IntercontinentalExchange (NYSE: ICE), a leading operator of global derivatives exchanges and over-the-counter markets, today announced that the United Kingdom's Financial Services Authority (FSA) has made a recognition order designating ICE Clear U.S as a Recognized Overseas Clearing House (ROCH).
This recognition was made under Section 292 of the Financial Services and Markets Act 2000 following approval from HM Treasury. ICE Clear U.S. is the clearinghouse for ICE Futures U.S, providing clearing services and financial stability for its clearing members. Products traded at ICE Futures U.S. include agricultural, foreign exchange and equity index futures and options contracts.
Recognition will primarily enable ICE Clear U.S. to increase its physical presence and marketing efforts in the UK. The ROCH status affords ICE Clear U.S. equivalent insolvency protections to those afforded to a UK clearinghouse, and thereby supports the acceptance of UK firms as clearing members.
ICE Clear U.S., which is a derivatives clearing organization regulated by the Commodity Futures Trading Commission (CFTC) in the United States, submitted an application for recognition as an ROCH in June 2007.
The application was reviewed by the FSA to ensure, among other things, that: (1) investors and clearing members located in the UK are afforded protections equivalent to those applicable when they clear transactions with a UK clearing house; (2) the applicant is willing to cooperate by sharing information with UK regulators; and (3) adequate arrangements exist for information sharing between the CFTC and FSA. In addition, the application by ICE Clear U.S. was found by the UK's Office of Fair Trading (OFT) not to have any significant adverse effect on competition.