The Intercontinental Exchange (ICE) cleared its last hurddle to begin clearing credit default swaps today after the Securities and Exchange Commission granted the firm an exemption. This was last regulatory hurddle for the ICE after winning approval for aquiring Clearing Corp. (owned by the largest CDS dealers) from the Justice Department and Federal Trade Commission and then receiving permission to clear from the governing Federal Reserve Board. This will provide a sense of confidence for an otherwise frozen, $27 trillion derivative market. Previously, these swaps were traded over the counter with no guarantee on counterparty risk. A clearing house acts as a counterparty to both buyer and seller. Should this revive liquidity, it will remove one of the greatest threats for another financial crisis.