Integrated Access To Global Derivatives Markets

ICE's integrated marketplace offers both futures and OTC markets,

including cleared and bilateral products on a widely-distributed

electronic platform that flexibly serves participants' needs and

changing market conditions so that they can manage risks confidently,

in real-time.

Transparency and Regulation

Price transparency is vital to efficient and equitable markets. ICE offers

unprecedented price transparency and ensures that full depth of market

is shown to all participants and observers. Trades are executed on a

first-in/first-out basis, ensuring fair execution priority. ICE also

displays a live ticker of all deal terms and maintains an electronic file

of all transactions conducted in its markets. ICE's markets are subject

to applicable regulation in the country of domicile, as well as subject to

regulatory requirements of the jurisdictions where ICE operates.

Independence

ICE adheres to best practices in corporate governance in operating its

marketplace. ICE's Board of Directors is independent, ensuring that the

Board acts impartially when making decisions that affect operations,

markets and shareholders. To further facilitate fair trading practices,

neither ICE employees nor its Board participate in commodity trading

activities, thus avoiding potential conflicts of interest.

Source: https://www.theice.com/about.jhtml

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TASKS

Task 1. Choose the right definition:

1. clearing

house

2. equity

market

3. credit

market

4. currency

market

5. futures

6. index

7. market-

place

a) the buying and selling of currencies by governments,

financial institutions in a particular financial centre

or in the world as a whole.

b) the part of business activity which is concerned with

selling goods.

c) an organization that makes payments between banks

and other financial institutions that trade regularly

with each other.

d) smth. such as a price, amount, level that shows the

general level of related prices.

e) the buying and selling of shares generally, rather

than the trade in shares on a particular stockmarket.

f) goods, money, land etc. that will be supplied or

exchanged in the future at a time and price that has

already been agreed; buying and selling futures

contracts.

g) a market for borrowing money in the form of bank

loans, bonds etc.

Task 2. Define the following terms:

Emissions market; derivatives market; liquid market; commodities;

domicile; over-the-counter; first-in/first-out.

Task 3. Insert the appropriate prepositions where necessary. Find the

sentences in the text where theses phrases are used.

1.

2.

3.

4.

5.

6.

7.

8.

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to serve ___ the global markets;

to trade half ___ the world’s oil futures;

to hedge ___ price risk;

to provide ___ rapid trade execution;

to be accessible ___ direct connections;

___ a widely-distributed electronic platform;

to be vital ___ equitable markets;

___ a first-___/first-___ basis;

9. to be subject ___ regulation;

10. to adhere ___ best practices;

11. to avoid ___ conflicts ___ interest.

Task 4. Composes sentences with each of the following words:

To operate; (trade) execution; transaction; (market) disruption; in real-

time; to ensure; to conduct.

Task 5. Provide answers for the following questions:

1. What does Intercontinental Exchange operate?

2. How do ICE Futures Europe, ICE Futures U.S. and ICE Futures

Canada function in the market sphere?

3. What was ICE’s electronic trading platform designed for?

4. What does ICE’s integrated marketplace represent in itself?

5. Why does ICE prefer price transparency?

6. How are ICE’s market regulated?

7. Why is ICE’s Board of Directors thought to be independent?

Task 6. Tell what you have learnt about the ICE.

THE ICE HISTORY

In May 2000, IntercontinentalExchange® (ICE) was established, with

its founding shareholders representing some of the world's largest

energy companies and global banks. ICE's mission was to transform

OTC energy markets by providing an open, accessible, around-the-

clock electronic energy marketplace to a previously fragmented and

opaque market. ICE offered the energy community price transparency,

more efficiency, greater liquidity and lower costs than manual trading,

such as voice or floor markets. Working together with participants in

the energy markets, ICE developed the leading electronic marketplace

for energy commodities, along with the leading electronic trade

confirmation platform. ICE Data® was launched in 2002 to meet the

demand for increased market data in the OTC energy markets, and is

today one of the leading providers globally. ICE has developed and

maintained its state-of-the-art technology infrastructure for trading,

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trade processing, clearing, market data and risk management, investing

over $120 million in technology since inception.

In June 2001, ICE expanded its business into the futures markets by

acquiring the International Petroleum Exchange (IPE), now ICE

Futures Europe®, Europe's leading regulated energy futures exchange.

ICE Futures Europe's markets today account for approximately 50% of

the world's crude oil and refined futures traded each day. In April 2005,

ICE Futures Europe became the first fully electronic energy exchange.

Since 2003, ICE has partnered with the Chicago Climate Exchange

(CCX) to host its OTC emissions markets, and today offers the leading

European emissions futures in conjunction with the European Climate

Exchange (ECX). Today the ICE/ECX carbon futures contracts are the

most widely relied upon carbon contracts globally.

