Intercontinental Exchange gains ESMA recognition for EU benchmark access

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ICE gains ESMA benchmark approval

Highlights

ESMA granted Intercontinental Exchange recognition under Article 32, allowing continued EU access to 100 Climate Transition and Paris-Aligned Benchmarks.
ICE Data Indices' climate series targets net zero by 2050 and covers over $2 trillion in assets under management across 8,000 global indices.
Recognition by both ESMA and the UK FCA strengthens ICE's market position as asset managers demand compliant sustainable index solutions in Europe.

EU recognition secures benchmark availability

As announced by Intercontinental Exchange, the European Securities and Markets Authority has granted ICE Data Indices recognition as a third country benchmark administrator under Article 32 of the EU Benchmarks Regulation.

The recognition means the 100 Climate Transition and Paris-Aligned Benchmarks offered by ICE Data Indices remain available for use by supervised entities in the European Union. These benchmarks are part of the firm's Climate Index series, a range of fixed income indices that combines ESG screening criteria with carbon reduction methodology designed to support the transition to net zero carbon emissions by 2050.

Examples in the lineup include the ICE Euro Corporate Climate Transition CTB Index, the ICE Sterling Corporate Climate Transition Absolute Emissions CTB Index, the ICE Emerging Markets Corporate Plus Paris-Aligned Absolute Emissions PAB Index, the ICE U.S. High Yield Paris-Aligned PAB Index and the ICE Global Corporate Paris-Aligned Absolute Emissions PAB Index.

Preston Peacock, Head of ICE Data Indices, says ongoing demand for responsible and sustainable investing is making carbon reduction more important for investors. He says ESMA's decision expands the company's reach and supports its efforts to help investors make more informed decisions on emission reduction goals.

Broader index business and market implications

ICE Data Indices also administers other benchmarks that are not currently within the scope of the EU Benchmarks Regulation. In addition to the ESMA decision, the business is already recognized as a third country benchmark administrator by the UK Financial Conduct Authority.

For ICE, the recognition reinforces its position in the market for benchmark administration and climate-linked index products as asset managers and other regulated firms continue to seek compliant sustainability tools in Europe. The company says more than $2 trillion in total assets under management are benchmarked to ICE Indices, and its broader portfolio includes more than 8,000 global equity, fixed income, commodity and foreign exchange indices backed by a 50-year operating track record.

In our earlier article on the U.S. Supreme Court ruling requiring swift federal action on climate change, we outlined how the decision put sustainable energy policy at the center of nationwide regulation. We also noted that the ruling could intensify pressure on energy producers and other carbon-intensive industries to adjust compliance plans, capital spending, and longer-term sustainability targets.

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