IntercontinentalExchange (ICE), an operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, has cleared E5.9 billion in credit default swap (CDS) indexes in its first week of operation.
ICE began clearing the iTraxx index contracts on July 27 through ICE Clear Europe’s CDS clearing solution. Earlier, ICE has claimed that the buy-side clrearing solution offers a roadmap for the industry’s transition to clearing based on participants’ specific risk management needs, allowing firms to retain trading relationships and a range of competitive execution models. It had also appointed Suzanne Hubble as director for CDS Development, ICE Clear Europe.
During its first week, ICE Clear Europe cleared 141 transactions totaling E5.9 billion of notional value, and resulting in E382.5 million of open interest. Initial CDS clearing members that include Bank of America, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley and UBS, have all praticipated during the first week.
Paul Swann, president of ICE Clear Europe, said: The successful launch prior to the July 31 deadline coupled with the participation by each initial member demonstrates the industry’s commitment to improving the transparency, standardization and counterparty risk profile in the CDS markets. We commend these participants for their leadership in solving for these objectives in both Europe and in the U.S. We look forward to delivering our segregated funds offering to buy-side participants in October.
