LONDON, Nov. 11, 2019 /PRNewswire/ -- Intercontinental
Exchange, Inc. (NYSE: ICE), a leading operator of global exchanges
and clearing houses and provider of data and listings services,
today announced that it will launch a new exchange, ICE Futures Abu
Dhabi (IFAD), to host the world's first futures contracts based on
Abu Dhabi National Oil Company's (ADNOC) Murban crude oil.
On November 4, 2019, Abu Dhabi's Supreme Petroleum Council (SPC)
announced that it would implement a new pricing mechanism for
ADNOC's Murban crude. As a result, Murban pricing will move from a
retroactive official selling price to market-driven, forward
pricing using a Murban futures contract as its price marker. The
SPC also authorized ADNOC to remove destination restrictions on
Murban crude sales. With the support of ADNOC, the Murban futures
contract referenced by the SPC will be hosted on ICE Futures Abu
Dhabi.
Established in Abu Dhabi Global Market (ADGM), an International
Financial Centre that practices and applies English common law in
its entirety to its legal and regulatory regime, IFAD has been
granted recognition by the Financial Services Regulatory Authority
as a Recognised Investment Exchange.
Contracts traded at IFAD will, subject to regulatory approval,
be cleared at ICE Clear Europe, one of the world's leading clearing
houses, and will clear alongside ICE Brent, ICE WTI, ICE (Platts)
Dubai and ICE Low Sulphur Gasoil
allowing customers to benefit from associated margin offsets and
delivering meaningful capital efficiencies. IFAD and ICE Clear
Europe are working to receive regulatory approval from key
jurisdictions and, subject to receiving these, expect to launch in
the first half of 2020.
"ICE was founded with a vision to create an open, transparent
electronic marketplace for energy trading," said Jeff Sprecher, Chairman and Chief Executive
Officer, Intercontinental Exchange. "With the launch next year of
ICE Futures Abu Dhabi, Murban futures will sit alongside the most
significant global oil benchmarks, providing the opportunity for
the first time for a much larger group of participants to trade and
hedge Murban in a regulated, transparent and accessible venue."
"The recent decision by the SPC and the launch of a new exchange
in Abu Dhabi by ICE marks a
historic change in the way Murban crude will be priced and traded,"
said His Excellency Dr. Sultan Ahmed Al
Jaber, UAE Minister of State and ADNOC Group CEO. "For the
first time, Murban will be priced on a forward looking, market
driven basis based off the ICE Murban future, offering the market
greater transparency and certainty. The launch of ICE Futures Abu
Dhabi further reinforces Abu
Dhabi's status as a global energy hub, and supports ADNOC's
continued transformation into a more modern and progressive energy
company."
"ADGM is pleased to be the preferred international jurisdiction
that supports Intercontinental Exchange and ADNOC in launching the
world's first Murban crude futures contracts," said His Excellency
Ahmed Ali Al Sayegh, Minister of State (UAE) and the Executive
Chairman of Abu Dhabi Global Market. "This development marks
momentous progress within the energy industry and adds new vibrancy
to the capital markets of the UAE and wider Middle East region. We welcome IFAD as
an important international exchange to the ADGM family, which adds
to our diverse global community."
ICE Murban Futures will be a physically delivered contract with
delivery at Fujairah in the
United Arab Emirates (UAE) on a
free on board (FOB) basis. Murban Crude is a light sweet crude
produced by ADNOC. ADNOC produces around 3 million barrels of oil
per day of which some 1.7 million barrels per day is Murban
crude.
About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500
company formed in the year 2000 to modernize markets. ICE serves
customers by operating the exchanges, clearing houses and
information services they rely upon to invest, trade and manage
risk across global financial and commodity markets. A leader in
market data, ICE Data Services serves the information and
connectivity needs across virtually all asset classes. As the
parent company of the New York Stock Exchange, the company is the
premier venue for raising capital in the world, driving economic
growth and transforming markets.
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 at
http://www.intercontinentalexchange.com/terms-of-use. 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, 2018, as filed with the SEC on
February 7, 2019.
About ADNOC
ADNOC is one of the world's leading diversified energy and
petrochemicals groups with a daily output of about 3 million
barrels of oil and 10.5 billion cubic feet of natural gas. With 14
specialist subsidiary and joint venture companies, ADNOC is a
primary catalyst for the UAE's growth and diversification. For
further information: media@adnoc.ae.
About Abu Dhabi Global Market
Abu Dhabi Global Market (ADGM), an international financial
centre (IFC) located in the capital city of the United Arab Emirates, opened for business on
21 October 2015. Established by a UAE
Federal Decree as a broad-based financial centre, ADGM augments
Abu Dhabi's position as a global
trade and business hub serving as a strategic link between the
growing economies of the Middle
East, Africa and
South Asia and the rest of the
world.
ADGM's strategy is anchored by Abu
Dhabi's key strengths panning over private banking, wealth
management, asset management, derivatives and commodities trading,
financial innovation, sustainability and more. Comprising three
independent authorities: ADGM Courts, the Financial Services
Regulatory Authority and the Registration Authority, ADGM as IFC
governs the Al Maryah Island which is a designated financial free
zone.
It enables registered financial institutions, companies and
entities to operate, innovate and succeed within an international
regulatory framework based on Common Law. Since its inception, ADGM
has been awarded the "Financial Centre of the Year (MENA)" for four
consecutive years for its initiatives and contributions to the
financial and capital markets industry in the region.
For more details of ADGM, please visit www.adgm.com or follow us
on Twitter: @adglobalmarket and LinkedIn: ADGM
ICE-CORP
ICE Media Contact
Rebecca
Mitchell
+44 7951 057351
rebecca.mitchell@theice.com
ICE Investor Relations Contact:
Warren Gardiner
+1 770 835 0114
warren.gardiner@theice.com
investors@theice.com
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