Intercontinental Exchange (ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, today announced that ICE Clear Credit was recognized as a third-country central counterparty (CCP) for products regulated by the U.S. Commodity Futures Trading Commission (CFTC) in accordance with the European Market Infrastructure Regulation (EMIR).
Additionally, the European Securities and Markets Authority (ESMA) gave further relief for security-based swaps, which are regulated by the Securities Exchange Commission, while they work toward an equivalence determination.
“The global CDS market is utilized by customers around the world including Europe, the U.S. and Asia. ESMA’s recognition of ICE Clear Credit will allow us to continue to provide capital efficient clearing services that support our customers’ risk management activities by delivering portfolio benefits for index and single name instruments,” said Stan Ivanov, President of ICE Clear Credit.
Launched in 2009, ICE Clear Credit offers almost 600 single name and index CDS instruments based on corporate and sovereign debt across North America, Europe and the Asia-Pacific. ICE’s CDS clearing houses have reduced counterparty risk exposure by clearing over $80 trillion in gross notional amount of CDS instruments since inception, with resulting open interest of $1.5 trillion.