ICE » Topics » Our Business

These excerpts taken from the ICE 10-K filed Feb 11, 2009.
Our Business
 
We operate diverse global markets that promote price transparency and offer participants the opportunity to trade a variety of energy, soft agricultural and agricultural commodities, CDS and financial products. Our core products include contracts based on crude and refined oil products, natural gas, power, coal, emissions, sugar, cotton, coffee, cocoa, canola, orange juice, CDS, foreign exchange and equity index products. Our derivative and physical products provide participants with a means for managing risks associated with changes in the prices of these commodities, asset allocation, ensuring physical delivery of select commodity products and trading. The majority of our trading volume is financially or cash settled, meaning that settlement is made through cash payments based on the difference between the purchase price of the contract and the value of the underlying commodity at contract expiration, rather than through physical delivery of the commodity itself.
 
All futures and options contracts and many of our OTC swap contracts are cleared through a central counterparty clearing house. We also offer OTC swap contracts that can be traded on a bilateral basis. Our customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, commodity producers and refiners, and governmental bodies. We do not take proprietary trading positions in any contracts in our markets.
 
We operate our U.S., U.K. and Canadian exchanges, as well as our OTC markets, primarily on our electronic platform, except for the Creditex business, in which trading is conducted both electronically on Creditex’s proprietary platform, and through voice brokered transactions. ICE Futures U.S. continues to offer options on futures markets through its open-outcry trading floor based in New York City, complementing our electronic futures and options offerings. In addition to trade execution, our electronic platform offers a comprehensive suite of trading-related services, including pre- and post-trade risk management tools, electronic trade confirmation and clearing services. Through our platform, we facilitate straight-through processing of trades, with the goal of providing seamless integration of front-, back- and mid-office trading and risk management activities.
 
We operate and manage our business on the basis of three segments: our futures business segment, our OTC business segment and our market data business segment. For a discussion of these segments and related financial disclosure, refer to note 18 to our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
 
History
 
In May 2000, IntercontinentalExchange was established, with our founding shareholders representing some of the world’s largest energy companies and global banks. Our mission was to transform OTC energy markets by providing an open, accessible, around-the-clock electronic energy marketplace to a previously fragmented and opaque market. We offered the energy community greater price transparency, efficiency, liquidity and lower costs than manual trading, such as voice or floor markets. Working together with participants in the energy markets, we developed the leading electronic marketplace for energy commodities, along with the leading electronic trade confirmation platform.
 
In June 2001, we expanded our business into the futures markets by acquiring the IPE, now ICE Futures Europe. Europe’s leading regulated energy futures exchange, ICE Futures Europe’s markets today account for approximately 50% of the world’s crude oil and refined futures traded each day. In April 2005, ICE Futures Europe became the first fully electronic energy exchange.


3


Table of Contents

ICE Data was launched in 2002 to meet the demand for increased market data in the OTC energy markets, and is today one of the leading providers of futures and OTC data globally. Since 2003, we have partnered with the Chicago Climate Exchange, or CCX, to host its OTC emissions markets, and today we offer the leading European emissions futures contracts in conjunction with the European Climate Exchange, or ECX.
 
In November 2005, we completed our initial public offering on the New York Stock Exchange under the ticker symbol “ICE” and have since become a member of the Russell 1000 and the S&P 500 indexes. In January 2007, we acquired NYBOT, now known as ICE Futures U.S. Today, ICE Futures U.S.’s futures contracts for soft agricultural commodities such as sugar and coffee are listed in our electronic markets. In June 2007, we entered into an exclusive licensing agreement with the Frank Russell Company to list the U.S. Russell Index futures complex. Also in 2007, we acquired the exclusive right to key natural gas indexes, including the NGI and NGX indexes.
 
In July 2007, we acquired and integrated ChemConnect’s OTC natural gas liquids and chemicals markets. In August 2007, we acquired the Winnipeg Commodity Exchange, the leading canola market in the world, now known as ICE Futures Canada. In October 2007, we acquired Chatham Energy, or Chatham, a leading OTC energy options broker, and in February 2008, we acquired YellowJacket Software, Inc., or YellowJacket, a leading peer-to-peer negotiation platform for the OTC options markets.
 
In August 2008, we completed our acquisition of Creditex, a leading interdealer market for the execution and processing of credit derivatives. In October 2008, we announced plans to acquire The Clearing Corporation, or TCC, and the transaction is expected to close in the first quarter of 2009. TCC will be the clearing service provider for our CDS clearing house, known as ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New York trust regulated by the New York State Banking Department. ICE Trust plans to commence clearing in the first quarter of 2009. Today, we employ over 790 professionals across the United States, Europe and Asia.
 
Futures Marketplaces
 
In our futures business, we operate three regulated futures exchanges in the United States, the United Kingdom and Canada. ICE Futures Europe operates as a Recognized Investment Exchange in the United Kingdom, where it is regulated by the U.K. Financial Services Authority, or FSA. ICE Futures Europe was founded in 1980 as a traditional open-outcry auction market, and today operates exclusively as an electronic exchange. Trades in our energy futures markets may only be executed in the name of exchange members for the members’ own account or their customers’ account. Our members and their customers include many of the world’s largest energy companies and leading financial institutions.
 
ICE Futures U.S. is a leading global futures and options exchange for trading in a broad array of soft agricultural commodities, including sugar, coffee, cotton, cocoa and frozen concentrated orange juice, or FCOJ. ICE Futures U.S. also provides trading in futures and options contracts for a variety of financial products, including its futures and options contracts based on the Russell indexes and the U.S. Dollar Index, or USDX. ICE Futures U.S. operates as a Designated Contract Market and is regulated by the Commodity Futures Trading Commission, or CFTC. Until February 2, 2007, ICE Futures U.S. operated exclusively as an open-outcry exchange and provided only floor-based markets. On that date, ICE Futures U.S. listed its core soft agricultural commodity markets on our electronic platform, and has subsequently introduced the Russell indexes, currency pairs and USDX futures and options contracts electronically. Options markets continue to be available for trading on the floor of the exchange.
 
ICE Futures Canada is Canada’s leading commodity futures and options exchange and North America’s first fully electronic commodity futures exchange. Based in Winnipeg, Manitoba, ICE Futures Canada offers futures and options contracts on canola and western barley. For over a century ICE Futures Canada, and its predecessor companies, have operated futures markets that bring together agricultural industry participants, traders, and investors to engage in price discovery, price risk transfer and price dissemination for the markets. ICE Futures Canada is a recognized commodity futures exchange under the provisions of The Commodity Futures Act (Manitoba), or the CFA, and is regulated by the Manitoba Securities Commission, or MSC.


