Intercontinental Exchange (ICE)’s soon-to-be-launched clearinghouse, ICE Clear, has had its application to become a UK Recognised Clearing House approved by the UK Financial Services Authority (FSA). The endorsement will see ICE transfer European clearing operations away from LCH Clearnet to its own vertical operations.
The FSA endorsement was issued only after an Office of Fair Trading (OFT) review which concluded that “the recognition of ICE Clear would not lead to a significantly adverse effect on competition”. However, while (OFT) has concluded that ICE Clear would not be anti-competitive, unease has emanated from the market which has expressed concerns that a move away...