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IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported strong futures volume and OTC average daily commissions (ADC) for the third quarter of 2010, including record futures volume and average daily volume (ADV) for the month of September 2010.
Global Futures Exchanges
ICE operates four regulated futures exchanges: ICE Futures Europe, ICE Futures U.S., ICE Futures Canada and the Chicago Climate Futures Exchange (CCFE).
- September ADV across all ICE futures exchanges was a record 1,483,540 contracts, up 27% from September 2009. ADV at ICE Futures U.S. grew 12% from the previous September to a record 508,290 contracts. ADV at ICE Futures Europe increased 36% to 955,277 contracts, and ADV at ICE Futures Canada increased 31% to 18,513 contracts. Monthly total futures volume surpassed 30 million contracts for the first time, with volume at ICE Futures Europe crossing 20 million contracts for the first time.
- Third quarter 2010 ADV for all ICE futures contracts was 1,275,971 contracts, an increase of 20% from the third quarter of 2009. ADV at ICE Futures Europe grew 24% to 836,396 contracts and ICE Futures U.S. grew 13% to 424,274 contracts.
- ADV for the nine months of 2010 for all ICE futures contracts was 1,320,687 contracts, up 28% over the same period of 2009.
Energy and Credit OTC Transaction Revenues
- Third quarter 2010 ADC for ICE's OTC energy business were $1.36 million, up 9% from the third quarter of 2009.
- Third quarter revenues from ICE's credit default swap (CDS) trade execution, processing and clearing operations totaled $42 million, compared to $43 million in the third quarter of 2009. Third quarter CDS clearing revenues were approximately $18 million compared to $13 million in the third quarter of 2009.
Operating and Financial Guidance Update
- Based on reduced revenue levels at Creditex, coupled with increased operational efficiencies, ICE now expects its third and fourth quarter compensation expense to be roughly $3 million to $4 million per quarter below prior guidance.
- As previously stated, ICE anticipates a $5 million charge associated with staff reductions following the acquisition of Climate Exchange. These charges will be excluded from adjusted earnings. Also as previously stated, ICE anticipates acquisition-related transaction costs relating to the Climate Exchange acquisition of $7 million in the third quarter of 2010, which will also be excluded from adjusted earnings.
- For the third quarter of 2010, ICE anticipates share count in the range of 74.0 to 74.6 million fully diluted shares as a result of the company's repurchase of around $90 million, or approximately 937,000 shares, of its outstanding common stock during the quarter.
September 2010 Review
- ICE Futures Europe records achieved in September:
- The exchange established monthly volume and open interest records of 20,060,814 and 3,552,366 contracts, respectively.
- The ICE Gasoil futures contract established a monthly ADV record of 242,296 contracts.
- The exchange also established open interest records for gasoil futures, emissions futures and options, and WTI options.
- ICE Link launched Novation Consent = Confirmation (C=C) for the credit default swap (CDS) markets in advance of the commitment date to regulators.
- Buy-side CDS clearing at ICE Trust crossed $3 billion in gross notional value.
- ICE Trust and ICE Clear Europe reached $12 trillion in gross notional value in CDS clearing. ICE Clear Europe also announced that UniCredit Bank AG became its 15th CDS clearing member.
- Through September 24, ICE's CDS clearing houses have cleared $12.1
trillion in gross notional value on a cumulative basis across 308,297
transactions. ICE currently lists 258 CDS contracts for clearing.
- ICE Trust U.S. (ICE Trust) has cleared $7.4 trillion of gross notional value since inception, including $467 billion in single-name CDS, resulting in open interest of $497 billion. ICE Trust offers clearing for 38 indexes and 89 single-name instruments.
- ICE Clear Europe has cleared euro 3.5 trillion ($4.7 trillion) of gross notional value since inception, including euro 541 billion ($710 billion) in single-name CDS, resulting in euro 441 billion ($601 billion) of open interest. ICE Clear Europe offers clearing for 30 indexes and 101 single-name instruments.
