The U.S. Securities and Exchange Commission (SEC) approved the Intercontinental Exchange’s application for registration as a security-based swap execution facility (SBSEF).
What this means is that the company’s ICE Swap Trade can now offer single-name credit default swaps (CDS) trading for its dealer and institutional customers on its SBSEF. This adds to ICE’s suite of execution solutions within fixed income.
“As we continue to expand our fixed income offering, this regulatory approval marks a significant milestone in strengthening our fixed income capabilities with the addition of single-name CDS trading,” Peter Borstelmann, president of ICE Bonds, said. “ICE remains committed to providing a transparent and reliable trading environment that enhances liquidity and fosters confidence in the credit markets for our customers and the broader fixed income ecosystem.”
This approval follows the launch of Intercontinental Exchange’s ICE Swap Trade in 2013. ICE Swap Trade operates trading activity in many different products in the energy and CDS markets. Further, ICE Swap Trade offers various index CDS products across North American, European and emerging market instruments. And now, with this approval it offers single-name CDS.
Intercontinental Exchange provides financial technology and data services across major asset classes. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk.