IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace and soft commodity exchange, today announced a revenue ruling from the U.S. Internal Revenue Service (IRS) designating ICE Futures as a “qualified board or exchange,” thereby providing “60/40 tax treatment” to U.S. participants trading in ICE Futures markets. ICE Futures, the U.K.-regulated subsidiary of ICE, has a growing customer base in the United States and approval to offer its screens in 46 additional geographic jurisdictions around the globe.
With the designation of ICE Futures as a “qualified board or exchange” under Section 1256 of the Internal Revenue Code, contracts offered by ICE Futures will afford U.S. market participants with the same tax treatment afforded to contracts traded on U.S. futures exchanges. Under so called “60/40 tax treatment,” 60% of gains (or losses) on ICE Futures’ contracts will be treated as long-term capital gain (or loss), and 40% of such gains (or losses) will be treated as short-term capital gain (or loss). Market users of the New York Board of Trade, ICE’s U.S.-regulated futures subsidiary, already receive 60/40 tax treatment.
The ruling will apply to contracts traded on ICE Futures on and after April 1, 2007.
About IntercontinentalExchange
IntercontinentalExchange® (NYSE: ICE) operates the leading global, electronic marketplace for trading both
futures and OTC energy contracts and the leading soft commodity exchange. ICE’s markets offer access to
a range of contracts based on crude oil and refined products, natural gas, power and emissions, as well as
agricultural commodities including cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, in
addition to currency and index futures and options. ICE® conducts its energy futures markets through its U.K.
regulated London-based subsidiary, ICE Futures, Europe’s leading energy exchange. ICE Futures offers
liquid markets in the world’s leading oil benchmarks, Brent Crude futures and West Texas Intermediate
(WTI) Crude futures, trading nearly half of the world’s global crude futures by volume of commodity traded.
ICE conducts its agricultural commodity futures and options markets through its U.S. regulated subsidiary,
the New York Board of Trade®. For more than a century, the NYBOT® has provided global markets for food,
fiber and financial products. ICE was added to the Russell 1000® Index on June 30, 2006. Headquartered
in Atlanta, ICE also has offices in Calgary, Chicago, Houston, London, New York and Singapore. For more
information, please visit www.theice.com and www.nybot.com.
