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89-806: The company's product offerings serve four primary market segments: 1962 – Black Knight's earliest predecessor company, Computing and Statistical Services, (CSS) is founded in Jacksonville, Fla. 1969 – CSS incorporates under its new name: Computer Power Inc. (CPI). 1992 – ALLTEL Corporation purchases CPI, which becomes a part of ALLTEL Information Services. ALLTEL Information Services' financial services division provides technology applications for mortgage, banking and other financial services. 2003 – Fidelity National Financial (FNF) purchases ALLTEL Information Services, renames it Fidelity Information Systems (FIS), and relocates FNF's headquarters from Santa Barbara, Calif., to Jacksonville, Fla. 2006 – FNF spins off FIS into

178-519: A geospatial and climate data modeling start-up company, after announcing partnerships with the company to develop climate risk and ESG analytics models for municipal bond markets in January 2020 and mortgage-backed securities markets in March 2021. In May 2022, ICE announced that it had entered into a definitive agreement to acquire Black Knight, Inc. , a software, data and analytics company that serves

267-401: A cash settlement (typically for financial underlyings). The contracts ultimately are not between the original buyer and the original seller, but between the holders at expiry and the exchange. Because a contract may pass through many hands after it is created by its initial purchase and sale, or even be liquidated, settling parties do not know with whom they have ultimately traded. Each exchange

356-522: A contract from another party (who goes short ). Contracts are also "destroyed" in the opposite manner whenever open interest decreases because traders resell to reduce their long positions or rebuy to reduce their short positions. Speculators on futures price fluctuations who do not intend to make or take ultimate delivery must take care to "zero their positions" prior to the contract's expiry. After expiry, each contract will be settled , either by physical delivery (typically for commodity underlyings) or by

445-457: A counter-bid of their own for NYSE Euronext. ICE was thought to be looking to acquire the American exchange's derivatives business, Nasdaq its cash equities business. As of the time of the speculation, "NYSE Euronext's market value was $ 9.75 billion. Nasdaq was valued at $ 5.78 billion, while ICE was valued at $ 9.45 billion." Late in the month, Nasdaq was reported to be considering asking either ICE or

534-487: A definitive agreement to acquire Interactive Data Corporation (IDC), a provider of financial market data, analytics, from Silver Lake , involved in technology investing, and Warburg Pincus, a private equity firm focused on growth investing. The acquisition was valued at approximately $ 5.2 billion, including $ 3.65 billion in cash and $ 1.55 billion in ICE common stock, and builds on ICE's global market data growth strategy by expanding

623-593: A family of fixed income volatility indices, including the prominent Merrill Lynch Option Volatility Estimate (“MOVE”) family of indices. In October 2017, ICE announced it had acquired a 4.7% stake in Euroclear for EUR 275 million. ICE anticipates having one representative join the Board of Euroclear. Euroclear is a leading provider of post-trade services, including settlement, central securities depositories and related services for cross-border transactions across asset classes. It

712-497: A limited-purpose bank, a clearing house for credit default swaps . Sprecher worked closely with the Federal Reserve to serve as its over-the-counter (OTC) derivatives clearing house. "US regulators were keen on the kind of clearing house for opaque over-the-counter (OTC) derivatives as a risk management device. In the absence of a central counterparty – which would guarantee pay-outs should a trading party be unable to do so – there

801-463: A mortgage industry focused marketing automation and customer relationship management (CRM) platform. 2022 – Intercontinental Exchange (ICE) agreed to acquire Black Knight for $ 13.1 billion in May. 2023 – ICE completed the acquisition of Black Knight for $ 11.7 billion. The 2010 robo-signing scandal exposed questionable behavior on the part of employees of a small subsidiary of the company. In addition to

890-481: A national scale. Currently (August 2007) 62 commodities are being traded on the NMCE. The 1970s saw the development of the financial futures contracts, which allowed trading in the future value of interest rates . These (in particular the 90‑day Eurodollar contract introduced in 1981) had an enormous impact on the development of the interest rate swap market. The London International Financial Futures Exchange (LIFFE),

979-640: A portfolio company of Thoma Bravo , a leading private equity investment firm, valued Ellie Mae at approximately $ 11 billion. The deal, following ICE's taking a majority stake in MERS in 2016, purchasing the remainder in 2018, and acquiring Simplifile in 2019, made ICE and its growing ICE Mortgage Technology a leading provider of end-to-end electronic workflow products for the U.S. residential mortgage industry. The transaction completed successfully in September 2020 after regulatory approval. In December 2021, ICE acquired risQ,

