User:Oceanflynn/sandbox/Intercontinental Exchange (references)
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IntercontinentalExchange, Inc., NYSE:ICE, is a major "operator of regulated exchanges and clearing houses serving the risk management needs of global markets for agricultural, credit, currency, emissions, energy and equity index products.[ICE 1] ICE is headquartered in Atlanta, with offices in New York, London, Chicago, Houston, Winnipeg, Calgary, Washington, D.C. and Singapore. ICE is an exchange for futures and over-the-counter (OTC) energy and commodity contracts as well as derivative financial products. In May 2000, IntercontinentalExchange (ICE) was founded by backed by Jeffrey C. Sprecher and backed by Goldman Sachs, Morgan Stanley, BP, Total, Shell, Deutsche Bank and Societe Generale [2][3] who represent some of the world's largest energy traders. The company's stated mission was to transform over-the-counter (OTC) trading by providing an open, accessible, multi-dealer, around-the-clock electronic energy exchange. The new exchange offered the trading community better price transparency, more efficiency, greater liquidity and lower costs than manual trading. While the company's original focus was energy products (crude and refined oil, natural gas, power, and emissions), recent acquisitions have expanded its activity into the "soft" commodities (sugar, cotton and coffee), foreign exchange and equity index futures.
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Company type | Public |
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NYSE: ICE S&P 500 Component | |
Industry | Business services |
Founded | 2000 |
Headquarters | Atlanta, Georgia |
Key people | Jeffrey C. Sprecher, Founder/Chairman/CEO Charles A. Vice, President/COO |
Products | Options/futures exchange |
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Total assets |
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Website | www.theice.com |
Footnotes / references [1] |
In 2011, ICE and NASDAQ OMX Group joined forces to bid against Deutsche Börse after the latter announced a $9.5 billion deal to merge with NYSE Euronext. The two U.S. bidders and then the German exchange ultimately withdrew after their bids encountered regulatory antitrust resistance. In December 2012 NYSE Euronext agreed to be acquired by ICE pending regulator approval.
On January 18, 2011 IntercontinentalExchange Inc. (NYSE: ICE) and TMX Group (TSX: X), signed an agreement to "add Canadian and U.S. physical and Canadian financial crude oil products to their existing clearing and technology alliance." "Under the terms of the agreement, NGX's Canadian physical crude products will be offered for trading through ICE's electronic trading platform." [ICE 2] Imperial Oil Limited (IMO TSX) shares are sold through the Toronto Stock Exchange which is owned by TMX Group (TSX: X). Imperial Oil Limited (IMO TSX) in which US-based ExxonMobil holds the controlling stock of 69.60 percent,[4] is Canada's second-biggest integrated oil company [4] (by market capitalization). Imperial Oil Ltd (IMO.TSX) is best known for its dominant position in the Alberta oil sands.[4]
According to The Times journalists in London, "[R]egulators increasingly regard clearing houses as central to financial stability.[5]
By 2009 there were proposals for OTC reform,[6]
"One of the concerns raised by regulatory bodies is the concentration of CDS trading in only a few dealer institutions in recent years. (Note that the top 10 global banks are involved in 70% of all credit derivatives transactions.) Over time, the use of clearinghouses such as ICE Trust is expected to reduce the volume of settlement payments among members of the clearinghouse and, in theory, reduce counterparty credit risks that arise under CDS. However, trading CDS through clearinghouses may not effectively address concentration risk given that, at least initially, the clearinghouse members will be the major dealers currently involved in most trades. In order to address counterparty risk, members must provide collateral to ICE Trust to cover their obligations under cleared CDS. Members must also make initial and ongoing contributions to a guaranty fund that can be used by ICE Trust in the event of a member default."
— The Journal of Structured Finance