Further enhances protection for clearing members and ability to clear additional asset classes
IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, announced today that ICE Clear Europe(TM) has received settlement finality designation (SFD) by the UK Financial Services Authority (FSA) under the Financial Markets and Insolvency (Settlement Finality) Regulations 1999.
The FSA’s approval marks another significant milestone for ICE Clear Europe by enhancing the systemic risk protection provided to clearing members in the event of a clearing counterparty default. Under SFD, payment instructions can be protected from EU administrators or liquidators of insolvent firms. Designation means that ICE Clear Europe’s system is now designated under the EU’s Settlement Finality Directive.
"Not only will SFD provide additional protections for market participants in our existing energy OTC and futures businesses, but it also furthers ICE Clear Europe’s ability to clear products in other asset classes," said Paul Swann, president and chief operating officer of ICE Clear Europe. "We continue to demonstrate our dedication to enhancing the already robust clearing and risk management services we offer to our customers around the globe."
On November 3, ICE Clear Europe launched as the first new major derivatives clearing house in London in over a century. The clearing house was formed to provide clearing services to the global energy markets for OTC and futures transactions. ICE Clear Europe enables the efficient development of new cleared markets to support the risk management needs of customers, with the capability to offer similar services to an expanded range of asset classes.