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1068-603: A provider of mortgage fees and closing cost data for the real estate and home finance industries. 2019 – Black Knight acquires Compass Analytics, provider of lender pricing solutions and secondary market analytics. 2020 – Black Knight acquires Collateral Analytics, provider of real estate analytics tools and data, and Optimal Blue, creators of the mortgage industry's most widely used pricing engine. 2021 – Black Knight acquires broker-specific technology NexSpring Financial, LLC; eMBS, which provides performance data and analytics on agency-backed securities; and Top of Mind Networks, LLC,

1157-809: A regional market was founded in Minneapolis, Minnesota , and in 1883 introduced futures for the first time. Trading continuously since then, today the Minneapolis Grain Exchange (MGEX) is the only exchange for hard red spring wheat futures and options. Futures trading used to be very active in India in the early to late 19th Century in the Marwari business community. Several families made their fortunes in opium futures trading in Calcutta and Bombay. There are records available of standardized opium futures contracts made in

1246-423: A separate company. 2008 – FIS spins off mortgage processing and services into Lender Processing Services, Inc. (LPS). 2008 – LPS acquires McDash Analytics, one of the largest loan-level mortgage performance databases, which becomes the basis for a new Applied Analytics division. 2014 – LPS is re-acquired by FNF and renamed Black Knight Financial Services. 2015 – Black Knight Financial Services begins trading on

1335-630: A working capital adjustment to be finalized at closing. Upon the closing of the transaction, Creditex Group became a wholly-owned subsidiary of ICE, operating under the Creditex name. In January 2008, ICE partnered with Canada's TSX Group 's Natural Gas Exchange, expanding their offering to clearing and settlement services for physical OTC natural gas contracts. In April 2010, ICE acquired Climate Exchange PLC for 395 million pounds ($ 622 million) and European Climate Exchange (ECX) as part of its purchase. Exchange-traded emissions products were first offered by

1424-416: Is "No. 2 Yellow", but holders of short positions in the contract can deliver "No. 3 Yellow" corn for 1.5 cents less than the contract delivery price per bushel . The locations where assets are delivered are also specified by the futures exchanges, and they may also specify alternative delivery locations and any price adjustments available when delivering to alternative locations. Delivery locations accommodate

1513-667: Is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures exchanges provide physical or electronic trading venues, details of standardized contracts, market and price data, clearing houses , exchange self-regulations, margin mechanisms, settlement procedures, delivery times, delivery procedures and other services to foster trading in futures contracts. Futures exchanges can be integrated under

1602-430: Is a fixed income marketplace, supporting anonymous trading in various asset classes including Municipals, Corporates, Treasuries, Agencies and Certificates of Deposit. The transaction is expected to close in the second half of 2018, subject to customary regulatory and anti-trust approvals, and is not expected to materially impact 2018 financial results or capital returns. In October 2018, ICE announced that it had acquired

1691-600: Is based in Provo, Utah and has no debt. The transaction is expected to close in the third quarter of 2019. Upon closing, Simplifile, which has approximately 200 employees, will continue to be based in Provo and operate under the Simplifile name. In August 2020, ICE announced that it had entered into a definitive agreement to acquire Ellie Mae , a cloud-based platform provider for the mortgage finance industry. The transaction with Ellie Mae,

1780-497: Is normally regulated by a national governmental (or semi-governmental) regulatory agency: In Ancient Mesopotamia, around 1750 BC, the sixth Babylonian king, Hammurabi , created one of the first legal codes: the Code of Hammurabi . Hammurabi's Code allowed sales of goods and assets to be delivered for an agreed price at a future date; required contracts to be in writing and witnessed; and allowed assignment of contracts. The code facilitated

1869-513: Is only responsible for the initial and variation margin of a net 500 contracts. Exchange-traded contracts are standardized by the exchanges where they trade. The contract details what asset is to be bought or sold, and how, when, where and in what quantity it is to be delivered. The terms also specify the currency in which the contract will trade, minimum tick value, and the last trading day and expiry or delivery month . Standardized commodity futures contracts may also contain provisions for adjusting

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1958-406: Is required by the exchange to protect themselves. Since clearing house members usually have many clients, they can net out margin payments from their client's offsetting positions. For example, if a clearing house member have half of their clients holding a total of 1000 long position in a contract, and half of their clients holding a total of 500 short position in a contract, the clearing house member

