Atlanta-based Intercontinental Exchange (ICE) is beefing up its presence in Europe by taking a majority stake in European clearing firm, the Holland Clearing House (HCH).
HCH is a derivatives clearing house based in Amsterdam, which serves as the primary clearing house for the multilateral trading facility known as TOM. The price for ICE’s stake in the firm was not disclosed, but ICE said that the cost of the investment is not material. ABN Amro Clearing will also retain a minority interest in HCH, it notes.
The transaction is subject to regulatory approval (HCH is regulated in the Netherlands by the Authority Financial Markets (AFM) and the Dutch Central Bank (DNB)) and other ordinary closing conditions. The deal is expected to close in the fourth quarter.
ICE currently operates five clearing houses, and is developing ICE Clear Singapore, which it expects to launch in the coming months. HCH will be the firm’s first clearing house based in continental Europe, it already operates London-based ICE Clear Europe in the UK.
“We are pleased to work with ABN Amro Clearing Bank, as well as with TOM and HCH, to further develop our European clearing businesses,” said Paul Swann, president of ICE Clear Europe.