Mon, Apr 21, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Newedge to expand its offering of clearing services to centrally cleared interest rate Swaps

Tuesday, March 13, 2012
Opalesque Industry Update - Newedge to offer CCP clearing services for Interest Rate Swaps at CME Cleared IRS and LCH SwapClear in partnership with Societe Generale Corporate & Investment Banking (SG CIB) and Crédit Agricole Corporate and Investment Bank (CACIB).

Newedge announced plans to develop its clearing facilities for interest rate swaps (IRS), thus extending its leading position in central clearing. Newedge’s entrance into this space significantly expands its existing activities and complements its leadership in global exchange-traded and cleared derivatives (ETDs).

Newedge’s IRS Clearing initiative is supported by a partnership with SG CIB and CACIB. SG CIB and CACIB will serve as Newedge’s cleared IRS contingent default managers. In addition, Newedge’s OTC IRS clearing platform will be accessible to SG CIB and CACIB’s customers seeking an OTC IRS clearing solution.

Newedge will be the first independent Futures Commission Merchant (FCM) to deliver the benefits of CCP clearing of OTC IRS to incumbents, new IRS liquidity providers and buy side clients. Specific benefits include reduced counterparty risk, default protection and capital efficiencies from cross-margining opportunities. The move follows regulatory changes to the $441* trillion IRS market where Dodd-Frank in the US and European Markets Infrastructure Regulations are paving the way for a shift in the bilateral OTC market towards increased central counterparty clearing (CCP), greater transparency and reduced counterparty risk for the benefit of end customers.

“Newedge is committed to extending our established listed derivatives clearing services to additional OTC asset classes, beginning with IRS”, said Newedge CEO Nicolas Breteau. “To fulfill this strategic objective, we are enhancing our multi-asset infrastructure, leveraging the support of our A+ rated shareholders and, working closely with regulators and CCPs. We continue to make a material contribution to shaping what is a dynamic market structure,” states Breteau.

“Our derivatives clients are a key focus for the bank and we are very pleased to support them with this major development, together with Newedge. This will allow them to fully comply with the new regulatory environment and to benefit from Newedge’s expertise in clearing,” said Dan Fields, Head of Global Markets at SG CIB.

“We are delighted to partner with Newedge in this important initiative which is helping our clients to benefit from, and adapt to, the regulatory market structure changes,” said Thomas Gadenne, Global Head of Fixed Income at CACIB.

In establishing this partnership, SG CIB and CACIB are confirming their commitment to provide the full set of services to their clients transacting in OTC markets. This partnership is due to go live in Q2 2012.

Press Release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Banner
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Classic Auto Funds Limited (CAF) launches several car investing funds[more]

    Bailey McCann, Opalesque New York: A new trend in alternative alternatives is emerging - car appreciation funds. Classic Auto Funds Limited (CAF) is the first to market with several funds that make super elite luxury cars into real asset investments. As a result of growing overseas demand couple

  2. Investing – Big hedge funds bought Puerto Rico's junk bonds, Fidelity explores new trading venue amid flash trade concerns, Crisis-era Greek bonds reward early buyers with big effective returns, Cargill unit discloses stake in Freddie preferred[more]

    Big hedge funds bought Puerto Rico's junk bonds From Reuters.com: Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspa

  3. Opalesque Exclusive: Hedge fund replicators evolve[more]

    Bailey McCann, Opalesque New York: Hedge fund replicators as a group of products tend to get a bad rap from hedge fund managers who suggest that the best a replicator can offer is dynamic beta capture. A

  4. Opalesque Exclusive: Pensions, endowments, family offices reconsider life settlement investments[more]

    Bailey McCann, Opalesque New York: Hedge funds were once the largest investors in the life settlement industry, now the industry is seeing more interest from pensions, endowments and family offices directly. Life settlements have always been considered a niche part of the investing landscape, an

  5. SEC allows investment funds to use social media[more]

    Bailey McCann, Opalesque New York: The Securities and Exchange Commission (SEC) has released new guidance letting investment funds and advisors use social media to promote client reviews. The guidance seeks to assist investment managers in developing compliance policies and procedures reasonably