LCH.Clearnet, the global clearer of OTC products has said that its interest rate swaps clearing service for the buy-side has gone live. As a result, institutional investors will now be able to access central clearing for OTC interest rate swaps via SwapClear, the global clearing service for OTC interest rate swaps.
Developed in close collaboration with buy-side market participants and dealers, the SwapClear client clearing service has been designed to offer a level of security to buy-side clients in the case of a bank default through margin segregation and portability of contracts.
Subject to FSA’s regulatory approval of this clearing service in the relevant jurisdictions, the list of dealers committed to offering the service will be, Banca IMI, Barclays Capital, BNP Paribas, BofA Merrill Lynch, Calyon, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, Nomura, Royal Bank of Scotland, Société Générale and UBS.
Roger Liddell, CEO of LCH.Clearnet, said: “We are seeing an ever increasing focus on removing systemic risk from the OTC markets. We are pleased to have been able to deliver such rapid progress since we first announced our plans to launch the service in May.
“The extension of LCH.Clearnet’s established SwapClear service, which counts amongst its members 23 of the world’s leading banks, means that for the first time buy-side trading clients now have access to the benefits of interest rate swap clearing, a unique and proven default management process, reduced counterparty risk, portability, margin segregation and improved operational efficiencies.”
