ICE Facilitates Agreement To Provide Industry's Most Comprehensive Reporting For U.S. Energy Futures Contracts

IntercontinentalExchange (NYSE: ICE), a leading operator of global derivatives exchanges and over-the-counter (OTC) markets, today announced that, in cooperation with the U.S. Commodity Futures Trading Commission (CFTC) and the U.K. Financial Services Authority (FSA), it has facilitated the development of a cross-border program to provide enhancements to its energy market data reporting, including the large trader reports already in place on its West Texas Intermediate (WTI) crude oil futures contract.

The expanded information sharing agreement, initiated by ICE and detailed below, will be subject to the existing memorandum of understanding (MOU) between the FSA and the CFTC. As a result of these proactive enhancements, ICE Futures Europe will provide greater transparency in its markets than is currently provided by other U.S. futures exchanges.

"Transparency and innovation have always been cornerstones of our marketplace, and we are proud that the information we are providing voluntarily to the CFTC and FSA will make ICE Futures Europe the most transparent energy market in the world today," said ICE Chairman and CEO Jeffery C. Sprecher. "We believe today's agreement will bring even greater visibility and oversight to the global energy markets, and we are confident the enhanced information will demonstrate that both ICE and our participants already operate in a manner consistent with existing U.S. regulations. Prudent regulatory information sharing and cooperation, rather than enactment of onerous and duplicative regulatory schemes, will ensure that these vital markets remain transparent and do not move offshore."

The reporting arrangement announced today demonstrates ICE's continued leadership in providing timely, transparent disclosure to U.S. and U.K. market regulators. Since 2006, ICE has been providing information regarding its ICE Futures Europe markets to the CFTC through a memorandum of understanding between the CFTC and the FSA, which has primary regulatory jurisdiction over ICE's energy futures markets. The MOU included the provision of large trader reports by ICE to the FSA and subsequent reporting of that information to the CFTC. The enhanced agreement announced today is comprised of five key components:

1. Expanded information-sharing to provide the CFTC with daily large trader positions in the UK-listed WTI crude oil contract;
2. Extended trader information sharing to provide crude oil trading data for all contract months in the WTI contract;
3. A commitment to provide trader information to permit more detailed identification of market end users;
4. A commitment to provide modified data formatting so trading information can be seamlessly integrated into the CFTC's surveillance system; and
5. In addition to the established position management program that FSA currently requires of ICE Futures Europe, ICE Futures Europe will notify the CFTC when traders exceed position accountability limits in the WTI crude oil contract that have been established by domestic contract markets.

Sprecher added: "These steps will assure that as a fully regulated exchange, we are providing the best information available. We evaluated a number of alternatives to ensure that regulators and policy makers have the tools they need to monitor the markets that we operate. Changes such as those agreed to today can increase transparency without impeding price discovery or artificially muting supply and demand fundamentals, which could result from mandated, arbitrary margin adjustments. In the past year, margin requirements for the ICE WTI contract have risen over 140%, yet crude oil prices continue to rise. Margin requirements are, and should continue to be, used solely to ensure prudent risk management via a clearing house and not to attempt to establish artificial price controls. Markets have demonstrated over time that such efforts are ineffective."

ICE Futures Europe has a twenty-eight year track record as a regulated futures exchange and performs rigorous surveillance functions. As a result of ICE's experience and the enhanced data reporting to the FSA and CFTC, ICE's WTI contract offers greater transparency to both market participants and regulators than those offered by competing exchanges in the U.S., Asia and the Middle East. ICE's diverse product offerings, technologically superior platform, unparalleled accessibility and liquidity continue to draw new users who are seeking world-class risk management solutions in today's volatile marketplace.