New York-based Intercontinental Exchange says has introduced credit default swap (CDS) clearing for the iTraxx Australia and iTraxx Asia ex-Japan Investment Grade indices, adding Australia, China, Indonesia, Korea, Malaysia and the Philippines to the list of sovereign names it clears in Europea, Africa, Latin America and Asia Pacific.
ICE says its CDS clearing houses clear more than 500 single name and index CDS instruments based on corporate and sovereign debt. Since it launched the world’s leading CDS clearing houses in 2009, ICE says it has reduced counterparty risk exposure by clearing US$75 trillion in gross notional amount of CDS instruments, with resulting open interest of approximately $1.5 trillion.
Across ICE Clear Credit and ICE Clear Europe, buy side single name clearing volume has seen consistent growth. Year-to-date, ICE cleared over $36 billion in single name notional amount, compared to $33.3 billion in all of 2015. During the first two months of 2016, the number of transactions cleared surpassed those cleared in all of 2015.