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Oil & Energy

Energy Supply Chains May Take Months to Recover After Hormuz Reopens, Argus Media Says

Energy supply chains may take months to recover from recent disruptions despite a peace agreement and the reopening of the Strait of Hormuz, as shipping, production and export operations gradually return to normal, Argus Media analysts said Monday.Vessel owners, operators and insurers will likely wait for evidence of sustained "successful transits" before returning to the waterway, slowing the recovery in commodity flows, Francis Osborne, head of oil analytics at Argus, said.Shipping companies must reposition vessels and crews, while producers across the Middle East Gulf need time to restore damaged export infrastructure and output capacity, Osborne said.Argus Consulting's Oil Fundamentals Outlook assumes that regional crude production will take four to six months to return to near pre-crisis levels, while some facilities may require significant remediation beforehand.Osborne added that alternative export routes through Saudi Arabia's Yanbu and the UAE's Fujairah may continue handling elevated volumes, keeping Hormuz shipments below pre-war levels even after reopening.Some traditional buyers of Middle East crude may diversify their supply sources following the disruption, although demand for inventory replenishment could partially offset weaker traffic through the strait, Osborne said.Refined product markets remain "cautious" despite the prospect of a peace agreement, with Europe, Africa and Asia still waiting for normal supply flows to resume, Benedict George, head of refined product pricing at Argus, said.Europe continues to await jet fuel and diesel cargoes, while Asian buyers seek crude, naphtha and liquefied petroleum gas supplies, and African markets remain focused on diesel and gasoline imports, with "no immediate relief for physical supply in Europe," according to George.If Hormuz remains open under a peace settlement, refined product shipments to key consuming regions could normalize within six weeks, although immediate relief remains unlikely.Tankers require four to six weeks to reach Europe, and many vessels continue using the Cape of Good Hope route to reduce exposure to Houthi violence, George said.George added that the disruption has created a "lasting gap in commercial oil products stocks in Europe," leaving the market more vulnerable to future supply disruptions.Jet fuel premiums have fallen back to pre-war levels, with the July swap trading about $65 per metric ton above July ICE (ICE) gasoil on Monday, Argus head of EMEA jet fuel pricing Amaar Khan said.Strong refinery production, inventory drawdowns and imports from the US and Nigeria have strengthened confidence that supply will satisfy summer demand, Khan added.Market participants appeared relatively calm because traders had already "priced in" the possibility of a peace agreement, although outright fuel prices remain above levels seen before the conflict.Khan added that additional Middle East jet fuel cargoes are unlikely to reach Europe before late July, although returning supply could ease concerns over "post-summer supply," while heavily depleted inventories are unlikely to be rebuilt quickly because supplies will remain relatively tight.Liquefied natural gas exports through the Strait of Hormuz still face significant hurdles despite a peace agreement, according to Martin Serior, head of LNG pricing at Argus, and Natasha Fielding, head of LNG and natural gas pricing at Argus.Qatar's Ras Laffan, the world's largest LNG export facility, may take months to return to full output, while missile strikes have removed 12.8 million metric tons per year of capacity from the 77 mtpa terminal for at least three years.Prompt spreads between Asian and European gas prices have remained largely unchanged, while delayed expansion projects, storage refill requirements and the risk that conflict could "restart again" continue to support prices above pre-war levels, according to the analysts at Argus Media.Price: $141.44, Change: $+1.43, Percent Change: +1.02%

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Wire

Market Chatter: SpaceX Options to Start Trading Tuesday After Shares Debut

Space Exploration Technologies (SPCX) options will begin trading Tuesday after the company's shares debuted on Friday, Bloomberg reported.SpaceX options will be listed on Cboe Global Markets (CBOE) and Nasdaq (NDAQ), spokespeople for the exchanges said, according to the report.Other exchanges, including Intercontinental Exchange's (ICE) NYSE and Miami International Holdings, are expected to list the options early next week, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)Price: $174.97, Change: $+39.97, Percent Change: +29.61%

