July 15, 2011

ICE Trust, the IntercontinentalExchange's North American credit default swap clearinghouse, announced that it will complete its transition to a regulated clearing body on July 16.

The move is in line with the Dodd-Frank reform bill, which requires all CDS transactions to go through central clearing.

ICE Trust added that it will convert from a bank regulated by the Federal Reserve and New York State banking authorities, into ICE Clear Credit, which will operate under oversight by the Securities and Exchange Commission and Commodity Futures Trading Commission.

"ICE has worked extensively with market participants for the past year to ensure a smooth transition," ICE Trust president Chris Edmonds said in a statement. "As Dodd-Frank regulations are finalized, we will continue to increase the number of clearing members and build on ICE's leadership in providing market transparency and clearing solutions for the OTC markets."

ICE Trust, the world's first CDS clearing operation, was established in 2009 in response to call from policymakers and market participants for greater transparency in the credit markets.

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced ...