LONDON, June 1, 2012 /PRNewswire/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced it will launch a new liquefied natural gas (LNG) cleared swap contract based on the Platts* daily assessment for the Japan/Korea Marker (JKM).
The Platts JKM, introduced in 2009, reflects the daily open-market value of spot LNG delivered to Japan and South Korea on a daily basis. It has since become a benchmark reference in the industry for calculating price differentials for Asia-Pacific supply source and destination markets and is increasingly used in outright contract pricing.
The new cleared swap contract, which is subject to regulatory approval and non-objection, will be cash settled on a monthly basis in U.S. Dollars and available from August 2012. The contract size will be 10,000 Million Metric British Thermal Units (MMBtu) and 24 consecutive contract months will be available.
ICE offers over 730 cleared OTC energy contracts including more than 40 Asia specific energy swaps. The launch of the Japan/Korea Marker LNG swap adds to ICE's broad range of OTC energy products, which includes the 180cst Singapore Fuel Oil swap, Asia's leading refined product derivative and an important price benchmark for the region.
ICE Clear Europe enables the efficient development of new products to support the risk management needs of member firms and customers in ICE's global energy futures and OTC markets. In 2002, ICE pioneered the concept of cleared OTC energy contracts, which provide participants with access to centralised clearing and settlement arrangements while reducing bilateral credit risk and capital required for each OTC trade.
*Platts, a division of The McGraw-Hill Companies, is a leading global energy, petrochemicals and metals information provider. "Platts", "Platts LNG Daily", "Platts Gas Daily" and "Platts European Gas Daily" are trademarks of The McGraw-Hill Companies. Platts' data and trademarks are proprietary and are used under license. Platts does not sponsor, endorse, sell or promote exchange contracts and Platts accepts no liability for the use of Platts data in connection therewith.
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 70 countries. www.theice.com
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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, 2011, as filed with the SEC on February 8, 2012.