4


Table of Contents

ICE Clear Europe clears and settles contracts for ICE Futures Europe and is regulated by the FSA as a Recognized Clearing House. ICE Futures U.S. owns its clearing house, ICE Clear U.S., which clears and settles contracts traded on, or subject to the rules of, ICE Futures U.S. ICE Clear U.S. is a Derivatives Clearing Organization and is regulated by the CFTC. ICE Futures Canada owns it clearing house, ICE Clear Canada, which clears and settles contracts traded on, or subject to the rules of, ICE Futures Canada. ICE Clear Canada is a recognized clearing house under the provisions of the CFA and is regulated by the MSC.
 
OTC Marketplace
 
In our OTC business, we operate global over-the-counter markets primarily through our electronic platform. We offer trading in thousands of contracts, covering a broad range of energy-related products and contract types. These contracts include derivative contracts as well as contracts that provide for physical delivery of the underlying commodity, principally relating to natural gas, power, natural gas liquids, chemicals and crude and refined oil products. We offer a wide range of derivative contracts in our OTC markets due to the availability of various combinations of commodities, product types, delivery “hub” locations and terms or settlement dates for a given contract. In 2008 and 2007, we acquired Creditex, YellowJacket, ChemConnect and Chatham, and as a result, have expanded our markets to include CDS, natural gas liquids, chemicals and natural gas options contracts. Our OTC market participants include many of the world’s largest energy companies, leading financial institutions and proprietary trading firms, as well as natural gas distribution companies and utilities. Participants in our OTC energy markets must qualify as eligible commercial participants or eligible commercial entities under the Commodity Exchange Act.
 
Market Data
 
We offer a variety of market data services for both futures and OTC markets through our market data subsidiary, ICE Data. ICE Data compiles and repackages market data derived from trading activity on our platform into information products that are sold to a broad customer base extending beyond our core trading community.
 
Since its inception, ICE Data has expanded to provide data services covering our energy futures and OTC markets, as well as soft agricultural and agricultural commodities, equity indexes and currency pairs. Market data services for these segments include publication of daily indices, access to historical price and other data, view only access to our trading platform, end of day settlements and pricing data sets, as well as a service that provides independent validation of participants’ own valuations for OTC products.
 
Our Business
 
We operate diverse global markets that promote price transparency and offer participants the opportunity to trade a variety of energy, soft agricultural and agricultural commodities, CDS and financial products. Our core products include contracts based on crude and refined oil products, natural gas, power, coal, emissions, sugar, cotton, coffee, cocoa, canola, orange juice, CDS, foreign exchange and equity index products. Our derivative and physical products provide participants with a means for managing risks associated with changes in the prices of these commodities, asset allocation, ensuring physical delivery of select commodity products and trading. The majority of our trading volume is financially or cash settled, meaning that settlement is made through cash payments based on the difference between the purchase price of the contract and the value of the underlying commodity at contract expiration, rather than through physical delivery of the commodity itself.
 
All futures and options contracts and many of our OTC swap contracts are cleared through a central counterparty clearing house. We also offer OTC swap contracts that can be traded on a bilateral basis. Our customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, commodity producers and refiners, and governmental bodies. We do not take proprietary trading positions in any contracts in our markets.
 
We operate our U.S., U.K. and Canadian exchanges, as well as our OTC markets, primarily on our electronic platform, except for the Creditex business, in which trading is conducted both electronically on Creditex’s proprietary platform, and through voice brokered transactions. ICE Futures U.S. continues to offer options on futures markets through its open-outcry trading floor based in New York City, complementing our electronic futures and options offerings. In addition to trade execution, our electronic platform offers a comprehensive suite of trading-related services, including pre- and post-trade risk management tools, electronic trade confirmation and clearing services. Through our platform, we facilitate straight-through processing of trades, with the goal of providing seamless integration of front-, back- and mid-office trading and risk management activities.
 
We operate and manage our business on the basis of three segments: our futures business segment, our OTC business segment and our market data business segment. For a discussion of these segments and related financial disclosure, refer to note 18 to our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
 
History
 
In May 2000, IntercontinentalExchange was established, with our founding shareholders representing some of the world’s largest energy companies and global banks. Our mission was to transform OTC energy markets by providing an open, accessible, around-the-clock electronic energy marketplace to a previously fragmented and opaque market. We offered the energy community greater price transparency, efficiency, liquidity and lower costs than manual trading, such as voice or floor markets. Working together with participants in the energy markets, we developed the leading electronic marketplace for energy commodities, along with the leading electronic trade confirmation platform.
 
In June 2001, we expanded our business into the futures markets by acquiring the IPE, now ICE Futures Europe. Europe’s leading regulated energy futures exchange, ICE Futures Europe’s markets today account for approximately 50% of the world’s crude oil and refined futures traded each day. In April 2005, ICE Futures Europe became the first fully electronic energy exchange.


3


Table of Contents

ICE Data was launched in 2002 to meet the demand for increased market data in the OTC energy markets, and is today one of the leading providers of futures and OTC data globally. Since 2003, we have partnered with the Chicago Climate Exchange, or CCX, to host its OTC emissions markets, and today we offer the leading European emissions futures contracts in conjunction with the European Climate Exchange, or ECX.
 
In November 2005, we completed our initial public offering on the New York Stock Exchange under the ticker symbol “ICE” and have since become a member of the Russell 1000 and the S&P 500 indexes. In January 2007, we acquired NYBOT, now known as ICE Futures U.S. Today, ICE Futures U.S.’s futures contracts for soft agricultural commodities such as sugar and coffee are listed in our electronic markets. In June 2007, we entered into an exclusive licensing agreement with the Frank Russell Company to list the U.S. Russell Index futures complex. Also in 2007, we acquired the exclusive right to key natural gas indexes, including the NGI and NGX indexes.
 
In July 2007, we acquired and integrated ChemConnect’s OTC natural gas liquids and chemicals markets. In August 2007, we acquired the Winnipeg Commodity Exchange, the leading canola market in the world, now known as ICE Futures Canada. In October 2007, we acquired Chatham Energy, or Chatham, a leading OTC energy options broker, and in February 2008, we acquired YellowJacket Software, Inc., or YellowJacket, a leading peer-to-peer negotiation platform for the OTC options markets.
 
In August 2008, we completed our acquisition of Creditex, a leading interdealer market for the execution and processing of credit derivatives. In October 2008, we announced plans to acquire The Clearing Corporation, or TCC, and the transaction is expected to close in the first quarter of 2009. TCC will be the clearing service provider for our CDS clearing house, known as ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New York trust regulated by the New York State Banking Department. ICE Trust plans to commence clearing in the first quarter of 2009. Today, we employ over 790 professionals across the United States, Europe and Asia.
 
Futures Marketplaces
 
In our futures business, we operate three regulated futures exchanges in the United States, the United Kingdom and Canada. ICE Futures Europe operates as a Recognized Investment Exchange in the United Kingdom, where it is regulated by the U.K. Financial Services Authority, or FSA. ICE Futures Europe was founded in 1980 as a traditional open-outcry auction market, and today operates exclusively as an electronic exchange. Trades in our energy futures markets may only be executed in the name of exchange members for the members’ own account or their customers’ account. Our members and their customers include many of the world’s largest energy companies and leading financial institutions.
 
