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ICE Energy Trading in the World of Dodd-Frank PFAA Conference, Barton Creek October 26 th , 2012

ICE Energy Trading in the World of Dodd-Frank PFAA Conference, Barton Creek October 26 th , 2012. Safe Harbor. Forward-Looking Statements

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ICE Energy Trading in the World of Dodd-Frank PFAA Conference, Barton Creek October 26 th , 2012

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  1. ICE EnergyTrading in the World of Dodd-FrankPFAA Conference, Barton CreekOctober 26th, 2012

  2. Safe Harbor Forward-Looking Statements This presentation may contain “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements regarding our business that are not historical facts are forward-looking statements that involve risks, uncertainties and assumptions that are difficult to predict. These statements are not guarantees of future performance and actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statement. For a discussion of certain risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements see our filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the SEC on February 8, 2012 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, as filed with the SEC on August 1, 2012. SEC filings are also available in the Investors & Media section of our website. All forward-looking statements in this presentation are based on information known to us on the date hereof, and we undertake no obligation to publicly update any forward-looking statements.

  3. ICE Overview IntercontinentalExchange (ICE) is a leading operator of integrated futures exchanges and over-the-counter (OTC) markets, clearing houses, trade processing and data services for the global derivatives markets. • Global Distribution • Trading screens distributed in 70+ countries • Three regulated futures exchanges • Five clearinghouses in US, Europe & Canada • Diversified Markets & Products • Futures, OTC & options • Energy, emissions, agricultural, equity index, currency & credit products • Acting Ahead of Financial Reform • Clearing, market transparency & regulation • Delivering on industry needs ahead of the curve

  4. Physical Transactions Bilateral Credit No Impact from Dodd-Frank Financial Transactions Primarily Cleared Larger than Physical Market Focus on Energy TradingTransaction Characteristics

  5. ICE NGL Swaps Market Growth Volume in 1000 Bbl Lots

  6. Background Additional regulation fueled by the 2008 financial crisis Designed to prevent excessive single-sided risk and increase market transparency The Dodd-Frank financial reform legislation technically became effective on July 16, 2011, 360 days after it was signed by President Barack Obama. Although the legislation is now in force, Dodd-Frank required final rules by the CFTC or the SEC before the legislation could be implemented Compliance Clock Began Ticking in August 2012 with CFTC Publishing its Swap Definition Dodd-Frank Legislation

  7. Key Definitions under Dodd-Frank Swap • Defined expansively bringing in most financial instruments or transactions (exchange traded futures are excluded from definition of swaps) Swap Execution Facility (SEF) • Platform in which multiple participants have the ability to execute or trade swaps Designated Contract Market (DCM) • Platform in which multiple participants have the ability to execute futures and cleared swaps Swap Dealer (SD) • A firm that holds itself out as a dealer or market maker in swaps – notional value calculations Major Swap Participant (MSP) • In summary an entity that maintains a substantial position in swaps – excluding hedging

  8. Key Definitions under Dodd-Frank - Continued Cash Settled Future • Regulated contract with defined terms and conditions whereby upon expiry the seller of the financial instrument does not deliver the actual product but transfers the associated cash position

  9. ICE Converts Swaps-to-Futures October 2012 Transition to Cash-Settled Futures • Customers have expressed a preference for trading futures to gain operational and regulatory certainty • Open Interest in cleared OTC swaps and options positions converted the weekend of October 13-14, 2012 • Effective October 15, 2012, ICE clears only futures contracts Effects of Swap Conversion to Futures • Proven regulatory path • No changes to contract symbols, specs, final settlement procedures, or expiry dates • ICE OTC will continue to offer physical markets with no changes

  10. CanIStillTrade????

  11. Cleared Execution Alternatives On-Screen Execution - WebICE • Regulatory treatment: Futures • Off-Screen Execution (via voice broker or direct) • NGL Block Trades • Must be greater than 10MB for US and 2 KMT for International • Regulatory treatment: Futures • Exchange of Futures for Related Positions (EFRPs) • OTC swaps or options exchanged for a future (e.g. EFS or EOO) • Any size possible; Used by CME Clearport today • Anticipated regulatory treatment: Swaps

  12. Expected Market Impact • Less Regulatory Reporting • Increased Transparency • Increased Participants • Increased Liquidity

  13. Kim Hurstkim.hurst@theice.com713-571-6950PFAA Conference Barton CreekOctober 26th, 2012

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