JP Morgan has been appointed as Intercontinental Exchange (ICE)’s consolidation bank for ICE Clear Europe.

JP Morgan’s Treasury and Securities Services (TSS) division will provide multi-currency payments, global custody and additional securities services and will put into place a cash investment programme for ICE Clear Europe.

ICE announced earlier this year that it would look to sever its clearing agreement with LCH-Clearnet after it purchased New York Board of Trade and its internal clearing system at the tail end of 2006.

Under the agreement, ICE Clear Europe and JPMorgan will jointly develop a system which will allow clearing members to choose where they hold their bank accounts and will initiate payments for clearing members at a predetermined time, the exchange said in an announcement.

"We look forward to working with ICE Clear Europe on developing tailored solutions, which will provide additional functionality for clearing house members," said S. Natarajan, head of sales for financial institutions at JPMorgan Treasury Services.

ICE Clear Europe’s president and COO, Paul Swann said, "JPMorgan TSS has established a reputation as the payment bank of choice to many of the world's leading investment exchanges for delivering reliable and innovative treasury services. This partnership is a key milestone in the development of a solid, innovative and customer focused clearing operation, and we look forward to working with JPMorgan TSS to advance these aims."