ICE Clear Credit (ICC) provided an overview of its proposed Treasury clearing services, highlighting clearing models, client segregation, default management actions, and a planned launch timetable during October’s meeting of the Treasury Market Practices Group.
ICC noted that the Treasury clearing services would be provided out of the existing ICC entity and that market participants will have an option to clear transactions either as a direct ICC participant or as a client through an ICC participant (agency-style). The ICC representative also explained that both house (proprietary) and client-related positions will be separately maintained and risk-managed.
In addition, ICC plans to establish a separate guarantee fund for ICC participants only. The overview concluded on a note that Treasury cash clearing is targeted for operational readiness by December 2025 and Treasury repo clearing is expected to be introduced in 2026.
