ATLANTA, July 30, 2012 /PRNewswire/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that all cleared OTC products listed on ICE's OTC energy market will be transitioned to futures products in January 2013. These products will continue be listed and traded on the ICE platform and cleared at ICE Clear Europe, and block trades will continue to be available subject to applicable requirements.
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All uncleared swaps will continue to be listed on ICE's OTC platform, which will register as a swap execution facility.
"Jurisdictions around the world are enacting policies designed to further regulate OTC swaps markets," said Chuck Vice, ICE President and COO. "Based upon our extensive analysis of new swap rules and consultations with a wide variety of customers, we believe that these policies will increase the cost and complexity for swaps market participants, both in absolute terms and relative to that of futures market participants. We anticipate a seamless transition that will largely preserve existing methods of transacting in ICE's markets."
Cleared North American natural gas, electric power, environmental products and natural gas liquids (NGLs) swaps will be listed as futures on the energy division of ICE Futures U.S. Cleared oil products, freight and iron ore swaps will be listed as futures on ICE Futures Europe. All products will continue to clear at ICE Clear Europe, which was approved as a CFTC-regulated derivatives clearing organization in 2010. The transition from OTC swaps to futures is subject to approvals from the Commodity Futures Trading Commission and Financial Services Authority.
IntercontinentalExchange (NYSE: ICE) is a leading operator of regulated futures exchanges and over-the-counter markets for agricultural, credit, currency, emissions, energy and equity index contracts. 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, currencies and Russell Index markets. ICE is also a leading operator of central clearing services for the futures and over-the-counter markets, with five regulated clearing houses across North America and Europe. ICE serves customers in more than 70 countries. www.theice.com
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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, 2011, as filed with the SEC on February 8, 2012.