IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that the CFTC has approved ICE Clear Europe’s request to allow the clearing house and its clearing members to hold both U.S. energy futures and foreign energy futures in the 4d(a) account for U.S. customers. The 4d(a) Order allows ICE to continue offering portfolio margining offsets for its energy customers, but with enhanced account segregation benefits.
ICE Clear Europe has long managed ICE Futures Europe energy futures and ICE cleared OTC energy swaps on a commingled, portfolio-margined basis in the 30.7 account for U.S customers. The previously announced transition of swaps to listed futures at ICE Futures U.S. and ICE Futures Europe requires that these positions be commingled and portfolio-margined in the 4d(a), rather than the 30.7 account for U.S. customers.
“This Order ensures that our energy customers can continue to enjoy the significant capital benefits of portfolio margining following our transition of cleared swaps to futures,” said Chuck Vice, ICE president and COO.
There are no changes to the clearing workflow for members or clients and no changes to margin methodology, rates or offsets. ICE Clear Europe was approved as a CFTC-regulated derivatives clearing organization (DCO) in 2010.
