ICE Reports Record Annual Futures Volume in 2009; Double-Digit ADV Growth for 2009, Fourth Quarter and December; Record OTC Energy Commissions for Year and Quarter; $4.6 Trillion Cleared in CDS in 2009

Jan 05, 2010, 08:30 ET from IntercontinentalExchange

ATLANTA, Jan. 5 /PRNewswire-FirstCall/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today reported record futures volumes and OTC energy commissions for 2009. Each of ICE's futures exchanges established annual volume records in 2009, with average daily volume (ADV) surpassing one million contracts for the first time. ICE also established record OTC energy average daily commissions (ADC) of $1.33 million in the fourth quarter of 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090727/CL51999LOGO )

Said ICE Chairman and CEO, Jeffrey C. Sprecher: "ICE's performance as a leading growth company in our sector, coupled with the development of key clearing capabilities in the global OTC markets, allowed us to once again deliver double-digit volume growth while providing our markets with tools to enhance risk management. ICE's leadership role as a global clearing provider is helping to support the recovery of vital OTC markets and reduce systemic risk."

Global Futures Exchanges

ICE operates three regulated futures exchanges: ICE Futures Europe, ICE Futures U.S. and ICE Futures Canada.

  • December 2009 ADV across all three ICE Futures exchanges increased 17% over December 2008, to 988,212 contracts.
  • Fourth quarter 2009 ADV for all ICE Futures contracts increased 13% over fourth quarter 2008, to a record 1,048,501 contracts. ICE Futures Europe established its second consecutive ADV and total volume quarterly records, with 688,598 and 44,070,252 contracts, respectively.
  • ADV for the full year 2009 for all ICE Futures contracts was a record 1,035,887 contracts, 12% higher than 2008. ICE Futures Europe and ICE Futures U.S. established their twelfth and seventh consecutive annual volume records, respectively. ICE Futures Canada also established a new annual volume record.

Energy and Credit OTC Transaction Revenues

  • Fourth quarter ADC for ICE's OTC energy business were a record $1.33 million, up 53% from the fourth quarter of 2008.
  • ADC for 2009 was $1.20 million, an increase of 8% from 2008.
    • ICE's credit default swap (CDS) trade execution, processing and clearing revenues totaled $40.5 million during the fourth quarter of 2009, up 14% from the same period in 2008 on a pro-forma basis. ICE did not offer CDS clearing in 2008.
    • CDS revenues totaled $165.4 million for the full year 2009.

Operating and Financial Guidance Update

  • During the fourth quarter of 2009, ICE expects to record an incremental $11 million in non-operating income related to adjustments to various cost equity method investments, including the disposition of its LCH.Clearnet shares. In addition to its GAAP reporting, ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
  • During the fourth quarter of 2009, ICE expects to record $3 million in additional SG&A expense related to a one time true-up of certain state tax items. ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
  • During the fourth quarter of 2009, ICE expects to incur $4 million in severance charges related to its TCC and credit businesses, which will be recorded as non-cash ($2 million) and cash ($2 million) compensation expense. The company expects a similar level of savings on an annualized basis beginning in 2010. ICE will report fourth quarter and full year non-GAAP EPS which exclude these items.
  • Due to outperformance relative to 2009 financial targets, ICE expects to incur additional cash compensation expense of $3 million and additional non-cash compensation expense of $3 million during the fourth quarter of 2009. The company's performance during the historically and seasonally weak fourth quarter was much stronger than anticipated, resulting in increased bonus payments to all employees due to further outperformance versus its 2009 financial targets. The impact on compensation expense reflects a full-year true-up and is not reflective of expected quarterly run-rate expense levels. For 2010, non-cash compensation expense is expected to be below 2009 levels and in the range of $45 million to $49 million, assuming achievement of 2010 financial objectives.

