Dubbed as ICE’s swap execution facility (SEF), the solution will provide index credit default swap contracts (CDS) on its swap execution facility, and single name CDS across North American and European and Emerging Market corporates and sovereigns.
Initially, the functionality will include a central limit order book at the time of launch, with request for quote (RFQ) following shortly, said the company.
ICE financial markets senior vice president Thomas Farley said that the company is pleased to provide market participants a robust platform for its SEF solution that provides liquidity, pricing and protocols that reflect new regulatory requirements.
"With the approval of ICE Swap Trade, ICE will offer customers the certainty and flexibility they need to adapt to the new market structure and the ability to trade with confidence via their preferred execution methods," Farley added.
According to the previous plan, Citi, Morgan Stanley, Societe Generale and UBS were mulling over offering firm pricing on ICE Swap Trade for CDS.
Integrated with ICE Link, its post-trade service and transparent execution protocols, ICE Swap Trade has been designed to deliver unmatched operating efficiencies and workflow enhancements to swap market participants.
ICE operates regulated exchanges and clearing houses fulfilling the risk management requirements of global markets for agricultural, credit, currency, emissions, energy and equity index products.
