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Intercontinental Exchange, Inc., a global leader in technology and data, has reached a significant milestone in its plan to introduce a U.S. Treasury clearing service. The U.S. Securities and Exchange Commission (SEC) has published ICE Clear Credit’s application and rulebook to expand its clearing agency designation to include U.S. Treasury securities. This step brings ICE closer to launching its Treasury clearing service later in 2025, pending regulatory approval, offering market participants a voluntary clearing period before mandatory requirements take effect.
ICE Clear Credit’s application for U.S. Treasury clearing published by SEC.
Service to launch in 2025, pending regulatory approval, with voluntary clearing phase.
Leverages ICE Clear Credit’s existing infrastructure for CDS clearing.
Offers flexible “Done Away” and “Done With” clearing options for participants.
Separate rulebook and risk management framework for Treasury clearing.
Builds on ICE’s expertise in clearing over $385 trillion in CDS notional value.
ICE Clear Credit, a leading global clearing house for credit derivatives since 2009, will extend its expertise to U.S. Treasury securities and repurchase agreements. The proposed Treasury clearing service will operate as a distinct offering, with a dedicated rulebook, membership structure, and risk management framework. By leveraging existing tools like ICE Link for trade matching and connectivity, ICE ensures a seamless and trusted clearing process. “We’re thrilled to see this next milestone as we work to familiarize customers with our plans to launch a Treasury clearing service later this year,” said Paul Hamill, Chief Commercial Officer of ICE Clear Credit. “The rulebook underpins our access model, allowing customers to clear U.S. Treasury securities the same trusted way Credit Default Swap (CDS) products are currently cleared.”
The Treasury clearing service introduces flexible clearing methods, including “Done Away” and “Done With” implementation, allowing market participants to choose their preferred approach. This mirrors the established processes used daily across ICE’s global clearing houses. The service is designed to provide a capital-efficient and robust environment for clearing U.S. Treasury securities, drawing on ICE’s extensive experience in managing counterparty risk for over $385 trillion in notional CDS value. With current open interest exceeding $2 trillion, ICE Clear Credit’s infrastructure is well-positioned to support the Treasury market’s risk management needs.
“By leveraging our experience to establish and operate ICE Clear Credit, as well as several other exchanges and clearing houses, we’ve been able to expediently develop a robust and flexible solution that will provide market participants with the ability to clear U.S. Treasury securities in a trusted and capital efficient environment,” said Stan Ivanov, President of ICE Clear Credit. ICE Clear Credit’s designation as a systemically important financial market utility (SIFMU) by the Financial Stability Oversight Council underscores its reliability and significance in global financial markets. The Treasury clearing service aims to replicate this success by offering a solid foundation for managing risks in the U.S. Treasury market.
ICE’s progress toward launching its U.S. Treasury clearing service marks a pivotal development for the financial industry. By building on ICE Clear Credit’s proven track record in clearing credit derivatives, the new service promises to deliver a trusted, efficient, and flexible solution for market participants. As ICE awaits final regulatory approval, its focus on innovation and risk management positions it to meet the evolving needs of the Treasury market, enhancing stability and efficiency for participants.
Intercontinental Exchange, Inc. is a Fortune 500 company that designs, builds, and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges -- including the New York Stock Exchange -- and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines, and automates industries to connect our customers to opportunity.
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