POST TRADE

Top investment banks join ICE Clear Credit for CDS

Goldman Sachs, JP Morgan and Deutsche Bank among top institutions to clear credit default swaps with ICE Clear Credit.

By Hayley McDowell hayley.mcdowell@strategic-i.com April 10, 2017 9:10 AM GMT

ICE Clear Credit will introduce clearing for credit default swaps (CDS) from 14 US and European financial institutions.

The institutions include Barclays, UBS, JP Morgan, Credit Suisse, Goldman Sachs and Deutsche Bank.

The additions follow ICE Clear Credit’s recovery and default management rule upgrades that strengthen the default management process and offer more protection for participants.

Stan Ivanov, president of ICE Clear Credit, described the launch of clearing services for these single names as an important milestone for the global credit market.

“We have worked closely with market participants and regulators to ensure we offer the appropriate set of cleared financial instruments in the most robust and efficient clearing framework,” he said.

ICE said the growth of single name clearing has continued this year, with record open interest of over $820 billion in both ICE Clear Credit and ICE Clear Europe index and single name instruments during March.

Records were also set in the first quarter this year for ICE’s buy-side single names and sovereign names cleared.

Buy-side single names hit $114 billion in the first quarter this year, compared to $60 billion in the first quarter of 2016.