Fri, Dec 9, 2016
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. Institutions - Texas County & District culls 5 hedge funds, reallocates to existing managers, Kentucky board gives final approval to halve hedge fund portfolio, $38bn Finnish fund moves assets to U.S. as Europe flounders, South Korea’s National Pension Fund holds 5% stake in 62 listed companies[more]

    Texas County & District culls 5 hedge funds, reallocates to existing managers Texas County & District Retirement System, Austin, continues to reduce the number of hedge funds, but not the size of its $6.2 billion hedge fund portfolio. It will redeem a total of $760 million from five hedg

  2. Opalesque Roundtable: Australian family offices search for good risk adjusted returns, happy to pay for skill[more]

    Komfie Manalo, Opalesque Asia: Australian family offices want foremost good risk adjusted returns, and they are happy to pay for the skill, and in some cases, the limited capacity of an active manager. Jonas Daly, Head of Distribution at B

  3. StepStone announces close of Swiss Capital acquisition[more]

    StepStone Group LP announced it has successfully closed the acquisition of Swiss Capital Alternative Investments AG, one of the leading private debt and hedge fund solutions providers in Europe. The transaction was originally announced in May 2016, and has been in the process of receiving regulatory

  4. Investing - Stephen Cohen investing $275m in free clinics treating veterans' mental health issues, California Resources loses favor with hedge funds[more]

    Stephen Cohen investing $275m in free clinics treating veterans' mental health issues From Healthcarefinancenews.com: …Now, a new chain of free mental health clinics for vets has opened in five cities across the United States to fill the gap. The much-needed new treatment is underwritten

  5. Hedge funds flat in last week of November 'in sympathy with markets’[more]

    Komfie Manalo, Opalesque Asia: Hedge funds were close to flat in the last week of November in sympathy with markets, which took a pause ahead of the OPEC meeting and Italian referendum. The Lyxor Hedge Fund Index was -0.1% as of end November 29 (-1.7% YTD), according to the latest