Intercontinental Exchange (ICE) has added JP Morgan as a partner who will offering clearing services for client-executed Credit Default Swap (CDS) Index Options.
JP Morgan will deliver its clients the service via ICE Clear Credit.
ICE Clear Credit supports the clearing of CDS index option instruments referencing the major North American and European corporate indices. The exchange group describes this as providing the opportunity for end-users to add cleared CDS index options to their risk management strategies.
“The addition of options to the cleared product set is an important step in offering credit derivative clients a comprehensive clearing solution, allowing clients to achieve further operational and risk management efficiencies through clearing,” said Paul Davidson of JP Morgan.
Launched in 2009, ICE Clear Credit has reduced counterparty risk exposure by clearing over $283 trillion in two-sided notional amount, with open interest of approximately $2.0 trillion.
“We’re pleased to expand our global clearing services to include index options supported by JP Morgan,” said Stan Ivanov, president of ICE Clear Credit. “Our partnership with clearing members and end users continues to inspire our innovative thinking and delivery of new cutting-edge risk management solutions. Margining of index, single name and option instruments in one capital efficient portfolio provides growth opportunities for the ICE CDS derivatives complex.”