The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

ICE Joins Eurex and LCH.Clearnet in Bid for European CDS CCP Supremacy

Share article

Following the announcement by LCH.Clearnet last week of its bid to enter the European credit default swap (CDS) clearing counterparty (CCP) market, IntercontinentalExchange (ICE) has indicated its own intentions to establish a transatlantic model for the market. The ongoing furore surrounding splitting CDS clearing between Europe and the US would therefore become a non-issue, according to ICE.

The European Commission and the European Central Bank (ECB) have been vigorously campaigning for the introduction of a European specific clearer but these proposals have been met with criticism from those concerned about splitting dollar clearing from euro. Players such as the International Swaps and Derivatives Association (ISDA) and the Futures and Options Association (FOA) have indicated that they believe regional clearing to be a costly and counterproductive measure.

ICE is already relatively set to launch its US-based CDS CCP this year and the European version would use its existing London-based clearer, ICE Clear Europe, and extend its remit to CDSs. According to the exchange operator, it is currently in talks with the UK Financial Services Authority (FSA) to do just that.

Related content

WEBINAR

Recorded Webinar: The Benefits of Advancing Client Data Management Capabilities

Managing client information is not a new challenge for financial institutions, and it is a challenge that continues to evolve. Bringing together different silos of client information into a single, holistic and hierarchical view to understand client risk and meet KYC and AML obligations is a common issue for financial institutions. Traditionally, client information is stored...

BLOG

Welcome to DMS Virtual – A Groundbreaking Model for Today’s New Normal

Events have overtaken us this week (so to speak), and while we have put tremendous effort into our Data Management Summit this year, it became apparent that due to health and safety concerns in addition to event attendance restrictions for many participants, our live event will no longer be able to go ahead tomorrow. However,...

EVENT

TradingTech Summit London

The TradingTech Summit in London brings together European senior-level decision makers in trading technology, electronic execution and trading architecture to discuss how firms can use high performance technologies to optimise trading in the new regulatory environment.

GUIDE

Entity Data Management Handbook – Sixth Edition

High-profile and punitive penalties handed out to large financial institutions for non-compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations have catapulted entity data management up the business agenda. So, too, have industry and government reports on the staggering sums of money laundered on a global basis. Less apparent, but equally important, are...