IntercontinentalExchange Group (NYSE: ICE), the leading global network of exchanges and clearing houses, announced today that it will launch clearing for Markit iTraxx Senior Financials credit default swap (CDS) index instruments.
“We are pleased to extend our comprehensive product suite,” said ICE Clear Europe President Paul Swann. “By clearing the iTraxx financials index, we are further supporting risk management in the CDS market.”
ICE will clear the Markit iTraxx Senior Financial indices at both of its CDS clearing houses. Clearing at US-based ICE Clear Credit begins today and, pending completion of all relevant regulatory processes, at London-based ICE Clear Europe on March 24.
The Markit iTraxx Senior Financials Index references senior debt issued by the 25 financial entities represented in the Markit iTraxx Europe Index.
ICE clears more than 400 single name and index CDS instruments based on corporate and sovereign debt. ICE has cleared approximately $50 trillion in gross notional value of CDS to date, with open interest of approximately $1.5 trillion.
This month marks the fifth anniversary of ICE launching the world’s first CDS clearing house. ICE Clear Credit began clearing CDS in March of 2009 and ICE Clear Europe in July of 2009.
“Since launching the first clearing house for CDS in 2009, we have been working with market participants and regulators to continually invest in the CDS space, eliminate systemic risk and develop new clearing services,” said ICE Clear Credit President Stan Ivanov.
iTraxx is a service mark and property of Markit and is used under license. ICE clearing services referenced in this release are not sponsored, endorsed or promoted by Markit or any of its affiliates.
