Sat, May 23, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Newedge clears first OTC IRS Swap on Chicago Mercantile Exchange

Monday, February 25, 2013
Opalesque Industry Update: Newedge, a global leader in multi-asset brokerage and clearing, today announced it has cleared its first OTC interest rate swap (IRS) contract.

The transaction is also the first to be cleared on CME Clearing by a non-traditional OTC swap dealer. The clearing process is supported with a default management agreement between Newedge, a Futures Commission Merchant member of CME, and its two bank shareholders – Societe Generale CIB and Crédit Agricole CIB.

Commenting on the development Nicolas Breteau, CEO at Newedge, said: “Driven by new regulation, the market for OTC clearing is transforming. Such change provides a real opportunity for us as an agency broker to leverage our expertise in clearing of exchange-traded derivatives and OTC commodity swaps, expand our offering, and add value for clients.” "We are pleased that Newedge has cleared their first client IRS trade with CME Clearing," said Kim Taylor, President of CME Clearing. "We continue to work with both the buy- and sell-side, including FCMs such as Newedge, to identify capital and operational efficiencies that ease their transition to central clearing.”

Newedge’s expansion is in response to regulatory changes – principally the Dodd-Frank Act and European Market Infrastructure Regulations - to the $441* trillion IRS market that are paving the way for a shift in the bilateral OTC market. The aim is to increase central counterparty clearing (CCP), drive greater transparency, and reduce counterparty risk for the benefit of end customers.

A partnership between Societe Generale Corporate & Investment Banking (SG CIB) and Crédit Agricole Corporate and Investment Bank (CACIB) supports Newedge’s OTC Clearing initiative. Newedge’s IRS clearing platform is accessible to SG CIB and CACIB’s customers seeking a central counterparty 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 clearing broker in additional OTC central counterparty clearing venues as well as other asset classes.

Newedge

Press Release

BM

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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. New market regime has created more dispersion between managers[more]

    Komfie Manalo, Opalesque Asia: The month of April has marked the transition toward a new market regime, Philippe Ferreira, Lyxor AM’s head of research, managed account platform, commented in the May 5's Weekly Briefing. "The first quart

 

banner