ICE Clear Credit introduces clearing for iTraxx

Source: IntercontinentalExchange

IntercontinentalExchange (NYSE: ICE), a leading operator of global markets and clearing houses, announced today it has received regulatory approval for its U.S. based credit default swap clearing house, ICE Clear Credit, to clear the Markit iTraxx Europe CDS indices. Clearing for the contracts will launch on Feb. 25.

ICE Clear Credit will be the first U.S. based clearing house to offer clearing for the Markit iTraxx Europe indices, including the Main, Crossover and HiVol indices which fall under the CFTC clearing requirements. In addition to dealer-to-dealer clearing, ICE Clear Credit will be the first North American clearing house to offer buy-side clearing on these indices.

"By adding the iTraxx Europe indices to the list of instruments we clear at ICE Clear Credit, we are helping our customers meet the requirements of the Dodd-Frank clearing rules and providing an opportunity for them to benefit from the capital efficiency of clearing all of their CDS indices in one regulatory jurisdiction," said ICE Clear Credit President Christopher S. Edmonds.

In addition to the iTraxx indices, ICE Clear Credit also received regulatory approval to clear European corporate single names. Clearing for North American and European single names will launch for the buyside later this quarter.

With nearly 400 North American and European CDS instruments available for clearing, ICE provides a robust CDS risk management model and open access for all market participants. ICE has cleared over $37 trillion gross notional value globally and is the market leader in CDS product coverage. 

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