Wed, Jan 18, 2017
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. The Big Picture: The case for emerging market debt in 2017[more]

    Benedicte Gravrand, Opalesque Geneva: Emerging market (EM) assets outperformed in 2016 mainly because of stronger fundamentals and an improving international environment, with GDP picking up speed, leading to positive earnings revisions for the first time in five years,

  2. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  3. Short Selling - Long-short hedge funds are ditching the shorts to focus on longs[more]

    From Bloomberg.com: What happens when you take the "short" out of a long-short trading strategy? Some hedge funds are about to find out. Equity long-short fund managers, the biggest category in hedge funds, hold the fewest bearish stock bets on record, data compiled by Credit Suisse Group AG s

  4. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  5. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee