ICE Trust Approved to Clear Credit Default Swaps

The IntercontinentalExchange (ICE) has received regulatory approval from the Federal Reserve for its ICE US Trust company to serve as a clearing house and central counterparty for credit default swap (CDS) transactions.

The ICE is expected to close its acquisition of The Clearing Corporation (TCC) within a week, pending all regulatory approvals.

TCC developed the CDS risk management framework, operational processes and infrastructure necessary for ICE Trust’s clearing operations. Once the deal has closed, ICE Trust will be able to process and clear positions held by members of the clearing house.