ICE Futures U.S. is a leading global futures and options exchange for trading in a broad array of soft agricultural commodities, including sugar, coffee, cotton, cocoa and frozen concentrated orange juice, or FCOJ. ICE Futures U.S. also provides trading in futures and options contracts for a variety of financial products, including its futures and options contracts based on the Russell indexes and the U.S. Dollar Index, or USDX. ICE Futures U.S. operates as a Designated Contract Market and is regulated by the Commodity Futures Trading Commission, or CFTC. Until February 2, 2007, ICE Futures U.S. operated exclusively as an open-outcry exchange and provided only floor-based markets. On that date, ICE Futures U.S. listed its core soft agricultural commodity markets on our electronic platform, and has subsequently introduced the Russell indexes, currency pairs and USDX futures and options contracts electronically. Options markets continue to be available for trading on the floor of the exchange.
 
ICE Futures Canada is Canada’s leading commodity futures and options exchange and North America’s first fully electronic commodity futures exchange. Based in Winnipeg, Manitoba, ICE Futures Canada offers futures and options contracts on canola and western barley. For over a century ICE Futures Canada, and its predecessor companies, have operated futures markets that bring together agricultural industry participants, traders, and investors to engage in price discovery, price risk transfer and price dissemination for the markets. ICE Futures Canada is a recognized commodity futures exchange under the provisions of The Commodity Futures Act (Manitoba), or the CFA, and is regulated by the Manitoba Securities Commission, or MSC.


4


Table of Contents

ICE Clear Europe clears and settles contracts for ICE Futures Europe and is regulated by the FSA as a Recognized Clearing House. ICE Futures U.S. owns its clearing house, ICE Clear U.S., which clears and settles contracts traded on, or subject to the rules of, ICE Futures U.S. ICE Clear U.S. is a Derivatives Clearing Organization and is regulated by the CFTC. ICE Futures Canada owns it clearing house, ICE Clear Canada, which clears and settles contracts traded on, or subject to the rules of, ICE Futures Canada. ICE Clear Canada is a recognized clearing house under the provisions of the CFA and is regulated by the MSC.
 
OTC Marketplace
 
In our OTC business, we operate global over-the-counter markets primarily through our electronic platform. We offer trading in thousands of contracts, covering a broad range of energy-related products and contract types. These contracts include derivative contracts as well as contracts that provide for physical delivery of the underlying commodity, principally relating to natural gas, power, natural gas liquids, chemicals and crude and refined oil products. We offer a wide range of derivative contracts in our OTC markets due to the availability of various combinations of commodities, product types, delivery “hub” locations and terms or settlement dates for a given contract. In 2008 and 2007, we acquired Creditex, YellowJacket, ChemConnect and Chatham, and as a result, have expanded our markets to include CDS, natural gas liquids, chemicals and natural gas options contracts. Our OTC market participants include many of the world’s largest energy companies, leading financial institutions and proprietary trading firms, as well as natural gas distribution companies and utilities. Participants in our OTC energy markets must qualify as eligible commercial participants or eligible commercial entities under the Commodity Exchange Act.
 
Market Data
 
We offer a variety of market data services for both futures and OTC markets through our market data subsidiary, ICE Data. ICE Data compiles and repackages market data derived from trading activity on our platform into information products that are sold to a broad customer base extending beyond our core trading community.
 
Since its inception, ICE Data has expanded to provide data services covering our energy futures and OTC markets, as well as soft agricultural and agricultural commodities, equity indexes and currency pairs. Market data services for these segments include publication of daily indices, access to historical price and other data, view only access to our trading platform, end of day settlements and pricing data sets, as well as a service that provides independent validation of participants’ own valuations for OTC products.
 
Our Business
 
We operate diverse global markets that promote price transparency and offer participants the opportunity to trade a variety of energy, soft agricultural and agricultural commodities, CDS and financial products. Our core products include contracts based on crude and refined oil products, natural gas, power, coal, emissions, sugar, cotton, coffee, cocoa, canola, orange juice, CDS, foreign exchange and equity index products. Our derivative and physical products provide participants with a means for managing risks associated with changes in the prices of these commodities, asset allocation, ensuring physical delivery of select commodity products and trading. The majority of our trading volume is financially or cash settled, meaning that settlement is made through cash payments based on the difference between the purchase price of the contract and the value of the underlying commodity at contract expiration, rather than through physical delivery of the commodity itself.
 
All futures and options contracts and many of our OTC swap contracts are cleared through a central counterparty clearing house. We also offer OTC swap contracts that can be traded on a bilateral basis. Our customer base includes professional traders, financial institutions, institutional and individual investors, corporations, manufacturers, commodity producers and refiners, and governmental bodies. We do not take proprietary trading positions in any contracts in our markets.
 
We operate our U.S., U.K. and Canadian exchanges, as well as our OTC markets, primarily on our electronic platform, except for the Creditex business, in which trading is conducted both electronically on Creditex’s proprietary platform, and through voice brokered transactions. ICE Futures U.S. continues to offer options on futures markets through its open-outcry trading floor based in New York City, complementing our electronic futures and options offerings. In addition to trade execution, our electronic platform offers a comprehensive suite of trading-related services, including pre- and post-trade risk management tools, electronic trade confirmation and clearing services. Through our platform, we facilitate straight-through processing of trades, with the goal of providing seamless integration of front-, back- and mid-office trading and risk management activities.
 
We operate and manage our business on the basis of three segments: our futures business segment, our OTC business segment and our market data business segment. For a discussion of these segments and related financial disclosure, refer to note 18 to our consolidated financial statements and related notes included elsewhere in this Annual Report on Form 10-K.
 
History
 
In May 2000, IntercontinentalExchange was established, with our founding shareholders representing some of the world’s largest energy companies and global banks. Our mission was to transform OTC energy markets by providing an open, accessible, around-the-clock electronic energy marketplace to a previously fragmented and opaque market. We offered the energy community greater price transparency, efficiency, liquidity and lower costs than manual trading, such as voice or floor markets. Working together with participants in the energy markets, we developed the leading electronic marketplace for energy commodities, along with the leading electronic trade confirmation platform.
 
In June 2001, we expanded our business into the futures markets by acquiring the IPE, now ICE Futures Europe. Europe’s leading regulated energy futures exchange, ICE Futures Europe’s markets today account for approximately 50% of the world’s crude oil and refined futures traded each day. In April 2005, ICE Futures Europe became the first fully electronic energy exchange.


