Bank of England Authorizes ICE Clear Europe as Central Counterparty

Intercontinental Exchange (ICE), an operator of global exchanges and clearing houses, providing a composite of data and listings services, has had its ICE Clear Europe subsidiary authorized by the Bank of England (BoE) as a central counterparty (CCP), in accordance with the European Market Infrastructure Regulation (EMIR).

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ICE Clear Europe is a Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term, dealing with interest rates, equity indexes, agricultural and energy derivatives, as well as European credit default swaps (CDS). The approval by the BoE into the EMIR regime follows on the heels of the group’s bid to satisfy a number of governance, operations, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term, treasury and banking infrastructure requisites.

Marquee Approval

Approved in 2012, EMIR helps oversee the facilitation and proper reporting of all over-the-counter (OTC) derivatives in the market. EMIR regulation also requires standard derivative contracts to be cleared through Central Counterparties (CCPs) as well as margins for uncleared trades and establishes stringent organizational, business conduct and prudential requirements for these CCPs.

According to Paul Swann, President and Managing Director, ICE Clear Europe, in a recent statement on the approval: "ICE Clear Europe is delighted that our clearing operations have been authorized by the Bank of England in line with the requirements of EMIR and we will continue to work closely with our clearing members and their customers as the European clearing mandates come into force over the coming months.”