Intercontinental Exchange (ICE), an operator of global exchanges and clearing houses, providing a composite of data and listings services, has had its ICE Clear Europe subsidiary authorized by the Bank of England (BoE) as a central counterparty (CCP), in accordance with the European Market Infrastructure Regulation (EMIR).
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ICE Clear Europe is a clearinghouse, dealing with interest rates, equity indexes, agricultural and energy derivatives, as well as European credit default swaps (CDS). The approval by the BoE into the EMIR regime follows on the heels of the group’s bid to satisfy a number of governance, operations, risk management, treasury and banking infrastructure requisites.
Approved in 2012, EMIR helps oversee the facilitation and proper reporting of all over-the-counter (OTC) derivatives in the market. EMIR regulation also requires standard derivative contracts to be cleared through Central Counterparties (CCPs) as well as margins for uncleared trades and establishes stringent organizational, business conduct and prudential requirements for these CCPs.
According to Paul Swann, President and Managing Director, ICE Clear Europe, in a recent statement on the approval: “ICE Clear Europe is delighted that our clearing operations have been authorized by the Bank of England in line with the requirements of EMIR and we will continue to work closely with our clearing members and their customers as the European clearing mandates come into force over the coming months.”