3


Table of Contents

ICE Data was launched in 2002 to meet the demand for increased market data in the OTC energy markets, and is today one of the leading providers of futures and OTC data globally. Since 2003, we have partnered with the Chicago Climate Exchange, or CCX, to host its OTC emissions markets, and today we offer the leading European emissions futures contracts in conjunction with the European Climate Exchange, or ECX.
 
In November 2005, we completed our initial public offering on the New York Stock Exchange under the ticker symbol “ICE” and have since become a member of the Russell 1000 and the S&P 500 indexes. In January 2007, we acquired NYBOT, now known as ICE Futures U.S. Today, ICE Futures U.S.’s futures contracts for soft agricultural commodities such as sugar and coffee are listed in our electronic markets. In June 2007, we entered into an exclusive licensing agreement with the Frank Russell Company to list the U.S. Russell Index futures complex. Also in 2007, we acquired the exclusive right to key natural gas indexes, including the NGI and NGX indexes.
 
In July 2007, we acquired and integrated ChemConnect’s OTC natural gas liquids and chemicals markets. In August 2007, we acquired the Winnipeg Commodity Exchange, the leading canola market in the world, now known as ICE Futures Canada. In October 2007, we acquired Chatham Energy, or Chatham, a leading OTC energy options broker, and in February 2008, we acquired YellowJacket Software, Inc., or YellowJacket, a leading peer-to-peer negotiation platform for the OTC options markets.
 
In August 2008, we completed our acquisition of Creditex, a leading interdealer market for the execution and processing of credit derivatives. In October 2008, we announced plans to acquire The Clearing Corporation, or TCC, and the transaction is expected to close in the first quarter of 2009. TCC will be the clearing service provider for our CDS clearing house, known as ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New York trust regulated by the New York State Banking Department. ICE Trust plans to commence clearing in the first quarter of 2009. Today, we employ over 790 professionals across the United States, Europe and Asia.
 
Futures Marketplaces
 
In our futures business, we operate three regulated futures exchanges in the United States, the United Kingdom and Canada. ICE Futures Europe operates as a Recognized Investment Exchange in the United Kingdom, where it is regulated by the U.K. Financial Services Authority, or FSA. ICE Futures Europe was founded in 1980 as a traditional open-outcry auction market, and today operates exclusively as an electronic exchange. Trades in our energy futures markets may only be executed in the name of exchange members for the members’ own account or their customers’ account. Our members and their customers include many of the world’s largest energy companies and leading financial institutions.
 
ICE Futures U.S. is a leading global futures and options exchange for trading in a broad array of soft agricultural commodities, including sugar, coffee, cotton, cocoa and frozen concentrated orange juice, or FCOJ. ICE Futures U.S. also provides trading in futures and options contracts for a variety of financial products, including its futures and options contracts based on the Russell indexes and the U.S. Dollar Index, or USDX. ICE Futures U.S. operates as a Designated Contract Market and is regulated by the Commodity Futures Trading Commission, or CFTC. Until February 2, 2007, ICE Futures U.S. operated exclusively as an open-outcry exchange and provided only floor-based markets. On that date, ICE Futures U.S. listed its core soft agricultural commodity markets on our electronic platform, and has subsequently introduced the Russell indexes, currency pairs and USDX futures and options contracts electronically. Options markets continue to be available for trading on the floor of the exchange.
 
ICE Futures Canada is Canada’s leading commodity futures and options exchange and North America’s first fully electronic commodity futures exchange. Based in Winnipeg, Manitoba, ICE Futures Canada offers futures and options contracts on canola and western barley. For over a century ICE Futures Canada, and its predecessor companies, have operated futures markets that bring together agricultural industry participants, traders, and investors to engage in price discovery, price risk transfer and price dissemination for the markets. ICE Futures Canada is a recognized commodity futures exchange under the provisions of The Commodity Futures Act (Manitoba), or the CFA, and is regulated by the Manitoba Securities Commission, or MSC.


4


Table of Contents

ICE Clear Europe clears and settles contracts for ICE Futures Europe and is regulated by the FSA as a Recognized Clearing House. ICE Futures U.S. owns its clearing house, ICE Clear U.S., which clears and settles contracts traded on, or subject to the rules of, ICE Futures U.S. ICE Clear U.S. is a Derivatives Clearing Organization and is regulated by the CFTC. ICE Futures Canada owns it clearing house, ICE Clear Canada, which clears and settles contracts traded on, or subject to the rules of, ICE Futures Canada. ICE Clear Canada is a recognized clearing house under the provisions of the CFA and is regulated by the MSC.
 
OTC Marketplace
 
In our OTC business, we operate global over-the-counter markets primarily through our electronic platform. We offer trading in thousands of contracts, covering a broad range of energy-related products and contract types. These contracts include derivative contracts as well as contracts that provide for physical delivery of the underlying commodity, principally relating to natural gas, power, natural gas liquids, chemicals and crude and refined oil products. We offer a wide range of derivative contracts in our OTC markets due to the availability of various combinations of commodities, product types, delivery “hub” locations and terms or settlement dates for a given contract. In 2008 and 2007, we acquired Creditex, YellowJacket, ChemConnect and Chatham, and as a result, have expanded our markets to include CDS, natural gas liquids, chemicals and natural gas options contracts. Our OTC market participants include many of the world’s largest energy companies, leading financial institutions and proprietary trading firms, as well as natural gas distribution companies and utilities. Participants in our OTC energy markets must qualify as eligible commercial participants or eligible commercial entities under the Commodity Exchange Act.
 
Market Data
 
We offer a variety of market data services for both futures and OTC markets through our market data subsidiary, ICE Data. ICE Data compiles and repackages market data derived from trading activity on our platform into information products that are sold to a broad customer base extending beyond our core trading community.
 
Since its inception, ICE Data has expanded to provide data services covering our energy futures and OTC markets, as well as soft agricultural and agricultural commodities, equity indexes and currency pairs. Market data services for these segments include publication of daily indices, access to historical price and other data, view only access to our trading platform, end of day settlements and pricing data sets, as well as a service that provides independent validation of participants’ own valuations for OTC products.
 
Our
Business



 



We operate diverse global markets that promote price
transparency and offer participants the opportunity to trade a
variety of energy, soft agricultural and agricultural
commodities, CDS and financial products. Our core products
include contracts based on crude and refined oil products,
natural gas, power, coal, emissions, sugar, cotton, coffee,
cocoa, canola, orange juice, CDS, foreign exchange and equity
index products. Our derivative and physical products provide
participants with a means for managing risks associated with
changes in the prices of these commodities, asset allocation,
ensuring physical delivery of select commodity products and
trading. The majority of our trading volume is financially or
cash settled, meaning that settlement is made through cash
payments based on the difference between the purchase price of
the contract and the value of the underlying commodity at
contract expiration, rather than through physical delivery of
the commodity itself.


