.

ICE Futures Contracts & Markets Monthly ADV

                                              ADV         ADV         ADV
                                           September   September   % Change
             Product Line                    2009        2008
             ------------                  ---------   ---------   --------
    ICE Brent Crude futures & options        313,989     272,147       15.4
    ICE WTI Crude futures & options          192,350     201,816       -4.7
    ICE Gasoil futures & options             157,823     137,034       15.2
    ICE ECX emissions futures & options (1)   20,689      12,039       71.8
    Other futures contracts (2)               17,119       6,438      165.9
    TOTAL ICE FUTURES EUROPE                 701,970     629,474       11.5
    Russell 2000((R)) mini
     futures & options(3)                    192,367     172,207       11.7
    Sugar No. 11 futures & options           185,392     151,166       22.6
    Other agricultural commodity
     contracts (4)                            49,284      76,249      -35.4
    Currency futures (5)                       6,867      10,791      -36.4
    Index futures (6)                         18,238      16,439       10.9
    Other contracts (7)                          216       2,055      -89.5
    TOTAL ICE FUTURES U.S.                   452,364     428,907        5.5
    TOTAL ICE FUTURES CANADA                  14,097      11,225       25.6
    ------------------------                  ------      ------       ----
    TOTAL FUTURES CONTRACTS                1,168,431   1,069,606        9.2%

    (1) ICE ECX EUA and ICE ECX CER futures and options contracts are the
    result of a cooperative relationship between ICE Futures Europe and the
    European Climate Exchange. ICE Futures Europe shares in the transaction
    fee revenue derived from these contracts.
    (2) "Other futures contracts" include ICE Middle East Sour Crude futures;
    ICE Heating Oil futures; ICE Unleaded Gasoline Blendstock (RBOB) futures;
    ICE UK Natural Gas futures; ICE UK Electricity futures; and ICE Coal
    (3) The transition of the Russell 2000® mini futures and options contracts
    to exclusive trading on ICE occurred in September 2008.
    (4) "Other agricultural commodity contracts" include futures and/or
    options for Cocoa, Coffee "C", Cotton No. 2, Orange Juice, Sugar No. 14
    and Sugar No. 16.
    (5) "Currency futures" include foreign exchange futures.
    (6) "Index futures" include futures for the U.S. Dollar Index®, Russell
    2000 (full size), Russell 1000®, Russell 1000 mini, the Continuous
    Commodity Index, the Euro Index, and the NYSE Composite. The transition of
    the Russell Index futures and options contracts to exclusive trading on
    ICE occurred in September 2008.
    (7) "Other contracts" include options on foreign exchange futures and
    options on index futures, excluding Russell 2000 mini options.

ICE Futures Third Quarter 2009 and Year-to-Date ADV

                                  3Q2009           3Q2008      Percent Change
                                  ------           ------      --------------
    ICE Futures Europe           676,020          568,761              18.9
    ICE Futures U.S.             375,772          280,317              34.1
    ICE Futures Canada            10,637            9,526              11.7
    Total Futures              1,062,429          858,604              23.7%

                              9-mos 2009       9-mos 2008      Percent Change
                              ----------       ----------      --------------
    ICE Futures Europe           640,291          597,712               7.1
    ICE Futures U.S.             377,623          307,471              22.8
    ICE Futures Canada            13,823           13,759               0.5
    Total Futures              1,031,737          918,942              12.3%

ICE Futures Monthly, Quarterly and Year-to-Date Volume

                          September 2009    September 2008    Percent Change
                          --------------    --------------    --------------
    ICE Futures Europe        14,741,368        13,848,425               6.4
    ICE Futures U.S.           9,499,650         9,208,541               3.2
    ICE Futures Canada           296,040           235,715              25.6
    Total Futures             24,537,058        23,292,681               5.3%

                                  3Q2009            3Q2008     Percent Change
                                   ------           ------     --------------
    ICE Futures Europe        43,265,279        37,538,256              15.3
    ICE Futures U.S.          24,049,436        18,101,838              32.9
    ICE Futures Canada           670,161           600,158              11.7
    Total Futures             67,984,876        56,240,252              20.9%

                              9-mos 2009        9-mos 2008      Percent Change
                              ----------        ----------      --------------
    ICE Futures Europe       121,655,236       115,956,055               4.9
    ICE Futures U.S.          70,993,093        58,310,388              21.8
    ICE Futures Canada         2,598,777         2,600,443              -0.1
    Total Futures            195,247,106       176,866,886              10.4%

ICE Futures Open Interest

                                  September 30, 2009    December 31, 2008
                                  ------------------    -----------------
    ICE Futures Europe                     2,844,221            2,102,574
    ICE Futures U.S.                       3,124,893            3,028,877
    ICE Futures Canada                       120,209               97,673

Rolling Three-Month Average Rate per Contract (RPC)

                               Three Months      Three Months     Three Months
                                  Ending            Ending           Ending
       Product Line           September 2009      August 2009      July 2009
       ------------           --------------      -----------      ---------
    ICE Futures Europe             $1.53            $1.56            $1.58
    ICE Futures U.S. Ag            $2.08            $2.10            $2.15
    ICE Futures U.S. Fin           $0.89            $0.91            $0.86

    RPC is calculated by dividing transaction revenues by contract volume, and
    may vary based on pricing, customer and product mix.

ICE OTC Transaction & Clearing Revenues

                                 3Q2009            2Q2009            1Q2009
                                 ------            ------            ------
    OTC Energy ADC           $1.25 million     $1.13 million     $1.08 million
    CDS Execution &          $43.1 million     $44.4 million     $37.9 million

Rate per contract, volumes and average daily commissions are estimated using best available current information. Final figures are reported in ICE’s quarterly and annual filings with the Securities and Exchange Commission.

Historical futures volume and OTC commission data can be found at:


About IntercontinentalExchange

IntercontinentalExchange® (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® hosts trade in half of the world’s crude and refined oil futures. ICE Futures U.S.® and ICE Futures Canada® 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) and ICE Clear Europe®. A component of the Russell 1000® and S&P 500 indexes, ICE® 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.

SOURCE IntercontinentalExchange

Source: newswire

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