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ICE Benchmark Administration Launches ICE Risk Free Rate Indexes for U.S. Dollar, Euro and Japanese Yen

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Intercontinental Exchange (NYSE:ICE) has launched the ICE Risk Free Rate (RFR) Indexes for U.S. Dollar (SOFR), Euro (€STR), and Japanese Yen (TONA), enhancing support for the global lending market's transition to RFRs. This follows the launch of the ICE SONIA Indexes for GBP in April 2021. The new Indexes standardize interest calculation, providing pre-calculated compound interest values. These daily-published Indexes help manage cash flows and address operational challenges, thereby simplifying compounding calculations for financial contracts.

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Follows launch of ICE SONIA Indexes in April 2021

LONDON--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of data, technology, and market infrastructure, today announced that ICE Benchmark Administration Limited (“IBA”) has launched ICE Risk Free Rate (RFR) Indexes in U.S. Dollar (SOFR), Euro (€STR) and Japanese Yen (TONA), following the launch of ICE SONIA Indexes for GBP Sterling in April 2021.

ICE RFR Indexes have been developed to support the needs of the lending market as it transitions to RFRs by standardizing the calculation of interest for financial contracts and providing pre-calculated compound interest values for each business day. The Indexes are designed to provide parties with a simple method to calculate compound interest between two dates and agree on their associated interest accruals. As described in the whitepaper published today, all ICE RFR Indexes use the same underlying calculation methodology.

“The EBRD is very pleased to see the introduction of the different indices by ICE Benchmark Administration. We have made indices a core part of the design of our new loan product for clients from the start as we believe they greatly simplify the compounding calculation and reduce reconciliation risks between parties”, said Axel van Nederveen, Treasurer of the European Bank of Reconstruction and Development. “What we are particularly pleased about is that ICE Benchmark Administration will also publish values for non-business days, which will help solve the remaining hurdles for the correct implementation of the compounding in arrears methodology with observation shift.”

“Expanding the ICE Indexes to cover GBP, USD, EUR and JPY RFRs provides lenders and borrowers around the world with an expanded set of resources to assist their transition to RFR-based lending,” said Tim Bowler, President of ICE Benchmark Administration. “By engaging closely with the market, we are working hard to ensure that the lending and borrowing community has the economic and operational tools they need to transition to RFRs in their financial contracts across currencies.”

The Indexes include the option for a lookback where parties can agree to use a time-shifted view of the underlying RFR. Lookbacks help lenders and borrowers manage cash flows and address operational issues associated with determining the total interest due on a loan before the end of the accrual period. To facilitate accounting for loan accruals on reporting dates that are not business days, ICE RFR Indexes provide values for every calendar day.

ICE RFR Indexes are published daily. Prospective licensees should contact IBA-CommercialTeam-Info@ice.com for further information.

About ICE Benchmark Administration

ICE Benchmark Administration is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark, and is authorized as a benchmark administrator under the UK Benchmarks Regulation.

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, 2020, as filed with the SEC on February 4, 2021.

Disclaimers

The "SONIA" mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. "Bank of England" and "SONIA" are registered trademarks of the Bank of England.

ICE Benchmark Administration Limited is not affiliated with the New York Fed. The New York Fed does not sanction, endorse, or recommend any products or services offered by ICE Benchmark Administration Limited.

ICE- CORP
Source: Intercontinental Exchange

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 are the newly launched ICE Risk Free Rate Indexes?

The ICE Risk Free Rate Indexes are newly launched benchmarks for U.S. Dollar (SOFR), Euro (€STR), and Japanese Yen (TONA) that support the lending market's transition to risk-free rates.

When were the ICE SONIA Indexes launched?

The ICE SONIA Indexes for GBP were launched in April 2021.

How do the ICE RFR Indexes assist lenders and borrowers?

The ICE RFR Indexes simplify interest calculations for financial contracts and provide daily pre-calculated compound interest values, addressing cash flow management and operational challenges.

Who can license the ICE RFR Indexes?

Prospective licensees interested in the ICE RFR Indexes should contact IBA-CommercialTeam-Info@ice.com for more information.

What was the significance of the EBRD's comment on the new indices?

The EBRD praised the new indices for simplifying compounding calculations and reducing reconciliation risks between parties.

Intercontinental Exchange Inc.

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