Holland Clearing House becomes ICE Clear Netherlands

Holland Clearing House B.V. which was authorised under EMIR (the European Market Infrastructure Regulation) on 12 December 2014, is to be renamed ICE Clear Netherlands as of 27 July 2015. ICE acquired a majority stake in Holland Clearing House in December 2014, with ABN Amro acquiring a minority stake at the same time.

ICE Clear Netherlands is one of 16 EMIR authorised CCPs (central counterparty clearing houses). The reauthorisation process commenced on 14 March 2014 with the approval of Nasdaq OMX Clearing, but has ground to something of a halt, with only one CCP having received authorisation in 2015.

ICE Clear Europe remains the biggest name missing from the list of approved CCPs in Europe. As we looked at last week (CCP approval and equivalence process drags on) ICE Clear Europe can continue providing clearing services to its clients without EMIR authorisation until the EMIR clearing regime is implemented.

This deadline is linked to the introduction of new capital rules in Europe. This in turn is linked to the search for equivalence between the clearing regimes of Europe and the US, a process that has been rumbling on for some time now.

All this means that ICE Clear Europe is operating under a different regulatory regime to those 16 CCPs that are now operating under the EMIR regulatory framework. There is concern amongst some of the EMIR approved CCPs that there is not currently a level playing field in Europe.

When ICE Clear Europe will receive authorisation is unclear. Paul Swann, the president and managing director of ICE Clear Europe, said at the 2014 IDX conference run by the FIA that ICE Clear Europe was happy to wait until nearer the time of the implementation of the EMIR mandatory clearing rules before it received authorisation. This would leave the company with more time and space to see how the landscape unfolded.

The addition of Holland Clearing House, now ICE Clear Netherlands, gives ICE at least one EMIR authorised CCP. ICE now has the flexibility of having one European clearing house operating under the EMIR regime, and one operating outside of it, for the time being.

Tags: ICECCPEMIRICE Clear EuropeICE Clear NetherlandsClearingRegulation