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ICE Endex UK Gas updateFebruary 2015, London
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Legal Disclaimer
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Trademarks of ICE and/or its affiliates include IntercontinentalExchange, ICE, ICE block design, NYSE Euronext, NYSE, New York Stock Exchange, LIFFE and Euronext. Information regarding additional trademarks and intellectual property rights of IntercontinentalExchange Group, Inc. and/or its affiliates is located at https://www.theice.com/terms.jhtml and http://www.nyx.com/terms-use.
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, 2013, as filed with the SEC onFebruary 14, 2014.
Volumes per month (last 24 months)
Average monthly volume: 389,097,000
Volumes per month (year on year)
Trades per month (last 24 months)
Average monthly number of trades: 6,753
Daily volumes Nov 2014 - Jan 2015
Shippers % share of volume: 98.1%NGC % share of volume: 1.9%
Volumes January 2015
Highest volume: 19,915,000 (11 Jan)Lowest volume: 6,814,000 (9 Jan)Average total daily vol: 10,946,516NGC share of volume: 1.06%
Daily SAP/SMP prices
40
42
44
46
48
50
52
54
56
58
60
62
01/1
1/20
1403
/11/
2014
05/1
1/20
1407
/11/
2014
09/1
1/20
1411
/11/
2014
13/1
1/20
1415
/11/
2014
17/1
1/20
1419
/11/
2014
21/1
1/20
1423
/11/
2014
25/1
1/20
1427
/11/
2014
29/1
1/20
1401
/12/
2014
03/1
2/20
1405
/12/
2014
07/1
2/20
1409
/12/
2014
11/1
2/20
1413
/12/
2014
15/1
2/20
1417
/12/
2014
19/1
2/20
1421
/12/
2014
23/1
2/20
1425
/12/
2014
27/1
2/20
1429
/12/
2014
31/1
2/20
1402
/01/
2015
04/0
1/20
1506
/01/
2015
08/0
1/20
1510
/01/
2015
12/0
1/20
1514
/01/
2015
16/0
1/20
1518
/01/
2015
20/0
1/20
1522
/01/
2015
24/0
1/20
1526
/01/
2015
28/0
1/20
1530
/01/
2015
p/Th
erm
s
SMP buy SAP SMP sell
Highest SMP buy: 60.44 p/th (25 Nov) Lowest SMP buy: 44.68 p/th (25 Jan)Highest SAP: 59.46 p/th (25 Nov) Lowest SAP: 43.70 p/th (25 Jan)Highest SMP sell: 58.47 p/th (25 Nov) Lowest SMP sell: 42.71 p/th (25 Jan)
Volumes and SAP development
Volumes and NGG share
Spot Market Migration
Aim›To make all ICE Endex markets available on ICE’s trading infrastructure and provide post trade services through ICE Clear Europe
Objectives›WebICE - Single trading platform and matching engine for all ICE Endex markets
›ICE Clear Europe - Clearing house for all contracts offered by ICE Endex
›Independence - No dependence on third parties service providers
›Stepping stone - End state puts ICE Endex in strong position to expand to other markets
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OCMTTF & ZTP
Function
Company
OCMTTF & ZTP
Function
Company
OCMTTF & ZTP
Function
Company
OCMTTF & ZTP
Function
Company
Fron
t-end
Front-end &Matching Engine
Trayport GV ETSEurolight UK
EuroLight
Front-end &Matching Engine
Clearing &Settlement
APX GroupICE Endex
Eurolight UK
01 A
pril
2015
Front-end &Matching Engine
Clearing &Settlement
ICE Endex APX Group
Front-end &Matching Engine
Clearing &Settlement
ICE Endex ICE Clear EU
EuroLight
Fron
t-end
July
201
5
WebICE
WebICE
Star
ting
poin
t
Settl
emen
tTT
F &
ZTP
Cle
arin
g &TBD
EuroLightWebICE
ICE Endex APX Group
29 A
pril
2014
OC
M
Clearing &Settlement
OCM Migration - Planning and Milestones
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6 MARQuality Assurance
Completed & Release 12.950
15 DECTrading Platform
Development Completed
28 JANAPI Test Environment
Available
1 APRGo-live*
* Go‐live on 1 April is subject to customer readiness and approvals from NGG and Ofgem
FEBWebICE training
July August September October November December January February March AprilDevelopment Trading Platform
Quality AssuranceTesting, Training & Integration
Onboarding Process
9 JANStart Onboarding Process
16 MARDeadline Onboarding
Spot Clearing Migration› ICE Endex is migrating the gas spot markets and related clearing and settlement services
to the ICE Clearing Systems in a phased manner
› Milestones Physical settlement (nominations)
‒ March 2015 - Belgian ZTP and Dutch TTF spot market‒ May/June 2015 - UK OCM
Clearing and (financial) settlement services‒ July 2015 (target date) – ICE Clear Europe will take over from APX
› Implementation new physical settlement (nominations) system Extensive joint integration tests with TSOs Two week production shadow run before decommissioning APX nomination
application
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Spot Clearing Migration
ICE Endex Gas Spot Member
Clearing Bank
ICE EndexGas Spot Member
ICEU
Clearing Bank
ICE Endex
ICE Endex Gas Spot Member
ICE EndexGas Spot Member
ICE Endex Gas Spot Member
ICE EndexGas Spot Member
APX
ICE Endex
ICE Endex Gas Spot Member
ICE EndexGas Spot Member
Current Model - APX Future Model - ICEU
ICE Clear Europe Membership Model› Following consultation with ICE Clear Europe Clearing Members and ICE Endex Trading Members, ICE Clear
Europe has revised the proposed Clearing Model.
› Clearing Member feedback Interest to intermediate the Spot Market using existing customer omnibus accounts; Will provide ISOC or Sponsored Principle models to meet EMIR requirements at client request; Back-/Middle-office vendor support (i.e. SunGard) support pre-requisite to clearing; Challenged the pre-order risk check and the requirement to fully collateralise trading – would prefer identical
pre-trade risk management currently offered on WebICE; and Clearing House risk is with the Clearing Member and not the end client and therefore Margin and Guaranty
contribution should be covering credit risk.
› ICE Clear Europe will offer clearing and settlement services via an intermediated and direct clearing model No separate Spot Membership Category; Spot Participants can apply for Clearing Membership subject to existing membership requirements; Choice between the client omnibus account or one of the EMIR individual segregated accounts, namely
Sponsored Principal or ISOC, and The Clearing House will not mandate which account type the Clearing Member and/or client should use.
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DISCLAIMER
The information contained in this document (“Presentation”) has been prepared by ICE Endex and is subject to change without notice. Copyright and intellectual property right protection exists in this Presentation and it may not be reproduced, distributed or published with any third party, in whole or in part, without the express prior written permission from ICE Endex. All rights are reserved. While reasonable care has been taken to ensure that the information contained herein is true and accurate, ICE Endex makes no representation to its correctness, reliability or completeness including likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters that may be contained in this Presentation. Neither ICE Endex nor any of its directors or employees accepts any liability in respect of the information contained in the Presentation or for any loss arising from the use of this Presentation, its contents or otherwise arising in connection with it. This Presentation does not constitute an offer, invitation or recommendation to any transaction and neither is it to be taken as any form of commitment on the part of ICE Endex to proceed with any transaction.
Contact details
Christian MogerCommercial Manager Spot Gas+31 (0)20 305 [email protected]
Egbert-Jan Schutte-HiemstraSenior Manager Business Development+31 (0)20 305 [email protected]
www.theice.com/endex
