ICE Clear Credit to Launch Sovereign CDS Clearing for Latin American Countries
CHICAGO, Oct. 20, 2011 /PRNewswire/ -- IntercontinentalExchange, Inc. (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced today that ICE Clear Credit will launch clearing of Latin American sovereign credit default swaps (CDS) this month. ICE Clear Credit is the first central counterparty to clear sovereign CDS.
As the primary regulator for single-name CDS, the SEC has granted regulatory approval for clearing of sovereign CDS of Argentina, Brazil, Mexico and Venezuela. Clearing will launch for Brazil and Mexico on October 31, 2011. ICE Clear Credit expects to launch clearing of Argentina and Venezuela in the following weeks.
"Sovereign CDS are some of the most actively traded CDS products today. We are pleased to extend our clearing capabilities to sovereign CDS, which furthers our objective of meeting the needs of market participants and reducing systemic risk," said ICE Clear Credit President Christopher Edmonds.
Data for all ICE CDS clearing activity, including sovereign single names, is available in the ICE Report Center.
ICE Clear Credit, the world's first CDS clearing house, was established in March 2009. Together with ICE Clear Europe, ICE Clear Credit brings a common infrastructure to global CDS market participants within their respective regulatory jurisdictions, while leveraging clearing systems and risk management processes already in use by the industry. ICE's CDS clearing operations are designed to address the operational and risk management needs of the credit market, as well as calls by regulators and policy makers for transparency, standardization and systemic risk reduction. ICE Clear Credit is a Commodity Futures Trading Commission regulated Derivatives Clearing Organization and Securities and Exchange Commission regulated Securities Clearing Agency.
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, 2010, as filed with the SEC on February 9, 2011 and ICE's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, as filed with the SEC on August 3, 2011.
SOURCE IntercontinentalExchange, Inc.