Intercontinental Exchange said yesterday (Tuesday November 3) that it would launch its own derivatives linked to the Argus Sour Crude Index, after CME Group had made a similar announcement the previous day.
Both exchanges are reacting to the news that Saudi Arabia will switch in January to the ASCI as a price benchmark for its oil exports.
The world’s largest oil exporter is abandoning the traditional benchmark of West Texas Intermediate crude, which is most prominently traded through the Light Sweet Crude Oil Futures at CME’s New York Mercantile Exchange.
Jeff Sprecher, ICE’s chief executive, revealed the news as the Atlanta-based exchanges group reported a 16% rise in income for the third quarter, to September 30.
“I should mention we have the rights to...