Scheduled to be launched during the third quarter of 2013, the new CDS execution facility will be supported by Citi, Morgan Stanley, Societe Generale, and UBS. It will help them to offer firm pricing, while complying with the US and European regulatory requirements.
With request for quote (RFQ) and central limit order book functionality, ICE Swap Trade will deliver index and single name CDS across North American and European corporates and sovereigns with a choice of trading cleared and bilateral contracts.
ICE financial markets senior vice president Thomas Farley said, "Participants are looking for deep liquidity, efficient execution, and a sponsored access platform. ICE Swap Trade will continue to work with participants to deliver on all fronts."
Following implementation of the final rules, ICE Swap Trade may register as a swap execution facility (SEF) with the Commodities Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC), and as a multilateral trading facility (MTF) in Europe.
In order to provide operating efficiencies and workflow enhancements, the ICE Swap Trade has been integrated with a post-trade service through ICE Link and transparent execution protocols.