December 2009 Review

  • Through December 31, ICE's CDS clearing houses have cleared $4.6 trillion in notional value across 56,259 transactions.
    • Since its inception in March 2009, ICE Trust has cleared $3.3 trillion of notional value, resulting in $232 billion of open interest.
    • ICE Clear Europe has cleared euro 885 billion ($1.3 trillion) of notional value since its July 2009 launch, resulting in euro 75 billion ($107 billion) of open interest.
  • On December 14, ICE Clear Europe launched clearing services for European single-name CDS contracts. Through December 31, ICE Clear Europe cleared 100 single- name transactions totaling euro 566 million ($829 million) of gross notional value, with open interest of euro 184 million ($265 million). ICE Clear Europe also announced that BNP Paribas and Nomura were approved as CDS clearing members and began clearing transactions.
  • On December 21, ICE Trust began clearing North American single-name CDS contracts. Through December 31, ICE Trust cleared 150 single-name transactions totaling $1.3 billion of gross notional value, with open interest of $500 million. ICE Trust is the only clearing house processing single-name CDS in North America.
  • On December 23, ICE announced the introduction of 23 new cleared OTC natural gas and power contracts. ICE will offer more than 310 cleared OTC energy contracts, including 226 new OTC contracts introduced since the launch of ICE Clear Europe in November 2008.
  • Trading days in December 2009:
    • ICE Futures Europe: 22
    • ICE Futures U.S.: 22
    • ICE Futures Canada: 21
  • ICE Futures Europe records achieved in December 2009:
    • The exchange set a daily volume record of 1,249,239 contracts on December 9.
    • The ICE Brent and ICE WTI crude futures contracts established daily volume records of 581,685 contracts and 409,727 contracts, respectively, on December 9.
    • Open interest records were established for several emissions and coal futures contracts.
  • ICE Futures U.S. records achieved in December 2009:
    • The U.S. Dollar Index (USDX) established a monthly volume record of 509,385 contracts, including a daily record of 74,562 contracts on December 9.

ICE Futures Contracts & Markets Monthly ADV

Product Line

ADV

December

2009

ADV

December

2008

ADV

% Change

ICE Brent Crude futures & options

287,668

232,916

23.5

ICE WTI Crude futures & options

188,303

152,474

23.5

ICE Gasoil futures & options

135,623

114,313

18.6

ICE ECX emissions futures & options (1)

16,976

8,616

97.0

Other futures contracts (2)

11,404

6,119

86.4

TOTAL ICE FUTURES EUROPE

639,974

514,438

24.4

Russell 2000® mini futures & options

132,607

183,179

-27.6

Sugar No. 11 futures & options

117,096

78,176

49.8

Other agricultural commodity contracts (3)

48,823

42,630

14.5

Currency futures (4)

5,836

4,800

21.6

Index futures (5)

25,437

9,781

160.1

Other contracts (6)

215

320

-32.8

TOTAL ICE FUTURES U.S.

330,014

318,887

3.5

TOTAL ICE FUTURES CANADA

18,224

12,964

40.6

TOTAL FUTURES CONTRACTS

988,212

846,289

16.8%

(1) ICE ECX EUA and ICE ECX CER futures and options contracts are the result of a cooperative relationship between ICE Futures Europe and the European Climate Exchange. ICE Futures Europe shares in the transaction fee revenue derived from these contracts.

(2) "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; and ICE Coal futures.

(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" include foreign exchange futures.

(5) "Index futures" include futures for the U.S. Dollar Index, Russell 2000 (full size), Russell 1000®, Russell 1000 mini, the Continuous Commodity Index, the Euro Index, and the NYSE Composite.

(6) "Other contracts" include options on foreign exchange futures and options on index futures, excluding Russell 2000 mini options.

ICE Futures Fourth Quarter 2009 and Year-to-Date ADV

4Q2009

4Q2008

Percent Change

ICE Futures Europe

688,598

569,140

21.0

ICE Futures U.S.

