Terminal transfer fee exemption extended for ICE Midland WTI AGC Futures

HOUSTON–(BUSINESS WIRE)–Intercontinental Exchange, Inc. (NYSE: ICE ), a leading global provider of data, technology and market infrastructure, today announced that Magellan Midstream Partners, LP (NYSE: MMP ) and Enterprise Products Partners LP ( NYSE : EPD) has expanded its “free” arrangement between Magellan East Houston (“MEH”) and Enterprise Crude Houston (“ECHO”) terminals to transfer crude oil delivered through ICE’s Midland WTI American Gulf Coast futures contract (ICE: HOU) until 31 December 2023.

“Extending the free pump-over between terminals will give both buyers and sellers of the HOU contract the certainty that they will be able to deliver and receive barrels where they need it without additional costs,” said Jeff Barbuto, Global Head of Oil Markets at IS. “We see consistent volumes going into delivery through the futures contract and with liquidity building we see a role for HOU in the expansion of the Brent complex to include Midland WTI barrels.”

On August 17, 2022, HOU futures hit a single-day volume record with 6,705 traded contracts, equivalent to approximately 6.7 million barrels. In July 2022, HOU futures contracts traded record average daily volume of 1,513 contracts along with record monthly volume of 30,253 contracts, a 14% increase over June 2022, which held the previous monthly record volume. Open interest is at a record 7,753 contracts and expires in December 2023.

If customers take a HOU futures position for delivery and they are not matched at the buyer’s preferred terminal, the barrels are transferred between the MEH and ECHO terminals at no cost. The scheme also includes customers who take delivery of HOU via ICE’s Exchange for Physical (EFP) and Alternative Delivery Procedure (ADP) mechanisms at one terminal and wish to transfer the casks to the other terminal.

A fee of 10 cents per barrel is imposed on all other transfers of HOU-grade WTI between Enterprise’s ECHO and Magellan’s MEH terminals that do not originate from the HOU contract.

About the Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that give our clients access to business-critical workflow tools that increase transparency and operational efficiency. We drive exchangeincluding New York Stock Exchangeand clean house which helps people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income data services and execution capabilities provide information, analytics and platforms that help our customers take advantage of opportunities and operate more efficiently. On ICE mortgage technology, we are transforming and digitizing the US mortgage process, from consumer engagement to loan underwriting. Together, we transform, streamline and automate industries to connect our customers to opportunities.

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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s operations that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on February 3, 2022.

ICE CORP

Source: Intercontinental Exchange

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