Effective at the close of business on October 12, the Intercontinental Exchange (ICE) is converting its energy swaps contracts into regulated futures contracts. Additionally, the CME Group’s Clearport energy contracts will be available for trading as swaps or futures. ICAP Energy LLC and ICAP Corporates LLC (collectively ICAP), the energy swaps and futures brokers, are fully registered, licensed, and prepared to broken energy products as futures or swaps, said a company spokesman.
All of the aforementioned energy products can still be brokered off-exchange as OTC swaps and converted to futures through the exchange of futures for related positions (EFRP) mechanism. This is the same process the industry has followed for CME Clearport energy contracts since 2002.
As a registered introducing broker, ICAP can execute futures and listed options on ICE US, ICE Europe, NYMEX, CME, CBOT, COMEX, LIFFE, MONEP, and others. With more than 130 licensed NFA Series 3 professionals, ICAP teams are prepared to provide the best execution regardless of venue (i.e. traditional voice/hybrid for swaps, EFRP, blocked futures, direct screen execution, and exchange floor). ICAP is a leading brokerage house for block-sized futures in crude and refined products, and has executed block futures trades in these products for over a decade.
“Our brokers are focused on specific energy products, such as crude oil, natural gas, electricity, coal and a variety of other products,” said Dennis Crum, ICAP Energy LLC’s CEO. “This product expertise and deep pools of liquidity set ICAP apart from the traditional futures broker. We are prepared to broker these products as swaps or futures, depending on the needs of our customers.”
Todd Creek, co-president of ICAP Corporates LLC and ICAP Energy LLC said, “We have brokered exchange-traded crude oil, refined products, softs and agricultural futures for many years and have deep pools of liquidity in block size futures. Our knowledge and experience have prepared us for the expanding regulated environment to include all energy products.”