 



All futures and options contracts and many of our OTC swap
contracts are cleared through a central counterparty clearing
house. We also offer OTC swap contracts that can be traded on a
bilateral basis. Our customer base includes professional
traders, financial institutions, institutional and individual
investors, corporations, manufacturers, commodity producers and
refiners, and governmental bodies. We do not take proprietary
trading positions in any contracts in our markets.


 



We operate our U.S., U.K. and Canadian exchanges, as well as our
OTC markets, primarily on our electronic platform, except for
the Creditex business, in which trading is conducted both
electronically on Creditex’s proprietary platform, and
through voice brokered transactions. ICE Futures
U.S. continues to offer options on futures markets through
its open-outcry trading floor based in New York City,
complementing our electronic futures and options offerings. In
addition to trade execution, our electronic platform offers a
comprehensive suite of trading-related services, including pre-
and post-trade risk management tools, electronic trade
confirmation and clearing services. Through our platform, we
facilitate straight-through processing of trades, with the goal
of providing seamless integration of front-, back- and
mid-office trading and risk management activities.


 



We operate and manage our business on the basis of three
segments: our futures business segment, our OTC business segment
and our market data business segment. For a discussion of these
segments and related financial disclosure, refer to note 18
to our consolidated financial statements and related notes
included elsewhere in this Annual Report on
Form 10-K.


 




History


 



In May 2000, IntercontinentalExchange was established, with our
founding shareholders representing some of the world’s
largest energy companies and global banks. Our mission was to
transform OTC energy markets by providing an open, accessible,
around-the-clock
electronic energy marketplace to a previously fragmented and
opaque market. We offered the energy community greater price
transparency, efficiency, liquidity and lower costs than manual
trading, such as voice or floor markets. Working together with
participants in the energy markets, we developed the leading
electronic marketplace for energy commodities, along with the
leading electronic trade confirmation platform.


 



In June 2001, we expanded our business into the futures markets
by acquiring the IPE, now ICE Futures Europe. Europe’s
leading regulated energy futures exchange, ICE Futures
Europe’s markets today account for approximately 50% of the
world’s crude oil and refined futures traded each day. In
April 2005, ICE Futures Europe became the first fully electronic
energy exchange.





3





Table of Contents






ICE Data was launched in 2002 to meet the demand for increased
market data in the OTC energy markets, and is today one of the
leading providers of futures and OTC data globally. Since 2003,
we have partnered with the Chicago Climate Exchange, or CCX, to
host its OTC emissions markets, and today we offer the leading
European emissions futures contracts in conjunction with the
European Climate Exchange, or ECX.


 



In November 2005, we completed our initial public offering on
the New York Stock Exchange under the ticker symbol
“ICE” and have since become a member of the Russell
1000 and the S&P 500 indexes. In January 2007, we acquired
NYBOT, now known as ICE Futures U.S. Today, ICE Futures
U.S.’s futures contracts for soft agricultural commodities
such as sugar and coffee are listed in our electronic markets.
In June 2007, we entered into an exclusive licensing agreement
with the Frank Russell Company to list the U.S. Russell
Index futures complex. Also in 2007, we acquired the exclusive
right to key natural gas indexes, including the NGI and NGX
indexes.


 



In July 2007, we acquired and integrated ChemConnect’s OTC
natural gas liquids and chemicals markets. In August 2007, we
acquired the Winnipeg Commodity Exchange, the leading canola
market in the world, now known as ICE Futures Canada. In October
2007, we acquired Chatham Energy, or Chatham, a leading OTC
energy options broker, and in February 2008, we acquired
YellowJacket Software, Inc., or YellowJacket, a leading
peer-to-peer
negotiation platform for the OTC options markets.


 



In August 2008, we completed our acquisition of Creditex, a
leading interdealer market for the execution and processing of
credit derivatives. In October 2008, we announced plans to
acquire The Clearing Corporation, or TCC, and the transaction is
expected to close in the first quarter of 2009. TCC will be the
clearing service provider for our CDS clearing house, known as
ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New
York trust regulated by the New York State Banking Department.
ICE Trust plans to commence clearing in the first quarter of
2009. Today, we employ over 790 professionals across the
United States, Europe and Asia.


 




Futures
Marketplaces



 



In our futures business, we operate three regulated futures
exchanges in the United States, the United Kingdom and
Canada. ICE Futures Europe operates as a Recognized Investment
Exchange in the United Kingdom, where it is regulated by
the U.K. Financial Services Authority, or FSA. ICE Futures
Europe was founded in 1980 as a traditional open-outcry auction
market, and today operates exclusively as an electronic
exchange. Trades in our energy futures markets may only be
executed in the name of exchange members for the members’
own account or their customers’ account. Our members and
their customers include many of the world’s largest energy
companies and leading financial institutions.


 



ICE Futures U.S. is a leading global futures and options
exchange for trading in a broad array of soft agricultural
commodities, including sugar, coffee, cotton, cocoa and frozen
concentrated orange juice, or FCOJ. ICE Futures U.S. also
provides trading in futures and options contracts for a variety
of financial products, including its futures and options
contracts based on the Russell indexes and the U.S. Dollar
Index, or USDX. ICE Futures U.S. operates as a Designated
Contract Market and is regulated by the Commodity Futures
Trading Commission, or CFTC. Until February 2, 2007, ICE
Futures U.S. operated exclusively as an open-outcry
exchange and provided only floor-based markets. On that date,
ICE Futures U.S. listed its core soft agricultural
commodity markets on our electronic platform, and has
subsequently introduced the Russell indexes, currency pairs and
USDX futures and options contracts electronically. Options
markets continue to be available for trading on the floor of the
exchange.


 



ICE Futures Canada is Canada’s leading commodity futures
and options exchange and North America’s first fully
electronic commodity futures exchange. Based in Winnipeg,
Manitoba, ICE Futures Canada offers futures and options
contracts on canola and western barley. For over a century ICE
Futures Canada, and its predecessor companies, have operated
futures markets that bring together agricultural industry
participants, traders, and investors to engage in price
discovery, price risk transfer and price dissemination for the
markets. ICE Futures Canada is a recognized commodity futures
exchange under the provisions of The Commodity Futures Act
(Manitoba), or the CFA, and is regulated by the Manitoba
Securities Commission, or MSC.





4





Table of Contents






ICE Clear Europe clears and settles contracts for ICE Futures
Europe and is regulated by the FSA as a Recognized Clearing
House. ICE Futures U.S. owns its clearing house, ICE Clear
U.S., which clears and settles contracts traded on, or subject
to the rules of, ICE Futures U.S. ICE Clear U.S. is a
Derivatives Clearing Organization and is regulated by the CFTC.
ICE Futures Canada owns it clearing house, ICE Clear Canada,
which clears and settles contracts traded on, or subject to the
rules of, ICE Futures Canada. ICE Clear Canada is a recognized
clearing house under the provisions of the CFA and is regulated
by the MSC.


