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ICE Gears up for European CDS CCP Launch in the Coming Months

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Following the launch of its North American credit default swap (CDS) clearing operations at the start of March, IntercontinentalExchange (ICE) has indicated that it is planning to launch a European version in the next month or so. The ICE Trust clearing counterparty (CCP) will be used as the model for the new European operations and the firm is already talking to regulators and market participants in the region, says CEO Jeff Sprecher.

LCH.Clearnet and Liffe launched a joint offering in the CDS CCP space last year but it has been unable to attract significant volume. However, ICE does not seem deterred. According to the exchange operator, its CDS clearing effort is on course to bring in US$30 million in revenue this year. Clearly, given the success in the US, the potential revenues from Europe are an attractive proposition for the firm.

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