2047-517: Is rising daily. It counts for over $ 45.5 billion of nominal trade (over 1 million contracts) every single day in " electronic trading " as opposed to open outcry trading of futures, options and derivatives. In June 2001 Intercontinental Exchange (ICE) acquired the International Petroleum Exchange (IPE), now ICE Futures, which operated Europe's leading open-outcry energy futures exchange. Since 2003 ICE has partnered with

2136-523: Is understood ICE increased its stake to 10% in early 2018. In October 2017, ICE announced it had entered into an agreement to acquire Virtu BondPoint from Virtu Financial for $ 400 million in cash. The acquisition was reportedly completed on January 2, 2018, as announced by ICE. BondPoint is an integrated, automated platform offering additional fixed income execution services and one of the broadest sets of fixed income instruments. In April 2018, ICE announced that it had entered into an agreement to acquire

2225-603: The Financial Post warned that the "$ 54000bn credit derivatives market faced its biggest test in October 2008 as billions of dollars worth of contracts on now-defaulted derivatives would be auctioned by the International Swaps and Derivatives Association . In his article in the Financial Post , he described ICE as a "US-based electronic futures exchange" which raised the stakes on October 30, 2008, in its effort to expand in

2314-533: The Chicago Climate Exchange (CCX) to host its electronic marketplaces. In April 2005, the entire ICE portfolio of energy futures became fully electronic and ICE closed International Petroleum Exchange 's high profile and historic trading floor. ICE became a publicly traded company on November 16, 2005, and was added to the Russell 1000 Index on June 30, 2006. The company expanded rapidly in 2007, acquiring

2403-472: The Chicago Mercantile Exchange (CME) to join in what would probably be an $ 11–12 billion counterbid for NYSE. On April 1, ICE and Nasdaq made an $ 11.3 billion offer which was rejected April 10 by NYSE. Another week later, ICE and Nasdaq sweetened their offer, including a $ .17 increase per share to $ 42.67 and a $ 350 million breakup fee if the deal were to encounter regulatory trouble. The two said

2492-568: The Chicago Stock Exchange (CHX), a full-service stock exchange, including trading, data and corporate listings services. The transaction is expected to close in the second quarter of 2018, subject to regulatory approvals. Terms of the transaction were not disclosed, and the financial impact will not be material to ICE or impact capital return plans. In May 2018, ICE announced that it had entered into an agreement to acquire TMC Bonds LLC for $ 685 million in cash. Established in 2000, TMC Bonds

2581-695: The Competition Appeal Tribunal (CAT), but the CAT upheld the CMA's decision. As a result, ICE sold Trayport to TMX Group in October 2017, in exchange for certain TMX Group assets and cash of £350 million. The CMA's ruling against ICE was the first time CMA had required that a company sell an asset that it had already bought. In March 2016, ICE agreed to acquire Standard & Poor's Securities Evaluations, Inc. (SPSE) and Credit Market Analysis (CMA), two assets under

2670-633: The New York Board of Trade (NYBOT), and ChemConnect (a chemical commodity market). In March 2007 ICE made an unsuccessful $ 9.9 billion bid for the Chicago Board of Trade , which was instead acquired by the CME Group . IntercontinentalExchange Inc., the "upstart Atlanta-based energy bourse" purchased the privately held 120-year-old Winnipeg Commodity Exchange , known for its canola futures contract, for $ 40 million. The Winnipeg Commodity Exchange (WCE)

2759-539: The S&;P Global Market Intelligence business unit from McGraw Hill Financial . Most terms of the agreement were not disclosed. In October 2016 it had completed its all-cash acquisition. In February 2017, ICE announced it had entered an agreement to acquire TMX Atrium, an extranet and wireless services business from TMX Group. Terms of the agreement were not disclosed, and the transaction is expected to close within 90 days, subject to regulatory approvals. The financial impact of

Black Knight, Inc. - Misplaced Pages Continue

2848-425: The credit risk of their counterparty , in this case the central counterparty clearing houses . Traders on both sides of a trade has to deposit Initial Margin, and this amount is kept by the clearing house and not remitted to other traders. Clearing houses calculate day-to-day profit and loss amounts by ' marking-to-market ' all positions by setting their new cost to the previous day's settlement value, and computing

