IntercontinentalExchange (ICE), an operator of regulated global futures exchanges, clearing houses and OTC markets, announced that ICE Trust US (ICE Trust) has surpassed the US$2 trillion mark in notional value cleared for North American credit default swap (CDS) contracts. For the week ending 11 September, ICE Trust cleared US$41 billion in notional, bringing total cleared volume to just over US$2 trillion since the March 2009 launch. Open interest at ICE Trust is US$187 billion and 24,006 transactions have been cleared to date.
“ICE’s leadership in clearing CDS markets is helping to reduce systemic risk by increasing market transparency and security, and we appreciate the assistance we have received from regulators, clearing members and the buy side community,” said Dirk Pruis, president of ICE Trust. “As the one year anniversaries of the Lehman and AIG crises approach, CDS clearing is playing a significant role in restoring safety and soundness to capital markets.”
In July 2009, ICE Clear Europe began processing European CDS index transactions. Through 11 September, ICE Clear Europe has cleared euro 313 billion (US$447 billion) notional, resulting in open interest of euro 37 billion ($52 billion). On a global basis, ICE has cleared 30,147 transactions totalling nearly US$2.5 trillion in gross notional value, resulting in open interest of US$241 billion. Currently, ICE Trust and ICE Clear Europe are clearing 20 North American CDX index contracts and 12 European iTraxx contracts, respectively. ICE expects to begin clearing single name CDS contracts later this month.