IntercontinentalExchange (ICE), an operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, has announced that ICE Clear Europe has introduced clearing for European credit default swaps (CDS), beginning with iTraxx contracts, effective from the last week of July.
Initial CDS clearing members at ICE Clear Europe include: Bank of America, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley and UBS.
It has added that together with ICE Trust US (ICE Trust), ICE is bringing a common infrastructure to global CDS market participants within their respective regulatory jurisdictions. ICE has also appointed Suzanne Hubble as director for CDS Development, ICE Clear Europe. Ms. Hubble is responsible for the strategic development of ICE Clear Europe’s European CDS clearing business.
Paul Swann, president of ICE Clear Europe, said: We have developed a risk model that recognises the requirements of clearing European CDS instruments. By separating the risk pool from our energy markets and employing a bespoke CDS margining system, we are taking the steps necessary to offer the transparency and security provided by clearing, while containing risk exposure within the CDS markets.
