Under the agreement, Morgan Stanley will clear a proportion of MPS Capital Services’ interest rate swap business through LCH. Clearnet.
MPS Capital Services head of fixed income derivatives Matteo Bertotti said that by signing this second clearing contract with Morgan Stanley, MPS Capital Services has completed the clearing project that it started at the beginning of 2010, which will allow a better management of possible credit events.
Recently, Morgan Stanley has cleared some of the first OTC interest rate swaps transactions on LCH’s SwapClear Futures Commision Merchant (FCM) service for US clients.
In addition to LCH, Morgan Stanley currently offers OTC derivative clearing services at CME Group and ICE Trust, with plans to add further OTC clearing houses in the future.
