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IntercontinentalExchange (NYSE: ICE), the leading electronic energy marketplace, announced that it expects to close on its planned merger with the New York Board of Trade® (NYBOT®), the leading soft commodity exchange, in mid-January and launch side-by-side trading of the NYBOT’s benchmark agricultural commodities on ICE’s electronic trading platform for the trade date January 19, 2007.
NYBOT’s open outcry trading hours will remain unchanged. Electronic trading will be offered around the clock each trading day in the physical contracts for Sugar #11 sm (SB), Sugar #14 sm (SE), Cotton No. 2 sm (CT), Coffee “C”® (KC), Cocoa (CC), and Frozen Concentrated Orange Juice (OJ). Electronic markets are expected to be available from 8:00 p.m. ET the prior evening until 6:00 p.m. ET of the trade date. Contract specifications and commodity codes will remain unchanged for both floor and electronic contracts, which will be fungible with one another.
There will be no changes to the current NYBOT exchange fee structure, with floor and screen trades offered at existing, equivalent rates. Market-maker programs for electronic trading will be offered, with more information to be published in a member notice. Access to electronic trading will be available to qualified individuals, regardless of membership status.
NYBOT will begin offering ongoing screen-based training sessions for the trading community beginning Monday, January 8. Wireless and wired access from the NYBOT trading floor will be facilitated. Prospective electronic traders can contact the NYBOT membership office for more information. A list of FAQ’s is available on both the NYBOT and ICE websites.
NYBOT will coordinate the enrollment of users for direct access to the exchange through the WebICE screen. In addition, most of the leading independent system vendors have written to the ICE trading platform, and are also expected to provide access to NYBOT products. Qualified algorithmic and proprietary traders with access to ICE and ICE Futures products will be able to access NYBOT products upon execution of an access agreement with NYBOT.
“We are pleased to offer these benchmark contracts to the global trading community on the ICE platform. In working closely with the NYBOT team and meeting with NYBOT members to bring this slate of contracts to market on an expanded scale, we believe we are offering an excellent value proposition to our respective market participants,” said ICE Chairman and Chief Executive Officer Jeffrey C. Sprecher. “We are committed to serving the NYBOT community by providing an unparalleled electronic platform and support for the launch of these products.”
“This marks a historic and important step for NYBOT, its customers and its membership that has been many months in the making,” said Fred W. Schoenhut, Chairman of the NYBOT. “We take pride in being able to offer our global customer base increased access to our exchange. We believe the addition of electronic trading alongside our robust trading floor will ensure NYBOT remains a leader in soft commodities. We appreciate the support of the NYBOT customer community and look forward to bringing out our slate of currency and index products in the near future to continue to enhance our service offering to customers.”
ICE maintains and develops its state-of-the-art technology, which has been tailored to serve the global commodity markets. Thousands of commodity market participants in 44 jurisdictions worldwide already rely on ICE’s liquid, fast and Internet-accessible trading platform to trade a range of OTC and futures contracts based on crude oil and refined products, natural gas and power.