344,249

350,695

-1.8

ICE Futures Canada

15,654

11,625

34.7

Total Futures

1,048,501

931,460

12.6%

12-mos 2009

12-mos 2008

Percent Change

ICE Futures Europe

652,463

590,541

10.5

ICE Futures U.S.

369,147

318,085

16.1

ICE Futures Canada

14,277

13,232

7.9

Total Futures

1,035,887

921,858

12.4%

ICE Futures Monthly, Quarterly and Year-to-Date Volume

December 2009

December 2008

Percent Change

ICE Futures Europe

14,079,436

11,317,644

24.4

ICE Futures U.S.

7,260,309

7,015,503

3.5

ICE Futures Canada

382,710

272,250

40.6

Total Futures

21,722,455

18,605,397

16.8%

4Q2009

4Q2008

Percent Change

ICE Futures Europe

44,070,252

36,994,078

19.1

ICE Futures U.S.

22,031,931

22,644,449

-2.7

ICE Futures Canada

970,569

720,767

34.7

Total Futures

67,072,752

60,359,294

11.1%

12-mos 2009

12-mos 2008

Percent Change

ICE Futures Europe

165,725,488

152,950,133

8.4

ICE Futures U.S.

93,025,024

80,954,837

14.9

ICE Futures Canada

3,569,346

3,321,210

7.5

Total Futures

262,319,858

237,226,180

10.6%

ICE Futures Open Interest

December 31, 2009

December 31, 2008

ICE Futures Europe

2,647,694

2,102,574

ICE Futures U.S.

3,375,176

3,028,877

ICE Futures Canada

118,181

97,673

Rolling Three-Month Average Rate per Contract (RPC)

Product Line

Three Months Ending December 2009

Three Months Ending November 2009

Three Months Ending

October 2009

ICE Futures Europe

$1.54

$1.54

$1.52

ICE Futures U.S. Ag

$2.10

$2.10

$2.05

ICE Futures U.S. Fin

$0.86

$0.85

$0.86

RPC is calculated by dividing transaction revenues by contract volume, and may vary based on pricing, customer and product mix.

ICE OTC Transaction & Clearing Revenues

4Q2009

3Q2009

2Q2009

OTC Energy ADC

$1.33 million

$1.25 million

$1.13 million

CDS Execution & Clearing

$40.5 million

$43.1 million

$44.4 million

Rate per contract, volumes and average daily commissions are estimated using best available current information. Final figures are reported in ICE's quarterly and annual filings with the Securities and Exchange Commission.

Historical futures volume and OTC commission data can be found at:

http://ir.theice.com/supplemental.cfm

About IntercontinentalExchange

IntercontinentalExchange® (NYSE: ICE) is a leading operator of regulated futures exchanges and over-the-counter markets for agricultural, credit, currency, emissions, energy and equity index contracts. ICE Futures Europe® hosts trade in half of the world's crude and refined oil futures. ICE Futures U.S.® and ICE Futures Canada® list agricultural, currencies and Russell Index markets. ICE® is also a leading operator of central clearing services for the futures and over-the-counter markets, with five regulated clearing houses across North America and Europe. ICE serves customers in more than 55 countries. www.theice.com

The following are trademarks of IntercontinentalExchange, Inc. and/or its affiliated companies: IntercontinentalExchange, IntercontinentalExchange & Design, ICE, ICE and block design, ICE Futures Canada, ICE Futures Europe, ICE Futures U.S., ICE Trust, ICE Clear Europe, ICE Clear U.S., ICE Clear Canada, The Clearing Corporation, U.S. Dollar Index, ICE Link and Creditex. All other trademarks are the property of their respective owners. For more information regarding registered trademarks owned by IntercontinentalExchange, Inc. and/or its affiliated companies, see https://www.theice.com/terms.jhtml

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 - Statements in this press release regarding IntercontinentalExchange's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2008, as filed with the SEC on February 11, 2009.

SOURCE IntercontinentalExchange



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