IntercontinentalExchange((R)) (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced ICE Clear Europe((R)) cleared 699 transactions totaling euro 31.9 billion ($45.2 billion) in credit default swap (CDS) indexes during the week of August 3. Open interest reached euro 1.5 billion ($2.1 billion).
ICE Clear Europe initiated clearing of iTraxx index contracts on July 27. In its first weekly clearing cycle, ICE Clear Europe processed 141 transactions totaling euro 5.9 billion of notional value.
ICE Clear Europe, which also provides clearing services for ICE’s futures and OTC energy markets, has established a separate risk pool for clearing CDS, including a guaranty fund and margin accounts, as well as a dedicated risk management system and governance structure. Through its U.S. CDS clearing arm, ICE Trust((TM)), and now ICE Clear Europe’s European CDS clearing effort, ICE brings a common infrastructure to global CDS market participants within their respective regulatory jurisdictions, while leveraging clearing systems and risk management processes already in use by the industry. ICE Trust launched in March and surpassed $1.7 trillion notional in North American CDS indexes cleared during the week of August 3.
Initial CDS clearing members at ICE Clear Europe include: Bank of America, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley and UBS. All CDS clearing members participated in the second week of processing.