2937-477: The $ 54000 bn credit derivatives market.( Weitzman 2008 ) By 2010, Intercontinental Exchange had cleared more than $ 10 trillion in credit default swaps (CDS) through its subsidiaries, ICE Trust CDS (now ICE Clear Credit). By 2017 Intercontinental Exchange had been named to the Fortune Future 50 determining the top 50 companies that are best positioned to adapt and deliver growth in a complex environment. ICE

3026-587: The 1870-1880s in Calcutta. There are strong grounds to believe that commodity futures could have existed in India for thousands of years before then, with references to the existence of market operations similar to the modern day futures market in Kautilya's Arthashastra written in the 2nd century BCE. The first organised futures market was established in 1875 by the Bombay Cotton Trade Association to trade in cotton contracts. This occurred soon after

3115-483: The Amsterdam-Brussels-Lisbon-Paris Exchanges "Euronext" electronic exchange to form the first transcontinental futures and options exchange. These two developments as well as the sharp growth of internet futures trading platforms developed by a number of trading companies clearly points to a race to total internet trading of futures and options in the coming years. In terms of trading volume,

3204-526: The CME Group's Mini Nasdaq 100 contract is on 20 times the Nasdaq 100 index. Futures exchanges provide access to clearing houses that stand in the middle of every trade. Suppose trader A purchases US$ 145,000 of gold futures contracts from trader B. Trader A really bought a futures contract to buy US$ 145,000 of gold from the clearing house at a future time, and trader B really has a contract to sell US$ 145,000 to

3293-473: The Chicago Climate Exchange (CCX) to host its electronic marketplace. In April 2005 the entire ICE portfolio of energy futures became fully electronic. In 2005, The Africa Mercantile Exchange (AfMX®) became the first African commodities market to implement an automated system for the dissemination of market data and information online in real-time through a wide network of computer terminals. As at

3382-676: The European Climate Exchange (ECX), which was established in 2005, by listing products on the ICE Futures Europe's trading platform. ICE Futures Europe is the leading market for carbon dioxide (CO 2 ) emissions . ICE's ECX products comply with the requirements of the European Union Emission Trading Scheme . In February 2011, in the wake of an announced merger of NYSE Euronext with Deutsche Börse , speculation developed that ICE and Nasdaq could mount

3471-509: The European utility markets. Approximately 70%-80% of European utility trades flow through its platform. Following the acquisition, the Competition and Markets Authority (CMA) called in the merger for review. In October 2016 it announced its decision to require ICE to sell Trayport, having ruled that the merger could lead to a substantial lessening of competition. ICE challenged the decision in

3560-540: The Federal Trade Commission (the “FTC”) regarding their pending acquisition of Black Knight. The ACCO contains an agreed form of consent order that will be submitted to the FTC for acceptance and approval. Based on a previously announced Timing Agreement entered into among ICE, Black Knight and the FTC on August 6, 2023, ICE was permitted to complete its acquisition of Black Knight following 11:59 p.m. Eastern Time on

3649-583: The IntercontinentalExchange platform. IntercontinentalExchange maintained an office and "small core staff" in Winnipeg, Manitoba. The Manitoba Securities Commission oversee its operations. In June 2008, ICE announced that it had entered into a definitive merger agreement to acquire Creditex Group Inc. (Creditex). The transaction consideration totaled $ 625 million comprising approximately $ 565 million in ICE common stock and $ 60 million in cash, as well as

Black Knight, Inc. - Misplaced Pages Continue

3738-633: The MERS System infrastructure to the ICE Mahwah data center, an integral requirement for completing the final acquisition of the business. The price and terms of the transaction were not disclosed and will not be material to ICE's earnings or have an impact on capital return plans. In May 2019, ICE announced that it had agreed to acquire Simplifile, LC. Simplifile operates a network connecting agents and jurisdictions involved with residential mortgage records. ICE will pay $ 335 million to acquire Simplifile, which

3827-522: The Nasdaq and ICE withdrew their bid. The European Commission then blocked the Deutsche merger on February 1, 2012, citing the fact that the merged company would have a near monopoly. In December 2012, ICE announced it would buy NYSE Euronext (this time without the involvement of Nasdaq) for $ 8.2 billion, pending regulatory approval. Jeffrey Sprecher will retain his position as chairman and CEO. The boards of directors of both ICE and NYSE Euronext approved

