IntercontinentalExchange late Wednesday said the US Commodity Futures Trading Commission has approved ICE Clear Europe's request to allow its clearinghouse and members to hold funds for both US and foreign energy futures in a new account class.
This shift in account class, known as a 4d(a) account, is part of ICE's transition of cleared over-the-counter products on its OTC energy market to futures contracts. This account class contains funds of customers that trade futures and options on US exchanges, regardless of the customer's country of origin.
Previously, ICE Clear Europe's positions and portfolio margining were managed under a 30.7 account class, which governed funds of US-based customers trading on foreign exchanges.
"This order ensures that our energy customers can continue to enjoy the significant capital benefits of portfolio margining following our transition of cleared swaps to futures," Chuck Vice, ICE President and chief operating officer, said in a statement.
ICE said there would be no change to clearing workflow or margin rates under the shift.
ICE on Monday plans to shift its OTC energy products listed on its OTC energy market to futures products. Cleared oil products, freight and iron ore swaps would be listed as futures on ICE Futures Europe and continue to clear at ICE Clear Europe.
Cleared North American natural natural gas, electric power, environmental products and natural gas liquids swaps, meanwhile, will be listed as futures on the energy division of ICE Futures US.
