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LONDON–(BUSINESS WIRE)–Intercontinental Trade, Inc. (NYSE: ICE), a number one international supplier of information, expertise, and market infrastructure, at this time introduced plans to launch two liquid pure fuel (LNG) futures contracts for North-West Europe and South-West Europe.
The contracts are designed to assist market individuals commerce and hedge the distinction in worth between LNG for supply in North-West and South-West Europe, versus pure fuel supplied by pipeline to Europe, in addition to LNG throughout the remainder of the world.
The contracts will likely be money settled primarily based on Spark Commodities’ worth assessments for LNG cargos and priced in USD per MMBTu in step with ICE’s current LNG contracts. The contracts are as a consequence of launch on December 5, topic to regulatory approval.
“Reflecting the vitality state of affairs which exists inside Europe at this time, clients want a futures contract to cost LNG imports into Europe, and supply a method to handle the distinction with the value of pure fuel delivered through pipeline,” stated Gordon Bennett, Managing Director of Utility Markets at ICE. “The worth of pure fuel in Europe stays excessive due to an imbalance between provide and demand, brought on by the numerous discount within the provide of pure fuel into Europe from Russia and the downstream impression of bodily capability constraints throughout the European pure fuel community.”
“Futures markets are offering essential worth alerts to establish the placement of those bottlenecks, permitting for capital to be allotted effectively to deal with them by including, for instance, regasification capability to import extra LNG,” continued Gordon Bennett. “Futures markets are additionally a key threat switch mechanism to scale back publicity to identify markets and thus a vital avenue for vitality corporations to handle their threat to allow them to preserve a secure supply of vitality to European societies. We proceed to work carefully with our clients, regulators and governments to seek out market-based options to the pressures brought on by the vitality disaster and ICE is able to help with creating an EU futures market primarily based on the complementary LNG benchmark to be developed by the EU Company for the Cooperation of Vitality Regulators (ACER).”
Moreover, ICE plans to launch three supporting French PEG, German THE and Italian PSV Pure Fuel 1st Line contracts on December 5, topic to regulatory approval. The money settled contracts will commerce and settle in USD per MMBTu and supply market individuals with extra flexibility to handle their LNG import publicity. ICE already gives bodily delivered PEG, THE and PSV futures that are priced in Euros per megawatt hour.
ICE is dwelling to the pure fuel benchmark TTF, a bodily delivered contract which upon expiry ends in pure fuel being added to, or taken from, the TTF pure fuel hub through title switch. TTF trades from ICE in Amsterdam, producing a day by day settlement worth primarily based on transactions of consumers bodily shopping for and promoting pure fuel and is the world’s second most liquid pure fuel contract after the U.S.-based Henry Hub.
TTF and the brand new North-West Europe LNG futures are complemented by ICE’s current German, Italian, French and Austrian pure fuel futures and along with the brand new South-West Europe LNG futures, which add protection of Iberia and the Mediterranean, will improve the selection of pricing and threat administration instruments obtainable to market individuals.
The 5 futures contracts will commerce from ICE Futures Europe and clear at ICE Clear Europe alongside international vitality benchmarks together with Brent Crude, TTF pure fuel, European Carbon Allowances, Coal and Electrical energy, providing significant margin offsets throughout vitality portfolios to maximise liquidity and capital effectivity.
The brand new contracts will kind a part of ICE’s international pure fuel portfolio alongside the prevailing TTF, NBP, Henry Hub, JKM LNG (Platts), WIM LNG (Platts) futures, and the Spark30S Atlantic and Spark25S Pacific LNG freight futures.
About Intercontinental Trade
Intercontinental Trade, Inc. (NYSE: ICE) is a Fortune 500 firm that designs, builds and operates digital networks to attach individuals to alternative. We offer monetary expertise and knowledge providers throughout main asset lessons that provide our clients entry to mission-critical workflow instruments that improve transparency and operational efficiencies. We function exchanges, together with the New York Inventory Trade, and clearing homes that assist individuals make investments, elevate capital and handle threat throughout a number of asset lessons. Our complete mounted revenue knowledge providers and execution capabilities present info, analytics and platforms that assist our clients capitalize on alternatives and function extra effectively. At ICE Mortgage Expertise, we’re remodeling and digitizing the U.S. residential mortgage course of, from client engagement by means of mortgage registration. Collectively, we remodel, streamline and automate industries to attach our clients to alternative.
Logos of ICE and/or its associates embrace Intercontinental Trade, ICE, ICE block design, NYSE and New York Inventory Trade. Info concerning extra emblems and mental property rights of Intercontinental Trade, Inc. and/or its associates is positioned right here. Key Info Paperwork for sure merchandise coated by the EU Packaged Retail and Insurance coverage-based Funding Merchandise Regulation may be accessed on the related trade web site below the heading “Key Info Paperwork (KIDS).”
Secure Harbor Assertion below the Personal Securities Litigation Reform Act of 1995 — Statements on this press launch concerning ICE’s enterprise that aren’t historic info are “forward-looking statements” that contain dangers and uncertainties. For a dialogue of extra dangers and uncertainties, which may trigger precise outcomes to vary from these contained within the forward-looking statements, see ICE’s Securities and Trade Fee (SEC) filings, together with, however not restricted to, the danger components in ICE’s Annual Report on Type 10-Ok for the 12 months ended December 31, 2021, as filed with the SEC on February 3, 2022.
ICE- CORP
Supply: Intercontinental Trade
Contacts
ICE Media Contact:
Rebecca Mitchell
[email protected]
+44 7951 057 351
ICE Investor Contact:
Katia Gonzalez
[email protected]
(678) 981-3882
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