30-04-01 Europe's largest energy exchange, London's International Petroleum Exchange (IPE) has been sold for $ 67.5 mm plus a 10 % share in the new venture. The prestigious London exchange, which along with rivals in New York and Singapore is where much of the world's crude oil is traded, has been bought by an internet-based electronic trading platform, InterContinentalExchange (ICE).
The traditional exchange's greatest success has been its trade in North Sea Brent crude oil, which has become the benchmark for oil prices around the globe. But the IPE's somewhat limited advance into electronic trading is seen as one of the main reasons why it changed from becoming the market leader to a takeover target.
"ICE and the IPE intend to transfer IPE's existing business to ICE's platform," said the companies in a joint statement. This means the closure of the IPE's traditional trading pit, with its open-outcry dealing system and traders wearing colourful jackets. "The internet will allow 24-hour global access to the ICE platform for trading," the exchanges said. The new venture is estimated to be worth $ 1.35 bn.

The old-fashioned trader is threatened with extinction ICE, which was first developed to trade electricity in the US, is now a global e-trade platform. The exchange was founded in 2000 by seven banks and energy groups; BP, Shell and TotalFinaElf, as well as active trading banks Deutsche Bank, Societe Generale, Goldman Sachs and Morgan Stanley Dean Witter.
The fact that the exchange is not independent has been controversial, particularly among the smaller market players. ICE has traded more than $ 100 bn worth of energy and metals online since it was launched eight months ago. Daily trades are expected to run to $ 3.5 bn in the future.