ICE Clear Credit Designated Systemically Important in U.S.
CHICAGO, July 19, 2012 /PRNewswire/ — IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, confirmed that ICE Clear Credit, ICE’s North American credit default swap (CDS) clearing house, was designated as a systemically important financial market utility by the Financial Stability Oversight Council and that ICE Clear Credit has waived the right to appeal that decision.
“Each of ICE’s clearing houses, including U.S.-based ICE Clear Credit, is highly regulated. ICE has a decade of leadership in the clearing of swaps and believes that the application of uniform rules across systemically important clearing houses globally will support market confidence and reduced risk. We look forward to additional details as rules are finalized in the coming months, both in the U.S. and internationally, and are working towards ensuring full compliance at our clearing houses as applicable,” said Christopher Edmonds, President of ICE Clear Credit.
Founded as ICE Trust in 2009, oversight was provided by the Federal Reserve Bank of New York, the U.S. Treasury, New York State Banking Department, CFTC and SEC. Following the implementation of the Dodd-Frank Act in July 2011, ICE Trust transitioned to ICE Clear Credit, a CFTC-regulated Derivatives Clearing Organization and SEC-regulated Securities Clearing Agency.
In 2010, ICE Clear Europe’s payment system was designated by HM Treasury in the U.K. as a “recognized system,” subject to statutory oversight by the Bank of England. Principles promulgated by the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions, a global standard-setting body comprising central banks and securities regulators, call for the designation of clearing houses and other Financial Market Infrastructures as “systemically important.” However, the timeline for such designation of clearing houses globally is not yet finalized.
ICE’s CDS clearing houses have cleared over $32 trillion gross notional value globally. With over 330 North American and European CDS indexes and single names available for clearing, ICE provides a robust CDS risk management model and open access for all market participants.
IntercontinentalExchange (NYSE: ICE) is a leading operator of regulated futures exchanges and over-the-counter markets for agricultural, credit, currency, emissions, energy and equity index contracts. ICE Futures Europe hosts trade in half of the world’s crude and refined oil futures. ICE Futures U.S. and ICE Futures Canada list agricultural, currencies and Russell Index markets. ICE is also a leading operator of central clearing services for the futures and over-the-counter markets, with five regulated clearing houses across North America and Europe. ICE serves customers in more than 70 countries. www.theice.com
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding IntercontinentalExchange’s business that are not historical facts are “forward-looking statements” that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE’s Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE’s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the SEC on February 8, 2012.