IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, confirmed that ICE Clear Credit, ICE’s North American credit default swap (CDS) clearing house, was designated as a systemically important financial market utility by the Financial Stability Oversight Council and that ICE Clear Credit has waived the right to appeal that decision.
“Each of ICE’s clearing houses, including U.S.-based ICE Clear Credit, is highly regulated. ICE has a decade of leadership in the clearing of swaps and believes that the application of uniform rules across systemically important clearing houses globally will support market confidence and reduced risk. We look forward to additional details as rules are finalized in the coming months, both in the U.S. and internationally, and are working towards ensuring full compliance at our clearing houses as applicable,” said Christopher Edmonds, president of ICE Clear Credit.
Founded as ICE Trust in 2009, oversight was provided by the Federal Reserve Bank of New York, the U.S. Treasury, New York State Banking Department, CFTC and SEC. Following the implementation of the Dodd-Frank Act in July 2011, ICE Trust transitioned to ICE Clear Credit, a CFTC-regulated Derivatives Clearing Organization and SEC-regulated Securities Clearing Agency.
In 2010, ICE Clear Europe’s payment system was designated by HM Treasury in the U.K. as a “recognized system,” subject to statutory oversight by the Bank of England. Principles promulgated by the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions, a global standard-setting body comprising central banks and securities regulators, call for the designation of clearing houses and other Financial Market Infrastructures as “systemically important.” However, the timeline for such designation of clearing houses globally is not yet finalized.
ICE’s CDS clearing houses have cleared over $32 trillion gross notional value globally. With over 330 North American and European CDS indexes and single names available for clearing, ICE provides a robust CDS risk management model and open access for all market participants.
