On Aug. 15, ICE CUS issued notice annual default management test.
ICE CUS issued Notice24/049 on annual test of its default management procedures.
Test is based on hypothetical default of clearing member; participation is mandatory.
Annual Test
Default auction procedures set out requirements re minimum bids and consequences for clearing members that do not comply with obligations under the auction terms.
ICE CUS will contact default management coordinators as provided by clearing members during annual test to support coordination of the Default management test.
Will hold calls in Oct. to provide overview of Default management test scope, system.
Communicate results to auction participant, risk committee, board, and CFTC.
ICE CUS encourages customers to participate in Default management test, will enable market participants to familiarize themselves with Default management processes.
Effectiveness
Mandatory default auction drills begin on Oct. 21, 2024.
