Intercontinental Exchange ICE, which is a leading operator of global exchanges and clearing houses apart from data and listings services provider, disclosed an innovative interest rate contract. The exchange expressed its confidence that it would facilitate term financing arrangements, like repos.
According to the company, consummated transactions in its Funds Rate contract would provide real-time transparency into the interest rate funding markets in a variety of currencies. The company said that the patent-pending solution was developed and licensed by principal trading firm DRW, and has pricing characteristics that is similar to a zero-coupon bond.
Intercontinental Exchange indicated it would also be also creating an advisory committee consisting of financial institutions, liquidity providers and subject matter experts to help bring the contract to market in late 2016, subject to regulatory approval.
On Wednesday, the stock traded 1.51 percent higher.
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