Intercontinental Exchange Senior VP Trabue Bland Explores Market Innovations at FIA EXPO 2023

Nov 3, 2023

John Lothian

John Lothian

Executive Chairman and CEO

When the world changes, and needs a new market benchmark, ICE is there offering a solution. That was the message from ICE Senior Vice President Trabue Bland during a video interview at FIA EXPO 2023 with John Lothian News. 

The conversation kicked off with a discussion of energy and energy transitions. Changes in energy markets are being driven by changes in the supply chain. The HOU crude oil futures contract is moving from a landlocked contract to one that is waterborne, Bland said. In Europe, the TTF natural gas contract became a massive price discovery contract when it grew in prominence after the Ukraine war broke out. 

Underpinning all this change is an energy transition, with a shift into a greener generation of power, he said.

The discussion then shifted to the softs markets, where Bland elaborated on what the impact this year’s El Niño could have on these commodities, which include essential goods such as coffee, sugar, and cocoa. Bland said participants are getting nervous about getting supply and that ICE experienced the largest sugar delivery in the history of ICE Futures US.  There is additional pressure on the markets from the regulators, especially about sourcing, he said. Tracking the source of a commodity can be a real challenge. 

One of the most pressing topics of today’s financial markets is the environment, and the carbon markets are at the forefront of this domain. Bland said there was massive demand in the voluntary carbon markets to meet ESG goals.

Innovation in product offerings is a key driver for exchanges, and ICE is no exception. The interview delved into ICE’s approach to the micronization of contracts and the introduction of zero-day-to-expiration options. Bland was not interested in offering smaller contracts on ICE’s futures exchanges that would increase user costs while attracting retail clients, especially ones that have a high price tag to attract. Bland’s focus is on commercial participants, he said. 

Finally, Bland shared a story about his involvement in the Boy Scouts. He said one of his sons earned the rank of Eagle Scout right before his 18th birthday. Bland said he just went on a trip to the Boy Scouts Northern Tier high adventure base in the Boundary Waters. Watching the Boy Scouts in action, all of whom were Eagle Scouts, was quite an experience. 

Crisis memory, geopolitics and the risks of financial contagion

Crisis memory, geopolitics and the risks of financial contagion

First Read Hits & Takes John Lothian & JLN Staff When Jack A. Wing died in 2011, I realized the industry was losing some of the pioneers of the financial futures era. Wing founded the masters program in financial engineering at the Illinois Institute of Technology,...

We visit more than 100 financial news websites daily (Would YOU do that?)

The Spread

Todays  Options Newsletter

The Stock Market Has Rarely Been This Sleepy

Lead Stories The Stock Market Has Rarely Been This Sleepy Gunjan Banerji - The Wall Street Journal It's eerily calm out there in the stock market. The Cboe Volatility Index, or VIX, dropped below 12 last week, a nearly five-year low. The gauge, based on options prices...

Now Read This

John Lothian: Week in Review (June 17-21, 2024)

John Lothian: Week in Review (June 17-21, 2024)

JLN PRESS ROOM PICK OF THE WEEK

Opinion: Class-Action Lawsuit Against CME Group Holds Disruptive Potential to Membership Prices, Future Deals and CME Leadership

A long-standing certified class-action lawsuit against CME Group, filed by members of the Chicago Board of Trade and Chicago Mercantile Exchange, poses a potential threat to the exchange group’s membership market. A mediated settlement, encouraged by the judge, could reshape how trading rights are offered at the exchange and potentially benefit a class of shareholders, whose B-shares have declined while A-share values rose.

ASEAN exchange leaders discuss transition finance and the economic shift to net zero

ASEAN exchange leaders discuss transition finance and the economic shift to net zero

In a recent roundtable on transition finance with the World Federation of Exchanges (WFE), JLN spoke with three dynamic leaders representing exchanges from the Association of Southeast Asian Nations (ASEAN), all members of the World Federation of Exchanges. Speaking with us were Dr. Soraphol Tulayasathien, senior executive vice president, Stock Exchange of Thailand (SET); Dr Hezri Adnan, current director, group sustainability of Bursa Malaysia; and Laurent Poirot, head of product strategy and development at SGX. Contributing to the conversation were Nandini Sukumar, CEO of the WFE and Victoria Powell, senior manager – ESG, regulatory affairs for the WFE.

Regulatory Uncertainty Clouds Options Market Innovation

Regulatory Uncertainty Clouds Options Market Innovation

David Dooman, head of options at Dash Financial, a subsidiary of ION Group, expressed concerns about the impact of regulatory uncertainty on the options markets during an interview at the Options Conference in Asheville, NC.  Dooman highlighted several key issues stifling innovation and offered recommendations to address the industry’s challenges.

John Lothian: Week in Review (June  10-14, 2024)

John Lothian: Week in Review (June 10-14, 2024)

JLN PRESS ROOM PICK OF THE WEEK

The role of the FCM: Futures Discovery EP 10

Today, we’re immersing ourselves in a detailed exploration of the pivotal role of Futures Commission Merchants, commonly known as FCMs. These financial intermediaries play a crucial role in facilitating futures and options trading, serving as a linchpin in the complex web of derivative markets. Understanding the intricate responsibilities and functions of FCMs is essential for navigating the dynamic landscape of modern financial systems.