ICE to launch SEF for OTC energy markets

Source: IntercontinentalExchange

IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced that it will provide trade execution services for its financially settled, bilateral over-the-counter (OTC) energy markets through ICE Swap Trade, ICE's swap execution facility (SEF), which is expected to launch on October 2, 2013.

ICE transitioned its cleared OTC energy contracts to futures contracts in October 2012. Certain contracts that continued to trade on ICE OTC commodity markets will begin trading on ICE Swap Trade to satisfy new regulatory requirements. These contracts include all uncleared swaps markets.

"Last year, ICE transitioned its cleared energy OTC markets to futures, and this next step will complete the evolution of our markets, which reflect new regulatory requirements," said Chuck Vice, ICE President and Chief Operating Officer. "As with other transitions, customers will maintain uninterrupted access to execution services."       

To complete the change, ICE will be transferring its uncleared swaps markets to ICE Swap Trade, which was granted temporary registration as a SEF by the Commodities Futures Trading Commission on September 20, 2013. All swaps will continue to be reported to ICE Trade Vault. ICE's physical forwards markets for natural gas, power and oil will remain on the current ICE OTC platform.

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