This clearing agreement represents the first trilateral client cleared trade executed on BGC Trader and given up to LCH Clearnet for clearing.
BGC Partners is a global brokerage company servicing the wholesale financial markets.
Morgan Stanley executive director and European head of OTC client clearing Andy Ross said as this new regulatory regime takes shape the ability to successfully clear trades executed on electronic trading platforms is a crucial service for clearing brokers to offer their clients.
"Morgan Stanley’s latest partnership with MPS Capital Services demonstrates how quickly the Firm is adapting to service its clients in every area of client clearing," Ross said.
MPS Capital services head of fixed income derivatives Matteo Bertotti said the new regulatory landscape for the OTC derivatives market will result in a number of challenges but he believes that all institutions in a position to do so will subscribe to and use clearing facilities as best practice.
"This will either be through joining the clearing houses directly or by appointing a clearing broker. In addition, I expect to see greater use and more liquidity in electronic trading platforms such as BGC Trader as they grow in importance and attract more members," Bertotti added.