 




OTC
Marketplace



 



In our OTC business, we operate global
over-the-counter
markets primarily through our electronic platform. We offer
trading in thousands of contracts, covering a broad range of
energy-related products and contract types. These contracts
include derivative contracts as well as contracts that provide
for physical delivery of the underlying commodity, principally
relating to natural gas, power, natural gas liquids, chemicals
and crude and refined oil products. We offer a wide range of
derivative contracts in our OTC markets due to the availability
of various combinations of commodities, product types, delivery
“hub” locations and terms or settlement dates for a
given contract. In 2008 and 2007, we acquired Creditex,
YellowJacket, ChemConnect and Chatham, and as a result, have
expanded our markets to include CDS, natural gas liquids,
chemicals and natural gas options contracts. Our OTC market
participants include many of the world’s largest energy
companies, leading financial institutions and proprietary
trading firms, as well as natural gas distribution companies and
utilities. Participants in our OTC energy markets must qualify
as eligible commercial participants or eligible commercial
entities under the Commodity Exchange Act.


 




Market
Data



 



We offer a variety of market data services for both futures and
OTC markets through our market data subsidiary, ICE Data. ICE
Data compiles and repackages market data derived from trading
activity on our platform into information products that are sold
to a broad customer base extending beyond our core trading
community.


 



Since its inception, ICE Data has expanded to provide data
services covering our energy futures and OTC markets, as
well as soft agricultural and agricultural commodities, equity
indexes and currency pairs. Market data services for these
segments include publication of daily indices, access to
historical price and other data, view only access to our trading
platform, end of day settlements and pricing data sets, as well
as a service that provides independent validation of
participants’ own valuations for OTC products.


 




Our
Business



 



We operate diverse global markets that promote price
transparency and offer participants the opportunity to trade a
variety of energy, soft agricultural and agricultural
commodities, CDS and financial products. Our core products
include contracts based on crude and refined oil products,
natural gas, power, coal, emissions, sugar, cotton, coffee,
cocoa, canola, orange juice, CDS, foreign exchange and equity
index products. Our derivative and physical products provide
participants with a means for managing risks associated with
changes in the prices of these commodities, asset allocation,
ensuring physical delivery of select commodity products and
trading. The majority of our trading volume is financially or
cash settled, meaning that settlement is made through cash
payments based on the difference between the purchase price of
the contract and the value of the underlying commodity at
contract expiration, rather than through physical delivery of
the commodity itself.


 



All futures and options contracts and many of our OTC swap
contracts are cleared through a central counterparty clearing
house. We also offer OTC swap contracts that can be traded on a
bilateral basis. Our customer base includes professional
traders, financial institutions, institutional and individual
investors, corporations, manufacturers, commodity producers and
refiners, and governmental bodies. We do not take proprietary
trading positions in any contracts in our markets.


 



We operate our U.S., U.K. and Canadian exchanges, as well as our
OTC markets, primarily on our electronic platform, except for
the Creditex business, in which trading is conducted both
electronically on Creditex’s proprietary platform, and
through voice brokered transactions. ICE Futures
U.S. continues to offer options on futures markets through
its open-outcry trading floor based in New York City,
complementing our electronic futures and options offerings. In
addition to trade execution, our electronic platform offers a
comprehensive suite of trading-related services, including pre-
and post-trade risk management tools, electronic trade
confirmation and clearing services. Through our platform, we
facilitate straight-through processing of trades, with the goal
of providing seamless integration of front-, back- and
mid-office trading and risk management activities.


 



We operate and manage our business on the basis of three
segments: our futures business segment, our OTC business segment
and our market data business segment. For a discussion of these
segments and related financial disclosure, refer to note 18
to our consolidated financial statements and related notes
included elsewhere in this Annual Report on
Form 10-K.


 




History


 



In May 2000, IntercontinentalExchange was established, with our
founding shareholders representing some of the world’s
largest energy companies and global banks. Our mission was to
transform OTC energy markets by providing an open, accessible,
around-the-clock
electronic energy marketplace to a previously fragmented and
opaque market. We offered the energy community greater price
transparency, efficiency, liquidity and lower costs than manual
trading, such as voice or floor markets. Working together with
participants in the energy markets, we developed the leading
electronic marketplace for energy commodities, along with the
leading electronic trade confirmation platform.


 



In June 2001, we expanded our business into the futures markets
by acquiring the IPE, now ICE Futures Europe. Europe’s
leading regulated energy futures exchange, ICE Futures
Europe’s markets today account for approximately 50% of the
world’s crude oil and refined futures traded each day. In
April 2005, ICE Futures Europe became the first fully electronic
energy exchange.





3





Table of Contents






ICE Data was launched in 2002 to meet the demand for increased
market data in the OTC energy markets, and is today one of the
leading providers of futures and OTC data globally. Since 2003,
we have partnered with the Chicago Climate Exchange, or CCX, to
host its OTC emissions markets, and today we offer the leading
European emissions futures contracts in conjunction with the
European Climate Exchange, or ECX.


 



In November 2005, we completed our initial public offering on
the New York Stock Exchange under the ticker symbol
“ICE” and have since become a member of the Russell
1000 and the S&P 500 indexes. In January 2007, we acquired
NYBOT, now known as ICE Futures U.S. Today, ICE Futures
U.S.’s futures contracts for soft agricultural commodities
such as sugar and coffee are listed in our electronic markets.
In June 2007, we entered into an exclusive licensing agreement
with the Frank Russell Company to list the U.S. Russell
Index futures complex. Also in 2007, we acquired the exclusive
right to key natural gas indexes, including the NGI and NGX
indexes.


 



In July 2007, we acquired and integrated ChemConnect’s OTC
natural gas liquids and chemicals markets. In August 2007, we
acquired the Winnipeg Commodity Exchange, the leading canola
market in the world, now known as ICE Futures Canada. In October
2007, we acquired Chatham Energy, or Chatham, a leading OTC
energy options broker, and in February 2008, we acquired
YellowJacket Software, Inc., or YellowJacket, a leading
peer-to-peer
negotiation platform for the OTC options markets.


 



In August 2008, we completed our acquisition of Creditex, a
leading interdealer market for the execution and processing of
credit derivatives. In October 2008, we announced plans to
acquire The Clearing Corporation, or TCC, and the transaction is
expected to close in the first quarter of 2009. TCC will be the
clearing service provider for our CDS clearing house, known as
ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New
York trust regulated by the New York State Banking Department.
ICE Trust plans to commence clearing in the first quarter of
2009. Today, we employ over 790 professionals across the
United States, Europe and Asia.


