RBS Securities has been a Futures Commission Merchant (FCM) for 25 years in the US, while The Royal Bank of Scotland (RBS) is a founding member of LCH.Clearnet’s Swapclear service (established in 1999).
SwapClear currently has 37 clearing members and its portfolio contains 1.7 million trades with a notational value in excess of $250 trillion.
According to RBS, this new service will enable US interest rate swap (IRS) customers to access RBS Securities ‘ FCM service to clear over-the-counter (OTC) IRS trades, while benefiting from reduced counterparty risk, default protection, and the default management expertise of LCH.Clearnet.
RBS Securities said it participation in SwapClear’s FCM service will also enable its US clients to better prepare for the regulatory impact of the Dodd-Frank Act.
RBS global head of Futures and Counterparty Clearing Jeremy Wright said they are excited to expand their relationship with LCH.Clearnet through its SwapClear FCM service, and provide their US clients with access to one of the market’s leading clearing platforms.
"With SwapClear, we are not only able to provide our US clients with risk mitigation, but we can also help them prepare for changes taking place across the regulatory landscape," Wright said.
