IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported record futures volumes and OTC energy commissions for 2009. Each of ICE's futures exchanges established annual volume records in 2009, with average daily volume (ADV) surpassing one million contracts for the first time. ICE also established record OTC energy average daily commissions (ADC) of $1.33 million in the fourth quarter of 2009.
Said ICE Chairman and CEO, Jeffrey C. Sprecher: "ICE's performance as a leading growth company in our sector, coupled with the development of key clearing capabilities in the global OTC markets, allowed us to once again deliver double-digit volume growth while providing our markets with tools to enhance risk management. ICE's leadership role as a global clearing provider is helping to support the recovery of vital OTC markets and reduce systemic risk."
Global Futures Exchanges
ICE operates three regulated futures exchanges: ICE Futures Europe, ICE Futures U.S. and ICE Futures Canada.
- December 2009 ADV across all three ICE Futures exchanges increased 17% over December 2008, to a record 988,212 contracts.
- Fourth quarter 2009 ADV for all ICE Futures contracts increased 13% over fourth quarter 2008, to a record 1,048,501 contracts. ICE Futures Europe established its second consecutive ADV and total volume quarterly records, with 688,598 and 44,070,252 contracts, respectively.
- ADV for the full year 2009 for all ICE Futures contracts was a record 1,035,887 contracts, 12% higher than 2008. ICE Futures Europe and ICE Futures U.S. established their twelfth and seventh consecutive annual volume records, respectively. ICE Futures Canada also established a new annual volume record.
Energy and Credit OTC Transaction Revenues
- Fourth quarter ADC for ICE's OTC energy business were a record $1.33 million, up 53% from the fourth quarter of 2008.
- ADC for 2009 was $1.20 million, an increase of 8% from 2008.
- ICE's credit default swap (CDS) trade execution, processing and clearing revenues totaled $40.5 million during the fourth quarter of 2009, up 14% from the same period in 2008 on a pro-forma basis. ICE did not offer CDS clearing in 2008.
- CDS revenues totaled $165.4 million for the full year 2009.
Operating and Financial Guidance Update
- During the fourth quarter of 2009, ICE expects to record an incremental $11 million in non-operating income related to adjustments to various cost equity method investments, including the disposition of its LCH.Clearnet shares. In addition to its GAAP reporting, ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
- During the fourth quarter of 2009, ICE expects to record $3 million in additional SG&A expense related to a one time true-up of certain state tax items. ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
- During the fourth quarter of 2009, ICE expects to incur $4 million in severance charges related to its TCC and credit businesses, which will be recorded as non-cash ($2 million) and cash ($2 million) compensation expense. The company expects a similar level of savings on an annualized basis beginning in 2010. ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
- Due to outperformance relative to 2009 financial targets, ICE expects to incur additional cash compensation expense of $3 million and additional non-cash compensation expense of $3 million during the fourth quarter of 2009. The company's performance during the historically and seasonally weak fourth quarter was much stronger than anticipated, resulting in increased bonus payments to all employees due to further outperformance versus its 2009 financial targets. The impact on compensation expense reflects a full-year true-up and is not reflective of expected quarterly run-rate expense levels. For 2010, non-cash compensation expense is expected to be below 2009 levels and in the range of $45 million to $49 million, assuming achievement of 2010 financial objectives.
December 2009 Review
- Through December 31, ICE's CDS clearing houses have cleared $4.6 trillion in notional value across 56,259 transactions.
- Since its inception in March 2009, ICE Trust has cleared $3.3 trillion of notional value, resulting in $232 billion of open interest.
- ICE Clear Europe has cleared euro 885 billion ($1.3 trillion) of notional value since its July 2009 launch, resulting in euro 75 billion ($107 billion) of open interest.
- On December 14, ICE Clear Europe launched clearing services for European single-name CDS contracts. Through December 31, ICE Clear Europe cleared 100 single- name transactions totaling euro 566 million ($829 million) of gross notional value, with open interest of euro 184 million ($265 million). ICE Clear Europe also announced that BNP Paribas and Nomura were approved as CDS clearing members and began clearing transactions.
- On December 21, ICE Trust began clearing North American single-name CDS contracts. Through December 31, ICE Trust cleared 150 single-name transactions totaling $1.3 billion of gross notional value, with open interest of $500 million. ICE Trust is the only clearing house processing single-name CDS in North America.
- On December 23, ICE announced the introduction of 23 new cleared OTC natural gas and power contracts. ICE will offer more than 310 cleared OTC energy contracts, including 226 new OTC contracts introduced since the launch of ICE Clear Europe in November 2008.
- Trading days in December 2009:
- ICE Futures Europe: 22
- ICE Futures U.S.: 22
- ICE Futures Canada: 21
- ICE Futures Europe records achieved in December 2009:
- The exchange set a daily volume record of 1,249,239 contracts on December 9.
- The ICE Brent and ICE WTI crude futures contracts established daily volume records of 581,685 contracts and 409,727 contracts, respectively, on December 9.
- Open interest records were established for several emissions and coal futures contracts.
- ICE Futures U.S. records achieved in December 2009:
- The U.S. Dollar Index (USDX) established a monthly volume record of 509,385 contracts, including a daily record of 74,562 contracts on December 9.
