IntercontinentalExchange reached an agreement to acquire The Clearing Corporation of Chicago to develop a joint global clearing solution together with nine global investment banks who are dealers in the CDS markets.
IntercontinentalExchange, a operator of global regulated futures exchanges and over-the-counter (OTC) markets reached an agreement to acquire The Clearing Corporation of Chicago (TCC) to develop a joint global clearing solution together with nine global investment banks who are dealers in the CDS markets.
Under the terms of the new agreements, ICE will acquire TCC and will form ICE US Trust with the support of Bank of America, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Merrill Lynch, Morgan Stanley and UBS.
The parties will work toward receiving the necessary governmental approvals while working to execute definitive documents during the fourth quarter of 2008, by which time they expect to begin clearing CDS transactions through ICE Trust. Post-transaction TCC will continue to support its existing clearing customers.
The Federal Reserve set a Friday deadline for competing initiatives to detail their plans for the creation of a new clearing counterparty for $55 trillion credit default swaps market.
ICE is competing with the CME and Citadel, Eurex and Nyse Euronext for the regulatory green light for its proposals.
Press release
© ICE - IntercontinentalExchange
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