Opalesque Industry Update - Pelagus Capital Fund LP and Newedge, a global leader in multi-asset brokerage and clearing announced that the fund has cleared OTC interest rate swaps (IRS) at LCH.Clearnet’s SwapClear using Newedge’s SwapClear Clearing Membership, which operates alongside its Futures Commissions Merchant membership.
Pelagus, an award winning fixed income relative value fund, already cleared OTC trades on LCH SwapClear to comply with OTC clearing requirements and benefit from reduced counterparty risk, an efficient and industrial collateral management service, and potential capital and margin efficiencies.
Peter Jayawardena, COO of Mako Investment Managers, investment manager to Pelagus, said, “We were early adopters of OTC clearing and are pleased to have now worked with Newedge on this business - in particular, being able to test the Business As Usual portability of cleared trades for the first time.”
Nicolas Breteau, CEO at Newedge, said, “We have enhanced our clearing services significantly over the past six months, strengthening our offer from listed derivatives and OTC commodity swaps, to IRS OTC swaps to include both CME and LCH SwapClear. Augmenting our cross border and clearing solutions positions us well to continue to meet client needs and tap into future growth opportunities.”
John Wilson, Global Head of OTC Clearing at Newedge added, “We are delighted to have supported Pelagus’ ongoing OTC clearing activities, and to work with them on proving the portability of trades. Our expansion to more CCPs in the coming months gives funds like Pelagus confidence to manage a changing and challenging marketplace.”
Newedge’s OTC Clearing services, part of a multi-asset class offering designed for investment firms of all sizes, are supported by a partnership between Societe Generale Corporate & Investment Banking (SG CIB) and Crédit Agricole Corporate and Investment Bank (CACIB).
Newedge is a leader in global exchange-traded and cleared derivatives and amongst the top clearing firms in derivatives trading worldwide, ranking third in the USA as measured by customer assets.