LONDON, July 14, 2022–(BUSINESS WIRE)–Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of market data, technology and infrastructure, today announced that ICE Benchmark Administration Limited ( IBA) introduced inflation forecasts for the full calendar year to the ICE family of US dollar inflation expectations indices.
Inflation expectations are crucial for financial markets and policy makers. In March 2022, IBA created the ICE US Dollar Inflation Expectations Index Family to provide the market with an easy-to-access tool for measuring future inflation expectations.
After an initial testing period and based on feedback received to date, IBA is expanding the family of indices to introduce inflation expectations for full calendar years, from December of one year to December of the next. Rates will be published for the current year and the following year. In addition, IBA has revised one-year terms and forward rates to begin on the reference date of the latest Consumer Price Index (CPI) published by the US Bureau of Labor Statistics.
The revised model came into effect on July 13, 2022, with the first publication of the revised figures on July 14.
Historical test results are published here and reflect the new grade definitions, which currently include:
Inflation expected in the current calendar year measuring the expected increase in the CPI from December 2021 to December 2022
Expected inflation over the next calendar year from December 2022 to December 2023
One-year inflation forecast (12 months from the last CPI) from June 2022 to June 2023
Five-year longer-term forecast inflation, one year ahead from June 2023
Five-year longer-term forecast inflation, five years ahead from June 2027
IBA calculates indicative index parameters daily from price/yield data for US Treasury Inflation-Protected Securities (TIPS), Treasury Bills, Notes and Bonds, and currency-linked swap markets. inflation, which together represent the deepest and most liquid markets linked to inflation. IBA then creates a blended inflation curve from which implied inflation expectations can be calculated.
Index values under the revised model are released here at approximately 8:00 am New York time for an initial feedback period. IBA invites stakeholder feedback on the methodology and results of the inflation expectations index family and on the potential of the inflation expectations index family to become a benchmark for use in contracts financial. Comments should be sent to [email protected]
Please note that during the Feedback Period, the Parameters are published for informational and feedback purposes only and are not intended for, and IBA expressly prohibits their use for, any other purpose, including as a reference, index or reference in financial contracts, instruments, or to measure the performance of investment funds.
About ICE Benchmark Administration
ICE Benchmark Administration is authorized and regulated by the Financial Conduct Authority for the regulated activity of administering a benchmark, and is authorized as a benchmark administrator under the UK Benchmarks Regulations. ICE Benchmark Administration is a registered trademark of IBA and/or its affiliates. IBA reserves all rights to the methodology of the ICE family of US dollar inflation expectations indices and to the parameters of the family of ICE US dollar inflation expectations indices.
About intercontinental exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks to connect people to opportunity. We provide financial technology and data services across major asset classes that provide our clients with access to critical workflow tools that increase transparency and operational efficiency. We operate Exchangesincluding the New York Stock Exchangeand clearing houses that help people invest, raise capital and manage risk across multiple asset classes. Our comprehensive fixed income securities data services and execution capabilities provide insights, analytics and platforms that help our clients take advantage of opportunities and operate more effectively. To ICE Mortgage Technology, we are transforming and digitizing the residential mortgage process in the United States, from consumer engagement to loan registration. Together, we transform, streamline and automate industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding trademarks and additional intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates can be found here. Key information documents for certain products covered by the EU Regulation on packaged retail and insurance-based investment products can be accessed on the website of the relevant stock exchange under “Information Documents keys (KIDS)”.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 — Statements in this press release regarding ICE’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements, see ICE’s filings with the Securities and Exchange Commission (SEC), including, but not Limit thereto, the risk factors in the Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on February 3, 2022.
Source: Intercontinental Exchange
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ECI media contact:
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Contact with ICE investors:
Mary Caroline O’Neal