3916-604: The New York Stock Exchange under the ticker symbol "BKFS." 2016 – Black Knight acquires eLynx and Motivity Solutions, creating the foundation for Black Knight's Origination Technologies division. 2017 – FNF liquidates its majority holding in Black Knight Financial Services, resulting in a new public company, Black Knight, Inc. 2018 – Black Knight acquires artificial intelligence, and machine learning (AI/ML) start-up HeavyWater and Ernst Publishing Co.,

4005-616: The acquisition of other exchanges, a number of these have been successful while others have failed due to concerns by regulators or others that the new company would have created a monopoly situation. The major acquisition and attempted acquisitions have included: In June 2001, ICE expanded its business into futures trading by acquiring the London-based International Petroleum Exchange (IPE), now ICE Futures Europe, which operated Europe's leading open-outcry energy futures exchange. Since 2003, ICE has partnered with

4094-434: The acquisition, which took place in 2013. In 2014, ICE spun off Euronext, keeping NYSE and LIFFE , renaming it ICE Futures Europe. In September 2014, ICE announced that it had agreed to acquire SuperDerivatives , a provider of risk management analytics, financial market data and valuation services. SuperDerivatives was purchased for $ 350 million on October 7, 2014. In October 2015, ICE announced that it had entered into

4183-525: The addition of the New York Mercantile Exchange (NYMEX) the trading and hedging of financial products using futures dwarfs the traditional commodity markets, and plays a major role in the global financial system , trading over $ 1.5 trillion per day in 2005. The recent history of these exchanges (Aug 2006) finds the Chicago Mercantile Exchange trading more than 70% of its futures contracts on its "Globex" trading platform and this trend

4272-404: The amount of deliverable assets for each contract, which determines a contract's size. Contract sizes that are too large will dissuade trading and hedging of small positions, while contract sizes that are too small will increase transaction costs since there are costs associated with each contract. In some cases, futures exchanges have created "mini" contracts to attract smaller traders. For example,

4361-429: The clearing house at that same time. Since the clearing house took on the obligation of both sides of that trade, trader A does not have to worry about trader B becoming unable or unwilling to settle the contract – they do not have to worry about trader B's credit risk . Trader A only has to worry about the ability of the clearing house to fulfill their contracts. Even though clearing houses are exposed to every trade on

4450-634: The clearing house. Several popular methods are used to compute initial margins. They include the CME-owned SPAN (a grid simulation method used by the CME and about 70 other exchanges), STANS (a Monte Carlo simulation based methodology used by the Options Clearing Corporation (OCC) ), TIMS (earlier used by the OCC, and still being used by a few other exchanges). Traders do not interact directly with

4539-600: The combined fixed income index business of ICE will be nearly $ 1 trillion. Upon closing, the indices will be re-branded as the ICE BofAML indices. The terms of the agreement were not disclosed, and the transaction is expected to be completed in the second half of 2017. The financial impact of the transaction is expected to be immaterial in 2017. In October 2017 ICE announced it has completed its acquisition. Furthermore, in August 2019, it announced it had entered into an agreement to acquire

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4628-1040: The company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange ; equity options exchanges; and OTC energy, credit, and equity markets. ICE also owns and operates six central clearing houses : ICE Clear U.S., ICE Clear Europe, ICE Clear Singapore, ICE Clear Credit , ICE Clear Netherlands, and ICE NGX. ICE has offices in Atlanta , New York , London , Chicago , Bedford , Houston , Winnipeg , Amsterdam , Calgary , Washington, D.C. , San Francisco , Pleasanton , Tel Aviv , Rome , Hyderabad , Singapore , and Melbourne . Jeffrey Sprecher

4717-465: The company's original focus was energy products (crude and refined oil , natural gas , power , and emissions ), acquisitions subsequently expanded its activity into soft commodities ( sugar , cotton and coffee ), foreign exchange and equity index futures. In a response to US financial crisis in 2008, Sprecher formed ICE US Trust, based in New York and now called ICE Clear Credit LLC, to serve as

4806-539: The contracted price based on deviations from the "standard" commodity, for example, a contract might specify delivery of heavier USDA Number 1 oats at par value but permit delivery of Number 2 oats for a certain seller's penalty per bushel. Before the market opens on the first day of trading a new futures contract, there is a specification, but no actual contracts exist. Futures contracts are not issued like other securities, but are "created" whenever open interest increases; that is, when one party first buys (goes long )

4895-483: The development of a market enabling grain merchants, processors, and agriculture companies to trade in "to arrive" or "cash forward" contracts to insulate them from the risk of adverse price change and enable them to hedge . In March 2008 the CME announced its acquisition of NYMEX Holdings, Inc., the parent company of the New York Mercantile Exchange and Commodity Exchange. CME's acquisition of NYMEX

