IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of global regulated futures exchanges and over-the-counter (OTC) markets, announced the introduction of 11 new cleared energy contracts in its OTC marketplace beginning January 9, 2009. ICE previously announced that it would be introducing more than 50 new cleared products beginning in December 2008 and continuing into 2009. The first tranche of 21 contracts launched on December 5.
The second set of new products consists of North American power as well as European and Asian oil swaps, among others. The contracts available for OTC clearing on January 9 are:
- PJM West Real Time Penultimate Mini Peak (PJO)
- PJM West Real Time Penultimate Mini Peak Options (PJO)
- Propane, Mt. Belvieu - LDH FP for OPIS (PRL)
- Ethane, Mt. Belvieu - ENT FP for OPIS (ETE)
- Platts Dated Brent Crude Swap (PDB)
- Platts Brent CFD vs First Month Swap (CFD)
- Platts Dated Brent vs Brent First Line Crude Balmo Swap
- Platts 180 cst Singapore Fuel Oil Balmo Swap
- Platts 380 cst Singapore Fuel Oil Balmo Swap
- Platts Singapore 0.5% Gasoil Balmo Swap
- Platts Singapore Jet Kerosene Balmo Swap
In 2002, ICE pioneered the concept of cleared OTC energy contracts, which provide participants with access to centralized clearing and settlement arrangements while reducing bilateral credit risk and capital required for each OTC trade. As of November 2008, ICE OTC and ICE Futures Europe contracts are cleared through ICE Clear Europe.
ICE currently offers more than 120 cleared OTC energy contracts, and today more than 90% of ICE's OTC transaction volume is cleared.
