Bloomberg News

ICE Proposes New York Floor-Access Fee as Trading Moves Online

October 13, 2011

Oct. 13 (Bloomberg) -- ICE Futures U.S. has proposed that individual members pay a fee of $3,000 for the first half of 2012 to use the New York options-trading floor for contracts including sugar and coffee.

“Over the past several years, the trading-floor population has declined significantly with the growth of electronic trading,” ICE said in a letter dated yesterday to the Commodity Futures Trading Commission. “As electronic trading of exchange options contracts continues to increase in both absolute terms and as a share of total options volume, we anticipate a further decline in the number of brokers and locals on the trading floor,” ICE said in the letter, which was posted on its website.

ICE is part of Atlanta-based IntercontinentalExchange Inc. Options for sugar, coffee, cocoa, cotton and orange juice change hands in New York via open outcry in a trading pit. Futures pits were shut in early 2008, and those contracts trade only electronically.

The exchange proposed rebates, linked to trading volume, for as much as the full access fee. The cost for the second half of 2012 will be determined at least 60 days prior to the start of the period, according to the letter.

The access fee is “appropriate to the needs of the exchange and is not unreasonable from the perspective of floor- based locals and brokers,” ICE said.

--Editors: Patrick McKiernan, Steve Stroth

To contact the reporter on this story: Marvin G. Perez in New York at mperez71@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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