- Trading days in September 2010:
- ICE Futures Europe: 21
- ICE Futures U.S.: 21
- ICE Futures Canada: 21
- Chicago Climate Futures Exchange: 21
ICE Futures Contracts & Markets Monthly ADV
Product Line ADV ADV ADV
September September % Change
2010 2009
ICE Brent Crude futures &
options 421,151 313,989 34.1
ICE Gasoil futures & options 243,493 157,823 54.3
ICE WTI Crude futures & options 252,668 192,350 31.4
ICE ECX emissions futures &
options 21,611 20,689 4.5
Other futures contracts (1) 16,354 17,119 -4.5
TOTAL ICE FUTURES EUROPE 955,277 701,970 36.1
Index futures & options (2) 188,920 198,313 -4.7
Sugar No. 11 futures & options 200,418 185,392 8.1
Other agricultural commodity
contracts (3) 84,622 49,284 71.7
Currency futures and options
contracts (4) 34,330 19,375 77.2
TOTAL ICE FUTURES U.S. 508,290 452,364 12.4
TOTAL ICE FUTURES CANADA &
CCFE(5) 19,973 14,097 41.7
------ ------ ----
TOTAL FUTURES CONTRACTS 1,483,540 1,168,431 27.0%
(1) "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; ICE Coal futures;
and ICE Dutch TTF Gas futures.
(2) "Index futures & options" includes Russell 2000(R) mini futures and
options and futures for the Russell 1000(R) mini, the Continuous
Commodity Index, the Euro Index and the NYSE Composite.
(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 and options" include futures and options for
the U.S. Dollar Index and foreign exchange.
(5) ICE acquired Chicago Climate Futures Exchange (CCFE) on July 8,
2010. Prior-year amounts do not include CCFE volume and percentage
change does not include CCFE prior-year volume.
ICE Futures Third Quarter 2010 and Year-to-Date ADV
3Q2010 3Q2009 Percent Change
ICE Futures Europe 836,396 676,020 23.7
ICE Futures U.S. 424,274 375,772 12.9
ICE Futures Canada &
CCFE 15,301 10,637 43.9
Total Futures ADV 1,275,971 1,062,429 20.1
9-mos 2010 9-mos 2009 Percent Change
ICE Futures Europe 866,612 640,291 35.3
ICE Futures U.S. 436,425 377,623 15.6
ICE Futures Canada &
CCFE 17,650 13,823 27.7
Total Futures ADV 1,320,687 1,031,737 28.0
ICE Futures Monthly, Quarterly and Year-to-Date Volume
September
2010 September 2009 Percent Change
ICE Futures Europe 20,060,814 14,741,368 36.1
ICE Futures U.S. 10,674,094 9,499,650 12.4
ICE Futures Canada
&CCFE 419,440 296,040 41.7
Total Futures Volume 31,154,348 24,537,058 27.0
3Q2010 3Q2009 Percent Change
ICE Futures Europe 53,529,368 43,265,279 23.7
ICE Futures U.S. 27,153,563 24,049,436 12.9
ICE Futures Canada &
CCFE 965,128 670,161 44.0
Total Futures Volume 81,648,059 67,984,876 20.1
9-mos 2010 9-mos 2009 Percent Change
ICE Futures Europe 162,923,086 121,655,236 33.9
ICE Futures U.S. 82,047,966 70,993,093 15.6
ICE Futures Canada &
CCFE 3,321,871 2,598,777 27.8
Total Futures Volume 248,292,923 195,247,106 27.2
ICE Futures Open Interest
September 30, 2010 December 31, 2009
ICE Futures Europe 3,552,366 2,647,694
ICE Futures U.S. 2,955,927 3,375,176
ICE Futures Canada &
CCFE 343,400 118,181
Prior-year amounts do not include CCFE volume and percentage change does not include CCFE prior-year volume.
Rolling Three-Month Average Rate per Contract (RPC)
Three Months Three Months Three Months
Product Line Ending Ending Ending
September 2010 August 2010 July 2010
ICE Futures Europe $1.54 $1.52 $1.51
ICE Futures U.S.
Ag $2.13 $2.18 $2.18
ICE Futures U.S.
Fin $0.73 $0.73 $0.71
ICE OTC Transaction & Clearing Revenues
3Q2010 2Q2010 1Q2010
OTC Energy ADC $1.36 million $1.43 million $1.37 million
CDS Execution &
Clearing $42 million $43 million $43 million
RPC is calculated by dividing transaction revenues by contract volume, and may vary based on pricing, customer and product mix.
Historical futures volume, rate per contract and OTC commission data can be found at:
