ICE’s Energy And Financial Derivative Perform Well In November

IntercontinentalExchange (NYSE:ICE) has continued to grow its commodities and financial derivative volumes for most of the year. The growth in trading volumes stands at 12% year on year in November and 10% year to date. The commodities trading volumes continue to be driven by the shift in oil prices for more than a year now. Equity and foreign exchange derivatives have propelled the growth in financial derivatives, possibly due to the improvement in U.S. GDP and employment rates and the recently concluded presidential elections in the country.

The over supply of oil and OPEC’s unwillingness to cut productions had prolonged the downward trend in oil prices. However, the recent announcement by OPEC to limit production and support from other oil producing countries on the same stance, has driven oil prices above $50 per barrel for WTC. We believe the uncertainty in the prices will continue to drive the commodity volumes.

With the recently concluded presidential elections and stablizing of U.S. economy, we believe equity and foreign exchange derivative volumes are likely to grow in the near term. The recent interest rate hike and indications of a series of hikes in the upcoming year will possibly drive its derivative volumes in future.

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