ICE Environmental Contracts Traded the Equivalent of $1 Trillion in Notional Value for the Third Consecutive Year

Rhea-AI Summary

Intercontinental Exchange, Inc. (NYSE:ICE) announced that 2023 marked the third consecutive year where ICE carbon allowance volumes traded the equivalent to $1 trillion in notional value. Trading activity in ICE’s global environmental markets is up over 30% year-over-year with open interest up 20% year-over-year. ICE’s EU Carbon Allowance futures and options reached record participation in 2023 and Q1 2024. ICE also launched Mini EUA futures to support the shipping industry in managing emissions price risk.

Positive

• ICE's carbon allowance volumes traded the equivalent to $1 trillion in notional value for the third consecutive year.
• Trading activity in ICE's global environmental markets increased over 30% year-over-year with open interest up 20% year-over-year.
• ICE's EU Carbon Allowance futures and options reached record participation in 2023 and Q1 2024.
• ICE launched Mini EUA futures with a smaller contract size to support the shipping industry in managing emissions price risk.
• ICE expanded its range of cap-and-trade futures markets, including Washington carbon allowance futures and the first environmental futures market based on Alberta, Canada’s carbon program.
• In 2024 year-to-date, over 1.6 million contracts have traded across North American environmental markets, up over 40% versus the same period last year.
• Open interest across ICE's global energy portfolio hit a record 61 million contracts on April 18, 2024.
• Over 166 billion carbon allowances, approximately 460 million renewable energy certificates, 6 billion carbon credits, and the equivalent of 13 billion Renewable Identification Numbers (RINs) have traded on ICE since launch.

Negative

• None.

EUA Markets Reach Record Participation Through 2023 and Q1 2024 with Record Trading Activity in North American Environmental Markets in 2023

AMSTERDAM & LONDON & NEW YORK--(BUSINESS WIRE)-- Intercontinental Exchange, Inc. (NYSE:ICE), a leading global provider of technology and data, today announced that 2023 marked the third consecutive year where ICE carbon allowance volumes traded the equivalent to $1 trillion in notional value.

Trading activity in ICE’s global environmental markets is up over 30% year-over-year (y/y) with open interest up 20% y/y.

ICE’s EU Carbon Allowance (EUA) futures and options, the world’s most liquid carbon market and the global benchmark price for emissions, reached record participation throughout 2023 and during Q1 2024.

To complement this market, ICE has today launched Mini EUA futures, in a lot size of 100 tons versus the 1000 ton lot size in the benchmark EUA futures. The smaller contract size is designed to support the shipping industry in managing emissions price risk and will sit alongside ICE’s existing contracts across Marine Fuels, Wet Freight, LNG and LPG Freight and Low Sulphur Gasoil futures.

“Built over the past two decades and counting, our global network of exchanges and data now sit at the heart of the world’s most important energy transition where the benchmark prices for energy and carbon are formed every day,” said Gordon Bennett, Managing Director, Utility Markets at ICE.

“As the biggest and most liquid carbon market in the world, the EU will continue to influence international carbon markets and, with the addition of CORSIA and Mini EUA futures, ICE is offering additional tools for customers to bring their carbon tons on risk and put a price on the cost of emissions,” continued Bennett.

During 2023, ICE’s CORSIA futures went live, providing a targeted tool for airline operators to manage their emissions exposure, and are currently the only way for the market to trade futures based on CORSIA Phase 1. Also in 2023, ICE expanded its range of cap-and-trade futures markets, with the launch of Washington carbon allowance futures, and in 2024 listed the first environmental futures market based on Alberta, Canada’s carbon program.

In 2024 year-to-date, over 1.6 million contracts have traded across North American environmental markets, up over 40% versus this period last year. While in 2023, a record 3.9 million contracts traded, along with record participation. The notional value of physically settled futures contracts in the North American portfolio was $10.8 billion in 2023, breaking the last record set in 2021.

ICE offers customers the most liquid markets to trade futures and options on California Carbon Allowances, California Carbon credits, RGGI Allowances (RGA), California Low Carbon Fuel Standard (LCFS) Credits, and Renewable Energy Certificates.

ICE’s energy and environmental markets are the most liquid in the world. On April 18, 2024, open interest across ICE’s global energy portfolio hit a record 61 million contracts. Since launch, over 166 billion carbon allowances, approximately 460 million renewable energy certificates, 6 billion carbon credits, and the equivalent of 13 billion Renewable Identification Numbers (RINs) have traded on ICE.

For more information, please visit: https://www.ice.com/energy/environmental or read our FAQs.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates 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, 2023, as filed with the SEC on February 8, 2024.

Category: EXCHANGES

ICE- CORP

Source: Intercontinental Exchange

View source version on businesswire.com: https://www.businesswire.com/news/home/20240422838228/en/

ICE Media Contact:

Jess Tatham

jess.tatham@ice.com

+44 7377 947136

ICE Investor Contact:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

What is the notional value equivalent of ICE carbon allowance volumes traded in 2023?

ICE carbon allowance volumes traded the equivalent to $1 trillion in notional value in 2023.

What was the year-over-year increase in trading activity in ICE's global environmental markets?

Trading activity in ICE's global environmental markets increased over 30% year-over-year.

What percentage was the open interest up year-over-year in ICE's global environmental markets?

Open interest in ICE's global environmental markets was up 20% year-over-year.

What are the Mini EUA futures launched by ICE designed for?

Mini EUA futures were launched by ICE to support the shipping industry in managing emissions price risk.

What new markets did ICE expand into in terms of cap-and-trade futures in 2023?

ICE expanded into Washington carbon allowance futures and the first environmental futures market based on Alberta, Canada’s carbon program in 2023.

How much have contracts traded across North American environmental markets in 2024 year-to-date compared to the same period last year?

Over 1.6 million contracts have traded across North American environmental markets in 2024 year-to-date, up over 40% versus the same period last year.

What was the record open interest across ICE's global energy portfolio on April 18, 2024?

Open interest across ICE's global energy portfolio hit a record 61 million contracts on April 18, 2024.

How many carbon allowances have traded on ICE since launch?

Over 166 billion carbon allowances have traded on ICE since launch.