ICE Link’s launch of A=C enables same-day clearing of credit default swap (CDS) trades, in line with the Dodd-Frank Wall Street Reform Act in the US and the European Market Infrastructure Regulation (EMIR) initiative in Europe.
The introduction of A=C enables a trade to be cleared within minutes of execution. Trades are immediately submitted for clearing following affirmation on the ICE Link platform, and once cleared, all parties are notified in real time on ICE Link.
Prior to the introduction of A=C, interdealer CDS transactions were sourced from the DTCC Trade Information Warehouse (TIW) and cleared on a weekly basis.
ICE Link global head Clive de Ruig said the successful launch of the A=C interdealer workflow combined with their best in class connectivity across the CDS market, which includes multiple clearing houses and swap execution facilities (SEFs), delivers significant operational benefits to their partners.
"Our strategic goal is to provide clients a choice of where they want to execute and clear, and this brings ICE Link closer to how the world will work when SEFs come into place in a post-Dodd-Frank and post-EMIR regulatory landscape," de Ruig said.
ICE Link provides straight-through-processing (STP) for the CDS market, with connectivity to 462 buy-side firms, 26 dealers, 11 prime brokerages and nine interdealer brokers as well as a number of post-trade services and data warehouses.