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Commodities

Astra, Adamant Complete 1st Advanced Fame 0 Trade on Argus Open Markets Platform

Renewable energy firm Astra Energy initiated a deal to buy Advanced Fame 0 fob ARA from Italian firm Adamant on Argus Open Markets on May 28, marking the first transaction for the grade since its launch on the price-discovery platform, Argus Media said Tuesday.The Argus RED Advanced Fame 0 CFPP fob ARA, stands for Fatty Acid Methyl Ester 0 cold filter plugging point for free-on-board delivery in the Amsterdam-Rotterdam-Antwerp hub.It is a daily price assessment for advanced biodiesel produced from waste-based feedstocks eligible under the European Union's Renewable Energy Directive II, Annex IX, Part A, according to Argus.Bulgarian producer Astra initiated the May 28 deal to buy Advanced Fame 0 fob ARA range material from Italian company Adamant, marking the grade's first trade on the platform.Advanced Fame 0 fob ARA grade has a CFPP of 0 degrees Celsius and, like other biodiesel grades such as Fame 0, Used Cooking Oil Methyl Ester, or Ucome, and Rapeseed Methyl Ester or RME, is blended into diesel to help meet renewable energy targets, according to Argus. It is classified by its feedstock base, which consists exclusively of qualifying EU Annex IX Part A waste materials.Market participants have traditionally traded Advanced Fame 0 at a differential to Ucome, Argus said.Under the FOB delivery model, the seller delivers the goods onto the vessel at the named port of shipment. The buyer pays for ocean freight, insurance, and subsequent costs.Intercontinental Exchange (ICE) launched an Argus-settled Advanced Fame 0 futures contract last month, and the contract has already recorded trades.Different regulatory frameworks for the two waste-based fuels have widened supply-demand dynamics, increasing demand for standalone pricing and hedging instruments."We are pleased that market participants are embracing our AOM platform, which offers streamlined trade initiation, aids price transparency and provides a digital footprint that assists compliance," Argus Media Chairman and Chief Executive Adrian Binks said.He added biofuels markets continue to evolve as regulatory mandates take effect, while Argus pricing benchmarks across biofuels, feedstocks and renewable fuels serve as industry standards for risk management and term contracts.Argus operates Open Markets platforms across European and Asian biofuels, liquefied petroleum gas and West African crude oil markets, providing real-time price transparency and trade initiation tools.Price: $141.41, Change: $+2.35, Percent Change: +1.69%

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Wire

Intercontinental Exchange Joins Anthropic's Project Glasswing AI Cybersecurity Initiative

Intercontinental Exchange (ICE) said Wednesday it has joined Amazon-backed (AMZN) Anthropic's Project Glasswing, a cybersecurity initiative that gives select organizations access to the AI company's unreleased Claude Mythos Preview model to identify and remediate software vulnerabilities.ICE said it has deployed the model across its businesses including the NYSE, other exchanges, clearinghouses, data services, and its mortgage technology platform."We're advancing the use and sophistication of AI across our cyber security in a manner that is secure, auditable, and designed for regulated industries," said Ben Jackson, president of ICE.Price: $140.62, Change: $-1.76, Percent Change: -1.24%

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Oil & Energy

ICE Energy Markets Hit Record 130.5 Million Open Interest Contracts

Intercontinental Exchange (ICE) said Wednesday it reached an all-time high open interest of 130.5 million contracts across its futures and options markets, led by double-digit growth in Henry Hub and global power derivatives.Fueled by structural shifts in global energy infrastructure, ICE's commodity markets hit a record open interest of 77 million contracts on May 22, while its broader global energy portfolio climbed 8% year over year to 72 million contracts.Total energy options led the surge, logging a record 31 million open contracts, ICE said.According to exchange data, global natural gas positions peaked at 48 million contracts, marking an 11% year-over-year increase, while global power markets reached an all-time OI high of 4 million contracts on May 25.The growth was driven by North American gas derivatives, where futures and options volumes jumped 11% year-over-year to a record 41.4 million open contracts, it noted.Notably, positions in the US Henry Hub benchmark increased 13% year-over-year, alongside an 8% increase across regional financial gas hubs.Market operators attribute the expanding liquid volumes to commercial participants actively hedging regional basis spreads, localized pipeline constraints, and the shifting maritime trade routes for global LNG cargoes.On the demand side, exchange officials highlighted that rapid data center expansion is introducing a complex layer of structural consumption to power grids.

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Wire

Intercontinental Exchange Reports Record Open Interest Contracts in Natural Gas, Power

Intercontinental Exchange (ICE) reported Wednesday record liquidity for its global natural gas and power markets, including record open interest in North American natural gas.ICE said it reached a record 130.5 million open interest contracts for its futures and options markets.On May 22, ICE's global natural gas markets hit a record 48 million open interest contracts, up 11% from a year earlier, while its global power markets hit a record 4 million open interest contracts, a 10% rise from a year earlier.ICE's North American natural gas futures and options markets reached record open interest of 41.4 million, up 11% from a year earlier.Price: $150.14, Change: $-0.49, Percent Change: -0.32%

