ICE to Clear Emerging Markets CDS

Atlanta, Georgia-based IntercontinentalExchange (ICE) has launched clearing for emerging markets credit default swap (CDS) indexes. ICE Clear Credit, ICE's North American CDS clearing house, will now offer real-time, trade-date clearing of the Emerging Markets CDS index (CDX.EM) for buy-side and dealer-to-dealer trades.

In October 2011, ICE Clear Credit became the first central counterparty to clear sovereign CDS with the introduction of Argentine, Brazilian, Mexican and Venezuelan single names, according to the exchange. CDX.EM is comprised of 15 sovereigns, including the four already cleared by ICE Clear Credit.

"We continue to work closely with all stakeholders to expand the range of clearable credit derivatives," says ICE Clear Credit president Christopher Edmonds. "The addition of clearing for the emerging markets index offers market participants additional risk management tools."