ICE Announces Second Expiry in ICE Midland WTI American Gulf Coast Futures With 2.5 million Barrels Going to Delivery in April

Rhea-AI Summary

Intercontinental Exchange (NYSE: ICE) announced the delivery of 2,588 contracts for its Midland WTI American Gulf Coast futures on March 23, marking a substantial increase from 1,400 contracts in March. Since launching on January 24, over 31,000 contracts have been traded, with record volumes seen on March 10. Open interest has risen to 4,508 contracts. ICE has also extended the Exchange for Physical transaction deadline to one day post-expiry, enhancing trading flexibility. This contract is deliverable at key terminals, and liquidity will be improved through a no-charge transfer for the first year.

Positive

• Increased contract delivery from 1,400 in March to 2,588, indicating strong market engagement.
• Total trading volumes exceeded 31,000 since inception, showcasing high interest.
• Record trading day on March 10 with 3,065 contracts.
• Open interest at 4,508 contracts suggests sustained investor interest.
• Extended EFP transaction window enhances trading efficiency.

Negative

• None.

HOUSTON & LONDON--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Midland WTI American Gulf Coast futures (contract code: HOU) went to its second expiry on March 23, with 2,588 contracts going to delivery in April, almost double the 1,400 contracts which went to expiry in March. Each futures contract is equivalent to 1,000 barrels of Permian Basin originated WTI crude oil.

Since the contract began trading on January 24, over 31,000 ICE Midland WTI AGC futures have traded, including a record volume day on March 10 of 3,065 contracts. Open interest has grown to 4,508 contracts and goes out to January 2023.

“It’s really encouraging to see how market activity is developing around HOU and how this has continued to gather momentum despite the volatility in energy markets,” said Jeff Barbuto, Global Head of Oil Markets at ICE. “Physical market participants are seeing the value in having access to exchange guaranteed Midland WTI quality crude on the U.S. Gulf Coast, and they are increasingly using HOU to source those barrels.”

This month, ICE extended the time that participants can conduct Exchange for Physical (EFP) transactions so that they can now be executed up until the day after expiry of the futures contract. The EFP mechanism allows participants to exchange a HOU futures position for the equivalent number of underlying physical Midland WTI barrels.

The HOU contract is deliverable at both Magellan Midstream Partners’ Magellan East Houston (MEH) terminal and Enterprise Products Partners L.P.’s Enterprise Crude Houston (ECHO) terminal. To further facilitate trading between the MEH and ECHO terminals to create one large liquidity pool, Magellan and Enterprise will transfer Midland WTI barrels between the terminals for no charge during the first year if the barrels are not delivered to the buyer’s preferred terminal, and at 10 cents per barrel for all other WTI transfers 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 offer our customers access to mission-critical workflow tools that increase transparency and operational efficiencies. We operate exchanges, including the New York Stock Exchange, and clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers capitalize on opportunities and operate more efficiently. At ICE Mortgage Technology, we are transforming and digitizing the U.S. residential mortgage process, from consumer engagement through 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 additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. 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, 2021, as filed with the SEC on February 3, 2022.

ICE- CORP
Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20220324005527/en/

ICE Media Contact:

Rebecca Mitchell

Rebecca.Mitchell@ice.com

+44 7951 057 351

ICE Investor Contact:

Mary Caroline O’Neal

marycaroline.oneal@ice.com

(770) 738-2151

Source: Intercontinental Exchange

FAQ

What was the contract delivery for ICE Midland WTI futures on March 23?

ICE Midland WTI futures saw a delivery of 2,588 contracts on March 23.

How many contracts have traded since the launch of ICE Midland WTI futures?

Over 31,000 contracts of ICE Midland WTI futures have been traded since its launch on January 24.

What is the record volume day for ICE Midland WTI futures?

The record volume day for ICE Midland WTI futures was March 10, with 3,065 contracts traded.

What does the extension of the EFP transaction window mean for traders?

The extension allows traders to execute EFP transactions up to one day after the futures contracts expire, providing more flexibility.

What terminals are involved in the delivery of ICE Midland WTI contracts?

The ICE Midland WTI contracts are deliverable at Magellan East Houston and Enterprise Crude Houston terminals.