Release Date: March 4, 2009
For immediate release
The Federal Reserve Board on Wednesday announced its approval of the application by ICE US Trust LLC, New York, New York (ICE Trust), to become a member of the Federal Reserve System. ICE Trust intends to provide central counterparty services for certain credit default swap contracts.
ICE Trust is one of several industry proposals that could satisfy the goals of the President's Working Group on Financial Markets regarding the formation of central counterparties for credit default swaps. In November 2008, the President's Working Group called for the successful implementation of central counterparty services with a view toward reducing systemic risk associated with counterparty credit exposures, facilitating greater market transparency, and encouraging a more competitive trading environment.
Attached is the Board's Order relating to this action.