ICE Clear Europe Authorized to Portfolio Margin Swaps and Security-Based Swaps

The Commodity Futures Trading Commission issued an order (Order) permitting ICE Clear Europe Limited (ICE Clear Europe) and its clearing members that are registered both as broker-dealers under the Securities Exchange Act of 1934 and as futures commission merchants under the Commodity Exchange Act to hold customer collateral securing positions in cleared credit default swaps (CDS) and cleared security-based credit default swaps (SB CDS) in the same Commodity Exchange Act Section 4d(f) cleared swaps account. The Order further permits the portfolio margining of such CDS and SB CDS in the cleared swaps account. The CFTC Order follows a complementary order issued by the Securities and Exchange Commission permitting SB CDS to be commingled and portfolio margined with CDS in a cleared swaps account.

The Order is available here.

 

Topics:  Broker-Dealer, Credit Default Swaps, Securities Exchange Act, Swap Clearing, Swaps

Published In: General Business Updates, Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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