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ICE Futures U.S.(TM), a leading regulated U.S. futures exchange for global agricultural, equity index and currency markets, today issued the following statement in response to the agricultural market initiatives set forth by the U.S. Commodity Futures Trading Commission (CFTC) regarding the domestic agricultural commodity markets.
The CFTC's agricultural market initiatives include provisions that will enhance the visibility and quality of data available to the CFTC and market participants. Transparency is the cornerstone of ICE Futures U.S.'s regulated marketplace and the exchange applauds the ongoing commitment of the CFTC to promote confidence in the vital agricultural futures markets.
The initiatives announced by the CFTC include:- Multiple initiatives to improve the quality and quantity of publicly-
available market information, including additional detail from swaps
dealers and index traders.
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- ICE Futures U.S. strongly supports changes that will enhance the quality of oversight and availability of public information with respect to the agricultural markets.
- Multiple initiatives to provide greater risk management choices for
farmers and agri-businesses, including the clearing of agricultural
swaps and revisions to the agricultural trade option program.
- ICE Clear U.S.(TM), a wholly-owned clearing corporation of ICE Futures U.S., filed a request for authority with the CFTC in September of 2007 to clear agricultural swap transactions. As a Derivatives Clearing Organization handling agricultural futures and options, ICE Clear U.S. has the capabilities necessary to bring much-needed transparency to the very large and global swaps markets. ICE Futures U.S. eagerly awaits the Commission's approval of its application.
- An investigation of unusual trading patterns in the cotton markets
during the first quarter of 2008.
- ICE Futures U.S. is actively working with the CFTC to ensure complete information in this investigation. The exchange does not comment on pending investigations.
- Multiple initiatives to provide additional credit for the farming and
merchant communities.
- ICE Futures U.S. strongly supports initiatives that will enable the hedgers in the farming and merchant communities to finance bona-fide hedge positions during a rising-price environment.
ICE Futures U.S. has a 138-year track record as a regulated futures exchange and performs rigorous surveillance functions. The transparency enhancements announced today by the CFTC combined with ICE Futures U.S.'s experience should bring greater confidence to participants in the agricultural commodity markets. ICE Futures U.S.'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.
