Tue, Sep 2, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Newedge extends clearing services to OTC interest rate swaps

Tuesday, September 04, 2012
Opalesque Industry Update - Newedge, a global leader in multi-asset brokerage and clearing, has announced that it has been approved for membership to clear over-the-counter (OTC) interest rate swaps (IRS) at the Chicago Mercantile Exchange (CME).

Achieving authorization means Newedge is the first Futures Commission Merchant (FCM) and non-traditional OTC IRS swap dealer to offer central counterparty clearing of OTC interest rate derivatives.

“Change inevitably breeds opportunity," said Newedge CEO Nicolas Breteau. "The developing regulatory agenda has created the opening for Newedge to bring our world-class listed derivatives and OTC commodity swaps clearing expertise to the OTC IRS space. Membership of the CME is another important step forward towards fully realizing this opportunity. Strengthening our global platform, sharing our know-how, and offering true impartiality born of our independence, mean that we are well placed to help clients benefit from reduced counterparty risk, default protection, and capital efficiencies from cross-margining opportunities."

“We are pleased to welcome Newedge as an OTC IRS clearing member of CME,” said Kim Taylor, President, CME Clearing. “We strive to offer market participants a diverse pool of clearing membership, and we are focused on continuing to work with both the buy and sell-sides to provide capital and operational efficiencies to all market participants as they transition to central clearing.”

Newedge's 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.

A partnership with Societe Generale Corporate & Investment Banking (SG CIB) and Crédit Agricole Corporate and Investment Bank (CACIB) supports Newedge’s IRS Clearing initiative. Newedge’s OTC IRS clearing platform will be accessible to SG CIB and CACIB’s customers seeking an OTC IRS clearing solution.

Newedge is an established participant in cleared OTC commodity swaps through CME ClearPort, ICE Clear Europe and SGX AsiaClear. The firm also expects to evaluate and participate as a clearing broker in additional OTC central counterparty clearing venues.

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. Study shows what resonates with investors: 'Unwavering', 'passionate' beats 'committed', 'dedicated' and more surprises[more]

    Komfie Manalo, Opalesque Asia: A new study by Pershing Square, a unit of BNY Mellon company, showed that an effective value proposition strengthens audience connections and fosters growth, yet many advisors have had little objective guidance in formulating such statements until now. In the

  2. Comment – Why you should avoid the hottest hedge fund hands, Swedroe attacks Hussman over risk management, relative value strategy[more]

    Why you should avoid the hottest hedge fund hands FromCNBC/Yahoo.com: Investors who don't have money with Pershing Square Capital Management are likely salivating at the hedge fund's industry-leading 26 percent return from January through July. But investing with Bill Ackman and other to

  3. Managed futures' global diversification is important in next phase of economic recovery[more]

    Komfie Manalo, Opalesque Asia: The global diversification provided by managed futures may prove to be extremely valuable as the markets enter the next phase of the economic recovery, said Campbell & Company, a pioneer in absolute return invest

  4. Ex-UBS prop trader's hedge fund Manikay Partners eyes UK launch[more]

    From eFinancialnews.com: Manikay Partners, a $1.7 billion US multi-strategy hedge fund set up in 2008 by a proprietary trader from UBS with backing from Goldman Sachs, is planning to open in the UK. New York-based Manikay's move into Europe comes after Financial News revealed on Monday that Aurelius

  5. Big hedge funds tighten grip amid consolidation[more]

    From Asianinvestor.net: The hedge fund industry consolidated last year with the number of funds falling by around a tenth from 2012 but assets under management rising $248.8 billion to $2.6 trillion, finds a new report from research firm eVestment. Firms with more than $1 billion in hedge fund A