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Intercontinental Exchange (NYSE:ICE), which operates the New York Stock Exchange, is planning to seek regulatory approval to clear U.S. Treasuries through its existing clearing house ICE Clear Credit, an executive told Bloomberg.
Discussions are ongoing with the Securities and Exchange Commission as the company prepares its application for review, according to Chris Edmonds, president of fixed-income and data services at ICE (ICE).
“We believe we can provide a compelling alternative for those seeking to have more than one option in the market,” Edmonds told Bloomberg. “We are trying to be the least disruptive as possible [by using] an entity that is familiar and has the right registrations.”
The move comes in the wake of the SEC’s new rules requiring cash and repurchase Treasury transactions to be centrally cleared. Market participants have till the end of next year to comply with the rules for Treasuries and till June 30, 2026 for repo transactions.
For now, the $27T Treasury market has only one registered central clearing house – Fixed Income Clearing Corp., a unit of Depository Trust & Clearing Corp. DTCC expects its current $7T daily Treasury clearing activity to increase by over $4T as a result of the new rules.
Other companies have also shown interest in offering central clearing services, including London Stock Exchange’s (OTCPK:LDNXF) Clearing House business and CME Group (CME).