I met with Jeff Sprecher of the Intercontinental Exchange for almost an hour and a half and thought it would be a good idea to bring you up to speed on where they are heading.

1). We now have the complete API to them, but it is hooked up to their test environment. They will be sending us a contract to sign before they connect it to their production site. He assured me it will be the same contract that all the founders have to sign to get access to it. Esentially, if we trade or provide prices the API will be free; if we are voyeurs then we will have to pay for it.

2). He stated that charging commssion is not a denfensible business model. They will try to make their money through mid and back office services.

3). Their purchase of the IPE is directly related to implementing 2). his vision is to use the IPE infrastrucutre to make all derivative trades cleared and then use the FCM's to fulfill the back office movemment of funds tasks. In a nutshell he beleives the FCM's are all interconnected and used to moving money around for settlements and margins through the clearinghouse, so why not expand their role.

4). When I expressed some skepticism about 3). he asked if we would like to participate in a forum with other ICE members to discuss shared mid and back ofice services. I told him we would.

If anyone has any questions about this let me know.

AZ