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ICE Futures June 2007 ADV Rises 49%, Marks Second Highest Month Ever - NYBOT ADV Grows 40% To New Record - OTC Average Daily Commissions Rise 56% - Record Monthly Volume For NYBOT Tops 6 Million Contracts

Date 03/07/2007

IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace and soft commodity exchange, today reported strong growth in volume and commissions across all of its business segments during the month of June and for the second quarter. For the month, average daily volume (ADV) for ICE Futures, ICE’s U.K. regulated futures subsidiary, was 525,890 contracts, an increase of 49.0% over ADV in June 2006. ADV for the month of June represented the second highest in ICE Futures’ history. ADV at the New York Board of Trade (NYBOT), ICE’s U.S. regulated futures subsidiary, was a record 288,464 contracts in June 2007, up 39.7% over June 2006. Average daily commissions in ICE’s over-the-counter (OTC) segment were $791,590, a 55.9% increase over June 2006.

During the first half of 2007, ICE Futures recorded the strongest two quarters in its history. The second quarter of 2007 represented ICE Futures’ second highest volume quarter to date, with ADV increasing 56.5% to 522,294 contracts, compared to 333,668 contracts in the second quarter of 2006. NYBOT established a new ADV record for the quarter with 241,966 contracts, a 26.3% increase compared to the second quarter of 2006. Also during the second quarter, average daily commissions in ICE’s OTC business increased 36.3% to $717,847, compared to $526,824 in the second quarter of 2006.

“We have been consistently executing our ambitious growth plans across our diverse business lines, including strategic relationships and acquisitions that continue to build value for our customers and shareholders,” said Jeffrey C. Sprecher, ICE Chairman and CEO. “In the second quarter, we acquired the exclusive rights to futures and options on futures for the industry-leading Russell U.S. equity indexes; we began implementation of our comprehensive global clearing strategy; and announced agreements to acquire both ChemConnect and the Winnipeg Commodity Exchange -- all while pursuing our proposal to merge with the Chicago Board of Trade and increasing our trading volume at sector-leading growth rates. We also began implementation of a new architecture for the ICE platform, which is rapidly becoming the fastest, most sophisticated commodities trading platform globally. As part of this enhancement, ICE introduced a new, FIX-based market data feed with full market depth and usability unmatched by traditional exchange market data feeds. We are leveraging these valuable assets and opportunities as we build on additional strategic initiatives in the second half of 2007.”

ICE Futures Volume and RPC

ICE Futures reported monthly volume in June 2007 of 11,043,685 contracts, an increase of 42.2% compared to 7,767,246 contracts in June 2006. ADV rose 49.0% from 353,057 contracts in June 2006 to 525,890 contracts in June 2007.

In June 2007, ICE Futures rate per contract (RPC) averaged $1.27, compared to average RPC of $1.30 in April and in May 2007. RPC is calculated by dividing transaction revenues by trading volume, and varies depending upon customer and product mix.

For the second quarter, ICE Futures recorded its second highest quarterly volume total, with 32,821,910 contracts compared to 21,021,086 in the same period in 2006. ADV was 522,294, a 56.5% increase compared to the second quarter of 2006. The second quarter of 2007 represented ICE Futures’ second best quarter ever in total and average daily volume for ICE Brent Crude futures, ICE WTI Crude futures and ICE Gas Oil futures. RPC at ICE Futures in both the first and second quarters of 2007 was $1.29.

At June 30, 2007, open interest for ICE Futures was 1,773,670 contracts, compared to 1,416,470 contracts at December 31, 2006.

ICE Futures Segment: June Volume by Product

Contract
Total Volume June 2007
Total Volume June 2006
Volume % Change
ADV June 2007
ADV June 2006
ADV % Change
ICE Brent Crude futures
4,912,701
3,744,193
31.2
233,938
170,191
37.5
ICE WTI Crude futures
4,039,325
2,546,974
58.6
192,349
115,772
66.1
ICE GasOil futures
1,833,481
1,382,076
32.7
87,309
62,822
39.0
Other contracts*
258,178
94,003
174.6
12,294
4,272
187.7
Total ICE Futures contract volume
11,043,685
7,767,246
42.2
525,890
353,057
49.0

*"Other contracts" include ICE Middle East Sour Crude futures, which began trading May 21, 2007; ICE Heating Oil futures; ICE Unleaded Gasoline Blendstock (RBOB) futures; ICE UK Natural Gas futures; ICE-ECX CFI futures; ICE UK Electricity futures; ICE Coal futures; ICE Brent options; ICE WTI options, and ICE Gas Oil options. The ICE-ECX CFI futures contract is the result of a cooperative relationship between ICE Futures and the Chicago Climate Exchange, Inc. and its subsidiary, the European Climate Exchange. ICE Futures shares in the revenue derived from the ECX CFI Futures contract.

