Intercontinental Exchange (ICE)

What Is the Intercontinental Exchange (ICE)?

The Intercontinental Exchange (ICE) is an American company that claims and works financial and commodity marketplaces and exchanges. It was established in May 2000 in Atlanta, Georgia. ICE operations incorporate futures exchanges, cash exchanges, central clearing houses, and market services for off-exchange trading.

ICE works futures exchanges in the U.S., Europe, and Singapore. Its cash exchanges incorporate the New York Stock Exchange (NYSE), NYSE ARCA, NYSE National, NYSE AMEX Options, NYSE ARCA Options, and NYSE Chicago. ICE likewise works six central clearing houses: ICE Clear U.S., ICE Clear Europe, ICE Clear Singapore, ICE Clear Credit, ICE Clear Netherlands, and ICE NGX.

ICE turned into a publicly traded company on November 16, 2005, and was added to the Russell 1000 Index on June 30, 2006.

Figuring out the Intercontinental Exchange (ICE)

In May 2000, ICE was established by Jeffrey C. Sprecher, a power plant designer who wanted to make a more transparent and efficient platform for over-the-counter (OTC) energy commodity trading. Compared with manual trading, the new platform gave greater price transparency, proficiency, liquidity, and had lower costs. Sprecher received backing from Goldman Sachs, Morgan Stanley, BP, Total, Shell, Deutsche Bank, and Societe Generale.

At the point when it was established, the company's primary spotlight was on energy products, explicitly crude and refined oil, natural gas, power, and emissions. Through different acquisitions, the company's activities widened to incorporate other commodities — like sugar, cotton, and espresso — notwithstanding foreign cash exchanges and equity index futures.

In response to the 2007-08 Financial Crisis, Sprecher shaped ICE Clear Credit, which would act as a clearing house for credit default swaps. ICE Clear Credit likewise filled in as the U.S. Federal Reserve's over-the-counter (OTC) derivatives clearing house, giving urgent risk management services to the market. ICE was quick to offer clearing services in the OTC energy and credit derivatives markets. By 2010, ICE had cleared more than $10 trillion in credit default swaps through its subsidiary, ICE Clear Credit.

ICE's company growth has basically been accomplished through the acquisition of other exchanges. Since its establishing in 2010, a portion of the company's major acquisitions incorporate the International Petroleum Exchange (IPE), presently ICE Futures Europe, in 2001; the New York Board of Trade (NYBOT) in 2005, Winnipeg Commodity Exchange, presently ICE Futures Canada, in 2007; the Creditex Group in 2008; European Climate Exchange (ECX) in 2010, NYSE Euronext in 2013; Interactive Data Corporation (IDC) in 2015, Standard and Poor's Securities Evaluations, Inc. in 2016; Virtu BondPoint in 2017; the Chicago Stock Exchange (CHX) in 2018; Simplifile, LC in 2019; Ellie Mae in 2020; and Black Knight in 2022.

In June 2016, ICE sent off another set-up of data services and software, called ICE Data Services. The proprietary real-time data, valuations, analytics, reference data, assessed pricing, and network arrangements employed by ICE Data Services are utilized by NYSE, SuperDerivatives, Interactive Data (IDC), and other ICE customers, including financial institutions, asset managers, and individual investors. ICE Data Services additionally gives its customers unique data from global exchanges and fixed income markets.

ICE is the third-biggest exchange group in the world, behind Hong Kong Exchanges and Clearing Limited (HKEX) and the CME Group Inc., which possesses the Chicago Board of Trade and the New York Mercantile Exchange. In 2019, the company experienced $354 billion in new market capitalizations, all total, across its exchange postings.

Features

• At the point when it was established, the company's primary spotlight was on energy products; nonetheless, through different acquisitions, the company's activities have expanded to incorporate other commodities, foreign cash exchanges, and equity index futures.
• The Intercontinental Exchange (ICE) is an American company that possesses and works financial and commodity marketplaces and exchanges.
• ICE was established in 2000 and turned into a publicly traded company on November 16, 2005; it was added to the Russell 1000 Index on June 30, 2006.