In reviewing the competitive situation, the ICE Chairman said that an increasing number of customers wish to trade on the IPE’s electronic market and are staffing to do so. The electronic futures marketplace is increasingly competitive and without positive action to encourage electronic trading in the IPE’s markets, ground could be lost and an opportunity missed.
It was against this background that the Board of the IPE has considered its next step towards the expansion of electronic trading. A proposal was put forward by the IPE Executive to amend open outcry hours and extend the period of electronic-only trading for Brent Crude futures. This would be associated with a guarantee to keep a minimum number of hours trading on the open-outcry market for Brent Crude and Gas Oil futures for a number of years. In this way the competitive position of the Exchange would be enhanced. The Executive were asked to develop the detail of this proposal with the Members and revert to the Board of the IPE.
To encourage and facilitate participation of floor traders in the electronic market, the IPE Executive was authorised to make such investments as were necessary in training, support and facilities, and to put in place appropriate incentive schemes (such as market-making arrangements) to encourage growth in the electronic market. In addition the Exchange would continue to develop open-outcry trading through the expansion of the Brent Crude and Gas Oil pits to accommodate more floor traders. The IPE Executive will continue to take such steps as are appropriate to secure the Exchange’s lease on its trading floor.
