IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace, announced that it will list an additional 10 new cleared contracts in its electronic over-the-counter (OTC) markets. Expected to begin trading in mid-June, these contracts follow the 34 contracts listed over the last three months.
This fourth set of new cleared OTC products consists of refined oil swap contracts, which are currently offered on the ICE platform on a bilateral basis. These cash-settled contracts include:
- 1% NWE FOB Cargo Swap
- 3.5% Rotterdam Barges Swap
- 380 cst Singapore Swap
- 180 cst Singapore Swap
- Dated Brent/Brent 1st Line Swap
- 1% NWE FOB Cargo Swap/3.5% Rotterdam Barges Swap Diff
- 3.5% Rotterdam Barges Swap/Brent 1st Line Swap Crack
- 3.5% MED FOB Cargo Swap/3.5% Rotterdam Barges Swap Diff
- 180 cst Singapore Swap/3.5% Rotterdam Barges Swap Diff
- Jet NWE CIF Cargo Swap/Gas Oil 1st Line Swap Diff
ICE pioneered the concept of cleared OTC energy contracts, which provide participants with access to centralized clearing and settlement arrangements while reducing bilateral credit risk and capital required for each OTC trade. ICE provides its cleared OTC products through established clearing firms on the ICE platform and in cooperation with LCH.Clearnet, the largest clearinghouse in Europe. The cleared contracts also enable participants transacting both in ICE Futures markets and ICE’s OTC markets to cross-margin their positions.