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Sectors

Sector Update: Financial Stocks Mixed Late Afternoon

Financial stocks were mixed late Tuesday afternoon, with the NYSE Financial Index rising 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) decreasing 0.2%.The Philadelphia Housing Index climbed 1.9%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) rose 0.4%.Bitcoin (BTC-USD) fell 1.8% to $75,824, and the yield for 10-year US Treasuries dropped 6.5 basis points to 4.493%.In economic news, US consumer confidence fell in May amid mounting inflation concerns as the Middle East conflict has stretched for about three months now, a survey by the Conference Board showed Tuesday. The consumer confidence index ticked down to 93.1 this month from April's upwardly revised reading of 93.8. The consensus was for a 92 print in a Bloomberg survey.In corporate news, Webster Financial (WBS) shareholders accepted the $12 billion takeover proposal from Banco Santander (SAN), Bloomberg reported, citing the company's extraordinary investor meeting. Webster shares rose 1.3%, and Santander gained 3.6%.Pershing Square (PS) has a highly resilient and differentiated business model, but its valuation appears elevated at current levels, Oppenheimer said in a note. Oppenheimer initiated coverage with a perform rating. Shares were up 1.4%.Intercontinental Exchange (ICE) said its ICE ETF Hub won regulatory approval to expand operations in Europe and Australia for the receipt and transmission of orders in exchange-traded products. ICE shares fell 1.3%.FinVolution (FINV) shares jumped 11% after the company reported Q1 adjusted earnings and net revenue that exceeded expectations.

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Sectors

Sector Update: Financial Stocks Mixed Tuesday Afternoon

Financial stocks were mixed in Tuesday afternoon trading with the NYSE Financial Index rising 0.2% and the State Street Financial Select Sector SPDR ETF (XLF) falling 0.4%.The Philadelphia Housing Index climbed 1.5%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) increased 0.4%.Bitcoin (BTC-USD) fell 1.4% to $76,197, and the yield for 10-year US Treasuries dropped 5.6 basis points to 4.502%.In sector news, Wall Street lenders are urging the Federal Reserve to formalize recent supervisory changes to reduce the risk of future policy reversals, Reuters reported. Banks want clearer legal backing for the Fed's shift to an "observations" framework, citing concerns over legal ambiguity and potential future policy reversal, the report said.In corporate news, Webster Financial (WBS) shareholders accepted the $12 billion takeover proposal from Banco Santander (SAN), Bloomberg reported, citing the company's extraordinary investor meeting. Webster shares rose 0.9%, and Santander gained 2.7%.Intercontinental Exchange (ICE) said its ICE ETF Hub won regulatory approval to expand operations in Europe and Australia for the receipt and transmission of orders in exchange-traded products. ICE shares fell 1.3%.FinVolution (FINV) shares jumped 7% after the company reported Q1 adjusted earnings and net revenue that exceeded expectations.

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Commodities

Fintech Firm OKX to Launch Brent, WTI-based Perpetual Future Contracts

Blockchain technology and trading company OKX and the Intercontinental Exchange (ICE) plan to launch a perpetual futures contract based on the ICE's Brent Crude and West Texas Intermediate crude oil benchmarks, OKX said on Friday.The contracts will be available to trade on OKX's platform in locations where OKX is permitted to offer perpetual futures. OKX described the contracts as "a major step forward" in expanding access to global commodity markets using digital technology.OKX said ICE's Brent and WTI futures will underpin the perpetual contracts on OKX's platform. Brent and WTI contracts on ICE expire after a certain period of time, but the perpetual contracts trading on OKX's blockchain platform will not have an expiry date.This is OKX's first collaboration with ICE, which operates some of the world's largest exchanges and clearing houses for financial assets, after the two formed a strategic relationship in March.Haider Rafique, Global Managing Partner at OKX said that the presence of Brent and WTI among perpetual futures assets responds to demand from the market for this kind of asset and he said it would give retail traders access to the world's main energy benchmarks.OKX describes itself as a fintech company known for its global cryptocurrency trading platform.

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Sectors

Sector Update: Financial Stocks Edge Higher Pre-Bell Friday

Financial stocks were edging higher pre-bell Friday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.6%.The Direxion Daily Financial Bull 3X Shares (FAS) was up 1.7% and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 1.6% lower.Futu (FUTU), UP Fintech's (TIGR) Tiger Brokers unit and Longbridge Securities face planned penalties from China's securities regulator for operating in mainland China without licenses, Bloomberg reported. Shares of Futu Holdings shares were down more than 36% and UP Fintech stock lost more than 33% premarket.Intercontinental Exchange (ICE) and OKX are planning to launch perpetual futures contracts tied to oil, Bloomberg reported, citing a statement from the companies. Intercontinental Exchange stock was 0.7% higher pre-bell.JPMorgan Chase (JPM) is in discussions with investors over a deal to offload some of its risk exposure to more than $4 billion in private equity-linked net asset value loans, the Financial Times reported, citing unnamed people familiar with the matter. Shares of JPMorgan Chase were up 0.5% premarket.

