IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today announced that in its first four weeks of operation, ICE Trust has cleared over $70 billion in credit default swaps (CDS).
"The first month of CDS clearing operation represents an important milestone for the financial markets in reducing systemic risk, and was due in large part to efforts by the industry and regulators to increase confidence, transparency and standardization," said Dirk Pruis, President and COO of ICE Trust. "We are pleased with the CDS clearing launch operations and participation. Following the limitations on volume recommended by regulators during this initial phase, we anticipate a solid ramp in activity in the coming weeks as we continue to actively work with both buy- and sell-side institutions in expanding participation in ICE Trust."
ICE began clearing CDS index contracts on March 9 through ICE Trust, which received regulatory approval from the Federal Reserve and the Securities and Exchange Commission in the same month. During its first four weeks, ICE Trust cleared 613 transactions totaling $71 billion of notional value, and resulting in $12.7 billion of open interest. ICE Trust is the industry's first and only CDS clearing house to process transactions.