Intercontinental Exchange, the leading operator of global energy derivative exchanges and clearing houses, has launch its oil future contract for liquefied natural exporter Abu Dhabi and a total of 8,854 cleared lots were traded on the first day.
The start of trading of the ICE Murban Crude Oil Futures (IFAN) had been delayed from 2020 by the market oil market slump and the Covid-19 pandemic.
ICE Murban Crude Oil Futures opened for trading alongside 18 Murban-related cash settled derivatives and inter-commodity spreads, offering the market the broadest range of ways to trade and hedge Murban crude.
Market activity on ICE Futures Abu Dhabi on the first day of trading included 6,344 ICE Murban Crude Oil futures contracts and 2,510 Murban related cash settled derivative contracts.
A total of 27 firms traded on day one of the launch.
Of the cash settled derivatives, 2,500 lots of Murban Singapore Marker 1st Line futures and 10 lots of Murban 1st Line vs Brent 1st Line futures contracts traded.
“The depth of market activity on our first day of trading is extremely encouraging,” said Jamal Oulhadj, President of ICE Futures Abu Dhabi.
“On the first day of launch we saw active trading, consistently tight bid offer spreads, a high number of participants from both the physical and financial sides of the market, and liquidity out for the first six months of the curve,” added Oulhadj.
“The mix of trading across the Murban futures contract and the cash settled derivatives reflects how our customers are already beginning to utilize the extensive range of tools we offer to trade and hedge Murban crude price exposure,” he stated.
ICE points out that Murban futures are open for trading for 24 hours a day on Mondays and 22 hours a day Tuesdays to Fridays, with investors from jurisdictions including the Abu Dhabi Global Market, the US, Singapore, the UK, Switzerland, the Netherlands, France, Norway, Australia, Japan and South Korea, able to trade on IFAD.
IFAD has 26 Exchange Members and 19 Clearing Members, who are listed in full on IFAD’s membership page.
“Contracts traded on IFAD are cleared at ICE Clear Europe where they are cleared alongside ICE’s global energy futures platform covering oil, natural gas and the environmental complex, allowing customers to benefit from critical margin offsets to enhance capital efficiency,” explained ICE.