ICE Clears USD70 billion Of CDS In First Month

In its first four weeks of operation, ICE Trust of IntercontinentalExchange has cleared over USD70 billion in credit default swaps
By None

In its first four weeks of operation, ICE Trust of IntercontinentalExchange has cleared over USD70 billion in credit default swaps (CDS).

ICE began clearing CDS index contracts on 9 March through ICE Trust. During its first four weeks, ICE Trust cleared 613 transactions totaling USD71 billion of notional value, and resulting in USD12.7 billion of open interest. ICE Trust is the industry’s first and only CDS clearing house to process transactions.

“The first month of CDS clearing operation represents an important milestone for the financial markets in reducing systemic risk, and was due in large part to efforts by the industry and regulators to increase confidence, transparency and standardization,” says Dirk Pruis, president and COO, ICE Trust.

“We are pleased with the CDS clearing launch operations and participation. Following the limitations on volume recommended by regulators during this initial phase, we anticipate a solid ramp in activity in the coming weeks as we continue to actively work with both buy- and sell-side institutions in expanding participation in ICE Trust.”

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