CFTC Grants Order to ICE Clear Europe Permitting Portfolio Margining of Futures and Foreign Futures Contracts

The CFTC issued an order granting a request from ICE Clear Europe Limited ("ICE Clear Europe"), a registered derivatives clearing organization, permitting, among other things, portfolio margining of futures and foreign futures contracts.

The order amends an earlier order dated May 30, 2014, which provided relief only to ICE Clear Europe and its clearing members that are futures commission merchants ("FCMs"). The amended order also applies to FCMs that carry contracts cleared at ICE Clear Europe through a clearing member FCM but are not themselves clearing members.

The new order permits ICE Clear Europe and its clearing members that are registered FCMs to: (i) commingle in an account subject to CEA Section 4d(a) (a futures customer account) positions in futures and options, and foreign futures and foreign options, and related customer money, securities, and property; and (ii) portfolio margin these futures and options, and foreign futures and foreign options, in the futures customer account.

See:CFTC Order; CFTC Press Release.Related news:CFTC Seeks Public Comment on Request from ICE Clear Europe Ltd. for Order Permitting Portfolio Margining of Futures and Foreign Futures Contracts (July 11, 2014); CFTC Grants Order to ICE Clear Europe Ltd. Permitting Portfolio Margining of Futures and Foreign Futures Contracts (with Zwirb Comment) (May 30, 2014).