ICE Reports March and First Quarter 2014 Volumes; Record CDS Clearing Revenue

ATLANTA--()--IntercontinentalExchange Group (NYSE: ICE), the leading global network of exchanges and clearing houses, today reported exchange traded volumes for March and the first quarter of 2014.

ICE's March 2014 and first quarter of 2014 average daily volume (ADV) decreased 16% and 13%, respectively, compared to prior year periods.

  • Commodity futures and options ADV decreased 15% year to year in March on lower natural gas and Brent volume. First quarter 2014 commodity ADV increased 2% on a 25% increase in sugar volume while energy volume was flat due to lower price volatility in the quarter.
  • Financial futures and options ADV declined 17% in March and 26% in the first quarter of 2014 compared to the prior year, driven by short-term interest rate products due to continued low volatility. March medium & long-term interest rate ADV increased 10% year to year.
  • In March, NYSE’s U.S. cash equities ADV increased 5% and Euronext’s European cash equities ADV increased 13%, and U.S. options volume declined 2% year to year.
           

 ICE Futures & Options ADV (contracts in 000s)

   

ADV Mar
2014

 

ADV Mar
2013

 

Change
y/y

 

ADV
1Q14

 

ADV
1Q13

 

Change
y/y

COMMODITIES                        
Energy                        
Brent   612   720   -15%   625   694   -10%
Gasoil   215   265   -19%   230   282   -18%
Other Oil (1)   264   239   11%   259   259   0%
TOTAL OIL   1,091   1,224   -11%   1,114   1,234   -10%
Natural Gas (2)   765   1,618   -53%   1,171   1,356   -14%
Power (3)   851   489   74%   878   565   55%
Emissions & Other (4)   61   49   26%   56   50   11%
TOTAL ENERGY   2,768   3,379   -18%   3,219   3,206   0%
Agricultural                        
Sugar (5)   153   124   23%   187   150   25%
Other Ags & Metals (6)   181   166   9%   205   186   10%
TOTAL AGRICULTURAL & METALS   334   290   15%   392   336   17%
TOTAL COMMODITIES   3,102   3,669   -15%   3,611   3,542   2%
                         
FINANCIALS                        
Interest Rates                        
Short-term Interest Rates (7)   1,713   2,323   -26%   1,876   2,579   -27%
Medium & Long-term Interest Rates (8)   171   156   10%   185   195   -5%
TOTAL INTEREST RATES   1,884   2,479   -24%   2,061   2,774   -26%
                         
TOTAL EQUITY DERIVATIVES (9)   1,261   1,290   -2%   885   1,207   -27%
                         
TOTAL FX (10)   31   45   -31%   27   39   -30%
TOTAL FINANCIALS   3,176   3,813   -17%   2,973   4,020   -26%
TOTAL FUTURES & OPTIONS   6,278   7,482   -16%   6,584   7,562   -13%

Note: Figures may not foot due to rounding.

 

(1)

“Other Oil” includes futurized oil, WTI, Heating Oil, RBOB Gasoline and Middle East Sour Crude. Excludes Daily Brent Bullet contracts.

(2)

“Natural Gas” includes North American, UK and European Natural Gas.

(3)

“Power” includes North American, UK and European Power.

(4)

“Emissions & Other” includes all power contracts, emissions, freight, coal, iron ore and uranium.

(5)

“Sugar” includes Sugar No. 11, Sugar No. 16 and White Sugar.

(6)

“Other Ags & Metals” includes Cocoa, Coffee “C”, Coffee 20 Tonne, Cotton No. 2, Orange Juice, Corn, Wheat-Feed, Soybeans, Barley, Canola, Mini Gold and Mini Silver contracts.

(7)

“Short-term Interest Rates” includes Euribor, Sterling, Swiss, Eonia, Eurodollar and DTCC GCF Repo contracts.

(8)

“Medium & Long-Term Rates” includes Gilt, Swapnotes Yen, Treasuries, U.S. Bond and Ultrabond contracts.

(9)

“TOTAL EQUITY DERIVATIVES” includes FTSE 100, FTSE 100 Dividend, price return and net total return versions of MSCI EAFE, MSCI Emerging Markets, MSCI Europe, and MSCI World, Russell 2000® , Russell 1000® and UK Single Stock Equities which includes equities domiciled in 25 countries that trade in the UK.

(10)

“TOTAL FX” includes futures and options for the U.S. Dollar Index and foreign exchange.

 

Financial and Reporting Update

   

ICE has updated certain monthly volume report categories to further streamline reporting.

   

U.S. equity options ADV and RPC are now reported on a standalone basis.

