ICE Clear Credit's Treasury Clearing Service Receives SEC Approval and is Now Operationally Live
MWN-AI** Summary
Intercontinental Exchange, Inc. (ICE) has recently announced the successful launch of its U.S. Treasury clearing service, following the approval of the application and rulebook by the U.S. Securities and Exchange Commission (SEC). This marks a significant milestone as it introduces the first alternative clearing venue for U.S. Treasury securities, enhancing competition within the market.
Paul Hamill, Chief Commercial Officer of ICE Clear Credit, expressed enthusiasm for this innovation, emphasizing the industry’s demand for change. The new service provides a harmonized and scalable model for market participants, encompassing cash, repos, futures, and swaps. ICE’s Treasury clearing solution features “Done-Away” and “Done-With” implementations, offering participants the flexibility to select their preferred clearing method.
The new service distinguishes itself with a dedicated rulebook, risk management framework, and governance structure, setting it apart from ICE’s existing Credit Default Swap (CDS) clearing service. This approach leverages ICE’s expertise in clearing credit instruments and aims to enhance risk management services in the Treasury market.
Looking ahead, ICE plans to extend its services to include repurchase agreements (repos), with testing and integration expected in the latter half of the year, aiming for a launch in Q4. Stan Ivanov, President of ICE Clear Credit, emphasized the proactive steps being taken to bring comprehensive risk management to U.S. Treasury clearing.
Founded in 2009 during the financial crisis, ICE Clear Credit aims to bolster confidence and stability in the clearing landscape, significantly reducing counterparty risk for trades. With more than $400 trillion in notional trades cleared, ICE Clear Credit has established itself as a pivotal player in the financial market, underscored by its designation as a systemically important financial market utility.
For more details, visit the ICE website.
MWN-AI** Analysis
The recent SEC approval of ICE Clear Credit's U.S. Treasury Clearing Service marks a pivotal development in the Treasury markets, offering market participants a much-needed alternative to existing clearing solutions. This initiative is set to enhance competition, potentially lowering costs and improving service quality across the board. The operational launch of this service signifies ICE's commitment to innovation and modernization within the financial ecosystem, particularly in a market that is often criticized for its lack of competition and transparency.
Market participants should view this new service as a significant opportunity. ICE Clear Credit's approach of harmonizing access models, operational workflows, and risk management frameworks aligns closely with the contemporary needs of the Treasury markets. The flexibility of ‘Done-Away’ and ‘Done-With’ clearing options allows firms to choose a method that best suits their operational requirements, enhancing market efficiency.
Moreover, with the planned launch of repo clearing later this year, ICE is poised to further disrupt the status quo in fixed income markets. By bridging traditional and innovative clearing practices, ICE is leveraging its technology and expertise in credit instruments to address existing inefficiencies in Treasury and repo transactions.
For investors and financial institutions, participation in ICE Clear Credit's U.S. Treasury clearing service could provide substantial risk management benefits, as well as an opportunity to optimize clearing operations. As the landscape evolves, entities that adapt early to these changes may gain competitive advantages.
In conclusion, the operational live status of ICE Clear Credit’s Treasury clearing service presents a compelling case for market participants to reconsider their clearing arrangements. By engaging with this service, firms can benefit from enhanced flexibility, improved risk management, and the potential for cost savings in an essential market segment. Engaging with ICE could ultimately streamline operations and capitalize on emerging efficiencies.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Brings industry-standard clearing model to Treasury markets
Prepares for launch of repo clearing later this year
Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced that the U.S. Securities and Exchange Commission (SEC) has approved its application and rulebook for ICE Clear Credit to expand its current registered Covered Clearing Agency (CCA) designation to add U.S. Treasury clearing. ICE Clear Credit’s U.S. Treasury clearing service is now fully operationally live, providing market participants with welcome competition and the first ever alternative venue for clearing U.S. Treasury securities.
“Since we first announced plans to launch a U.S. Treasury securities clearing service, we have heard a resounding message that U.S. Treasury market participants want innovation, change and progress,” said Paul Hamill, Chief Commercial Officer of ICE Clear Credit. “To meet that challenge, our service harmonizes access models, operational workflows, risk management and protection models, across cash, repos, futures and swaps, providing a modernized scalable solution for one of the largest and most important markets in the world.”
ICE’s Treasury clearing solution delivers both ‘Done-Away’ and ‘Done-With’ implementations, allowing market participants to choose their preferred clearing method. This is the same process that is used daily to clear financial products through ICE’s global clearing houses.
ICE leveraged its extensive expertise and proprietary technologies for clearing credit instruments to offer clearing for U.S. Treasury securities, and soon repurchase agreements (repos). Established as a distinct offering from ICE’s existing Credit Default Swap (CDS) clearing service, the new Treasury clearing solution has its own rulebook, membership, risk management framework, financial and liquidity resources, and governance structure.
“With our Treasury clearing service now operationally live and ready to clear cash transactions, we’re thrilled to put the final touches on our approach to clearing repos, which we expect to be ready for testing and integration in the second half of the year, and is planned to go live in the fourth quarter,” said Stan Ivanov, President of ICE Clear Credit. “By extending our CDS solution to U.S. Treasury securities, we have begun the process of bringing our industry-leading risk management services to the U.S. Treasury market, and we will continue to expand with the launch of repo clearing.”
ICE Clear Credit was founded during the financial crisis in 2009 to bring confidence and stability to the CDS market. It enables clearing of more than 685 Single Name reference entities, Index and Index Option CDS instruments on corporate and sovereign debt. ICE Clear Credit clearing has reduced counterparty risk exposure for parties to trades whose combined notional amount exceeds $400 trillion, with current open interest at ICE Clear Credit of 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.
For more information about ICE’s U.S. Treasury clearing service, please visit: https://www.ice.com/clear-credit/us-treasury-clearing .
About Intercontinental Exchange
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology , we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here . Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on February 6, 2025.
Category: Fixed Income and Data Services
SOURCE: Intercontinental Exchange
View source version on businesswire.com: https://www.businesswire.com/news/home/20260203400787/en/
ICE Media Contact
Damon Leavell
damon.leavell@ice.com
(212) 323-8587
ICE Investor Relations Contact:
Steven Eagerton
+1 904 854 3683
steve.eagerton@ice.com
FAQ**
How does Intercontinental Exchange Inc. ICE plan to differentiate its U.S. Treasury clearing service from existing offerings in the market, especially given the competitive landscape?
What specific risk management frameworks has Intercontinental Exchange Inc. ICE implemented for its U.S. Treasury clearing service to ensure market integrity and participant confidence?
Can you elaborate on the expected timeline and features of the repo clearing service that Intercontinental Exchange Inc. ICE plans to launch later this year?
How does Intercontinental Exchange Inc. ICE intend to utilize its proprietary technologies and expertise from credit instrument clearing to enhance the Treasury securities clearing process?
**MWN-AI FAQ is based on asking OpenAI questions about Intercontinental Exchange Inc. (NYSE: ICE).
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