From October 2013, ICE Clear Europe will offer significant capital efficiency benefits by providing portfolio margining for European CDS positions with respect to both clearing member house/proprietary transactions, as well as client business.
At ICE Clear Europe, index and single name CDS are held in one account and portfolio margining allows market participants to save capital by offering margin offsets between index and single name CDS while maintaining strong risk management practices.
ICE Clear Europe's portfolio margined customer account:
- Allows ICE Clear Europe broker dealer / clearing members to benefit from ICE's portfolio margining methodology in respect of customer-related positions for both index and corporate single name CDS
- Uses ICE's Decomposition Margin Methodology to calculate margin for the customer account pursuant to a portfolio margining program approved by regulators