Full Description

IntercontinentalExchange, Inc. (ICE) is an operator of regulated global futures exchanges and over-the-counter (OTC) markets. The Company operates the electronic futures and OTC marketplace for trading an array of energy, soft agricultural and agricultural commodities, credit default swaps (CDS) and financial products. It offers an integrated electronic platform for side-by-side trading of energy products in both futures and OTC markets, together with clearing services. Through its electronic marketplace, it brings together buyers and sellers of derivative and physical commodities and financial contracts, and offers a range of services to support its participants’ risk management needs.

The Company has three segments: futures business segment, OTC business segment and market data business segment. On February 13, 2008, the Company acquired YellowJacket Software, Inc. (YellowJacket). On August 29, 2008, ICE acquired Creditex Group Inc. (Creditex).

The Company conducts its OTC business through IntercontinentalExchange as an Exempt Commercial Market under the Commodity Exchange Act (CEA) and through Creditex, an interdealer broker. It conducts its regulated energy futures markets through the wholly-owned subsidiary, ICE Futures Europe. The Company 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 wholly owned subsidiary, ICE Futures Canada.

ICE operates global markets that promote price transparency and offer participants the opportunity to trade a range of energy, soft agricultural and agricultural commodities, credit default swap (CDS) and financial products. Its core products include contracts based on crude and refined oil products, natural gas and power, coal, emissions, sugar, cotton, coffee, cocoa, canola, orange juice, CDS, foreign exchange and equity index products. Its derivative and physical products provide participants with a means for managing risks associated with changes in the prices of these commodities, asset allocation, ensuring physical delivery of select commodity products and trading. The majority of the Company’s trading volume is financially, or cash settled. ICE’s customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, commodity producers and refiners, and governmental bodies.

ICE operates its United States, United Kingdom and Canada exchanges, as well as OTC markets on its electronic platform, except for the Creditex business, in which trading is conducted both electronically on Creditex’s platform, and through voice brokered transactions. ICE Futures U.S. offers options on futures markets through its open-outcry trading floor based in New York City, complementing its electronic futures and options offerings.

Futures Marketplaces

ICE Futures Europe operates as an investment exchange in the United Kingdom, where it is regulated by the United Kingdom Financial Services Authority (FSA). ICE Futures U.S. is a global futures and options exchange for trading in an array of soft agricultural commodities, including cocoa, coffee, cotton, frozen concentrated orange juice (FCOJ) and sugar. ICE Futures United States also provides trading in futures and options contracts for a range of financial products, including its futures and options contracts based on the Russell indexes and United States Dollar Index (USDX). ICE Futures United States operates as a designated contract market and is regulated by the Commodity Futures Trading Commission (CFTC).

ICE Futures Canada is Canada’s commodity futures and options exchange and North America’s fully electronic futures commodity exchange. Based in Winnipeg, ICE Futures Canada offers futures and options contracts on canola, domestic feed wheat, and western barley. ICE Futures Canada is a recognized commodity futures exchange under the provisions of The Commodity Futures Act (CFA), and is regulated by the Manitoba Securities Commission (MSC). ICE Futures Canada owns it own clearing house, ICE Clear Canada, which clears and settles contracts traded on, or subject to, the rules of ICE Futures Canada.

OTC Marketplace

In the OTC business, ICE operates over-the-counter markets, through its electronic platform. It offers trading in thousands of OTC contracts, covering a range of energy-related products and contract types. These contracts include derivative contracts, as well as contracts that provide for physical delivery of the underlying commodity, relating to natural gas, power, natural gas liquids, chemicals and crude and refined oil products. The Company offers a range of derivative contracts in its OTC markets due to the availability of various combinations of commodities, product types, delivery hub locations and terms or settlement dates for a given contract. ICE’s OTC market participants include energy companies, financial institutions and trading firms, as well as natural gas distribution companies and utilities.

Market Data

ICE offers market data services for both futures and OTC markets through its market data subsidiary, ICE Data. ICE Data compiles and repackages market data derived from trading activity on its platform into information products that are sold to customers extending beyond the Company’s core trading community. ICE Data provides data services covering its energy futures and OTC markets, as well as soft agricultural and agricultural commodities, equity indices and currency pairs. Market data services for these segments include publication of daily indices, access to historical price and other data, view only access to the Company’s trading platform, end of day settlements and pricing data sets, as well as a service that provides independent validation of participants own valuations for OTC products.

The Company competes with Chicago Mercantile Exchange, New York Mercantile Exchange and London International Financial Futures and Options Exchange.