4984-426: The difference between their current day settlement value and new cost. When traders accumulate losses on their position such that the balance of their existing posted margin and their new debits from losses is below a thresh-hold called a maintenance margin (usually a fraction of the initial margin) at the end of a day, they have to send Variation Margin to the exchange who passes that money to traders making profits on

5073-458: The end of 2007, AfMX® had developed a system of secure data storage providing online services for brokerage firms. The year 2010, saw the exchange unveil a novel system of electronic trading, known as After®. After® extends the potential volume of processing of information and allows the Exchange to increase its overall volume of trading activities. In 2006 the New York Stock Exchange teamed up with

5162-667: The establishment of trading in cotton Futures in UK, as Bombay was a very important hub for cotton trade in the British Empire. Futures trading in raw jute and jute goods began in Calcutta with the establishment of the Calcutta Hessian Exchange Ltd., in 1919. In modern times, most of the futures trading happens in the National Multi commodity Exchange (NMCE) which commenced futures trading in 24 commodities on 26 November 2002 on

5251-401: The exchange – they interact with clearing house members, usually futures brokers, who pass contracts and margin payments on to the exchange. Clearing house members are directly responsible for initial margin and variation margin requirements at the exchange even if their clients default on their obligations, so they may require more initial margin (but not variation margin) from their clients than

5340-457: The exchange, they have more tools to manage credit risk. Clearing houses can issue Margin Calls to demand traders to deposit Initial Margin moneys when they open a position, and deposit Variation Margin (or Mark-to-Market Margin) moneys when existing positions experience daily losses. A margin in general is collateral that the holder of a financial instrument has to deposit to cover some or all of

5429-627: The federal government, states such as Nevada filed legal proceedings against these employees. The investigation of these business practices were featured in an episode of 60 Minutes . Eventually LPS settled with the federal government and other states and ceased operations of the problematic subsidiary. Some controversy surrounded the resignation of two attorneys who had investigated LPS as part of their work for Florida's Economic Crime Division, as they claimed to have resigned under pressure from Attorney General Pam Bondi , who had received campaign contributions from LPS. On November 4, 2019, Black Knight took

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5518-497: The first derivatives, in the form of forward and futures contracts. An active derivatives market existed, with trading carried out at temples. One of the earliest written records of futures trading is in Aristotle 's Politics . He tells the story of Thales , a poor philosopher from Miletus who developed a "financial device, which involves a principle of universal application". Thales used his skill in forecasting and predicted that

5607-1145: The following subsidiaries : In June 2016 Intercontinental Exchange introduced the expanded ICE Data Services, which combined exchange data, valuations, analytics, and other software used by the New York Stock Exchange (NYSE), SuperDerivatives and Interactive Data (IDC). ICE originally formed its ICE Data subsidiary in 2003, recognizing the rising demand for exchange data as markets became increasingly automated. ICE continues to invest in its data services to address evolving customer needs driven by regulatory reform, market fragmentation, passive investing and indexation, along with increased demand for data capacity and security, and independent valuations. Their customers include global financial institutions, asset managers, commercial hedging firms, risk managers, corporate issuers and individual investors. ICE Data Services has offices in California , New York , Chicago , Bedford MA , London , Rome , Dublin , Tel Aviv , Hong Kong , Singapore, Tokyo , Hyderabad and Melbourne . Futures exchange A futures exchange or futures market

5696-442: The following: assets to be delivered in the contract, delivery arrangements, delivery months, pricing formula for daily and final settlement, contract size, and price position and limits. For assets to be delivered, futures exchanges usually specify one or more grades of a commodity acceptable for delivery and for any price adjustments applied to delivery. For example, the standard deliverable grade for CME Group's corn futures contract

5785-486: The forward contracts market was very illiquid, and an exchange was needed that would bring together a market to find potential buyers and sellers of a commodity instead of making people bear the burden of finding a buyer or seller. In 1848 the Chicago Board of Trade (CBOT) was formed. Trading was originally in forward contracts ; the first contract (on corn) was written on March 13, 1851. In 1865 standardized futures contracts were introduced. The Chicago Produce Exchange

