The London arm of the New York leader has been advising US exchange operator IntercontinentalExchange (ICE) on the creation of ICE Clear Europe — which was approved by the UK Financial Services Authority (FSA) last week (13 May).
The deal saw the European head of the firm’s financial institutions advisory group, Barney Reynolds, leading the team, alongside competition partner Matthew Readings.
Shearman has been working with ICE on the project for around two years, with the new clearing house expected to launch in July 2008.
The deal opens the UK clearing market to competition as ICE Clear will take over from LCH.Clearnet to provide clearing for transactions executed on ICE Futures Europe (previously known as the International Petroleum Exchange) and ICE over-the-counter markets.
It will mark the first time that a
Reynolds told Legal Week: “This is the first derivatives clearing house approved in
FSA approval followed previous submissions to and approvals from HM Treasury and the Office of Fair Trading.
Paul Swann, president and chief operating officer of ICE Clear Europe, said: “Shearman & Sterling has played an integral role in the establishment of ICE Clear Europe. Their expertise and counsel have proved invaluable to ICE.”