ICE Reports Record Activity Across Its Environmental Complex as Participants Price Climate Risk
November 16 2020 - 6:00AM
Business Wire
Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator
of global exchanges and clearing houses and provider of mortgage
technology, data and listings services, today reported record open
interest across its environmental complex as participants price
climate risk.
The environmental complex - which includes futures and options
connected to ICE’s European (EUA) and California Carbon allowances
(CCA), Regional Greenhouse Gas Initiative (RGGI) and renewable
energy credits (RECs) - hit record open interest of approximately
2.65 million contracts on November 12, 2020.
Alongside this record growth in liquidity, the number of
participants trading ICE’s carbon markets has grown by more than
40% since 2017. Participants based in North America were the
strongest contributor to this growth, increasing by more than 70%
since 2017. Meanwhile, the number of participants trading both
European and North American carbon markets at ICE has grown by
approximately 85% since 2017.
“Liberalized markets are critical to the energy transition as
they enable competition between energy sources and in doing so help
change behavior by attributing a cost to pollution,” said Gordon
Bennett, Managing Director of Utility Markets at ICE. “This record
activity, coupled with the growth in the number of participants
trading these markets, reflects the fundamental role market-based
mechanisms like carbon cap and trade schemes play in pricing
climate risk.”
Companies subject to carbon cap and trade programs and renewable
standards use ICE’s markets to meet obligations and manage their
risk in the most cost-effective way and policy makers rely on price
signals from environmental markets, such as those traded on ICE, to
gauge the effectiveness of their programs and ensure desired
outcomes.
As a growing number of companies sign up for voluntary
commitments around the world, increasingly diverse stakeholders are
turning to ICE’s markets to offset their carbon footprint, invest
in green attributes or benchmark their internal cost of carbon.
Investors use the price signals from ICE’s markets and indices to
help assess climate transition risk in their portfolios, and access
liquidity pools for managing risk and allocating capital to benefit
from energy transition opportunities.
ICE has been a leader in environmental markets for nearly two
decades. ICE has a range of additional solutions including
Sustainability Indices that serve as fixed income sustainable
benchmarks that account for Environmental, Social and Governance
(ESG) factors. These include the ICE Global Carbon Futures Index,
which is part of the ICE Carbon Index Family, and measures the
performance of a long-only basket of ICE EUA futures contracts, ICE
California Carbon Allowance futures contracts, and ICE Regional
Greenhouse Gas Initiative futures contracts. Alongside this, the
MSCI ESG Index Futures listed on ICE Futures US offer customers a
variety of ESG-related futures for benchmarking and managing
risk.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500
company and provider of marketplace infrastructure, data services
and technology solutions to a broad range of customers including
financial institutions, corporations and government entities. We
operate regulated marketplaces, including the New York Stock
Exchange, for the listing, trading and clearing of a broad array of
derivatives contracts and financial securities across major asset
classes. Our comprehensive data services offering supports the
trading, investment, risk management and connectivity needs of
customers around the world and across asset classes. As a leading
technology provider for the U.S. residential mortgage industry,
ICE Mortgage Technology provides the technology and
infrastructure to transform and digitize U.S. residential
mortgages, from application and loan origination through to final
settlement.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located at http://www.intercontinentalexchange.com/terms-of-use.
Key Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation
can be accessed on the relevant exchange website under the heading
“Key Information Documents (KIDS).”
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, 2019, as
filed with the SEC on February 6, 2020.
Source: Intercontinental Exchange
ICE-CORP
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ICE Media Contact Rebecca Mitchell +44 7951 057351
rebecca.mitchell@theice.com
ICE Investor Contact: Warren Gardiner 770-835-0114
Warren.Gardiner@theice.com
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