Profile: IntercontinentalExchange Inc (ICE.N)

ICE.N on New York Stock Exchange

186.16USD
11:36am EDT
Price Change (% chg)

$0.36 (+0.19%)
Prev Close
$185.80
Open
$184.92
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$186.77
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$184.01
Volume
30,165
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52-wk High
$186.77
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$122.77

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IntercontinentalExchange, Inc. (ICE), incorporated on June 16, 2000, is an operator of global futures exchanges, over-the-counter (OTC), markets, derivatives clearing houses and post-trade services. The Company operates futures and OTC marketplaces for trading and clearing an array of energy and agricultural commodities, emissions contracts, credit default swaps (CDS), equity indexes and currency contracts. It offers an integrated electronic platform for side-by-side trading of products in both the futures and OTC markets, together with clearing services, post-trade processing and market data. Through its electronic markets, the Company brings together buyers and sellers of commodities and financial contracts, and also offers a range of services to support its participants’ risk management and trading activities. ICE operates and manages its business on the basis of three segments: futures segment, global OTC segment and market data segment. It operates global futures, options and swaps markets and derivatives clearing houses and offer participants the opportunity to hedge and trade a variety of commodities and financial derivatives. Its core products include contracts based on crude and refined oil, natural gas, power, coal, emissions, sugar, cotton, coffee, cocoa, canola, frozen concentrated orange juice, CDS, currencies and equity indexes. The Company completed the Ballista Securities and DebtMarket acquisitions during the year ended December 31, 2011. In September 2012, it acquired WhenTech.

The Company conducts its energy futures markets through its wholly owned subsidiary, ICE Futures Europe, which is based in the United Kingdom. ICE conducts its regulated United States futures markets through its wholly owned subsidiary, ICE Futures U.S. It conducts its regulated Canadian futures markets through its subsidiary, ICE Futures Canada. ICE Futures Europe contracts are cleared by ICE Clear Europe, ICE Futures U.S. contracts are cleared by ICE Clear U.S. and ICE Futures Canada contracts are cleared by ICE Clear Canada, each of which is a separate wholly owned subsidiary. The Company conducts its OTC energy markets through ICE U.S. OTC Commodity Markets, LLC and its cleared OTC energy contracts clear through ICE Clear Europe. The Company conducts its CDS trade execution business through Creditex Group Inc. and its subsidiaries (Creditex), an interdealer broker for CDS. ICE Clear Credit offers clearing primarily for North American CDS and ICE Clear Europe offers clearing for European CDS.

Futures Marketplaces

As of December 31, 2011, the Company in its futures segment operated three regulated futures exchanges in the United States, the United Kingdom and Canada. Each futures exchange has an affiliated clearing house in order to provide settlement and risk management services for the contracts initiated on the exchange. ICE Futures Europe operates as an investment exchange in the United Kingdom. ICE Futures Europe is an exchange for crude and refined oil futures contracts, as well as futures based on European emissions, natural gas and power and global coal. Its members and their customers include energy companies, commercial energy consumers and financial institutions. ICE Futures Europe contracts are cleared by ICE Clear Europe. ICE Clear Europe has also registered as a derivatives clearing organization in the United States. ICE Futures U.S. is a global futures and options exchange for trading in a range of agricultural commodities, including sugar, coffee, cotton, cocoa and frozen concentrated orange juice. ICE Futures U.S. also lists futures and options contracts for financial products, including the Russell Indexes, currencies and the U.S. Dollar Index (USDX). ICE Futures U.S. operates as a contract market and is regulated by the Commodity Futures Trading Commission (CFTC). ICE Clear U.S. clears and settles contracts traded on ICE Futures U.S. and is a derivative clearing organization regulated by the CFTC. ICE Futures Canada is Canada’s agricultural commodity futures and options exchange. ICE Futures Canada offers futures and options contracts on canola, wheat and western barley. ICE Futures Canada is a commodity futures exchange. ICE Clear Canada, which clears and settles contracts traded on ICE Futures Canada, is a clearing house under the provisions of The Commodity Futures Act (Manitoba) CFA and is regulated by the Manitoba Securities Commission. The Company operates the following clearing houses, ICE Clear U.S. for ICE Futures U.S. contracts; ICE Clear Canada for ICE Futures Canada contracts; ICE Clear Europe for ICE Futures Europe contracts, OTC cleared energy contracts and European CDS contracts; ICE Clear Credit for North American CDS contracts, and TCC for clearing services. These clearing houses clear, settle and guarantee to their clearing members the financial performance of all futures contracts and options on futures contracts matched through its execution facilities, with the exception of ICE Clear Credit that acts as a central counterparty in the registration and clearing of OTC CDS transactions in North America.