In November 2005, ICE completed its IPO on the New York Stock

Exchange under the ticker ICE. Today, ICE is a member of the Russell

1000® and the S&P 500 indexes. In 2006, the Wall Street Journal

recognized ICE as the best performing stock of all publicly traded U.S.

stocks.

In January 2007, ICE acquired the New York Board of Trade

(NYBOT) now known as ICE Futures U.S.® Today, its futures

contracts for soft commodities, including sugar and coffee are listed on

the ICE platform. In June 2007, ICE and Russell Investments entered

into an exclusive licensing agreement with respect to the U.S. Russell

Index futures complex, and today Russell Index futures trade

exclusively on ICE. Also in 2007, ICE acquired the exclusive right to

key natural gas indexes, including NGI and NGX, and transitioned the

electronic markets . In July 2007, ICE acquired and integrated

ChemConnect's NGL and chemicals markets into its OTC markets. In

September 2007, ICE acquired the Winnipeg Commodity Exchange,

the world's leading canola market, now known as ICE Futures

Canada®. In October 2007, ICE acquired Chatham Energy, a leading

OTC energy options broker.

In January 2008, ICE acquired YellowJacket, a leading peer-to-peer

negotiation platform for the OTC energy options markets. In August

2008, ICE completed its transaction of Creditex, a leading interdealer

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market for the execution and processing of credit derivatives with

operations in New York, London and Singapore.

In March 2009, ICE acquired The Clearing Corporation (TCC), which

provides the clearing technology for ICE's credit default swap clearing

house, known as ICE Trust. Approved by the Board of Governors of

the Federal Reserve in March 2009, ICE Trust, is a member of the

Federal Reserve and is a New York bank holding company and is the

leading CDS clearing house globally. Today, ICE employs over 750

professionals across the U.S., Europe and Asia.

Source: https://www.theice.com/history.jhtml

TASKS

Task 1. Give Russian equivalents for the words and phrases below:

1.

2.

3.

4.

5.

a previously fragmented and opaque market

manual trading

inception

acquired the exclusive right

peer-to-peer negotiation platform

Task 2. Make up 5 sentences with these phrases using the Infinitive,

the Gerund and the Participle.

Task 3. Fill in the gaps with the right prepositions:

















to partner ___;

___ conjunction ___;

to rely ___;

to enter ___ (an agreement);

___ respect ___;

to trade ___ (a stockmarket);

to integrate ___;

to be approved ___.

Task 4. What do the abbreviations OTC, IPO stand for?

Task 5. Explain the phrase: credit default swap clearing house .

149

Task 6. Ask your group-mates all types of questions on the history of

the ICE.

Task 7. Summarize the article using the phrases given below:

















founding shareholders;

around-the-clock electronic energy marketplace;

state-of-the-art technology infrastructure;

to expand the business;

to be recognized as the best performing stock;

soft commodities;

an exclusive licensing agreement;

to provide clearing technology.

TOKYO STOCK EXCHANGE

The stock trading floor has attracted attention as a symbol of the

securities and financial markets of our country for more than 120 years

since floor trading began at the former Tokyo Stock Exchange, the

predecessor of the current Tokyo Stock Exchange, on June 1, 1878.

However, the stock trading floor was closed on April 30, 1999 in an

effort to accelerate the speed and reduce the cost of transactions by

member securities companies, and seek further efficiency in the Tokyo

market. At the site of the stock trading floor, "TSE arrows" was opened

on May 9, 2000 as a new symbol of the Tokyo market.

Corporate Philosophy of TSE

This corporate philosophy represents goals and a sense of value which

TSE and TSE Group should aim for in order to conduct corporate

activities. In addition to laying a foundation for development of

management plans and decision making of management, the corporate

philosophy also serves as a basic guideline that is a cornerstone for all

the executives and employees of TSE so as to perform its operations.

Basic Principles

We fully acknowledge the social responsibility of Tokyo Stock

Exchange, Inc. (TSE) and our mission of working for the public

interest, and we will fulfill the expectations upon us as a stock

exchange to strictly comply with all laws and regulations. We will

strive to gain further confidence and respect from the public by

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improving our relationship with members of society at large. To

increase TSE's corporate value, we shall engage in various activities

with stakeholders such as investors, and we will be an integrated part

of society.

Compliance Report

A variety of investors – individuals, institutions, securities companies,

etc – have participated in the markets established by Tokyo Stock

Exchange, placing orders according to their own needs and

preferences. The supply and demand of orders assembled in the market

in this manner are integrated, from which appropriate securities values

are formed. The TSE is therefore expected to be a free and open

market, where sound securities investment can be made. It is also

expected to conduct appropriate management in full consideration of

conditions not only within Japan, but also overseas. To respond to such

expectations, our most important task is ensuring fairness and

transparency in trading. Were unfair transactions to be left unchecked,

fair price formation would be distorted, unexpected damage would be

suffered by investors, and the overall credibility of securities markets

would be lost.

TOPIX Characteristics (Tokyo Stock Price Index*)