Question-and-Answer Session
Operator
(Operator instructions) We will take our first question from Roger Freeman with Barclays Capital.
Roger Freeman – Barclays Capital
Good morning.
Jeff Sprecher
Good morning.
Roger Freeman – Barclays Capital
I guess my questions will all be around the CDS space. So you have said you have lined up, pretty much all of the key, or most of the he key dealers in the space. They owned TCC, now you own it, they are committed to using it. What is the nature of the commitment? How locked up do you think that will be? Because obviously there are a couple of other solutions out there. What kind of guarantees do you have to actually get clients?
Jeff Sprecher
Sure. I don't want to give you the details of what we have agreed just yet as they are finalized and as they become material, we will obviously file them in an 8-K. But let me just step back, Roger, and give you the context of what has happened is that ICE has set up a company, a bank, called ICE US Trust, to be a member of the Federal Reserve System and it is going to be a typical open clearing house as we have operated for years now. This will be our fourth clearing house.
And the Clearing Corporation, which as you mentioned, the dealers had a substantial ownership in, along with all of the inter-dealer brokers, including our company, Creditex, was really designed to be an inter-dealer platform. So the nuance differences that we are taking over the dealers own operations, and merging it into an open clearing house, that will be open to buy side and sell side customers alike and the major dealers have committed to use that solution.
Roger Freeman – Barclays Capital
Got it. My follow-up is around the go live here. There are two parts. One is, does this you taking over at TCC, potentially accelerate the timing at all? I know industry has been working towards, and I think the Fed wants to work toward a Jan. 1 launch. At least one dealer this week, told us they think that is probably unrealistic, it seems like April is more likely the timeframe. I wonder if this speeds it up.
Second, when does it go live there is some discussion that there is potentially some systemic risk because of differences in pricing around single-name CDS, and that, one, you have to come up with a universal pricing the day this goes live, that there is going to be some major balance sheet transfers, from parties that are either owed or owe a lot of money?
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