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Wire

Intercontinental Exchange Partners With Ornn to Introduce GPU Compute Futures Contracts

Intercontinental Exchange (ICE) and Ornn plan to launch GPU compute futures contracts aimed at providing pricing benchmarks and hedging tools for the rapidly growing AI compute market, the companies said Tuesday.The cash-settled contracts will be based on Ornn's Compute Price Index, which tracks live GPU compute transaction prices across major hardware types used in AI workloads, the companies added.Intercontinental Exchange said the new products aim to improve price discovery and risk management in the compute sector, which has become increasingly volatile as demand for AI infrastructure accelerates globally.Price: $156.00, Change: $+0.02, Percent Change: +0.01%

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Commodities

Market Chatter: $7 Billion Oil Bets Placed Ahead of Trump's Iran Announcements Spark Scrutiny

Oil market bets totaling as much as $7 billion were placed ahead of major Iran-related announcements by US President Donald Trump in March and April, a Reuters analysis of exchange data, published Thursday, showed, raising fresh scrutiny over possible insider trading.The trades, spread across crude, diesel and gasoline futures on the Intercontinental Exchange (ICE) and the Chicago Mercantile Exchange (CME), far exceed previously reported positions worth about $2.6 billion.Reuters said it could not determine who placed the trades or whether they originated in the US or abroad.The US Commodity Futures Trading Commission is investigating the activity, a person familiar with the matter told Reuters in April, but has not publicly confirmed a probe.Separately, ABC News reported Thursday that the US Department of Justice is also investigating oil trades linked to the Iran conflict.The trades involved short positions that profited from sharp declines in oil prices following Trump's announcements on Iran. Traders first identified unusual activity on March 23, minutes before Trump delayed and threatened attacks on Iranian power infrastructure, sending oil prices sharply lower.Similar trading patterns appeared on April 7, before Trump announced a ceasefire with Iran; on April 17, before Iranian officials discussed reopening the Strait of Hormuz; and again on April 21, before Trump extended the ceasefire.In response to' request for comment, White House spokesperson Davis Ingle said, "All federal employees are subject to government ethics guidelines that prohibit the use of nonpublic information for financial benefit."He added that any implication that administration officials "are engaged in such activity without evidence is baseless and irresponsible reporting."Reuters' expanded analysis found coordinated sell orders across Brent and West Texas Intermediate crude futures, as well as European diesel and US gasoline contracts, often executed within minutes of key announcements.It found that on March 23 alone, traders sold roughly $2.2 billion in oil and fuel futures contracts shortly before Trump's announcement. Oil prices later fell by over 10%, while fuel prices dropped by about 12%.Reuters cited information from Adi Imsirovic, a veteran oil trader and associate at the Center for Strategic and International Studies, who said the trades appeared "well informed" and noted regulators could trace the activity through exchange data.ICE, CME, the Justice Department, and the CFTC did not immediately respond to requests for comment.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Wire

Barclays Adjusts Price Target on Intercontinental Exchange to $201 From $198

Intercontinental Exchange (ICE) has an average rating of buy and mean price target of $201.73, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $157.46, Change: $-0.63, Percent Change: -0.40%

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Wire

Raymond James Adjusts Price Target on Intercontinental Exchange to $228 From $222

Intercontinental Exchange (ICE) has an average rating of buy and mean price target of $201.73, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $157.47, Change: $-0.63, Percent Change: -0.40%

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Wire

Goldman Sachs Adjusts Price Target on Intercontinental Exchange to $208 From $205

Intercontinental Exchange (ICE) has an average rating of buy and mean price target of $201.73, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $157.51, Change: $-0.59, Percent Change: -0.37%

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Wire

TD Cowen Adjusts Price Target on Intercontinental Exchange to $193 From $191

Intercontinental Exchange (ICE) has an average rating of buy and mean price target of $201.73, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $157.52, Change: $-0.58, Percent Change: -0.36%

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Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Intercontinental Exchange, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:After digesting Q1 results, we reduce our 12-month target price by $15 to $205, reflecting a P/E of 23.1x our 2027 EPS estimate, a premium to ICE's 10-year average of 22.1x given an improving margin profile. With geopolitical uncertainty surging, we increase our 2026 EPS estimate by $0.66 to $8.36 and raise 2027's by $0.27 to $8.86. ICE's Q1 results demonstrate its competitive strength, with revenue growth accelerating across all three business segments in the face of heightened uncertainty and geopolitical tensions. The outlook remains positive, with total futures and options open interest hitting a new record just this week, suggesting Q1's momentum will persist. However, concerns about AI disruption continue to weigh on the stock, likely keeping valuation multiples compressed near term. Critically, there is little evidence of actual business deterioration, and we note fixed income recurring revenue has actually accelerated for four consecutive quarters.

