Intercontinental Exchange (ICE) is launching a clearing service for US Treasury securities and repurchasing agreements, it has announced.
The Treasury clearing service will leverage ICE Clear Credit, the firm’s credit default swaps (CDS) clearing house, but will have its own rulebook, membership, risk management framework, financial and liquidity resources and risk committee, the exchange affirmed.
This service has been developed in light of a recent SEC announcement calling for an expansion of US Treasury securities clearing to improve market resilience.
Commenting on the announcement, Stan Ivanov, president of ICE Clear Credit, said: “We believe [ICE Clear Credit] 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 standardised risk management to the Treasury securities market.
“The rich experience we’ve developed creating and operating ICE Clear Credit and the work we’ve done to ensure its compliance with all US and foreign regulatory regimes has created a fertile environment for adding Treasury clearing to our suite of credit clearing services.”
Chris Edmonds, president of fixed income and data services at ICE, added: “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.”
©Markets Media Europe 2024
