This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

IntercontinentalExchange Announces May Launch Of Credit Index Futures Contracts

NEW YORK, March 11, 2013 /PRNewswire/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today it will introduce four credit index futures contracts starting in May 2013. The contracts will be based on the Markit CDX and Markit iTraxx indices, and are subject to review by the Commodity Futures Trading Commission. 

"These new products were developed with customers to meet their credit risk management needs. Our new credit index futures contracts provide customers with the benefits of the fully-regulated futures markets while also serving a complementary role to the existing credit index swaps market," said Thomas Farley, SVP, Financial Markets. "We are pleased to work with Markit and to use their transparent, rules-based indices to develop these contracts."

The four contracts are cash-settled based on the following Markit indices:

  • Markit CDX NA IG
  • Markit CDX NA HY
  • Markit iTraxx Europe (Main)
  • Markit iTraxx Crossover

The Markit CDX and iTraxx credit index futures contracts will reflect corporate credit spreads and will allow investors and credit market participants to access and hedge the corporate credit market in a cost-effective and efficient manner. The "when issued" contracts will be based on the series following the on-the-run series. This eliminates the risk of an index constituent default in the "when issued" contract as only non-defaulting entities will be included in the index when constituted as the next on-the-run contract.

Credit index futures contracts will be listed twice a year for expiration on the dates the new series begins trading in the swaps market. At expiration, any open contracts will be cash-settled based on the Markit-ICE End of Day Settlement price of the 5-year swap.

The contracts will be listed by ICE Futures U.S. and cleared at ICE Clear U.S. ICE will introduce additional credit index futures contracts based on market feedback and demand.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs