Intercontinental Exchange Announces Progress on US Treasury Clearing Plan with SEC Publication

Intercontinental Exchange (ICE) says its US Treasury clearing plan is moving forward with the publication of a plan by the Securities and Exchange Commission (SEC). ICE operates regulated futures exchanges and OTC markets for commodities and financial products. Net sales breakdown by type of income includes futures and OTC markets operation, fixed income analysis and execution services and data publishing, and residential mortgage technology platform operation. The US accounts for 65.1% of net sales.

Intercontinental Exchange, Inc. (ICE) has taken a significant step forward in its plans to expand its U.S. Treasury clearing services. The company announced that the application and rulebook for its proposed Treasury clearing service have been published by the U.S. Securities and Exchange Commission (SEC). This publication marks a key milestone in the regulatory approval process, bringing ICE one step closer to launching its U.S. Treasury clearing service later this year.

Paul Hamill, Chief Commercial Officer of ICE Clear Credit, expressed enthusiasm about this development, stating, "We’re thrilled to see this next milestone as we work to familiarize customers with our plans to launch a Treasury clearing service later this year. The rulebook underpins our access model, allowing customers to clear U.S. Treasury securities the same trusted way Credit Default Swap (CDS) products are currently cleared" [1].

ICE's proposed service will leverage its leading global clearing house, ICE Clear Credit, which currently clears CDS instruments, to offer clearing for U.S. Treasury securities and repurchasing agreements. The Treasury clearing service is being established as a distinct offering from the current CDS clearing service, with separate rulebooks, membership, risk management frameworks, financial and liquidity resources, and risk committees.

Stan Ivanov, President of ICE Clear Credit, highlighted the company's experience in developing robust and flexible clearing solutions. He stated, "By leveraging our experience to establish and operate ICE Clear Credit, as well as several other exchanges and clearing houses, we’ve been able to expediently develop a robust and flexible solution that will provide market participants with the ability to clear U.S. Treasury securities in a trusted and capital-efficient environment" [1].

ICE Clear Credit, launched by ICE in 2009, has become a leading global clearing house for credit derivatives. It currently clears more than 670 Single Name, Index, and Index Option CDS instruments referencing corporate and sovereign debt. The clearing has reduced counterparty risk exposure for parties to trades with a combined notional amount of over $385 trillion, with current open interest at ICE Clear Credit over $2 trillion. ICE Clear Credit has been designated a systemically important financial market utility (SIFMU) by the Financial Stability Oversight Council and is a qualified central counterparty under U.S. bank capital rules [1].

ICE operates regulated futures exchanges and over-the-counter (OTC) markets for commodities and financial products, including agricultural, energy, equity index, and currency contracts, as well as credit derivatives. The company's net sales break down by type of income as follows: income from futures and OTC markets operation (63.3%), income from fixed income analysis and execution services and data publishing (19.5%), and income from a residential mortgage technology platform operation (17.2%). The United States accounts for 65.1% of net sales [2].

For more information about ICE’s proposed U.S. Treasury clearing service, please visit: [https://www.ice.com/clear-credit/us-treasury-clearing](https://www.ice.com/clear-credit/us-treasury-clearing).

References:
[1] https://www.marketscreener.com/news/ice-announces-its-treasury-clearing-application-and-rulebook-have-been-published-by-the-u-s-securit-ce7c51dddb8af724
[2] https://www.marketscreener.com/quote/stock/INTERCONTINENTAL-EXCHANGE-14931198/company/