Electronic energy marketplace IntercontinentalExchange (ICE) on Wednesday reported annual volume and commission records in its futures and over-the-counter (OTC) businesses. For the ninth consecutive year, the Atlanta-based company reported that ICE Futures — the company’s futures business segment — established an annual volume record, with traded contract volume in 2006 exceeding the previous record set in 2005 by more than 120%.
In addition, average daily commissions in ICE’s OTC business segment during 2006 increased 89.1% from $311,579 in 2005 to $589,281, primarily due to strong growth in ICE’s cleared OTC contracts and the addition of new participants in the company’s OTC marketplace. ICE’s cleared OTC contracts, which include natural gas, power and refined oil products, set an annual volume record of 109.7 million cleared contracts, exceeding the prior year’s record of 47.4 million contracts by 131.2%.
During December 2006, ICE Futures average daily volume rose 128.4% and average daily OTC commissions increased 78% over December 2005.
“This was a defining year, with significant accomplishments amid rapid growth,” said ICE CEO Jeffrey C. Sprecher. “We are well positioned to expand our core energy business, as well as participate more broadly in the commodities sector in 2007 and beyond, including through our planned acquisition of the New York Board of Trade.”
At ICE Futures, average daily volume (ADV) in December 2006 increased 128.4% to 394,543 contracts compared to 172,740 contracts in December 2005. Total monthly futures volume rose 117.5% to 7,890,859 contracts in December 2006 compared to monthly volume of 3,627,532 contracts in December 2005.
The company reported that ADV in the benchmark ICE Brent Crude futures contract increased 37.5% in December 2006 compared to December 2005. ADV in the ICE Gas Oil futures contract grew 51.7% in December 2006 over the corresponding month in 2005.
At Dec. 31, 2006, total open interest in ICE Futures contracts stood at 1,416,470, compared to open interest of 648,585 contracts at the end of 2005, an increase of 118.4%.
In 2006, exchange-wide volume for ICE Futures increased 120.5%, reaching a record 92.7 million contracts compared to the prior year’s record of 42.1 million contracts and establishing its ninth consecutive annual volume record.
The ICE Brent Crude futures contract set an annual volume record of 44.3 million contracts, surpassing the previous annual record of 30.4 million contracts set in 2005 by 45.8%. ICE Brent Crude futures ADV totaled 173,227 contracts during 2006. ADV for the ICE WTI Crude futures contract, introduced in February 2006, totaled 123,059. In addition, the ICE Gas Oil futures contract set an annual volume record of 18.3 million contracts, exceeding last year’s record volume of 11.0 million contracts by 66.7%.
ICE said its cash-settled WTI Crude futures contract trades electronically around the clock and is often used in trading strategies with the benchmark ICE Brent Crude futures contract. “As a result, in 2006, ICE Futures’ market share in global crude futures as measured by volume of light sweet crude oil increased to an average of 48% from 32% during 2005,” the company said.
During the year, ICE introduced more than 50 new cleared OTC contracts, bringing the total number of cleared OTC contracts available on the ICE platform to more than 80.
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