IntercontinentalExchange Inc. announced yesterday that it will convert its cleared OTC energy swaps and options into futures contracts on October 15.
The change was previously to take place in January. ICE is thought to have moved the date up in order to help its clients avoid having to comply with new swaps regulations, many of which go into effect in October.
“The compliance costs associated with all of the new rules and regulations are a huge component of what firms are thinking about, so I’m sure that influenced decisions across the board,” said Andy Nybo, head of derivatives at TABB Group.
The transition is expected to be painless for ICE’s clients, with little or no change in execution and fees. Clearing will remain at ICE Clear Europe.