ICE Futures U.S.

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ICE Futures U.S.
ICE logo.gif
Founded 2007 (through merger)
Headquarters New York
Key People Trabue Bland, President
Products Soft commodities, interest rates, currencies and indexes
Website www.theice.com


Intercontinental Exchange conducts global futures and options markets in soft commodity, foreign exchange, interest rates, currencies, metals and equity index markets through its U.S. futures exchange, ICE Futures U.S., formerly the New York Board of Trade (NYBOT). The NYBOT was acquired by ICE in January 2007.

Clearing services for ICE Futures U.S. are provided through ICE Clear U.S.

In early 2007, the U.S. Internal Revenue Service gave ICE Futures contracts, which are regulated in the United Kingdom, the same tax treatment as contracts traded on U.S. futures exchanges. The ruling applied to contracts traded from Apr. 1, 2007. The ruling meant that U.S. market participants would receive a 60/40 tax treatment.[1] Many believed the change in tax treatment served to put ICE on more level ground with the New York Mercantile Exchange.

Trabue Bland is president of ICE Futures U.S.

All options on futures traded on ICE Futures U.S. began trading exclusively on the ICE electronic trading system on October 22, 2012. Although the contracts no longer trade through open outcry, ICE Futures U.S. will continue to open the floor to exchange-member brokers and proprietary traders to support their electronic platform. The contracts completing the transition to electronic trading included options on the Sugar No. 11, Cotton No. 2, Coffee "C", Cocoa and Frozen Concentrated Orange Juice (FCOJ) futures contracts.

History

The ICE and NYBOT announced their merger agreement on Sept. 14, 2006, and the deal was completed on Jan. 12, 2007. The transaction consideration comprised 10.297 million shares of ICE common stock and $400 million in cash. Computershare Shareholder Services, Inc., acted as exchange agent. After ICE bought the NYBOT, it renamed the exchange ICE Futures U.S.

Side-by-side (electronic and open outcry) trading of the NYBOT's benchmark agricultural commodities on ICE's electronic trading platform began the evening of Jan. 25, 2006 for the trade date Jan. 26. [2]

ICE Futures U.S. shut down floor trading of all options and transitioned to all-electronic trading on October 22, 2012.[3]

Products

  • In 2007, ICE Futures U.S. introduced 11 electronically traded foreign exchange futures available 22 hours/day. They included: British pound/Japanese yen; British pounds; British pound/Swiss franc; British pound/US dollar; Euro/British pound; Euro/Japanese yen; Euro/Swiss franc; Euro/US dollar; Swiss franc/Japanese yen; US dollar/Japanese yen; and US dollar/Swiss franc.
  • ICE Futures U.S. launched a suite of million-currency-unit foreign exchange (FX) futures contracts on Nov. 6, 2008. The new futures contracts, known as ICE Millions. ICE Millions are 10 times the notional value of the existing suite of ICE FX futures and options contracts. ICE Futures U.S. also lists the ICE U.S. Dollar Index futures, which would remain the existing notional size of $1000 times the index value.[4]
  • In December of 2014, Intercontinental Exchange and Eris Exchange announced a multi-year license agreement for ICE exchanges to list European and U.S. credit default swap futures and options based on the Eris Methodology, Eris’ product design for constructing swap futures in a capital-efficient manner. The first product launch will be CDS futures based on the Markit CDX North American Investment Grade and High Yield indices, listed on ICE Futures U.S. and cleared at ICE Clear U.S.[5]
  • On January 12, 2015, the exchange launched trading in five new delivery currency pair futures contracts on its electronic trading platform starting. The contracts are: Israeli shekel-U.S. dollar (symbol ILS); Polish zloty-Euro (symbol PLE); Polish zloty-U.S. dollar (symbol PLN); Turkish lira-Euro (symbol ETR); Turkish lira-U.S. dollar (symbol TRM). [6]
  • Also in 2015 ICE Futures US began listing new energy products, including 15 new crude and refined oil contracts, adding to its existing portfolio of global oil futures. The new energy products included cash-settled US natural gas and financial power, as well as physical environmental contracts.[7]
  • ICE Futures US plans to list a new World Cotton contract on November 2, 2016, which will price delivery of multiple origins and allow delivery in multiple locations around the world. World Cotton will trade alongside ICE's benchmark Cotton No. 2 contract, which only prices cotton grown and delivered in the U.S.[8]

Key People

References

  1. "ICE Futures Given U.S. Tax Treatment By IRS". Reuters.
  2. "Sources:Nybot Plans To Shut Futures Pits In Next 6 Mos-Report". Wall Street Journal.
  3. The End of An Era: ICE Closes NY Trading Floor. WallStreetandTechnology.
  4. Press Release. ICE.
  5. Intercontinental Exchange and Eris Exchange Announce Global Swap Futures Licensing Agreement. Press release via Businesswire.
  6. ICE Futures U.S. Announces Launch of Five New Forex Contracts. ICE.
  7. ICE unveils more rates, energy contracts. FOW.
  8. ICE World Cotton. ICE.