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ICE Clear Europe Welcomes Call for European CDS CCP; Forming ICE Trust Europe to Clear Credit Default Swaps in Europe; To Commence Clearing in First Half of 2009

Posted on: Thursday, 19 February 2009, 11:12 CST

LONDON, Feb. 19 /PRNewswire-FirstCall/ -- IntercontinentalExchange (NYSE: ICE), a leading operator of regulated global futures exchanges and over-the-counter (OTC) markets, today announced that ICE Clear Europe(TM) will create a new service, known as ICE Trust Europe, to serve as a European-regulated central counterparty clearing house for European credit default swap (CDS) transactions. ICE Trust Europe will operate within the existing ICE Clear Europe clearing house which is regulated by the U.K. Financial Services Authority (FSA). ICE Trust Europe will have a segregated risk pool and dedicated risk management systems for the European credit derivatives market, including a separate guaranty fund and margin accounts. It is anticipated that the use of ICE Trust Europe will offer efficiency and a common market infrastructure to global CDS market participants. ICE Trust Europe anticipates a first half 2009 launch and, subject to necessary regulatory approvals, will leverage the clearing technology and risk management processes currently in development. ICE Trust Europe is establishing governing rules and operating procedures appropriate for European CDS clearing, including membership and margining requirements.

"We will continue to work with European regulators and the CDS community to construct central clearing and margining systems for this global and vital marketplace," said Paul Swann, President and COO of ICE Clear Europe. "Our aim is to improve the soundness and transparency of the CDS markets, regardless of physical or political borders. We will continue to leverage our domain knowledge in both CDS and clearing as we work with regulators and industry participants to develop a comprehensive European solution."

About IntercontinentalExchange

IntercontinentalExchange(R) (NYSE: ICE) operates regulated global futures exchanges and over-the-counter (OTC) markets for agricultural, energy, equity index and currency contracts, as well as credit derivatives. ICE(R) offers these markets to participants around the world through its technology infrastructure and trading platform, together with clearing, market data and risk management services. ICE Futures Europe(R) is ICE's regulated energy futures exchange. ICE's regulated North American exchanges, ICE Futures U.S. (R) and ICE Futures Canada(TM), offer markets for agricultural and financial contracts. Creditex, a market leader in trade execution and processing for credit derivatives, is also a wholly-owned subsidiary of ICE. A member of the Russell 1000(R) and S&P 500 indices, ICE is headquartered in Atlanta, with offices in New York, London, Chicago, Winnipeg, Calgary, Houston and Singapore. www.theice.com.

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, 2008, as filed with the SEC on February 11, 2009.

SOURCE IntercontinentalExchange

Source: PR Newswire

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