Ice Future Europe And Ice Clear Europe

Question 1

Explain the roles and responsibilities of ICE Futures Europe and ICE Clear Europe

Answer 1

1. ICE Futures Europe is an RIE (recognised investment exchange) where financial futures and options are traded using an electronic order matching system (matching buy/sell orders)
2. Only ICE Futures members are able to trade/ clear contracts on the exchange
3. Anyone else who wants a position in ICE Futures Europe contract - they need to get a member to act on their behalf
4. The member is responsible for the process of trade registration, position, maintenance, and settlement
5. ICE Clear Europe is a clearing house for ICE Futures Europe. After a trade is made - it ensures both parties fulfil their obligations
6. ICE Clear Europe is regulated by BoE.

Question 2

What are the two main types of individuals who execute business on ICE Futures Europe?

Answer 2

1. Trader -
   A. They either act on their own (locals) or on the company’s behalf.
   B. They make profits from the positions taken in the future or options contracts.
   C. Or, in the associated positions taken in the underlying products.
2. Broker -
   A. They act on someone else’s behalf.
   B. They make profit from charging commission on the trading done for others.