Dancing on ICE

Intercontinental Exchange has announced a new interest rate contract that it says will facilitate term financing arrangements, such as repos; consummated transactions in ICE’s Funds Rate contract will offer real-time transparency into the interest rate funding markets in a variety of currencies.
ICE says the solution was developed and licensed by principal trading firm DRW, and has pricing characteristics similar to a zero-coupon bond.
ICE says it is also establishing an advisory committee comprising financial institutions, liquidity providers and subject matter experts to help bring the contract to market in late 2016, subject to regulatory approval.