I am pleased to announce that this legal action has been settled on amicable terms and the ICE Board is therefore committed to pursuing the redemption process. Subject to completing various administrative processes, ICE will no longer require that the IPE has to become fully electronic as a condition of B share redemption. The ICE Board believes that this will provide the IPE with more freedom to develop its markets in a manner which is beneficial to the IPE’s members, its many customers and ICE shareholders. ICE will move to full redemption of the B shares as quickly as possible.
Statement from Sir Bob Reid, Chairman of the IPE
In light of the announcement above, the IPE is able to retain the open outcry pits in the afternoon while it develops volume on its electronic system. As part of this market development, it will continue with its plans to move the morning of the Brent futures contract onto the electronic platform. We are also announcing today that we intend in concert to make a number of incentive arrangements available to the IPE’s members.
From 1 November, Brent futures will be exclusively traded on the electronic system from 2am to 2pm (UK time) and thereafter side-by-side with the open outcry session until settlement at 7.30 pm (UK time). The IPE is also finalising terms of various incentive schemes and is currently looking to offer 2 separate schemes:
- No exchange transaction fees for IPE white badge locals on Brent and Gas Oil open outcry futures.
- No exchange transaction fees for all members for Brent futures on the electronic system until 2pm.
The IPE is interested in developing both open outcry and electronic markets and in this connection
