ICE Midland WTI American Gulf Coast Futures See Record Volume
17 June 2022 - 10:16PM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading global
provider of data, technology, and market infrastructure, today
announced that ICE Midland WTI American Gulf Coast futures
(contract code: HOU) had a single day volume record on June 14 with
4,136 contracts traded.
“We’re pleased to see the increase in volume and participation
in the HOU contract,” said Jeff Barbuto, Global Head of Oil Markets
at ICE. “For U.S. crude exports to Europe or Asia, Midland WTI
priced at Houston versus Brent or Murban provides a very clean and
efficient way to manage actual price risk. In addition, producers,
refiners, and traders can benefit from substantial margin offsets
of up to 95% by hedging, trading, and clearing both Midland WTI and
Brent or Murban on ICE. With the recent announcement by Platts that
Midland WTI will be deliverable into the Brent complex, we remain
optimistic that volume and open interest will continue to move
higher.”
Since the contract began trading on January 24, roughly 85,000
ICE Midland WTI AGC futures have traded. Open interest is at 4,248
contracts and goes out to January 2023.
The HOU contract is deliverable at both the Magellan East
Houston (MEH) terminal and Enterprise Crude Houston (ECHO)
terminal. There have been four expiries since the contract began
trading, delivering a total of 9.5 million barrels of Permian Basin
originated WTI crude oil.
This month, Magellan, Enterprise and ICE announced that the
“no-charge” arrangement between the MEH and the ECHO terminals to
transfer crude oil delivered through the futures contract has been
expanded to include deliveries conducted via ICE’s Exchange for
Physical and Alternative Delivery Procedure mechanisms. The EFP
mechanism allows participants to exchange HOU futures positions for
the equivalent quantity of underlying physical Midland WTI barrels
in the same delivery month, while the ADP mechanism allows a buyer
and seller to vary the terms of the delivery including, but not
limited to, the location.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate
exchanges, including the New York Stock Exchange, and
clearing houses that help people invest, raise capital and
manage risk across multiple asset classes. Our comprehensive fixed
income data services and execution capabilities provide
information, analytics and platforms that help our customers
capitalize on opportunities and operate more efficiently. At ICE
Mortgage Technology, we are transforming and digitizing the
U.S. residential mortgage process, from consumer engagement through
loan registration. Together, we transform, streamline and automate
industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE'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, 2021, as
filed with the SEC on February 3, 2022.
ICE- CORP Source: Intercontinental Exchange
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version on businesswire.com: https://www.businesswire.com/news/home/20220617005155/en/
ICE Media Contact: Rebecca Mitchell
Rebecca.Mitchell@ice.com +44 7951 057 351 ICE Investor
Contact: Mary Caroline O’Neal marycaroline.oneal@ice.com (770)
738-2151
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