ICE making inroads in CDS clearing race?

We've been saying for a while now that the big dealers will have a lot of sway when it comes to determining the winners in the race to set up a clearinghouse and/or actual exchange for credit defaults swaps. So is it significant that nine of the largest CDS dealers have said they will begin using a central clearinghouse for credit default swaps (CDS) in the European Union by August? According to Securities Industry News, the banks have pledged to work with infrastructure providers, regulators and the EC to resolve the major issues. But it's unclear still who the winner will be, as each bank will be able to choose its own clearing system. 

The announcement serves as a reminder of the desire in Europe for a specific European solution, not a U.S. one that filters across the pond. Still, Atlanta-based IntercontinentalExchange promptly announced it will create, via its ICE Clear Europe unit, a European-regulated central counterparty for CDS transactions, according to the article. The ICE, of course, has the support of top dealers in the United States. It is expected to launch before midyear. NYSE Euronext and LCH.Clearnet are also eyeing the market. As are the LSE, Eurex and others. We can only hope that we end up with a somewhat cohesive system, not just a bunch of balkanized venues. 

For more:
- here's the Securities Industry News article

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