NYBOT Volume and RPC

Total futures and options volume at NYBOT in June 2007 increased 33.4% to a record 6,057,750 contracts, compared to volume of 4,541,503 contracts in June 2006. The new monthly high represented the first time NYBOT volume exceeded the 5 million contract mark in a single month. June 2007 ADV at NYBOT rose 39.7%, to 288,464 contracts per day, and ADV for the second quarter of 2007 totaled 241,966 contracts, up from 191,530 contracts in the second quarter of 2006. Electronic trading in soft commodity futures accounted for 72% of the total NYBOT soft commodity futures contracts in June, compared to 71% in May. In June 2007, ADV in electronically traded soft commodity futures was 153,424 contracts; total soft commodity futures volume averaged 211,667 contracts per day. NYBOT set volume records in June in Coffee futures, Sugar No. 11 futures and total agricultural futures. ADV in Sugar No. 11 futures increased 91.9% in June compared to the same period in 2006.

In May 2007, NYBOT reported an aggregate RPC for NYBOT soft commodity futures and options of $1.68, compared to $1.53 in May 2006. RPC for April 2007 was $1.72. RPC for NYBOT is reported one month in arrears.

NYBOT total volume for the second quarter of 2007 was 15,256,609 compared to 12,066,364 in the same period in the prior year. ADV was 241,966, a 26.3% increase compared to the second quarter of 2006.

NYBOT Segment: June Volume by Product

Contract
Total Volume June 2007
Total Volume June 2006
Volume % Change
ADV June 2007
ADV June 2006
ADV % Change
ADV % Electronic
Cocoa futures
328,646
333,275
-1.4
15,650
15,149
3.3
81.7
Sugar No. 11 futures
2,686,066
1,466,523
83.2
127,908
66,660
91.9
78.3
Sugar options
518,371
489,795
5.8
24,684
22,263
10.9
n/a
Cotton No. 2 futures
745,901
601,971
23.9
35,519
27,362
29.8
48.3
Coffee "C" futures
600,122
476,543
25.9
28,577
21,661
31.9
75.7
Coffee "C" options
243,574
241,174
1.0
11,599
10,962
5.8
n/a
Frozen Conc. Orange Juice (FCOJ) futures
84,158
87,429
-3.7
4,008
3,974
0.8
41.5
FCOJ options
38,644
30,641
26.1
1,840
1,393
32.1
n/a
Cross Currency futures
273,636
264,979
3.3
13,030
12,045
8.2
n/a
US Dollar Index futures
128,150
143,080
-10.4
6,102
6,504
-6.2
31.1
Other contracts*
410,482
406,093
1.1
19,547
18,459
5.9
94.2
Total NYBOT futures & options**
6,057,750
4,541,503
33.4
288,464
206,432
39.7
72.2
 

* "Other contracts" are NYBOT's additional markets for food, fiber, foreign exchange and index products

** ADV % Electronic calculation excludes products that were not available for electronic trading at any time during the month. ICE began offering electronic trading for the NYBOT Russell 1000® and the NYBOT US Dollar Index on June 15, 2007.

OTC Business Segment

Average daily commissions reflect daily trading activity in ICE’s OTC markets. In June 2007, ICE’s average daily commissions increased 55.9% to $791,590 compared to $507,647 in June 2006. For the second quarter of 2007, ICE’s average daily commissions were $717,847, an increase of 36.3% compared to $526,824 per day in the second quarter of 2006.

