ICE Announces Development Of New Funds Rate Futures Contract And Product Advisory Committee

Intercontinental Exchange (NYSE:ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced an innovative interest rate contract that will facilitate term financing arrangements, such as repos. Consummated transactions in ICE's Funds Rate contract will offer real-time transparency into the interest rate funding markets in a variety of currencies.

The patent-pending solution was developed and licensed by principal trading firm DRW, and has pricing characteristics similar to a zero-coupon bond.

ICE is also establishing an advisory committee comprising financial institutions, liquidity providers and subject matter experts to help bring the contract to market in late 2016, subject to regulatory approval.