ICE Plans to Cap Trading Fees for Cocoa, Sugar, Coffee in London

IntercontinentalExchange Inc. will cap trading fees for Liffe coffee, sugar and cocoa futures at the same level as its energy contracts for five years after its $8.2 billion takeover of NYSE Euronext, the company said.

ICE will keep the three contracts based in London, a presentation from the Atlanta-based operator showed. Other European commodity futures such as milling wheat will be part of a potential Euronext initial public offering, it said.

The boards of ICE and NYSE Euronext approved the merger in December and expect to complete the transaction in the second half. Once the deal is done, ICE Chief Executive Officer Jeffrey Sprecher will have expanded an oil exchange he bought in London in 2001 into the world’s second-biggest futures market by volume, Futures Industry Association data show.

The trading fee is now 82 cents per side per lot for ICE Brent, West Texas Intermediate crude and gasoil contracts and the equivalent of 80 cents for Liffe coffee, cocoa and sugar contracts, the presentation showed.

Fees for against actuals and exchange-for-physicals will be capped at the level of ICE energy contracts, or $1.32, it said. The levy is $1.56 for the Liffe futures, the slides showed.

Product committees will be set up for the Liffe coffee, cocoa and sugar contracts, similar to those operated by ICE Futures U.S., the bourse said. It will consult the committee on the “appropriate trading currency for cocoa.” Cocoa in London trades in pounds. The Wall Street Journal and Reuters reported the ICE presentation previously.