IntercontinentalExchange (ICE), a US-based electronic energy marketplace and soft commodity exchange, has appointed two senior executives to its European clearing house, ICE Clear Europe, and has moved to terminate its existing European clearing arrangement with LCH.Clearnet.
ICE has named Paul Swann as president and chief operating officer of ICE Clear Europe, and Sir Bob Reid as its chairman.
Swann has 20 years’ experience in European derivatives and equities clearing. He was formerly managing director for group risk and managing director for change at LCH.Clearnet, where he acted in numerous leadership positions in technology, operations and risk management.
Reid is chairman of ICE Futures, ICE’s UK-regulated futures subsidiary. Reid has served on ICE’s board of directors since 2001 and has been chairman of ICE Futures since 1999.
These appointments closely follow ICE giving written notice to LCH.Clearnet on July 18 of its intention to terminate existing clearing agreements for ICE’s energy futures and OTC derivatives businesses. The clearing agreements will terminate 12 months from the date of the notice unless the parties agree to a different termination date. ICE expects to move its energy futures and OTC derivatives clearing business to ICE Clear Europe in the third quarter of 2008.
ICE Clear Europe will be based in London, and partner ICE’s US clearing house, ICE Clear US. ICE Clear Europe is finalising its application to the UK Financial Services Authority to become a recognised clearing house. Assuming that the information provided is satisfactory and the timeline is met, regulatory approval is expected in early 2008.
In addition, ICE Clear Europe has announced plans to form a technical working group made up of representatives from clearing firms to provide a forum for discussing the technical and operational progress of the clearing house.