5874-531: The housing finance continuum. The cash and stock transaction values Black Knight at $ 85 per share, or a market value of $ 13.1 billion. In April 2023, the Federal Trade Commission petitioned a federal court to issue a preliminary injunction to halt the acquisition. In August 2023, ICE announced that they had entered into an Agreement Containing Consent Orders (the “ACCO”) with the Bureau of Competition of

5963-426: The losing side of the position would have already sent the whole amount, they owe to the profiting side of the position. The clearinghouse do not keep any variation margin. When traders cannot pay the variation margin they owe or are otherwise in default the clearing house closes their positions and tries to cover their remaining obligations to other traders using their posted initial margin and any reserves available to

6052-462: The markets served, adding technology platforms and increasing new data and valuation services. Completion of the transaction was subject to regulatory approval and other customary closing conditions. The transaction completed on December 14, 2015. In December 2015, ICE acquired Trayport for $ 650 million from GFI Group . Trayport provides a trading technology platform that serves brokers, exchanges, clearing houses and trading participants, primarily in

6141-481: The offer was a $ 2 billion (21%) premium over the Deutsche offer and that they had fully committed financing of $ 3.8 billion from lenders to finance the deal. The Justice Department , also in April, "initiated an antitrust review of the proposal, which would have brought nearly all U.S. stock listings under a merged Nasdaq-NYSE." In May, saying it "became clear that we would not be successful in securing regulatory approval",

6230-414: The olive harvest would be exceptionally good the next autumn. Confident in his prediction, he made agreements with local olive-press owners to deposit his money with them to guarantee him exclusive use of their olive presses when the harvest was ready. Thales successfully negotiated low prices because the harvest was in the future and no one knew whether the harvest would be plentiful or pathetic and because

6319-470: The olive-press owners were willing to hedge against the possibility of a poor yield. When the harvest-time came, and a sharp increase in demand for the use of the olive presses outstripped supply (availability of the presses), he sold his future use contracts of the olive presses at a rate of his choosing, and made a large amount of money. This is a very loose example of futures trading and, in fact, more closely resembles an option contract , given that Thales

6408-401: The opposite side of that position. When traders accumulate profits on their positions such that their margin balance is above the maintenance margin, they are entitled to withdraw the excess balance. The margin system ensures that on any given day, if all parties in a trade closed their positions after variation margin payments after settlement, nobody would need to make any further payments as

6497-507: The original complaint. The case went to arbitration in June 2020. Intercontinental Exchange Intercontinental Exchange, Inc. ( ICE ) is an American multinational financial services company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500 , S&P 500 , and Russell 1000 ,

6586-509: The particular delivery, storage, and marketing needs of the deliverable asset. For example, ICE frozen concentrate orange juice contracts specify delivery locations as exchange-licensed warehouses in Florida, New Jersey, or Delaware, while in the case of CME live cattle contracts, delivery is to exchange-approved livestock yards and slaughter plants in the Midwest. The futures exchange also determines

6675-401: The remaining equity of Merscorp Holding, Inc., owner of Mortgage Electronic Registration Systems , Inc. (MERS). Merscorp owns and operates the MERS System, a national electronic registry that tracks the changes in servicing rights and beneficial ownership interests in U.S.-based mortgage loans. ICE had owned a majority equity interest in MERS since 2016. Earlier this month, ICE successfully moved

6764-644: The same brand name or organization with other types of exchanges, such as stock markets , options markets , and bond markets . Futures exchanges can be organized as non-profit member-owned organizations or as for-profit organizations. Non-profit, member-owned futures exchanges benefit their members, who earn commissions and revenue acting as brokers or market makers; they are privately owned. For-profit futures exchanges earn most of their revenue from trading and clearing fees, and are often public corporations . Futures exchanges establish standardized contracts for trading on their trading venues, and they usually specify

6853-458: The tenth calendar day after the entry into the ACCO. In September 2023, the parties closed the acquisition and completed the previously announced divestitures of Black Knight's Empower and Optimal Blue businesses to subsidiaries of Constellation Software Inc. ICE provides exchange trading and clearing services in a number of different markets. Its main products include: The company is split into

6942-578: The trade is around $ 11.6 trillion annually. Chicago has the largest future exchange in the world, the CME Group . The CME Group's oldest exchange was founded in 1848. Chicago is located at the base of the Great Lakes , close to the farmlands and cattle country of the Midwest , making it a natural center for transportation, distribution, and trading of agricultural produce. Gluts and shortages of these products caused chaotic fluctuations in price, and this led to