ICE Futures Contracts & Markets Monthly ADV
ADV ADV ADV
December December % Change
Product Line 2009 2008
------------ -------- -------- --------
ICE Brent Crude futures & options 287,668 232,916 23.5
ICE WTI Crude futures & options 188,303 152,474 23.5
ICE Gasoil futures & options 135,623 114,313 18.6
ICE ECX emissions futures & options (1) 16,976 8,616 97.0
Other futures contracts (2) 11,404 6,119 86.4
TOTAL ICE FUTURES EUROPE 639,974 514,438 24.4
Russell 2000(R) mini futures & options 132,607 183,179 -27.6
Sugar No. 11 futures & options 117,096 78,176 49.8
Other agricultural commodity contracts (3) 48,823 42,630 14.5
Currency futures (4) 5,836 4,800 21.6
Index futures (5) 25,437 9,781 160.1
Other contracts (6) 215 320 -32.8
TOTAL ICE FUTURES U.S. 330,014 318,887 3.5
TOTAL ICE FUTURES CANADA 18,224 12,964 40.6
------------------------ -------- -------- --------
TOTAL FUTURES CONTRACTS 988,212 846,289 16.8%
(1) ICE ECX EUA and ICE ECX CER futures and options contracts are the
result of a cooperative relationship between ICE Futures Europe and
the European Climate Exchange. ICE Futures Europe shares in the
transaction fee revenue derived from these contracts.
(2) "Other futures contracts" include ICE Middle East Sour Crude futures;
ICE ASCI Gulf Coast Sour Crude futures; ICE Heating Oil futures; ICE
Unleaded Gasoline Blendstock (RBOB) futures; ICE UK Natural Gas
futures; ICE UK Electricity futures; and ICE Coal futures.
(3) "Other agricultural commodity contracts" include futures and/or
options for Cocoa, Coffee "C", Cotton No. 2, Orange Juice, Sugar No.
14 and Sugar No. 16.
(4) "Currency futures" include foreign exchange futures.
(5) "Index futures" include futures for the U.S. Dollar Index, Russell
2000 (full size), Russell 1000(R), Russell 1000 mini, the Continuous
Commodity Index, the Euro Index, and the NYSE Composite.
(6) "Other contracts" include options on foreign exchange futures and
options on index futures, excluding Russell 2000 mini options.
ICE Futures Fourth Quarter 2009 and Year-to-Date ADV
4Q2009 4Q2008 Percent Change
------ ------ --------------
ICE Futures Europe 688,598 569,140 21.0
ICE Futures U.S. 344,249 350,695 -1.8
ICE Futures Canada 15,654 11,625 34.7
Total Futures 1,048,501 931,460 12.6%
12-mos 2009 12-mos 2008 Percent Change
----------- ----------- --------------
ICE Futures Europe 652,463 590,541 10.5
ICE Futures U.S. 369,147 318,085 16.1
ICE Futures Canada 14,277 13,232 7.9
Total Futures 1,035,887 921,858 12.4%
ICE Futures Monthly, Quarterly and Year-to-Date Volume
December 2009 December 2008 Percent Change
------------- ------------- --------------
ICE Futures Europe 14,079,436 11,317,644 24.4
ICE Futures U.S. 7,260,309 7,015,503 3.5
ICE Futures Canada 382,710 272,250 40.6
Total Futures 21,722,455 18,605,397 16.8%
4Q2009 4Q2008 Percent Change
------ ------ --------------
ICE Futures Europe 44,070,252 36,994,078 19.1
ICE Futures U.S. 22,031,931 22,644,449 -2.7
ICE Futures Canada 970,569 720,767 34.7
Total Futures 67,072,752 60,359,294 11.1%
12-mos 2009 12-mos 2008 Percent Change
----------- ----------- --------------
ICE Futures Europe 165,725,488 152,950,133 8.4
ICE Futures U.S. 93,025,024 80,954,837 14.9
ICE Futures Canada 3,569,346 3,321,210 7.5
Total Futures 262,319,858 237,226,180 10.6%
ICE Futures Open Interest
December 31, 2009 December 31, 2008
----------------- -----------------
ICE Futures Europe 2,647,694 2,102,574
ICE Futures U.S. 3,375,176 3,028,877
ICE Futures Canada 118,181 97,673
Rolling Three-Month Average Rate per Contract (RPC)
Three Months Three Months Three Months
Ending Ending Ending
December 2009 November 2009 October 2009
------------- ------------- ------------
Product Line
------------
ICE Futures Europe $1.54 $1.54 $1.52
ICE Futures U.S. Ag $2.10 $2.10 $2.05
ICE Futures U.S. Fin $0.86 $0.85 $0.86
RPC is calculated by dividing transaction revenues by contract volume, and may vary based on pricing, customer and product mix.
ICE OTC Transaction & Clearing Revenues
4Q2009 3Q2009 2Q2009
------ ------ ------
OTC Energy ADC $1.33 million $1.25 million $1.13 million
CDS Execution & Clearing $40.5 million $43.1 million $44.4 million
Rate per contract, volumes and average daily commissions are estimated using best available current information. Final figures are reported in ICE's quarterly and annual filings with the Securities and Exchange Commission.
Historical futures volume and OTC commission data can be found at:
