Friday, September 24, 2010
ICE = Too Big To Fail
LONDONâ€”A surge in credit-default-swaps clearing may allow global exchange operator IntercontinentalExchange Inc. access to central bank liquidity during financial crisis periods, the company's chief executive said Wednesday. Since the financial crisis, regulators have pushed for more central clearing of CDS contracts, but this has created the risk that clearing houses themselves become systemically important in the financial system. ICE Clear Europe and ICE Trust US have now cleared CDS with a gross notional value of $12 trillion, ICE said earlier Wednesday. Moody's Investors Service Inc. said this week that ICE's CDS clearing platforms are now "a systemically important part of the global financial market."