November 30, 2015

ICE Clear Europe Authorized to Portfolio Margin Swaps and Security-Based Swaps

The Commodity Futures Trading Commission issued an order (Order) permitting ICE Clear Europe Limited (ICE Clear Europe) and its clearing members that are registered both as broker-dealers under the Securities Exchange Act of 1934 and as futures commission merchants under the Commodity Exchange Act to hold customer collateral securing positions in cleared credit default swaps (CDS) and cleared security-based credit default swaps (SB CDS) in the same Commodity Exchange Act Section 4d(f) cleared swaps account. The Order further permits the portfolio margining of such CDS and SB CDS in the cleared swaps account. The CFTC Order follows a complementary order issued by the Securities and Exchange Commission permitting SB CDS to be commingled and portfolio margined with CDS in a cleared swaps account.

The Order is available here.

©2015 Katten Muchin Rosenman LLP


About this Author

Kevin M. Foley, Finance Lawyer, Katten Muchin law Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.

Kevin has served as counsel to...