ICE Press Release: ICE to Transition Cleared Energy Swaps to Futures in October

ICE announced that it has accelerated its plans to transition cleared OTC energy swaps and options to futures, which will take effect on October 15, 2012.

Lofchie Comment: Craig Pirrong, an academic blogger whose blog is called "Streetwise Professor," posted a note on this "transition," pointing out that it is really a transition in name only, and that it is motivated by the CFTC's completely disparate regulatory treatment of futures (which are favored) and swaps (which are disfavored). Given that the two products are economically equivalent, exchanges (particularly non-U.S. exchanges) would do well to call their cleared products "futures" rather than "swaps". Logically, all non-U.S. exchanges should imitate ICE's "transition." (Readers who wish to view the post should go to www.streetwiseprofessor.com and search for the August 2 entry titled "A Swap by Any Other Name.")