IntercontintentalExchange (ICE), The Clearing Corporation (CCorp) and a group of major over-the-counter dealers on October 30, 2008, announced agreements in furtherance of their plan to clear over-the-counter (OTC) credit default swap (CDS) contracts. The Federal Reserve had previously asked for plans to clear CDS contracts to be submitted to it by today, October 31, 2008.
In furtherance of their jointly developed plan to clear CDS contracts, ICE and CCorp announced ICE will acquire CCorp, forming ICE US Trust, a New York limited purpose trust company. Nine major global investment banks, who are major shareholders of CCorp, also entered into Memoranda of Understanding in support of the plan. The announcement signals not only the closer cooperation between ICE and CCorp in advancing their plan to clear CDS contracts, but perhaps more significantly, the cooperation of and backing by the major OTC dealers of the ICE/CCorp clearing solution. Competing plans are being developed by the CME Group and Citadel Investment Group, NYSE and Eurex.