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