ICE to move canola trade to U.S. exchange

(Dave Bedard photo)

The business of trading and clearing canola futures is poised to leave Winnipeg for New York City this summer.

Atlanta-based Intercontinental Exchange (ICE), the operator of canola exchange ICE Futures Canada, announced Tuesday it will be “transitioning” the trading and clearing of canola contracts to New York-based ICE Futures U.S. and ICE Clear U.S.

ICE expects the shift to take place July 29, pending regulatory approvals. It said “many aspects” of canola trading will remain unchanged, including contract specifications for futures, options and calendar spread options.

ICE has owned the Winnipeg-based, all-electronic canola trading operation, formerly known as the Winnipeg Commodity Exchange, since 2007.

Moving canola to ICE’s New York exchange and clearing house is expected to provide “deeper liquidity, reduced administrative costs and a more diversified risk management pool,” the company said in a notice to participants.

Canola traders, the company said, will “continue to benefit from ICE’s deep commitment to these markets and the same level of hands-on expertise.”

ICE Futures U.S., known until 2007 as the New York Board of Trade, handles futures and options in commodities such as sugar, cocoa and coffee.

ICE also said Tuesday it “plan(s) to maintain a local presence in Winnipeg” but didn’t yet offer up further details.

Canola trading has been the Winnipeg exchange’s lone business since last year, when it delisted its little-loved milling wheat, durum and barley contracts. Contracts in flax, oats, peas and rye met the same fate in Winnipeg in years previous. –– Network

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