7031-525: The transaction will be immaterial and was included in ICE's financial guidance for 2017. In February 2017, ICE announced that it had entered into a definitive agreement to acquire the Global Research division's index platform from Bank of America Merrill Lynch . The BofAML indices are the second most used fixed income indices by assets under management (AUM) globally, and upon closing, the AUM benchmarked against

7120-504: The unprecedented step of taking legal action against one of its clients, PennyMac Financial Services for breach of contract and misappropriation of trade secrets. Within 24 hours, PennyMac had filed a retaliatory lawsuit against Black Knight for alleged anti-competitive practices. The PennyMac case has since been moved from the California court in which the mortgage lender and servicer had filed suit and to Florida, where Black Knight had filed

7209-467: Was a high risk of massive market disruption." The principal backers for ICE US Trust were the same financial institutions most affected by the crisis, the top nine of the world's largest banks (Goldman Sachs, Bank of America, Citi, Credit Suisse, Deutsche Bank, JPMorgan, Merrill Lynch, Morgan Stanley and UBS). Sprecher's clearing house cleared their global credit default swaps (CDS) in exchange for sharing profits with these banks. By September 30, 2008,

7298-631: Was a power plant developer who spotted a need for a seamless market in natural gas used to fuel power stations. In the late 1990s, Sprecher acquired Continental Power Exchange, Inc. with the objective of developing an Internet-based platform to provide a more transparent and efficient market structure for over-the-counter energy commodity trading. In May 2000, ICE was founded by Sprecher and backed by Goldman Sachs , Morgan Stanley , BP , Total , Shell , Deutsche Bank and Société Générale . The new exchange increased price transparency, efficiency, liquidity , and had lower costs than manual trading. While

7387-472: Was also named to the Fortune 500 in June 2017 as the only exchange operator included in the ranking. On September 6, 2019, Bloomberg reported that ICE was growing closer to offering Bitcoin futures trading, as "its Bakkt unit opens its digital-asset custody warehouse today to customers." On September 23, 2019, Bitcoin will be able to be acquired. Intercontinental Exchange has had a policy to grow through

7476-431: Was completed in August 2008. For most exchanges, forward contracts were standard at the time. However, forward contracts were often not honored by either the buyer or the seller. For instance, if the buyer of a corn forward contract made an agreement to buy corn, and at the time of delivery the price of corn differed dramatically from the original contract price, either the buyer or the seller would back out. Additionally,

7565-609: Was conducted by traders in London coffee houses using a makeshift ring drawn in chalk on the floor. At first only copper was traded. Lead and zinc were soon added but only gained official trading status in 1920. The exchange was closed during World War II and did not re-open until 1952. The range of metals traded was extended to include aluminium (1978), nickel (1979), tin (1989), aluminium alloy (1992), steel (2008), and minor metals cobalt and molybdenum (2010). The exchange ceased trading plastics in 2011. The total value of

7654-586: Was established in 1874, renamed the Chicago Butter and Egg Board in 1898 and then reorganized into the Chicago Mercantile Exchange (CME) in 1919. Following the end of the postwar international gold standard , in 1972 the CME formed a division called the International Monetary Market (IMM) to offer futures contracts in foreign currencies: British pound , Canadian dollar , German mark , Japanese yen , Mexican peso , and Swiss franc . In 1881

7743-558: Was launched in 1982, to take advantage of the removal of currency controls in the UK in 1979. The exchange modelled itself after the Chicago Board of Trade and the Chicago Mercantile Exchange. LIFFE was acquired by Euronext in 2002, which in turn was acquired by NYSE in 2006. The combined NYSE Euronext, including LIFFE, was purchased by ICE in 2014. Today, the futures markets have far outgrown their agricultural origins. With

7832-570: Was not obliged to use the olive presses if the yield was poor. The first modern organized futures exchange began in 1710 at the Dojima Rice Exchange in Osaka , Japan. The London Metal Market and Exchange Company ( London Metal Exchange ) was founded in 1877, but the market traces its origins back to 1571 and the opening of the Royal Exchange, London . Before the exchange was created, business

7921-591: Was renamed ICE Futures Canada as of January 1, 2008. In 2004, the Winnipeg Commodity Exchange had "closed its open-outcry trading floor" becoming "the first North American agricultural futures exchange to trade exclusively on an electronic platform" by trading via the "Chicago Board of Trade's electronic platform, and [using] clearing services from the Kansas City Board of Trade. IntercontinentalExchange converted Winnipeg Commodity Exchange contracts to

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