MEDIA RELEASE PR38233
ICE Announces First Cleared Trades of Platts Iron Ore Swap
SINGAPORE, Feb. 8 /PRNewswire-AsiaNet/ --
IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of global
regulated futures exchanges, clearing houses and over-the-counter (OTC)
markets, today announced the first cleared trades of its Platts Iron Ore 62%
IODEX swap contract.
The first cleared transactions were submitted to ICE Clear U.S. on 5
February 2010 by London Dry Bulk Ltd. ICE introduced the cleared Platts IODEX
swap contract in December 2009.
"ICE's cleared Platts IODEX swap was designed to meet the requirements of
participants in the iron ore and steel industries, and complements our
benchmark contracts for coal and emissions," said Mike Davis, Director of
Market Development, ICE Futures Europe. "We're delighted to see acceptance of
our model for clearing iron ore swaps to reduce counterparty risk. We will
continue to work closely with our customers and brokerage firms to support
liquidity in this important market."
Iron ore is the primary raw material used in the production of steel and
the world's second largest commodity by value, after crude oil. Because iron
ore has historically traded under long-term fixed price contracts between
steel mills and mining companies, iron ore is the world's largest commodity
without a significant derivatives market.
The Platts Iron Ore 62% IODEX swap contract is based upon the most
commonly traded grade of iron ore, referencing 62% Fe content delivered by
sea to north China (Qingdao). The contract is cash settled against a daily
index price published in Platts Metals Alert (PMA) under the heading 'IODEX:
Iron Ore fines 62% Fe CFR North China'.
For questions about the ICE Platts Iron Ore 62% IODEX swap, please
contact Jennifer Ilkiw (Singapore) +65 6 594 0160, jennifer.ilkiw@theice.com
or Mike Davis (UK) +44 20 7065 7753, mike.davis@theice.com.
Editors Note
Platts has been assessing prices in the metals markets for more than 35
years, drawing on the tradition of its parent company, The McGraw-Hill
Companies, which has covered the metals markets for over 75 years. Platts saw
the fast-paced evolution of iron ore from an annual to spot market and was
the first publisher to begin assessing pricing on a daily basis in June 2008.
Since then, Platts has rapidly expanded its offerings for the iron ore
market, which now include flat price assessments for 62% Fe and 63.5/63% Fe
grades, high-grade 65% and a low-grade 58% Fe grade, as well as a daily 1%
per Fe content differential for iron ore fines 60-63.5% to help clarify the
normalization process. Platts also publishes daily freight netbacks based on
the most liquid routes to five basis origins. A forward curve assessing the
daily bid/offer and trade values in the over the counter swaps market for
iron ore has also been recently introduced. For more information on the iron
ore price assessments and methodology, see
About IntercontinentalExchange
IntercontinentalExchange(R) (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(R) hosts trade in half of the world's crude and refined oil futures.
ICE Futures U.S.(R) and ICE Futures Canada(R) list agricultural, currencies
and Russell Index markets. ICE(R) 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
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
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, Inc.
CONTACT:
Media & Investor Contacts:
Kelly Loeffler, VP,
Investor Relations & Corp. Communications,
IntercontinentalExchange,
+1-770-857-4726,
kelly.loeffler@theice.com;
Sarah Stashak, Director,
Investor & Public Relations,
IntercontinentalExchange,
+1-770-857-0340,
sarah.stashak@theice.com
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