Fed Approves ICE's Credit-Default Swaps Clearing Plan
March 04 2009 - 4:57PM
Dow Jones News
WASHINGTON (Dow Jones)-IntercontinentalExchange Inc.'s (ICE)
proposal to clear credit-default swap trades passed a major
regulatory hurdle Wednesday after the Federal Reserve Board
approved the plan.
The Fed's green light will allow ICE to form a limited purpose
bank, known as ICE Trust, to serve as a clearinghouse for
credit-default swaps.
The approval comes just two days after the Department of
Justice's antitrust division approved a portion of its clearing
plan by allowing the merger of ICE and The Clearing
Corporation.
Both ICE's plan and a clearing proposal by its rival, CME Group
Inc. (CME), still need approvals from the Securities and Exchange
Commission.
-By Sarah N. Lynch, Dow Jones Newswires; 202-862-6634;
sarah.lynch@dowjones.com