29 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

ICE Trust sets out plans for buy-side participation in CDS clearing

23 July 2009  |  5479 views  |  0 power leads

IntercontinentalExchange (ICE) says it will introduce a solution that will enable buy-side participation in credit default swap clearing by October.

The move follows growing regulatory pressure for broker-backed clearing counterparties to make provisions for direct buy-side involvement in central clearing of OTC transactions.

In June, BlueMountain Capital COO Samuel Cole accused major derivatives dealers of "filibustering" to protect their ogilopoly by withholding support from buy-side-friendly rivals to the ICE Trust credit default swaps clearing house.

Earlier this month, the New York Federal Reserve said it expected market participants to strengthen the foundations for buy-side clearing and start clearing customer trades by 15 December, 2009.

ICE says that its solution will provide segregation of customer funds and positions, as well as enhanced position and margin portability. The expanded legal framework is expected to protect customer positions and collateral in the event that a clearing member defaults on its obligations to the clearing house, offering increased security for buy-side market participants.

Jeffrey Sprecher, chairman and CEO of ICE, says: "Our segregated funds solution has been designed to provide robust protections for buy-side firms and to ensure our CDS clearing offering serves the needs of the entire CDS market."

He says the company is also working with relevant supervisory authorities in Europe to introduce similar provisions as it gears up to begin clearing European CDS transactions by the end of this month.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CDS clearing plans badly flawed say researchers

CDS clearing plans badly flawed say researchers

22 April 2009  |  11483 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.www.fisglobal.comvisit www.events.sap.comvisit vasco.com/news/PSD2-compliant-solutions

Top topics

Most viewed Most shared
HSBC hires Biggs to lead business model innovationHSBC hires Biggs to lead business model in...
9779 views comments | 16 tweets | 18 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
9268 views comments | 10 tweets | 6 linkedin
Mastercard eyes opportunities to profit from sharing economyMastercard eyes opportunities to profit fr...
7871 views comments | 6 tweets | 6 linkedin
Body blow for PayKey as Apple orders Westpac off its turfBody blow for PayKey as Apple orders Westp...
7443 views comments | 12 tweets | 14 linkedin
BBVA trains 1000 'ambassadors of design'BBVA trains 1000 'ambassadors of design'
6997 views comments | 15 tweets | 14 linkedin

Featured job

Six Figure Base + Commission + Stock Options

Find your next job