Market Overview

Intercontinental Exchange to Create Platform to Standardize ETF Primary Market Trading


BlackRock to be a Development Partner

New Platform Will Simplify ETF Creation/Redemption Process

Intercontinental Exchange, Inc. (NYSE:ICE), a leading operator of global
exchanges and clearing houses and provider of data and listings
services, today announced its intention to launch a new
open-architecture, centralized industry platform to facilitate creation
and redemption orders for exchange-traded funds (ETFs). This new
platform, expected to begin operations in 2019, subject to regulatory
approval, will employ innovative functionality and establish standards
to simplify the primary market trading process, which will bring more
efficiency and transparency to the process. BlackRock will be one of
ICE's development partners and has executed a memorandum of
understanding with ICE to support the new platform.

The U.S. ETF market has seen tremendous growth. According to the
Investment Company Institute, net assets grew six-fold over the last
decade to $3.4 trillion. Fixed income ETFs have been one of the fast
growing segments within ETFs, with compounded annual growth of over 30%
during the last ten years.

"In order to fulfill its next phase of growth, the ETF industry needs to
standardize the process for creating and redeeming shares, particularly
in fixed income. ICE has a well-established track record of bringing
innovative technology to drive efficiencies and solve the market's most
complex challenges," said Intercontinental Exchange President Ben
Jackson. "With a diverse range of investors embracing ETFs, participants
in the ecosystem will benefit from the transparency and scalability
these standards will foster."

With the new platform, ICE is developing industry standard protocols to
simplify the current create and redeem process. Market participants will
be able to place orders for creation and redemption baskets in a central
venue, designed in an open platform to support participants from ETF
sponsors to market makers, and other authorized participants. The
platform will provide analytics, data and content, and instant
messaging, as well as connections to trading venues and execution

"As ETFs have grown, it has become increasingly clear that there is a
need for transparent and consistent creation and redemption protocols.
As clients continue to adopt ETFs as both core holdings and ways to take
tactical positions, they'll benefit from the efficiencies these
standards create," said Samara Cohen, head of iShares Global Markets for
BlackRock. "There is a growing industry consensus on this issue and ICE
is taking an important step by creating a new open-architecture platform
that establishes standards to simplify the trading process. We are
pleased to be a development partner with ICE and other ETF ecosystem
participants to build out primary trading standards."

As part of this initiative, the platform will be connected to BondPoint,
TMC Bonds and ICE Credit Trade, which provide fixed income execution
protocols for asset classes including Municipals, Corporates,
Treasuries, Agencies and Certificates of Deposit. In addition, ICE Data
Services will provide analytics and reference data to the platform.

About Intercontinental Exchange

(NYSE:ICE) is a Fortune 500 and Fortune Future 50 company
formed in the year 2000 to modernize markets. ICE serves customers by
operating the exchanges, clearing
and information services they rely upon to invest, trade and
manage risk across global financial and commodity markets. A leader in
market data, ICE Data
serves the information and connectivity needs across
virtually all asset classes. As the parent company of the New
York Stock Exchange
, the company raises more capital than any other
exchange in the world, driving economic growth and transforming markets.

Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual property
rights of Intercontinental Exchange, Inc. and/or its affiliates is
located at
Key Information Documents for certain products covered by the EU
Packaged Retail and Insurance-based Investment Products Regulation can
be accessed on the relevant exchange website under the heading "Key
information Documents (KIDS)".

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995 -- Statements in this press release regarding ICE's business
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, 2017, as filed with the SEC on February 7, 2018.

SOURCE: Intercontinental Exchange


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