“I think there’s a strong push from the regulatory side to make non-standardized business expensive. That has already started to bite in a number of asset classes but hasn’t really reverberated fully through the industry.”
Finbarr Hutcheson, currently the president of ICE Benchmark Administration (IBA), will be taking over ICE Clear Europe later in the year when Paul Swann retires.
In the meantime, Hutcheson still has plenty to focus on at IBA. Opened for business in 2014, IBA maintains three key benchmarks: LIBOR, ICE Swap Rate (formerly ISDAFIX) and the LBMA Gold Price. But it is expanding into some non-benchmark business as well. IBA now helps ISDA with the Standard Initial Margin Model (SIMM) by determining the right “risk buckets” for particular assets. Also, IBA is about to start running the ISDA Credit Derivatives Determinations Committees. Involvement with SIMM and the credit committees represent forays into non-benchmark business for IBA, a trend Hutcheson says the organization wants to continue.