Intercontinental Exchange (NYSE: ICE), a leading operator of global exchanges and clearing houses and provider of data and listings services, announced today that, in the event of a no-deal Brexit scenario, ICE Clear Europe has been recognized as a third-country central counterparty (CCP) in accordance with the European Market Infrastructure Regulation (EMIR).
We are pleased to receive this recognition, which means that ICE Clear Europe can continue to service all its clearing members and customers, including those based in the EU, in the event of the UK leaving the European Union without a withdrawal agreement, said Finbarr Hutcheson, President of ICE Clear Europe. We thank the European Commission, Bank of England, and European Securities and Markets Authority (ESMA) for its work securing this recognition and, in doing so, removing any uncertainty around the ability of EU-based market participants to access ICE Clear Europe.
The recognition as a third-country CCP is described in Article 25 of EMIR, the Regulation (EU) No 648/2012 of the European Parliament and of the Council of 04 July 2012 on OTC derivatives, central counterparties and trade repositories. In the absence of a withdrawal agreement being entered into between the UK and the EU in accordance with Article 50(2) of the Treaty on European Union, or a decision being taken to extend the two year period referred to in Article 50(3) of the Treaty on European Union, ICE Clear Europes recognition shall apply from March 30, 2019.
With approximately 4 million contracts cleared every day across multiple asset classes, ICE Clear Europe is one of the worlds most diverse and leading clearing houses. ICE Clear Europe provides central counterparty clearing and risk management services for interest rate, equity index, agricultural and energy derivatives, as well as European credit default swaps.
As part of its strategy to provide clearing services in the regulatory jurisdictions and time zones where its customers conduct business, ICE Clear Europe offers secure, capital-efficient clearing, risk management and physical delivery services. To help mitigate systemic risk and protect the interests of its clearing members and customers, ICE Clear Europe holds over $4.5 billion in its guaranty fund and is regulated by the Bank of England in the U.K. and by the SEC and CFTC in the U.S. Additionally, ICE Clear Europe was recently recognized as a foreign central counterparty by the Swiss Financial Market Supervisory Authority.
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About Intercontinental Exchange
Intercontinental Exchange (NYSE: ICE) is a Fortune 500 company formed in the year 2000 to modernize markets. ICE serves customers by operating the exchanges, clearing houses and information services they rely upon to invest, trade and manage risk across global financial and commodity markets. A leader in market data, ICE Data Services serves the information and connectivity needs across virtually all asset classes. As the parent company of the New York Stock Exchange, the company raises more capital than any other exchange in the world, driving economic growth and transforming markets.
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 at http://www.intercontinentalexchange.com/terms-of-use. 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, 2018, as filed with the SEC on February 7, 2019.
Source: Intercontinental Exchange