Ten Banks Sign On As Initial Clearing Members Of ICE Trust
March 06 2009 - 4:39PM
Dow Jones News
Ten major banks have signed on as initial clearing members of
IntercontinentalExchange Inc.'s (ICE) new clearinghouse for credit
default swaps.
The dealers onboard include Bank of America (BAC), Barclays
Capital (BCS), Citigroup (C), Credit Suisse (CS), Deutsche Bank
(DB), Goldman Sachs (GS), J.P. Morgan (JPM), Merrill Lynch, Morgan
Stanley (MS) and UBS AG (UBS).
Each has contributed to the guaranty fund and completed
"rigorous technical testing" in recent months, according to a news
release from ICE.
The exchange secured support from the banks as part of its
acquisition of The Clearing Corp., a clearing firm owned by a
bank-led consortium.
The deal was announced in late October and closed Friday,
according to ICE. Terms included a $39 million cash payment from
ICE and a 50% profit-sharing arrangement in ICE Trust, as the new
clearing entity is known.
Atlanta-based ICE tapped Dirk Pruis as president of ICE
Trust.
Pruis previously headed a securities lending consortium called
EquiLend and has also overseen global bank relations and market
infrastructure in Goldman Sachs' operations division.
ICE is among several exchanges looking to clear credit
derivatives trades in the U.S.; Chicago-based CME Group Inc. (CME)
and NYSE Euronext (NYX) have their own efforts in the offing.
-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117;
jacob.bunge@dowjones.com
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