ICE Clear Europe has received recognition from the FSA as a UK recognised Clearing House. The approval caused the OFT to consult on competition issues in the derivatives market.
ICE Clear Europe, an operator of global derivatives exchanges and OTC - markets, has received recognition from the UK Financial Services Authority as a UK recognised Clearing House.
Based in London, ICE Clear Europe is expected to commence operations in July 2008.
ICE Clear Europe is being formed to provide clearing services to the global energy markets for over-the-counter and European futures transactions executed on ICE's electronic platform. ICE Clear Europe will enable the efficient development of new cleared markets to support the risk management needs of customers, with the capability to offer similar services to an expanded range of asset classes.
Although the UK Office of Fair Trading concluded that the recognition of ICE Clear would not lead to a significantly adverse effect on competition, it also “recognises that some competition concerns have been expressed about clearing and settlement in the derivatives market.” The European Commission is currently considering these and similar issues, OFT notes.
Therefore, the OFT starts a consultation “as to whether to undertake any work looking at clearing and settlement in the derivatives market.”
Deadline for comments is 30 June 2008.
Press release
Office of Fair Trading - statement
© OFT - Office of Fair Trading
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