2026-10451NoticeWallet

ICE Clear Credit Expands to New CDS Contracts

Published Date: 5/27/2026

Notice

Summary

ICE Clear Credit is planning to start clearing more credit default swap contracts, especially for some emerging market and Asia/Pacific countries. This change affects traders and investors who use these contracts to manage risk. The new rules could kick in soon, making it easier and safer to trade these financial products.

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

ICC Adds Specific Sovereign CDS

ICE Clear Credit filed on May 12, 2026 to add Standard Emerging Market Sovereign single-name CDS for the Republic of Ecuador, the Republic of Guatemala, the Republic of El Salvador, the Oriental Republic of Uruguay, the Republic of Costa Rica, the Republic of Kenya, and the Republic of Angola (Subchapter 26D), and an Asia/Pacific Sovereign single-name CDS for the Islamic Republic of Pakistan (Subchapter 26L). ICC proposes to expand clearing of these contracts following SEC approval; the Commission will act within 45 days of publication (or up to 90 days).

Clearing Reduces Counterparty Risk

ICC states that clearing the additional Sovereign Contracts will provide market participants the benefits of clearing, including reduction in counterparty risk and safeguarding of margin assets pursuant to clearing house rules.

Existing Margin Methodology Will Apply

ICC will apply its existing margin methodology to the new Sovereign Contracts and stated that clearing them will not require changes to ICC's Risk Management Framework; ICC also stated its Guaranty Fund together with required initial margin will support clearing the additional contracts.

Available to All ICC Participants; No Competition Burden

ICC stated the additional Sovereign Contracts will be available to all ICC participants for clearing and that clearing by ICC does not preclude other firms from offering these contracts; ICC does not believe the proposed amendments will impose any burden on competition.

Operational and Default Procedures Remain in Place

ICC said its existing operational and managerial resources, settlement procedures, account structures, and default management policies will be used for the additional Sovereign Contracts, and that these resources will be sufficient to clear the new contracts.

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Key Dates

Published Date
5/27/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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