Ice opens doors to futures exchange traders

Atlanta-based commodities exchange IntercontinentalExchange (Ice) has received approval from the US Commodity Futures Trading Commission (CFTC) permitting registered traders and locals with floor or electronic trading privileges on any regulated US futures exchange to execute over-the-counter transactions on its electronic trading platform.

Ice’s application to the CFTC was in response to enquiries for trading access by the futures exchanges' trading community, including proprietary trading groups, the exchange said. Transactions executed on the Ice platform may be settled on a bilateral basis or cleared through a designated clearing organisation.

"Independent traders play a key role in providing liquidity and transparency to futures markets," said David Goone, Ice senior vice-president. "For the first time since the passage of the Commodity Futures Modernization Act in 2000, all registered traders will have the opportunity to trade in OTC commodity markets via a digital platform."

Ice is presently suing its rival, the New York Mercantile Exchange (Nymex), over alleged abuse of monopoly power in the energy trading markets. Ice said attempts by Nymex to prevent it from using Nymex settlement prices on its platform are an illegal restraint of trade intended solely to restrict competition. Its suit was made as a counterclaim against Nymex. In November, the New York-based exchange sued Ice for alleged copyright infringement over Ice’s use of its natural gas and oil futures prices to clear and settle futures trades on the Ice platform.