U.K. single stock equities have been combined with total equity derivatives volume.

Metal contracts have been combined with agriculture contract volume.

Quarterly revenue capture is disclosed for both Euronext cash and derivatives.

ICE has updated its historical ADV, RPC and OI report, including Bclear volumes by product,and has added a new report to assist in daily volume tracking for all ICE, Liffe and Euronext product categories, which can be found on the ICE website in Supplemental Volume Info.

 

ICE Futures & Options Rolling Three-Month Average Rate per Contract (RPC)

Futures & Options
Products

Three Months
Ending
Mar 2014

 

Three Months
Ending
Feb 2014

 

Three Months
Ending
Jan 2014

Energy $0.98   $0.95   $0.95
Agricultural & Metals $2.24   $2.25   $2.28
Total Commodities $1.12   $1.08   $1.06
Interest Rates $0.50   $0.50   $0.49
Total Financials $0.49   $0.49   $0.48

RPC is calculated by dividing transaction revenues by contract volume, and may vary based on pricing, customer and product mix.

ICE Futures & Options Open Interest (contracts in 000s)

    31-Mar-14   31-Dec-13
Energy*   95,221   88,425
Agricultural & Metals   3,832   3,372
Total Commodities   99,053   91,797
Interest Rates   21,833   18,101
Total Financials   36,652   30,385

*Energy OI excluding U.S. power contracts for March 2014 and December 2013 were 32,154 and 34,013 contracts, respectively.

ICE Futures & Options Volume (contracts in 000s)

Futures & Options
Products

  Mar-14   Mar-13  

Vol %
Change

 

Volume
1Q14

 

Volume
1Q13

 

Vol %
Change

Commodities   65,135   73,382   -11%   220,300   212,665   4%
Financials   66,702   76,266   -13%   186,367   248,923   -25%
TOTAL CONTRACTS   131,838   149,648   -12%   406,667   461,588   -12%
           

U.S. Equity Options (contracts in 000s)

   

ADV Mar
2014

 

ADV Mar
2013

 

Change
y/y

 

ADV
1Q14

 

ADV
1Q13

 

Change
y/y

U.S. Equity Options                        
NYSE Equity Options(1)   3,658   3,750   -2%   3,874   4,231   -8%
Total U.S. Options Volume   15,316   13,952   10%   16,073   14,981   7%
NYSE Share of Group Total   24%   27%   -3pts   24%   28%   -4pts

(1) “NYSE Equity Options” includes NYSE Amex Options and NYSE Arca Options trading in U.S. equity options contracts.

 

U.S. Equity Options Rolling Three-Month Average Rate per Contract (RPC)

 

 

Three Months
Ending
Mar 2014

 

Three Months
Ending
Feb 2014

 

Three Months
Ending
Jan 2014

US Equity Options   $0.16   $0.16   $0.16
 

U.S. Cash Products (shares in millions)

   

ADV Mar
2014

 

ADV Mar
2013

 

Change
y/y

 

ADV
1Q14

 

ADV
1Q13

 

Change
y/y

NYSE Listed (Tape A) Issues                        
Handled Volume (1)   1,091   1,116   -2%   1,080   1,120   -4%
Matched Volume(2)   1,065   1,077   -1%   1,051   1,077   -2%
Total NYSE Listed Consolidated Volume   3,469   3,467   0%   3,600   3,585   0%
Share of Total Matched Consolidated Volume   31%   31%   -   29%   30%   -1pt
                         
NYSE Arca, MKT and Regional (Tape B) Listed Issues                        
Handled Volume (1)   284   226   26%   271   224   21%
Matched Volume(2)   269   209   28%   256   207   23%
Total NYSE Arca and MKT Listed Consolidated Volume   1,226   1,001   22%   1,204   994   21%
Share of Total Matched Consolidated Volume   22%   21%   +1pt   21%   21%   -
                         
Nasdaq Listed (Tape C) Issues                        
Handled Volume (1)   220   178   24%   215   201   7%
Matched Volume(2)   201   160   25%   195   179   9%
Total Nasdaq Listed Consolidated Volume   2,234   1,700   31%   2,169   1,822   19%
Share of Total Matched Consolidated Volume   9%   9%   -   9%   10%   -1pt
                         
TOTAL ADV U.S. Cash Shares Handled   1,596   1,520   5%   1,566   1,545   1%

(1) “Handled Volume” represents the total number of shares of equity securities, ETFs and crossing session activity internally matched on NYSE Group’s exchanges or routed to and executed on an external market center.

(2) “Matched Volume” represents the total number of shares of equity securities, ETFs and crossing session activity executed on NYSE Group’s exchanges.

