ICE Link Software To Clear Credit Default Swaps Through CME

IntercontinentalExchange Inc. (ICE) has arranged for its straight-through-processing software, ICE Link, to facilitate the clearing of credit default swaps through its rival CME Group (CME), delivering on a key regulatory goal of offering customers choice in derivatives clearing.

ICE's credit default swap clearinghouse, ICE Trust, is a competitor to CME Clearing for CDS trades, but CME's equivalent to ICE Link is ClearPort.

"We are pleased that the hundreds of buy-side clients, dealers and brokers who rely on ICE Link now have the ability to clear through multiple clearinghouses," said Clive de Ruig, global head of ICE Link, in a statement.

ICE's middleware will be able to offer clearing through both ICE Trust and CME Clearing as of this summer, though the go-live date is still to be determined.

ICE Link is already connected to 453 investment firm users of credit default swaps, 26 CDS dealers, 11 prime brokerages and five interdealer brokers, which arrange trades between dealers.

CME launched CDS clearing in December 2009 and ICE Link has provided straight-through processing for its ICE Trust U.S. clearinghouse and ICE Clear Europe since their respective launches in 2009.

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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