Global OTC Markets

The Company in its OTC segment operates energy and CDS markets, as well as OTC clearing operations. ICE conducts its OTC energy markets through ICE U.S. OTC Commodity Markets, LLC. The Company offers trading and clearing in hundreds of energy contracts, covering a range of oil, natural gas and power products. These contracts include financially and physically settled contracts. The Company offers clearing services for its OTC energy markets through ICE Clear Europe. In its CDS business, the Company offers electronic and voice brokered markets for trading CDS through Creditex Brokerage LLP. The Company offers clearing services for its OTC energy markets and for its European CDS markets through ICE Clear Europe. It offers clearing services for the Company’s North American CDS markets through ICE Clear Credit, which is a derivatives clearing organization. As of December 31, 2011, the Company listed 668 OTC energy contracts on its electronic trading platform that were available for clearing, as well as additional contracts that were available for bilateral trading. As of December 31, 2011, ICE listed 143 cleared natural gas contracts, 188 cleared power contracts and 251 cleared oil contracts. Creditex operates in the execution and processing of CDS, with markets spanning the United States, Europe and Asia. Creditex is a dealer-to-dealer execution agent that facilitates trading in the global CDS markets. Creditex offers voice, hybrid, and electronic trading services, which are provided through the Creditex RealTime trading platform. ICE also operates an electronic platform known as ICE Link, which is an automated trade workflow and connectivity platform for affirming credit derivatives transactions. ICE Link also provides connectivity between market participants, facilitating straight-through processing to the Depository Trust & Clearing Corporation’s Trade Information Warehouse for non-cleared CDS transaction or to a clearing house for CDS transactions that are clearing eligible. As of December 31, 2011, ICE CDS clearing houses cleared 253 single name instruments and 81 CDS indexes.

Market Data Services

ICE Data is the Company’s market data services division that manages information services for the OTC energy markets, ICE Futures Europe, ICE Futures U.S. and ICE Futures Canada. Through ICE Data, the Company generated market information and indexes based primarily upon auditable transaction data derived from actual bid and offer postings and trades executed in its markets. ICE Data publishes ICE daily indexes for its spot natural gas and power markets for over 110 of the gas hubs and over 30 of the power hubs in North America. The ICE Data end of day report is an electronic summary of trading activity in its OTC energy markets. This information is sold as various subscription-based products. Also, for both its futures and OTC markets, the Company offers view-only access to market participants who are not active traders but who desire access to real-time energy prices. ICE Data’s market price validation (MPV), service provides consensus forward curve and option values for long-dated global energy contracts on a monthly basis. ICE provides real-time futures data to data distributors, commonly called quote vendors (QVs). These companies, such as Bloomberg or Reuters, then package this data into real-time, tick, intra-day, delayed, end-of-day and historical data packages to sell to end-users. The real-time packages are accessed on a subscription basis and the exchange fee is paid for each screen. End users include financial information providers, futures commission merchants, pension funds, financial services companies, funds, insurance companies, commodity pools and individual investors.

The Company competes with CME Group Inc., NYSE Euronext, European Energy Exchange, Australian Securities Exchange, Tokyo Grain Exchange, GFI Group Inc., Tullet Prebon plc, ICAP plc., Brazilian Mercantile and Futures Exchange.

Company Address

IntercontinentalExchange Inc

Suite 500, 2100 Riveredge Parkwa
ATLANTA   GA   30328
P: +1770.8574700
F: +1770.8574755

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