 




Futures
Marketplaces



 



In our futures business, we operate three regulated futures
exchanges in the United States, the United Kingdom and
Canada. ICE Futures Europe operates as a Recognized Investment
Exchange in the United Kingdom, where it is regulated by
the U.K. Financial Services Authority, or FSA. ICE Futures
Europe was founded in 1980 as a traditional open-outcry auction
market, and today operates exclusively as an electronic
exchange. Trades in our energy futures markets may only be
executed in the name of exchange members for the members’
own account or their customers’ account. Our members and
their customers include many of the world’s largest energy
companies and leading financial institutions.


 



ICE Futures U.S. is a leading global futures and options
exchange for trading in a broad array of soft agricultural
commodities, including sugar, coffee, cotton, cocoa and frozen
concentrated orange juice, or FCOJ. ICE Futures U.S. also
provides trading in futures and options contracts for a variety
of financial products, including its futures and options
contracts based on the Russell indexes and the U.S. Dollar
Index, or USDX. ICE Futures U.S. operates as a Designated
Contract Market and is regulated by the Commodity Futures
Trading Commission, or CFTC. Until February 2, 2007, ICE
Futures U.S. operated exclusively as an open-outcry
exchange and provided only floor-based markets. On that date,
ICE Futures U.S. listed its core soft agricultural
commodity markets on our electronic platform, and has
subsequently introduced the Russell indexes, currency pairs and
USDX futures and options contracts electronically. Options
markets continue to be available for trading on the floor of the
exchange.


 



ICE Futures Canada is Canada’s leading commodity futures
and options exchange and North America’s first fully
electronic commodity futures exchange. Based in Winnipeg,
Manitoba, ICE Futures Canada offers futures and options
contracts on canola and western barley. For over a century ICE
Futures Canada, and its predecessor companies, have operated
futures markets that bring together agricultural industry
participants, traders, and investors to engage in price
discovery, price risk transfer and price dissemination for the
markets. ICE Futures Canada is a recognized commodity futures
exchange under the provisions of The Commodity Futures Act
(Manitoba), or the CFA, and is regulated by the Manitoba
Securities Commission, or MSC.





4





Table of Contents






ICE Clear Europe clears and settles contracts for ICE Futures
Europe and is regulated by the FSA as a Recognized Clearing
House. ICE Futures U.S. owns its clearing house, ICE Clear
U.S., which clears and settles contracts traded on, or subject
to the rules of, ICE Futures U.S. ICE Clear U.S. is a
Derivatives Clearing Organization and is regulated by the CFTC.
ICE Futures Canada owns it clearing house, ICE Clear Canada,
which clears and settles contracts traded on, or subject to the
rules of, ICE Futures Canada. ICE Clear Canada is a recognized
clearing house under the provisions of the CFA and is regulated
by the MSC.


 




OTC
Marketplace



 



In our OTC business, we operate global
over-the-counter
markets primarily through our electronic platform. We offer
trading in thousands of contracts, covering a broad range of
energy-related products and contract types. These contracts
include derivative contracts as well as contracts that provide
for physical delivery of the underlying commodity, principally
relating to natural gas, power, natural gas liquids, chemicals
and crude and refined oil products. We offer a wide range of
derivative contracts in our OTC markets due to the availability
of various combinations of commodities, product types, delivery
“hub” locations and terms or settlement dates for a
given contract. In 2008 and 2007, we acquired Creditex,
YellowJacket, ChemConnect and Chatham, and as a result, have
expanded our markets to include CDS, natural gas liquids,
chemicals and natural gas options contracts. Our OTC market
participants include many of the world’s largest energy
companies, leading financial institutions and proprietary
trading firms, as well as natural gas distribution companies and
utilities. Participants in our OTC energy markets must qualify
as eligible commercial participants or eligible commercial
entities under the Commodity Exchange Act.


 




Market
Data



 



We offer a variety of market data services for both futures and
OTC markets through our market data subsidiary, ICE Data. ICE
Data compiles and repackages market data derived from trading
activity on our platform into information products that are sold
to a broad customer base extending beyond our core trading
community.


 



Since its inception, ICE Data has expanded to provide data
services covering our energy futures and OTC markets, as
well as soft agricultural and agricultural commodities, equity
indexes and currency pairs. Market data services for these
segments include publication of daily indices, access to
historical price and other data, view only access to our trading
platform, end of day settlements and pricing data sets, as well
as a service that provides independent validation of
participants’ own valuations for OTC products.


 




Our
Business



 



We operate diverse global markets that promote price
transparency and offer participants the opportunity to trade a
variety of energy, soft agricultural and agricultural
commodities, CDS and financial products. Our core products
include contracts based on crude and refined oil products,
natural gas, power, coal, emissions, sugar, cotton, coffee,
cocoa, canola, orange juice, CDS, foreign exchange and equity
index products. Our derivative and physical products provide
participants with a means for managing risks associated with
changes in the prices of these commodities, asset allocation,
ensuring physical delivery of select commodity products and
trading. The majority of our trading volume is financially or
cash settled, meaning that settlement is made through cash
payments based on the difference between the purchase price of
the contract and the value of the underlying commodity at
contract expiration, rather than through physical delivery of
the commodity itself.


 



All futures and options contracts and many of our OTC swap
contracts are cleared through a central counterparty clearing
house. We also offer OTC swap contracts that can be traded on a
bilateral basis. Our customer base includes professional
traders, financial institutions, institutional and individual
investors, corporations, manufacturers, commodity producers and
refiners, and governmental bodies. We do not take proprietary
trading positions in any contracts in our markets.


 



We operate our U.S., U.K. and Canadian exchanges, as well as our
OTC markets, primarily on our electronic platform, except for
the Creditex business, in which trading is conducted both
electronically on Creditex’s proprietary platform, and
through voice brokered transactions. ICE Futures
U.S. continues to offer options on futures markets through
its open-outcry trading floor based in New York City,
complementing our electronic futures and options offerings. In
addition to trade execution, our electronic platform offers a
comprehensive suite of trading-related services, including pre-
and post-trade risk management tools, electronic trade
confirmation and clearing services. Through our platform, we
facilitate straight-through processing of trades, with the goal
of providing seamless integration of front-, back- and
mid-office trading and risk management activities.


 



We operate and manage our business on the basis of three
segments: our futures business segment, our OTC business segment
and our market data business segment. For a discussion of these
segments and related financial disclosure, refer to note 18
to our consolidated financial statements and related notes
included elsewhere in this Annual Report on
Form 10-K.


 




History


 



In May 2000, IntercontinentalExchange was established, with our
founding shareholders representing some of the world’s
largest energy companies and global banks. Our mission was to
transform OTC energy markets by providing an open, accessible,
around-the-clock
electronic energy marketplace to a previously fragmented and
opaque market. We offered the energy community greater price
transparency, efficiency, liquidity and lower costs than manual
trading, such as voice or floor markets. Working together with
participants in the energy markets, we developed the leading
electronic marketplace for energy commodities, along with the
leading electronic trade confirmation platform.


