ICE Clear U.S.

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In conjunction with its January 2007 acquisition of the New York Board of Trade (NYBOT), Intercontinental Exchange (ICE) acquired the New York Clearing Corp. (NYCC). NYCC was renamed ICE Clear U.S. as of June 1, 2007. ICE Clear U.S. continues to operate as a registered Derivatives Clearing Organization (DCO) under the oversight of the Commodity Futures Trading Commission (CFTC).

Although an ICE Futures U.S. subsidiary, ICE Clear U.S. has its own separate membership, Board of Directors, elected officers and operating staff. ICE Clear U.S. provides clearing services and financial stability for its clearing members.[1]

ICE Clear US launched a post-trade management system (PTMS) in early August of 2007. The new PTMS module was developed by ICE and enabled brokers and clearing members to manage trades executed electronically on ICE. PTMS replaced TIPS as a way to allocate and review all electronically traded NYBOT products.

Thomas J. Hammond was named president and chief operating officer of ICE Clear U.S., Inc., assuming the new role on Sept. 17, 2007. George Haase, former president of ICE Clear U.S., then became executive vice chairman of the clearing house.[2] On January 1, 2017, Hammond retired and Hester Serafini, who joined ICE Clear in March 2016 as COO, became president and COO. [3]

As of Dec. 17, 2007, reduced membership and shareholding requirements will be implemented at ICE Clear U.S. Under the revised requirements, a clearing member must hold only one exchange membership and pledge 3,152 shares of ICE common stock. Clearing members must also meet the operational requirements of ICE Clear U.S. Historically, the 30 clearing members of ICE Futures U.S. have been required to hold four exchange memberships and pledge 21,078 shares of ICE common stock, which have been available to satisfy their financial obligations to the exchange and ICE Clear U.S.[4]

Also in December 2007, the minimum guaranty fund deposit required under the amended bylaws of ICE Clear U.S. increased from $500,000 to $2 million per clearing member. The minimum capital requirement for clearing members will remain the same at $5 million.

News

ICE Clear U.S. said on March 26, 2008 that the United Kingdom Financial Services Authority (FSA) made a recognition order designating ICE Clear U.S. as a Recognized Overseas Clearing House (ROCH). The recognition was made under Section 292 of the Financial Services and Markets Act of 2000 following approval from HM Treasury. Recognition primarily enabled ICE Clear U.S. to increase its physical presence and marketing efforts in the UK. The ROCH status afforded ICE Clear U.S. equivalent insolvency protections to those afforded to a UK clearinghouse, and thereby supported the acceptance of UK firms as clearing members.

ICE Clear U.S. submitted an application for recognition as a ROCH in June 2007. The application was reviewed by the FSA to ensure, among other things, that investors and clearing members located in the UK are afforded protections equivalent to those applicable when they clear transactions with a UK clearing house; that the applicant is willing to cooperate by sharing information with UK regulators; and that 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 Office of Fair Trading (OFT) not to have any significant adverse effect on competition.[5]

History

ICE Clear U.S. was originally organized in 1915 as the New York Cotton Exchange Clearing Association and later became the Commodity Clearing Corporation.[6]

People

References

  1. Overview. ICE Clear U.S..
  2. Intercontinental Exchange Names Thomas J. Hammond President & Chief Operating Officer of ICE Clear U.S.. Wall Street Journal.
  3. ICE Announces Promotion of Hester Serafini to President of ICE Clear U.S. as Tom Hammond Retires. Business Wire.
  4. Press Release. ICE.
  5. Press Release. ICE.
  6. Press Release. ICE.