CFTC Grants Order to ICE Clear Europe Permitting Portfolio Margining of Swaps and Security-Based Swaps in a Cleared Swaps Customer Account

The CFTC issued an order granting a request, pursuant to Section 4d(f) of the CEA, made by ICE Clear Europe Limited ("ICEU"), a CFTC-registered derivatives clearing organization ("DCO"), that sets forth the conditions under which ICEU, and its clearing members that are dually registered as futures commission merchants and broker-dealers, may (1) hold credit default swaps ("CDS") and security-based CDS in a cleared swaps customer account subject to Section 4d(f) of the Act; and (2) provide portfolio margining for such CDS and security-based CDS held in the cleared swaps customer account. The SEC has issued a complementary exemptive order permitting security-based CDS, which are subject to SEC jurisdiction, to be held outside a securities account and commingled and portfolio-margined with CDS in a cleared swaps customer account.

View Order in full here (links externally to CFTC website).See also: Associated documents as to ICEU's dealings with the CFTC (links externally to CFTC website).For a list of related recent news items, including the SEC's order, link to Current Topics - Clearing.