ICE Clear Europe

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ICE Clear Europe
ICEnewlogocolor.jpg
Founded 2008
Headquarters London
Key People Paul Swann, President & COO
Products Clearing for futures, OTC energy and OTC credit contracts
Website ICE Clear Europe


ICE Clear Europe is the London-based derivatives clearing house for the Intercontinental Exchange (ICE). ICE Clear Europe began operations in November 2008, clearing for the futures markets of ICE Futures Europe and ICE’s OTC energy markets, which were previously cleared by LCH.Clearnet.

ICE Clear Europe is a U.K. Recognized Clearing House and is regulated by the Financial Conduct Authority.

History

In July 2009, ICE Clear Europe introduced clearing for European credit default swaps,[1] with a separate risk pool, guaranty fund and margin accounts, as well as a dedicated risk management system and governance structure. In its first week of operation, ICE Clear Europe processed €5.9 billion in European CDS indices (iTraxx).[2] During the week ending January 22, 2010, the ICE Clear Europe CDS clearing house crossed €1 trillion in cumulative gross notional value cleared. [3]

ICE Clear Europe had announced in July 2008 that it had reached consensus with LCH.Clearnet (LCH) on the technical issues to facilitate the movement of all ICE Futures Europe and ICE OTC trading positions from LCH to ICE Clear Europe. ICE expected the transition of clearing to ICE Clear Europe to occur during the month of August 2008. ICE transitioned its energy futures and OTC markets from LCH.Clearnet to ICE Clear Europe in November of 2008.[4]

In January 2010, ICE Clear Europe received U.S. derivatives clearing organization (DCO) registration from the CFTC.[5]

ICE Clear Europe cleared its first freight forward agreement in May 2011.[6]

On April 14, 2014, Intercontinental Exchange Group announced that ICE Clear Europe would introduce clearing for Western European Sovereign Credit Default Swaps (CDS) on April 28, 2014, following receipt of regulatory approval.[7]

On May 30, the CFTC granted approval to ICE Clear Europe for portfolio margining of futures and foreign futures contracts. Also on that date, the CFTC vacated the registration of New York Portfolio Clearing, the fixed income clearing venture between NYSE and DTCC, as a Derivatives Clearing Organization.[8] NYPC migrated its clearing operations to ICE Clear Europe.

Membership

ICE Clear Europe sets out specific standards for membership, including holding specific capital and complying with the membership agreement.[9]

Key People

References

  1. European Credit Default Swap Clearing. InterContinentalExchange.
  2. ICE Clear Europe Announces €5.9 Billion in CDS Cleared for Week of July 27, 2009. Intercontinental Exchange.
  3. ICE CDS Clearing Reaches $5 Trillion on a Global Basis; ICE Clear Europe Crosses €1 Trillion. Intercontinental Exchange.
  4. ICE completes clearing move. Financial Times.
  5. ICE Clear Europe Receives Derivatives Clearing Organization Registration from CFTC. Intercontinental Exchange.
  6. ICE Clear Europe Announces First Cleared Freight Forward Agreement. ICE.
  7. ICE Clear Europe to Introduce Western European Sovereign CDS Clearing on April 28. ICE via Businesswire.
  8. CFTC Vacates New York Portfolio Clearing, LLC’s Registration as a Derivatives Clearing Organization. CFTC.
  9. ICE Clear Europe: Membership. ICE.