Fri, Apr 28, 2017
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   |   
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: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  3. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant

  4. Investing - How Chipotle's comeback attracted big data robots and value investors alike[more]

    From Forbes.com: When William Ackman's ailing hedge fund Pershing Square Capital Management bet $1 billion on shares in Chipotle Mexican Grill beginning in July 2016, the stakes couldn't have been higher. Pershing Square was reeling from what would eventually be a near $4 billion loss in drugmaker V

  5. Service Providers - Colemore launches fee tracking service for limited partners[more]

    Following Colmore's successful launch in January 2017, the firm has announced the launch of FAIR.. FAIR is designed to help private equity investors independently validate fees and incentives charged by underlying managers, saving time and providing an extra level of comfort. There is a glob