ICE announces second expiration of US Gulf Coast ICE Midland WTI futures contracts with 2.5 million barrels being delivered in April
HOUSTON & LONDON, March 24, 2022–(BUSINESS WIRE)–Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of market data, technology and infrastructure, today announced that ICE Midland futures US Gulf Coast WTI (contract code: HOU) went to its second expiry on March 23, with 2,588 contracts being delivered in April, almost double the 1,400 contracts that expired in March. Each futures contract is equivalent to 1,000 barrels of WTI crude oil from the Permian Basin.
Since the contract began trading on January 24, over 31,000 ICE Midland WTI AGC futures contracts have been traded, including a record high volume day on March 10 of 3,065 contracts. Open interest has increased to 4,508 contracts and ends in January 2023.
“It’s really encouraging to see how market activity is building around HOU and how it has continued to gain momentum despite the volatility in energy markets,” said Jeff Barbuto, Global Head of Oil Markets. at ICE. “Physical market players see the value of having access to a guaranteed exchange of Midland WTI-grade crude oil on the U.S. Gulf Coast, and they are increasingly using HOU to source barrels.”
This month, ICE extended the time during which participants can make Exchange for Physical (EFP) transactions so that they can now be executed until the day after the futures contract expires. The EFP mechanism allows participants to exchange a HOU futures position for the equivalent number of physical barrels of underlying Midland WTI.
The HOU contract is deliverable to Magellan Midstream Partners’ Magellan East Houston (MEH) terminal and Enterprise Products Partners LP’s Enterprise Crude Houston (ECHO) terminal. To further facilitate trading between MEH and ECHO terminals to create a large pool of liquidity, Magellan and Enterprise will transfer barrels of Midland WTI between terminals free of charge during the first year if the barrels are not delivered to the preferred terminal of purchaser, and 10 cents per barrel for all other transfers of WTI meeting HOU quality specifications.
About intercontinental exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that provide our clients with access to critical workflow tools that increase transparency and operational efficiency. We operate Tradesincluding the New York Stock Exchangeand clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income securities data services and execution capabilities provide insights, analytics and platforms that help our clients take advantage of opportunities and operate more effectively. AT ICE Mortgage Technology, we are transforming and digitizing the residential mortgage process in the United States, from consumer engagement to loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding trademarks and additional intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates can be found here. Key information documents for certain products covered by the EU Regulation on packaged retail and insurance-based investment products can be accessed on the website of the relevant stock exchange under “Information Documents keys (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 materially from those contained in the forward-looking statements, see ICE’s filings with the Securities and Exchange Commission (SEC), including, but not Limit thereto, the risk factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 3, 2022.
Source: Intercontinental Exchange
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220324005527/en/
ECI media contact:
+44 7951 057 351
Contact with ICE investors:
Mary Caroline O’Neal