OTC Segment: June Average Daily Commissions

June 2007
June 2006
% Change
ICE OTC Average Daily Commissions
$791,590
$507,647
55.9

Additional June 2007 Highlights:

  • ICE in June was named 2007 Futures Exchange of the Year by FOW Magazine.
  • On June 22, ICE announced a definitive agreement to acquire the Winnipeg Commodity Exchange (WCE), the leading agricultural commodity futures and options exchange in Canada and home to the world's leading canola futures contract. The acquisition will complement ICE's earlier acquisition of NYBOT, the world's leading soft commodity exchange.
  • On June 18, ICE entered into an exclusive licensing agreement with Russell Investment Group to offer futures and options on futures on the full line of popular Russell U.S. equity indexes. The agreement with ICE will result in the transition of all other valid licenses on futures and options on futures based on the Russell indexes. Today, institutional investment professionals responsible for approximately $4 trillion in assets use Russell indexes to guide their portfolios, which account for 52% of institutional benchmarked products. The exclusive license agreement is conditioned upon the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
  • On June 4, ICE announced a definitive agreement to acquire ChemConnect, Inc.'s commodity trading business. ChemConnect is the leading electronic marketplace for the natural gas liquids (NGLs) and chemicals markets, which have a notional value of approximately $150 billion, and the acquisition complements ICE's leading position in the U.S. physical gas and power markets, as well as the upcoming launch of the Platts window on ICE for the global physical oil markets.
  • Beginning in June and continuing into July, ICE began implementing the latest enhancements to its electronic trading platform, which bring round-trip futures response time down to approximately seven milliseconds in the markets where the new technology has been introduced, from an already industry-leading 27 milliseconds.
  • During June, NYBOT established multiple exchange-wide and electronic daily volume records, culminating on June 13 with total volume of 414,701 contracts and electronic volume of 232,371. NYBOT established new daily electronic trading records in a variety of futures contracts and a daily record of NYBOT Cotton No. 2 futures and options volume exceeding 100,000 for the first time.
  • On June 15, NYBOT introduced side-by-side trading of futures on the U.S. Dollar Index® (USDX) and Russell 1000® full- and mini-sized indexes.
  • In response to the increasing demand for independent verification of portfolio valuations, ICE expanded its leading ICE Data Market Price Validation (MPV) service to include more products and data points. The ICE Data MPV service provides benchmarking and validation of "non-observable" market prices for long-dated OTC swaps, options and exotic derivative products, ranging from five to twenty years. ICE Data added a twice-monthly valuation service and expanded coverage to include an extensive list of swaptions, crack and spark spread options.

Additional Second Quarter 2007 Highlights:

  • ICE Futures launched ICE Middle East Sour Crude futures on May 21, 2007. The new contract places three leading crude oil benchmarks on a single trading platform.
  • ICE announced its global clearing strategy, including the establishment of ICE Clear Europesm, to be based in the U.K., and the re-naming of the New York Clearing Corp. to ICE Clear USsm. More details are available in the April 30 press release.
  • The ICE Trading Center, located in the premier 2 World Financial Center in New York, opened on April 12. The 10,000 square-foot state-of-the-art facility features the latest in technology and communications for professional traders.
  • ICE announced that it has entered into a purchase and leaseback agreement with Intelligence Press, Inc. (IPI) to acquire the natural gas indexes published by IPI in its Natural Gas Intelligence (NGI) newsletters. IPI will continue to collect and aggregate prices in the wholesale natural gas market and publish the indexes, and ICE will have the exclusive right to license the indexes for exchange settlement and clearing.
  • U.S. participants trading in ICE Futures markets now receive "60/40 tax treatment" as of April 1, 2007, since ICE Futures was designated by the U.S. Internal Revenue Service as a "qualified board or exchange." Contracts offered by ICE Futures afford U.S. market participants with the same tax treatment available on U.S. futures exchanges' contracts.
  • During the second quarter ICE Futures averaged a 48% market share in global crude futures as measured by volume of light sweet crude oil.
  • ICE announced plans to relocate its disaster recovery center to Chicago in a staged transition beginning in June 2007, and culminating in the primary data center move occurring in January 2008.

Historical futures volume and OTC commission data can be found at:
www.theice.com/marketdata/recordsAndVolumes/volumes2007.jsp

Volume and open interest information on NYBOT can be found at:
https://www.theice.com/nybot_volumes.jhtml