Profile: Intercontinental Exchange Inc (ICE.N)
6 Jul 2015
Intercontinental Exchange, Inc. (ICE), incorporated on March 6, 2013, is a global operator of regulated exchanges, clearing houses and data services for financial and commodity markets. The Company operates global marketplaces for trading and clearing an array of securities and derivatives contracts across asset classes, including energy and agricultural commodities, interest rates, equities, equity derivatives, credit derivatives, bonds and currencies. The Company’s regulated exchanges include futures exchanges in the United States, United Kingdom, Canada, Singapore and Europe, three securities exchanges and two equity options exchanges. The Company also operates over-the-counter (OTC), markets for physical energy and credit default swaps (CDS). The Company owns and operates seven central counterparty clearing houses. Through its electronic trading, clearing and post-trade platforms, it brings together buyers and sellers by offering liquid markets, products, access to capital markets, and a range of services to support market participants’ trading and risk management activities.
The Company’s derivatives markets provide participants with a means for trading and managing risks, as well as enabling investment, asset allocation and diversification. The Company’s global customer base includes financial institutions, corporations, manufacturers, utilities, commodity producers and consumers, institutional and individual investors and Governmental bodies. Its equity derivatives exchanges operate markets for security options based on equities, equity indexes and exchange traded products (ETPs). The Company conducts its derivatives business through the regulated exchanges: ICE Futures Europe, ICE Futures U.S., ICE Futures Canada, ICE Endex, New York Stock Exchange (NYSE), Amex Options, NYSE Arca Options and ICE Futures Singapore.
The Company’s OTC markets include both regulated and unregulated platforms for the execution of cleared and bilateral, or non-cleared, CDS instruments and bilateral energy contracts. The Company lists financially settled bilateral energy contracts on ICE Swap Trade and offers electronic trading on its natural gas, power, and crude and refined oil product contracts for forward delivery on ICE United States OTC commodity markets. The clearing houses provide financial security for each transaction for the duration of the position by limiting counterparty credit risk. The Company’s clearing houses provide clearing services to each of its futures exchanges, and for certain of its clearing houses, for contracts traded outside of its execution venues. Its clearing houses are ICE Clear Europe, ICE Clear United States, ICE Clear Credit, ICE Clear Canada, Holland Clearing House (HCH), The Clearing Corporation (TCC) and ICE Clear Singapore.
The Company operates three securities exchanges for participants to buy and sell cash equities, fixed income securities and ETPs. Through its listings operations, it offers its corporate issuers of equity and developers of ETPs access to the capital markets in the United States. The Company conducts its securities trading and listings business through The New York Stock Exchange, NYSE MKT and NYSE Arca. The Company offers data services across its markets. The Company compiles and package market data derived from trading activity in its markets into products that are relied upon by customers all over the world.
Regulated Energy Futures Contracts
The Company operates regulated markets for energy futures contracts and options on those contracts through its subsidiaries, ICE Futures Europe and ICE Futures U.S. Its core products include contracts based on crude and refined oil, natural gas, power, emissions, coal, freight, iron ore and natural gas liquids. The Company’s energy contract is the ICE Brent crude futures contract. The contract is a derivative of the ICE Brent Index, which is based on trades in the physical market for blends of light, sweet crude oil that comprise the Brent, Forties, Oseberg, Ekofisk, (BFOE), complex, as well as other oil fields. The Company also operates a market for trading in West Texas Intermediate (WTI).
Regulated Agricultural Futures Contracts
The Company’s ICE Futures U.S. and ICE Futures Europe are its regulated, commodity futures exchanges for the trading of agricultural commodities. These contracts provide pricing and hedging tools to industry users, as well as trading opportunities for investors. ICE Futures Canada is a regulated commodity futures exchange in Canada, and it facilitates the trading of futures and options on futures contracts for canola, milling wheat, durum wheat and barley. ICE Futures Canada contracts are developed to provide pricing, trading and hedging tools to market participants around the world.
Regulated Financial Futures Contracts
The Company’s ICE Futures Europe offers trading a range of financial futures products, including interest rate, equity index, and currency derivative products, which were transitioned from the Liffe platform. The Company’s core products are short-term interest rate (STIR), contracts with its principal STIR contracts based on implied forward rates denominated in euro and sterling, such as Euribor, Sterling and Gilts, as well as United States rates relating to Eurodollar and general collateral financing (GCF) repo futures. ICE Futures United States offers financial products in currency, equity index and credit index markets, including futures and options contracts on Russell indexes, including the Russell 2000, Russell 1000 and related indexes, and futures on MSCI indexes. Ice Futures United States lists futures and options for approximately 56 currency pair contracts, including euro-based, United States dollar-based, yen-based, and sterling-based and other cross-rates, as well as the USDX futures contract.
Securities Products and Listings
The Company offers securities trading products and listings through its exchange subsidiaries: the New York Stock Exchange, NYSE MKT and NYSE Arca. Through these exchanges, it provides various marketplaces for investors, broker-dealers and other market participants to meet directly to buy and sell equities, fixed income securities and ETPs.
Credit Derivatives Products
The Company’s Credit default swaps (CDS) are derivative instruments that have a credit risk transfer between counterparties with respect to fixed income instruments, such as corporate and sovereign debt securities. CDS are used to hedge against credit risk exposure related to a particular reference entity for a specified debt obligation or debt instrument. It offers electronic and voice brokered trade execution for CDS through Creditex Brokerage. The Company 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 provides connectivity between market participants, facilitating processing to the Depository Trust & Clearing Corporation’s Trade Information Warehouse for non-cleared CDS transactions or to a clearing house for CDS transactions that are clearing eligible.
OTC Energy Products
The Company’s OTC energy markets comprise the trading of bilateral energy contracts. It operates its bilateral energy markets through ICE Swap Trade and it offers electronic trading of contracts based on physically settled natural gas, power and refined oil products through ICE U.S. OTC Commodity Markets.
ICE Data Services
The Company’s ICE Data provides real-time futures data to data distributors, also known as quote vendors. The real-time packages are accessed on a subscription basis, and the appropriate exchange fee is paid for each user's access. Its end users include financial information providers, futures commission merchants, pension funds, financial services companies, funds, insurance companies, commodity pools and individual investors. The ICE Data services include publication of daily indexes, historical price and other transaction data, view-only and mobile access to its trading platform, end of day settlements and price data. ICE Data also offers a service that provides independent validation of participants’ own valuations for OTC products.
NYSE Data Services
The Company’s NYSE’s primary market data service is the distribution of real-time market data. This data includes price, transaction and order book data on all of the instruments traded on NYSE's cash and derivatives markets. The data is disseminated primarily via data vendors, but also directly to financial institutions and other service providers in the financial sector. NYSE provides two types of market data products and services: core data products and non-core data products.
The Company competes with Nasdaq OMX Group, Inc. (Nasdaq OMX), CME Group, Nasdaq, London Stock Exchange, Deutsche Borse, Miami International Securities Exchange, LLC , ELX Futures, L.P., Chicago Board Options Exchange, Inc. (CBOE), the International Securities Exchange Holdings, Inc., BATS, and the Boston Options Exchange Group, LLC.
Intercontinental Exchange Inc
5660 New Northside Dr
ATLANTA GA 30328-5800