ICE to Launch Treasury Clearing Service to Increase Transparency and Enhance Resilience in the U.S. Treasury Market
24 Juni 2024 - 2:30PM
Business Wire
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global
provider of technology and data, today announced it will leverage
its proven track record and expertise in central clearing and the
fixed income market to launch a clearing service for all U.S.
Treasury securities and repurchasing agreements. This follows the
recent announcement by the U.S. Securities and Exchange Commission
(SEC) mandating for the expansion of U.S. Treasury securities
clearing to enhance resilience in the market.
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.
“Over the last fifteen years, ICE Clear Credit has become the
leading global clearing house for credit derivatives, and we
believe it is strategically positioned to offer Treasury clearing
services that will promote competition and help facilitate the
SEC’s policy objective of bringing increased transparency and
standardized risk management to the Treasury securities market,”
said Stan Ivanov, President of ICE Clear Credit. “The rich
experience we’ve developed creating and operating ICE Clear Credit
and the work we’ve done to ensure its compliance with all U.S. and
foreign regulatory regimes has created a fertile environment for
adding Treasury clearing to our suite of credit clearing
services.”
ICE Clear Credit was founded during the financial crisis in 2009
to bring confidence and stability to the CDS market. Since then, it
has become the leading global clearing house for credit
derivatives, including Single Name and Index CDS instruments, and
options on index CDS. ICE Clear Credit offers clearing for more
than 650 Single Name and Index CDS instruments referencing
corporate and sovereign debt, and has reduced counterparty risk
exposure by clearing approximately $200 trillion in two-sided
notional amount, with open interest of over $1.75 trillion.
“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.
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune
500 company that designs, builds, and operates digital networks
that connect people to opportunity. We provide financial technology
and data services across major asset classes helping our customers
access mission-critical workflow tools that increase transparency
and efficiency. ICE’s futures, equity, and options exchanges
-- including the New York Stock Exchange -- and clearing
houses help people invest, raise capital and manage risk. We
offer some of the world’s largest markets to trade and clear energy
and environmental products. Our fixed income, data services
and execution capabilities provide information, analytics and
platforms that help our customers streamline processes and
capitalize on opportunities. At ICE Mortgage Technology, we
are transforming U.S. housing finance, from initial consumer
engagement through loan production, closing, registration and the
long-term servicing relationship. Together, ICE transforms,
streamlines, and automates industries to connect our customers to
opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for
certain products covered by the EU Packaged Retail and
Insurance-based Investment Products Regulation can be accessed on
the relevant exchange website under the heading “Key Information
Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995 -- Statements in this press release regarding
ICE'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, 2023, as
filed with the SEC on February 8, 2024.
Category: Fixed Income and Data Services
SOURCE: Intercontinental Exchange
ICE-CORP
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version on businesswire.com: https://www.businesswire.com/news/home/20240624542658/en/
ICE Media Contact: Damon Leavell damon.leavell@ice.com
(212) 323-8587
media@ice.com
ICE Investor Contact: Katia Gonzalez
katia.gonzalez@ice.com (678) 981-3882
investors@ice.com
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