The name “ICE” doesn’t seem to do the white-hot trading exchangejustice, after IntercontinentalExchange, which marketsover-the-counter energy and metals products, announced it tradedmore than 2 million MWh in one day — Thursday — just one monthafter going live with its complete energy portfolio.

The Atlanta-based ICE trading volumes have been growing rapidlysince it launched its energy trading unit in October (see Daily GPI,Oct. 24). It had launched its preciousmetals market last August. By late last week, the ICE had traded 15million gold and gold equivalent ounces; 150 MM bbl of crude andrefined oil derivatives, 800 MM BTUs of natural gas and natural gasderivatives and 22 MM MWh of firm power.

The total notional value for all OTC products traded as of lastweek was more than $13 billion, with more than 85 energy andfinancial commodity firms now trading in its market.

Earlier this month, ICE took as much as half of one day’sEuropean jet fuel paper trade, and one trader said it was the”biggest development” in the energy market since the beginning ofthe year, and expected it to be the big story for at least anotheryear.

ICE will have some competition, beginning in the second quarter of2001, when Nymex launches its online trading platform (see Daily GPI,May 5). The ENymex platform, as it isslated to be named, had considered joining ICE earlier this year, andthen decided to go it alone. The system will trade and clear forwardcontracts for physical commodities such as crude oil, refinedproducts, natural gas, electricity and metals.

ICE’s partners include American Electric Power, Aquila Energy,BP, Deutsche Bank AG, Duke Energy, El Paso Energy, Goldman Sachs,Morgan Stanley Dean Witter, Reliant Energy, Royal Dutch/ShellGroup, SG Investment Banking, Southern Energy Inc., Totalfina Elfand Continental Power Exchange.

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