Monthly clearing record for buy-side single names in March
ATLANTA & NEW YORK--(BUSINESS WIRE)--
Intercontinental Exchange (NYSE:ICE), a leading operator of global
exchanges and clearing houses and provider of data and listings
services, today announced ICE
Clear Credit will introduce clearing for additional credit default
swaps (CDS) of U.S. and European financial companies.
The following single-name CDS will be available for clearing through ICE
Clear Credit on April 10, 2017:
Bank of America Corporation
Barclays Bank PLC
Credit Suisse Group AG
Deutsche Bank AG
The Goldman Sachs Group, Inc.
HSBC Bank PLC
JPMorgan Chase & Co.
Wells Fargo & Company
The introduction of these reference entities follows the recent
enhancements to ICE Clear Credit’s recovery and default management rules
and procedures that further strengthen the default management process,
offering more protection for market participants. Additionally, ICE
Clear Credit’s risk management model provides capital efficiencies with
portfolio margining through offsets between index instruments and their
underlying constituents, and the ability to hold house and client U.S.
dollar cash deposits in Federal Reserve accounts.
“The launch of clearing services for these single names is an important
milestone for the global credit market as we continue to build
transparency, confidence and robust risk management practices in the CDS
market,” said Stan Ivanov, President of ICE Clear Credit. “We have
worked closely with market participants and regulators to ensure we
offer the appropriate set of cleared financial instruments in the most
robust and efficient clearing framework. We will continue to develop new
services to offer the most comprehensive suite of cleared CDS
The growth of single name clearing continues into 2017, with record open
interest of over $820 billion in combined ICE Clear Credit and ICE
Clear Europe index and single name instruments during March. In
addition, record buy-side single name notional volume in March was $68.5
billion, compared to $29 billion in November 2016, the last monthly
volume record for single names.
Also for the first quarter of 2017, ICE set volume records in both
buy-side single names and sovereign single names cleared. Buy-side
single names set a record with $114 billion and sovereign activity saw a
record of $188 billion in the first quarter of 2017, compared to
previous records of $60 billion and $166 billion respectively, in the
fourth quarter of 2016.
Launched in 2009, ICE Clear Credit and ICE Clear Europe clear more than
500 single name and index CDS instruments based on corporate and
sovereign debt. ICE’s CDS clearing houses have reduced counterparty risk
exposure by clearing more than $87 trillion in gross notional value of
CDS instruments, with resulting open interest of approximately $1.6
About Intercontinental Exchange
Intercontinental Exchange (NYSE:ICE) operates the leading network of
global futures, equity and equity options exchanges, as well as global
clearing and data services across financial and commodity markets. The
New York Stock Exchange is the world leader in capital raising, listings
and equities trading.
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Exchange, ICE, ICE block design, NYSE and New York Stock Exchange,
Interactive Data and Trayport. Information regarding additional
trademarks and intellectual property rights of Intercontinental
Exchange, Inc. and/or its affiliates is located at www.intercontinentalexchange.com/terms-of-use.
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, 2016, as filed with the SEC on February 7, 2017.
SOURCE: Intercontinental Exchange
View source version on businesswire.com: http://www.businesswire.com/news/home/20170407005142/en/
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Source: Intercontinental Exchange