April 11, 2013

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

Washington, DC — The Commodity Futures Trading Commission issued an order granting a request made by ICE Clear Europe Limited (ICEU), a Commission-registered derivatives clearing organization (DCO), pursuant to Section 4d(f) of the Commodity Exchange Act (Act). The order sets forth terms and 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) portfolio margin such CDS and security-based CDS held in the cleared swaps customer account.

The Securities and Exchange Commission (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.

Last Updated: April 11, 2013