ICE Clear Europe Recognized as a New UK Clearing House
13 May 2008
Barnabas W.B. Reynolds , Matthew Readings

London, 13 May 2008—Shearman & Sterling has been advising IntercontinentalExchange, Inc. (ICE) group on its plans to establish ICE Clear Europe as the first new clearing house of its kind in the UK since 1880. Today, ICE Clear Europe received recognition from the Financial Services Authority (FSA), following favorable reviews of its application by the FSA, HM Treasury and the Office of Fair Trading. ICE’s European futures and OTC customers currently rely on LCH.Clearnet (LCH) for clearing services. With today’s ruling, ICE customers will now have the benefit of an integrated clearing solution.

It is proposed that ICE Clear will take over from LCH as clearing house for the ICE Futures Europe (formerly International Petroleum Exchange) and ICE OTC markets.

Shearman & Sterling’s work for ICE has involved substantial applications and submissions to the FSA and OFT. The FSA was satisfied that each of ICE Clear Europe, ICE Clear US and ICE Futures US satisfied the ‘recognition requirements’ applicable to exchanges and clearing houses. In addition—and as was widely discussed in the press—the OFT scrutinised the application for ICE Clear Europe in considerable detail.

Shearman & Sterling has produced new clearing house rules and procedures and contracts with clearing members, exchanges and others in connection with the launch of ICE Clear.

Partner Barney Reynolds said “We are delighted at the successful establishment and recognition of ICE Clear Europe. This is a highly unusual and significant event in the London market since LCH.Clearnet has been the only similar clearing house in the UK for over 100 years.”

Paul Swann, President and Chief Operating Officer of ICE Clear Europe, commended the team at Shearman & Sterling saying, “Shearman and Sterling has played an integral role in the establishment of ICE Clear Europe. Their expertise and counsel have proved invaluable to ICE in achieving this significant milestone."

Separately, Shearman & Sterling has also advised ICE Futures US (formerly, the New York Board of Trade) and ICE Clear US (formerly, the New York Clearing Corporation) on entering the UK. They have been recognised by the FSA as an overseas investment exchange and overseas clearing house respectively.

In London, Partner Barney Reynolds (European Finance) and lead associate Thomas Donegan (Financial Institutions Advisory) advised ICE, with partner Matthew Readings (Antitrust) and associate Antonia Horrocks (Antitrust) providing competition law advice.

For additional information contact:
Barney Reynolds | London | 07770606995 |  
Hayley Martin | London | 020 7655 5986 |