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Exchange Sale Reflects New Realities of Trading - NYTimes.com
December 20, 2012 | NYT | By BEN PROTESS and NATHANIEL POPPER.

(Idea for the Ontario Food Terminal and the OPMA??) the firm, IntercontinentalExchange, or ICE, an electronic operator of markets for derivatives and commodities, is buying the symbolic cradle of American capitalism, the New York Stock Exchange,for $8.2 billion....ICE was founded in 2000 by Mr. Sprecher, who began his career developing power plants. In the 1990s, he saw that many power companies and financial firms wanted to hedge their investments in energy with financial contracts, but the market for these contracts was disorganized and opaque.

Mr. Sprecher bought an obscure exchange for buying and selling electricity in Atlanta and turned it into ICE with financing from BP and Wall Street firms, including Goldman Sachs and Morgan Stanley.

Banks were drawn to the idea of a standardized place to buy and sell derivatives tied to the value of oil and other commodities. But they also hoped to create a competitor to the virtual monopoly position being built up by the Chicago Mercantile Exchange in futures trading....ICE also decided to fashion its own clearinghouse, rather than tap an outsize firm. It expanded through acquisitions, planting the seeds for growth in 2008, when it took over the Clearing Corporation, home to a popular derivative known as a credit-default swap.

The Dodd-Frank overhaul may provide additional benefits for ICE. Under the law, exchanges must turn over public and private information to outside data warehouses, which will, in turn, share the information with regulators. Sensing an opportunity, ICE created its own warehouse, named ICE Trade Vault.

ICE and its Chicago rival, CME Group, have also moved in recent months to convert swaps trades, which are facing more scrutiny under Dodd-Frank, into old-fashioned futures contracts. Futures trading is lucrative territory for the exchanges in part because they can shut out competitors.

“The reality is that there are incentives to convert swaps into futures, where there’s less competition,” said Richard M. McVey, chief executive of MarketAxess, an independent trading platform that is expanding into the swaps business. “There’s no requirement for CME and ICE to open their futures clearinghouses to other exchanges.”
contracts  stockmarkets  mergers_&_acquisitions  M&A  derivatives  Dodd-Frank  trading_platforms  bourses  OFT  hedging  opacity  public_information  private_information  disorganization  clearinghouses 
december 2012 by jerryking
Legislative Assembly of Ontario | Committees | Committee Transcripts | Standing Committee on Government Agencies - - Ontario Food Terminal Board
Committee Transcripts: Standing Committee on Government Agencies - November 24, 1993 - Ontario Food Terminal Board
Ontario Food Terminal Board
farmers'_markets  Ontario  cold_storage  OFT 
january 2012 by jerryking
The Ontario Food Terminal: A unique service for the food industry
The Ontario Food Terminal: A unique service for the food industry
Anonymous. Canadian Grocer118. 10 (Dec 2004/Jan 2005): 40A,40B,40C,40D
food  infrastructure  cold_storage  Toronto  farmers'_markets  supply_chains  OFT  ProQuest 
december 2011 by jerryking
Inside The Ontario Food Terminal
October 7, 2007 | BolgTO | Tim

The Ontario Food Terminal (OFT) is the largest wholesale fruit and produce distribution centre in Canada, and the third largest in North America after LA and Chicago. It sits on a 40 acre lot at the foot of Etobicoke. Nestled next to the Gardiner Expressway, the OFT is in full view to thousands of Torontonians every day on their way in and out of the city but few have ever entered its doors. It's not open to the public. It's a strictly wholesale operation and a vendor permit and $155 fee (paid every two years) is required for admission.
food  food_crops  distribution  supply_chains  cold_storage  blogs  Toronto  farmers'_markets  OFT 
november 2011 by jerryking

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