Intercontinental Exchange, Inc. (NYSE:ICE) today announced it will launch a clearing service for all U.S. Treasury securities and repurchasing agreements.
ICE operates many of the largest clearing houses globally and brings decades of experience in clearing products ranging from interest rates, energy, agricultural and equity derivative futures and options, as well as credit derivatives.
The new Treasury clearing service will leverage ICE’s existing clearing house, ICE Clear Credit, which is the leading global clearing house for credit default swaps (CDS). The Treasury clearing service will be established as a distinct offering from the current CDS clearing service, and will have a separate rulebook, membership, risk management framework, financial and liquidity resources, and risk committee.
“The history of ICE Clear Credit and the way the team at ICE identified a market need that could benefit from modernization is the core of who we are as a company,” said Chris Edmonds, President of ICE’s Fixed Income and Data Services. “As we look to add Treasury clearing to the breadth of services we offer for fixed income markets, we will leverage the successful playbook we developed in the past to offer an industry-trusted clearing solution along with the front-, middle- and back-office workflows our customers rely on to manage their daily business operations.”
As an SEC-registered Securities Clearing Agency, ICE Clear Credit has years of experience navigating and complying with complex regulatory requirements. Additionally, ICE Clear Credit is designated as a systemically important financial market utility (SIFMU) by the Financial Stability Oversight Council, and deemed a qualified central counterparty (QCCP) under U.S. bank capital rules.
