ICE takes steps to bolster Brent Index
On July 2 Intercontinental Exchange announced two steps to enhance the benchmark status of the Brent Index. The index is published by ICE Futures Europe on a daily basis at 12:00 noon London time and is used to create the final cash settlement price for Brent futures at expiry.
ICE Futures Europe signed an agreement with ICIS, a market information provider, to license its BFOE market data for the index. The exchange also established an oversight committee to oversee the administration of the Brent index and enhance “the governance and transparency” of the index. The committee comprises independent industry experts, oil price reporting agency representation and ICE Futures Europe non-executive directors and representatives.
Earlier this year, the U.K. Government’s Fair and Effective Markets Review recommended that the scope of U.K. benchmark legislation be extended to include several additional benchmarks, including the ICE Brent Index. Under the extended legislation, the Brent Index is a specified benchmark administered by ICE Futures Europe under the supervision of the Financial Conduct Authority.
