ICE Midland WTI (HOU) Futures Reach All-Time Daily Volume Record
May 17 2024 - 7:30AM
Business Wire
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global
provider of technology and data, today announced that its ICE
Midland WTI (ICE:HOU) crude futures contract hit its highest volume
day on May 13, 2024, with over 100,000 contracts traded.
The volume activity follows records set in the HOU futures
contract in 2024, including record average daily volume of 16,700
contracts during April, rising to over 29,000 contracts during May
2024, based on month-to-date trading activity. Alongside this, HOU
open interest (OI) is up over 190% year-over-year (y/y).
“It’s great to see the market utilize HOU as the only
exchange-guaranteed source of ratably delivered Midland WTI
barrels,” said Jeff Barbuto, Global Head of Oil Markets at ICE.
“HOU is where U.S. production meets global demand, and the quality
spec of ICE HOU matches the globally accepted Midland-WTI quality.
Physical cargoes load at the U.S. Gulf Coast for export to Asia and
Europe, where HOU-quality barrels are accepted in the Platts Dated
Brent assessment.”
“Right now, the U.S. Gulf Coast market is focused on the
scheduled maintenance of the Wink to Webster pipeline due in June
2024, with Argus announcing that all trades originating from this
pipeline will be excluded from their MEH assessment,” continued
Barbuto. “The ICE HOU contract rules state that HOU must be on-spec
and be delivered ratably. These are the times when
exchange-guaranteed quality and deliveries show their value.”
ICE’s rules state, “It is the Seller’s obligation to ensure that
the Product receipts are available to begin flowing ratably at the
Specified Terminal by the first day of the delivery month." Full
contract rules can be found here:
https://www.ice.com/publicdocs/contractregs/179_SECTION_7A1.pdf
ICE offers HOU time spreads, as well as inter-commodity spreads
with Brent and WTI Cushing (Domestic Light Sweet) to help customers
mitigate price risk between locations and grades. Meanwhile,
customers can benefit from margin offsets as high as 98% when
clearing HOU alongside other oil positions cleared at ICE. Offsets
are available across a range of over 800 oil contracts, including
ICE Brent, ICE Gasoil, ICE WTI, ICE Dubai (Platts), ICE Murban, as
well as RBOB Gasoline. OI across ICE’s total oil complex is up over
20% y/y at 14 million contracts.
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
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version on businesswire.com: https://www.businesswire.com/news/home/20240517052593/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
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