DTCC extends clearing and settlement to OTC derivatives

The Depository Trust & Clearing Corporation (DTCC) is to extend its Deriv/SERV platform to provide automated matching and confirmation services for interest rate swaps and swaptions, equity swaps and variance swaps.

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DTCC extends clearing and settlement to OTC derivatives

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The move marks an expansion into new territory for DTCC, which initally began offering automated processing for credit default swaps via Deriv/SERV in November 2003, in direct competition with dealer-backed confirmation network Swapswire.

The US depository says the initiative follows months of collaboration with both dealer and buy-side communities. Support for interest rate swaps and swaptions will begin immediately and equity swaps and variance swaps will begin next month.

Ann Marie Davis, managing director, global operations, Citadel Investment Group, welcomed the programme: "The ability to process trades for all our derivatives products through a single platform is of particular interest to us and other market participants. This expansion in Deriv/SERV's services is an important move in that direction."

The Deriv/SERV platform currently claims 100 buy-side customers and 23 major global dealers as users.

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