Both ICE and CME group are gearing up to give the Depository Trust and Clearing Corporation (DTCC) a run for its money when the US treasury clearing mandate comes into effect in December 2026, reports Futures and Options World (FOW). The two exchange operators are preparing to launch their own new treasury clearing services to compete with what FOW calls DTCC’s “dominant” Fixed Income Clearing Corporation (FICC) offering.
Paul Hamill, chief commercial officer of ICE Clear Credit, has revealed that the firm is target testing this month, and is “aiming to be fully operational for a cash treasury launch later this year”.
A key feature of the ICE’s model is “the immediate novation of counterparty risk to the clearing house”. Hamill says, “This was instrumental in the growth and resilience of the swaps market post-clearing mandate, and it could similarly transform the cash treasury space by eliminating bilateral credit risk and reducing operational and documentation burdens.”
CME Group is planning to launch a similar service, on a similar timeline, as ICE. It is working on a methodology based on value-at-risk (VaR).
Get done
Both firms intend to offer done-away clearing, which Hamill believes “will provide competition that will be welcomed by clients and regulators”.
Udesh Jha, managing director for posttrade and clearings at CME Group shared that a “key differentiator” of the CME solution is that it will settle directly with end clients. This will minimise the amount of trade notional that goes on the balance sheet of clearing members – an effect that is “much more relevant in the context of done-away clearing”.