 

U.S. Cash Rolling Three-Month Revenue Capture

 

(per 100 shares)

 

 

Three Months
Ending
Mar 2014

 

Three Months
Ending
Feb 2014

 

Three Months
Ending
Jan 2014

US Cash Products   $0.047   $0.048   $0.049
           

Euronext Cash Products and Derivatives (in 000s)

   

ADV Mar
2014

 

ADV Mar
2013

 

ADV %
Change

 

ADV
1Q14

 

ADV
1Q13

 

ADV %
Change

Euronext Cash (in trades)(1)   1,571   1,391   13%   1,594   1,378   16%
                         
Euronext Derivatives (in lots)(2)   633   665   -5%   614   653   -6%

(1) Includes Equities, ETFs, Structured products and bonds.

(2) Includes Equity Index products, Single Stock equities, Currencies, Wheat-Milling, Rapeseed, Corn and Barley Malting futures and options products.

     

Euronext Quarterly Revenue Capture(1)

 

  1Q14   4Q13   3Q13
Euronext Cash Quarterly Average Revenue Capture   $0.59   $0.55   $0.49
Euronext Derivatives Quarterly Average Rate per Contract   $0.45   $0.43   $0.42

(1) Please note that the average euro exchange rate for 1Q14 was $1.37, 4Q13 was $1.36 and 3Q13 was $1.33 (source: Bloomberg).

Credit Derivatives Transaction and Clearing

  • First quarter 2014 revenues from ICE’s credit default swap (CDS) trade execution, processing and clearing businesses totaled $43 million, compared to $33 million in the prior first quarter, and included $26 million in CDS clearing revenues, which were up from $16 million in 1Q13.
  • Through March 28, ICE has cleared $51 trillion in gross notional value on a cumulative basis across 1.7 million trades with open interest of $1.6 trillion. Buy-side clearing of CDS totaled $5.7 trillion since the launch of client clearing at ICE Clear Credit in December of 2009. ICE lists over 400 CDS instruments for clearing. A complete summary of CDS clearing can be found at: https://www.theice.com/clear_credit.jhtml

March 2014 Review

  • Liffe successfully launched the 30-Year Ultra Long Gilt futures contract on March 31; 2,412 contracts traded on the first day.
  • ICE announced clearing for Markit iTraxx Senior Financials credit default swap (CDS) index instruments at both of its CDS clearing houses.
  • Monthly total volume and ADV records were established in EU Allowance futures, UK Natural Gas futures, Russell 1000 Value Index futures and across several mini MSCI Index futures contracts.
  • A daily volume record of 862,468 contracts was set on March 18 in FTSE 100 Index futures.
  • Open interest records were established in Low Sulphur Gasoil futures, Sugar 16 futures, futures on the DTCC GCF Repo indices and across several mini MSCI Index futures contracts and UK Natural Gas, Newcastle Coal, Richards Bay Coal and Rotterdam Coal options contracts.
  • ICE finalized the acquisition of NYSE Euronext on November 13, 2013. For comparison purposes NYSE Euronext volumes are included for all periods covered.

Trading days in March 2014:

  • Interest Rates, UK Single Stock: 21
  • Commodities, Other Financials: 21
  • US Cash Equities, US Equity Options: 21
  • Euronext Cash Equities, Euronext Derivatives: 21

About IntercontinentalExchange Group, Inc.

IntercontinentalExchange (NYSE: ICE) is the leading network of regulated exchanges and clearing houses for financial and commodity markets. ICE delivers transparent, reliable and accessible data, technology and risk management services to markets around the world through its portfolio of exchanges, including the New York Stock Exchange, ICE Futures, Liffe and Euronext.

Trademarks of ICE and/or its affiliates include IntercontinentalExchange, ICE, ICE block design, NYSE Euronext, NYSE, New York Stock Exchange, LIFFE and Euronext. Information regarding additional trademarks and intellectual property rights of IntercontinentalExchange Group, Inc. and/or its affiliates is located at https://www.theice.com/terms.jhtml and http://www.nyx.com/terms-use.

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, 2013, as filed with the SEC on February 14, 2014.

ICE-CORP

Contacts

IntercontinentalExchange Group, Inc.
Investor & Media Contact:
Kelly Loeffler, 770-857-4726
SVP, Corporate Communications, Marketing & Investor Relations
kelly.loeffler@theice.com

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Contacts

IntercontinentalExchange Group, Inc.
Investor & Media Contact:
Kelly Loeffler, 770-857-4726
SVP, Corporate Communications, Marketing & Investor Relations
kelly.loeffler@theice.com