 



In June 2001, we expanded our business into the futures markets
by acquiring the IPE, now ICE Futures Europe. Europe’s
leading regulated energy futures exchange, ICE Futures
Europe’s markets today account for approximately 50% of the
world’s crude oil and refined futures traded each day. In
April 2005, ICE Futures Europe became the first fully electronic
energy exchange.





3





Table of Contents






ICE Data was launched in 2002 to meet the demand for increased
market data in the OTC energy markets, and is today one of the
leading providers of futures and OTC data globally. Since 2003,
we have partnered with the Chicago Climate Exchange, or CCX, to
host its OTC emissions markets, and today we offer the leading
European emissions futures contracts in conjunction with the
European Climate Exchange, or ECX.


 



In November 2005, we completed our initial public offering on
the New York Stock Exchange under the ticker symbol
“ICE” and have since become a member of the Russell
1000 and the S&P 500 indexes. In January 2007, we acquired
NYBOT, now known as ICE Futures U.S. Today, ICE Futures
U.S.’s futures contracts for soft agricultural commodities
such as sugar and coffee are listed in our electronic markets.
In June 2007, we entered into an exclusive licensing agreement
with the Frank Russell Company to list the U.S. Russell
Index futures complex. Also in 2007, we acquired the exclusive
right to key natural gas indexes, including the NGI and NGX
indexes.


 



In July 2007, we acquired and integrated ChemConnect’s OTC
natural gas liquids and chemicals markets. In August 2007, we
acquired the Winnipeg Commodity Exchange, the leading canola
market in the world, now known as ICE Futures Canada. In October
2007, we acquired Chatham Energy, or Chatham, a leading OTC
energy options broker, and in February 2008, we acquired
YellowJacket Software, Inc., or YellowJacket, a leading
peer-to-peer
negotiation platform for the OTC options markets.


 



In August 2008, we completed our acquisition of Creditex, a
leading interdealer market for the execution and processing of
credit derivatives. In October 2008, we announced plans to
acquire The Clearing Corporation, or TCC, and the transaction is
expected to close in the first quarter of 2009. TCC will be the
clearing service provider for our CDS clearing house, known as
ICE US Trust, or ICE Trust. ICE Trust is a limited purpose New
York trust regulated by the New York State Banking Department.
ICE Trust plans to commence clearing in the first quarter of
2009. Today, we employ over 790 professionals across the
United States, Europe and Asia.


 




Futures
Marketplaces



 



In our futures business, we operate three regulated futures
exchanges in the United States, the United Kingdom and
Canada. ICE Futures Europe operates as a Recognized Investment
Exchange in the United Kingdom, where it is regulated by
the U.K. Financial Services Authority, or FSA. ICE Futures
Europe was founded in 1980 as a traditional open-outcry auction
market, and today operates exclusively as an electronic
exchange. Trades in our energy futures markets may only be
executed in the name of exchange members for the members’
own account or their customers’ account. Our members and
their customers include many of the world’s largest energy
companies and leading financial institutions.


 



ICE Futures U.S. is a leading global futures and options
exchange for trading in a broad array of soft agricultural
commodities, including sugar, coffee, cotton, cocoa and frozen
concentrated orange juice, or FCOJ. ICE Futures U.S. also
provides trading in futures and options contracts for a variety
of financial products, including its futures and options
contracts based on the Russell indexes and the U.S. Dollar
Index, or USDX. ICE Futures U.S. operates as a Designated
Contract Market and is regulated by the Commodity Futures
Trading Commission, or CFTC. Until February 2, 2007, ICE
Futures U.S. operated exclusively as an open-outcry
exchange and provided only floor-based markets. On that date,
ICE Futures U.S. listed its core soft agricultural
commodity markets on our electronic platform, and has
subsequently introduced the Russell indexes, currency pairs and
USDX futures and options contracts electronically. Options
markets continue to be available for trading on the floor of the
exchange.


 



ICE Futures Canada is Canada’s leading commodity futures
and options exchange and North America’s first fully
electronic commodity futures exchange. Based in Winnipeg,
Manitoba, ICE Futures Canada offers futures and options
contracts on canola and western barley. For over a century ICE
Futures Canada, and its predecessor companies, have operated
futures markets that bring together agricultural industry
participants, traders, and investors to engage in price
discovery, price risk transfer and price dissemination for the
markets. ICE Futures Canada is a recognized commodity futures
exchange under the provisions of The Commodity Futures Act
(Manitoba), or the CFA, and is regulated by the Manitoba
Securities Commission, or MSC.





4





Table of Contents






ICE Clear Europe clears and settles contracts for ICE Futures
Europe and is regulated by the FSA as a Recognized Clearing
House. ICE Futures U.S. owns its clearing house, ICE Clear
U.S., which clears and settles contracts traded on, or subject
to the rules of, ICE Futures U.S. ICE Clear U.S. is a
Derivatives Clearing Organization and is regulated by the CFTC.
ICE Futures Canada owns it clearing house, ICE Clear Canada,
which clears and settles contracts traded on, or subject to the
rules of, ICE Futures Canada. ICE Clear Canada is a recognized
clearing house under the provisions of the CFA and is regulated
by the MSC.


 




OTC
Marketplace



 



In our OTC business, we operate global
over-the-counter
markets primarily through our electronic platform. We offer
trading in thousands of contracts, covering a broad range of
energy-related products and contract types. These contracts
include derivative contracts as well as contracts that provide
for physical delivery of the underlying commodity, principally
relating to natural gas, power, natural gas liquids, chemicals
and crude and refined oil products. We offer a wide range of
derivative contracts in our OTC markets due to the availability
of various combinations of commodities, product types, delivery
“hub” locations and terms or settlement dates for a
given contract. In 2008 and 2007, we acquired Creditex,
YellowJacket, ChemConnect and Chatham, and as a result, have
expanded our markets to include CDS, natural gas liquids,
chemicals and natural gas options contracts. Our OTC market
participants include many of the world’s largest energy
companies, leading financial institutions and proprietary
trading firms, as well as natural gas distribution companies and
utilities. Participants in our OTC energy markets must qualify
as eligible commercial participants or eligible commercial
entities under the Commodity Exchange Act.


 




Market
Data



 



We offer a variety of market data services for both futures and
OTC markets through our market data subsidiary, ICE Data. ICE
Data compiles and repackages market data derived from trading
activity on our platform into information products that are sold
to a broad customer base extending beyond our core trading
community.


 



Since its inception, ICE Data has expanded to provide data
services covering our energy futures and OTC markets, as
well as soft agricultural and agricultural commodities, equity
indexes and currency pairs. Market data services for these
segments include publication of daily indices, access to
historical price and other data, view only access to our trading
platform, end of day settlements and pricing data sets, as well
as a service that provides independent validation of
participants’ own valuations for OTC products.


 




EXCERPTS ON THIS PAGE:

10-K (6 sections)
Feb 11, 2009
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki