ICE Clear Europe is at the center of the Intercontinental Exchange’s effort to expand across Europe, as well as integrate NYSE Liffe products into its market. The clearing house has been busy trying to adjust to new regulations and structural changes in the industry, not to mention merge business lines with the former NYSE family of exchanges.
Paul Swann, president and managing director of ICE Clear Europe, said the clearing strategy for ICE has expanded greatly from just clearing energies in 2008 to now clearing credit swaps and a new host of NYSE Liffe contracts.
In June, ICE finished phase one of its transition of LIFFE contracts to its trading and clearing platform – shifting over 3-month eurodollar futures and three other DTCC GCF Repo Index futures contracts to ICE Futures Europe and ICE Clear Europe. Commodities are next up for the transition to the ICE trading platform, followed by equity products in the fourth quarter. Those contracts are already cleared on ICE Clear Europe.
“The next big integration is the commodity products,” Swann said. “Remember, we already clear those products. This about technology integration.”
Swann said that ICE Clear Europe is also working toward finishing its regulatory compliance work, and expects to be an EMIR approved central clearing party this fall.
“[It’s] important in terms of positioning ICE in relation to what’s going more generally in Europe,” Swann said. “And of course, starting early next year with some of the clearing mandates kicking in, in Europe around some of the OTC products. So that’s all an important building block toward what we might do in terms of product development in the future.”
Swann said ICE Clear Europe is well positioned now to scale up, add new OTC products and compete with the increasingly crowded clearing space.