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Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Intercontinental Exchange, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:After digesting Q1 results, we reduce our 12-month target price by $15 to $205, reflecting a P/E of 23.1x our 2027 EPS estimate, a premium to ICE's 10-year average of 22.1x given an improving margin profile. With geopolitical uncertainty surging, we increase our 2026 EPS estimate by $0.66 to $8.36 and raise 2027's by $0.27 to $8.86. ICE's Q1 results demonstrate its competitive strength, with revenue growth accelerating across all three business segments in the face of heightened uncertainty and geopolitical tensions. The outlook remains positive, with total futures and options open interest hitting a new record just this week, suggesting Q1's momentum will persist. However, concerns about AI disruption continue to weigh on the stock, likely keeping valuation multiples compressed near term. Critically, there is little evidence of actual business deterioration, and we note fixed income recurring revenue has actually accelerated for four consecutive quarters.

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Research

Research Alert: Ice Q1 Earnings Beat As Volatility Leads To A Surge In Exchange Revenues

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ICE delivered exceptional Q1 2026 results with operating EPS of $2.35 vs. $1.72 the prior year, beating consensus by $0.09, while net revenue of $2.98B rose 20% Y/Y and beat estimates by 1%. This marks ICE's first double-digit revenue growth quarter since 2021, demonstrating the company's strong resilience during periods of heightened market volatility. We believe quarters like this showcase ICE's portfolio strength as geopolitical uncertainty drove significant margin expansion and record earnings performance. The Exchange segment surged 30% to $1.8B, led by energy revenues jumping 46% to $814M due to ongoing geopolitical tensions and global supply chain disruptions. Operating margin expanded a remarkable 420 bps to 65.2%, reflecting ICE's substantial operating leverage during volatile market periods. The company returned $848M to shareholders through $551M in buybacks and $297M in dividends while maintaining $863M in unrestricted cash, positioning ICE well for continued growth.

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Oil & Energy

Dated Brent-Futures Spread Above $25/bbl Signals Prompt Tightness, Steep Backwardation, EIA Says

Dated Brent crude spot prices surged to a premium of over $25 per barrel over the futures contract in early April, signaling acute short-term supply tightness amid ongoing flow disruptions in the Strait of Hormuz, the Energy Information Administration said in a Friday note."High Brent backwardation along the lines of what we've seen in recent weeks likely reflects extreme market tightness in the very short term since the closure of the Strait of Hormuz," according to the note.The premium marks a widening of the spread between spot and futures prices, and points to acute strain in prompt supply as buyers scramble to secure immediate cargoes.Spot prices, which reflect immediate delivery of crude, have reacted sharply to the disruption in the Hormuz, while futures contracts, which price oil for delivery in coming months and therefore embed expectations of easing supply constraints over time, have reacted less sharply.Brent crude oil prices refer to a basket of North Sea crude grades, such as Brent, Forties, Oseberg, Ekofisk, and Troll, which is also known as BFOET.Gradual output declines of these crude oil grades led most Brent price assessments to devise methods to incorporate the US West Texas Intermediate crude, priced at Midland, into the basket of Brent crude oil grades in 2023, according to the EIA.Futures contracts for Brent, traded on the Intercontinental Exchange (ICE), remain the most liquid and widely referenced measure of Brent prices among financial and physical market participants.The EIA said the front-month contract, currently representing June delivery during April trading, serves as the primary hedging and pricing tool, even as it diverges from spot-market dynamics during periods of acute disruption.Dated Brent, in contrast, reflects physical cargoes loading from North Sea terminals, and is assessed by pricing agencies including S&P Platts, Argus and Reuters."As they are purchased, these crude oil volumes are then shipped by the buyer to a port facility where they can be transported to a crude oil refinery for processing into finished products," according to the EIA.The Brent futures markets trade in backwardation under typical conditions, reflecting "the spread between the Dated Brent spot price and the front-month Brent futures price is narrow and tends to be positive."This indicates that a barrel of crude for prompt delivery is priced higher than a barrel for delivery two months into the future."Typically, both prices move together on similar news and market developments," the EIA said.Price: $156.43, Change: $-1.05, Percent Change: -0.67%

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