IntercontinentalExchange(R) (NYSE: ICE), a leading operator of regulated global futures exchanges, clearing houses and over-the-counter (OTC) markets, announced that cumulative gross notional value cleared by its credit default swap (CDS) clearing houses surpassed $10 trillion during the week ending July 2.
"ICE developed CDS clearing in 2009 to support the reduction of systemic risk amid significant market turmoil. Since then, ICE has cleared $10 trillion in gross notional value, bringing substantial transparency and counterparty risk reduction to the CDS markets in the U.S. and Europe," said Scott A. Hill, ICE SVP and Chief Financial Officer. "Though markets do not transform overnight, ICE has enabled a significant and rapid evolution by working closely with regulators and the industry. We will continue to deliver these important risk management initiatives while expanding our membership, introducing buy-side clearing and increasing the range of instruments cleared."
ICE's North American CDS clearing house, ICE Trust, began clearing North American CDS in March 2009, and was the first clearing house to clear CDS transactions. Through July 2, ICE Trust cleared $6 trillion in North American CDS indices (CDX) and $272 billion in single-name CDS, resulting in open interest of $435 billion. ICE Trust offers clearing for 35 indexes and 71 single-name contracts. ICE Trust introduced buy-side clearing for CDX in December and expects to offer single-name buy-side clearing in September 2010.
ICE Clear Europe began clearing European CDS in July 2009. Through July 2, ICE Clear Europe cleared euro 2.4 trillion ($3.3 trillion) in iTraxx indices and euro 379 billion ($501 billion) in single name instruments, resulting in euro 371 billion ($464 billion) of open interest. ICE Clear Europe offers clearing for 26 indexes and 101 single-name instruments. ICE Clear Europe expects to provide buy-side clearing in September 2010 and to commence clearing of Western European sovereign CDS contracts in the coming months.