21 August 2017
Find out more

Canadian and US clearing firms explore swap link

05 April 2011  |  4907 views  |  0 handshake

The Canadian Derivatives Clearing Corporation (CDCC) has inked a memorandum of understanding with New York Portfolio Clearing (NYPC) to build a link for the Canadian swap market.

The move is designed to help Canada meet its G20 commitment of clearing over-the-counter (OTC) derivatives by the end of next year.

The C$37 trillion Canadian OTC derivatives market is principally transacted through the country's six largest banking institutions with a significant number of the counterparties based in the US or other foreign jurisdictions.

The proposed clearing link between CDCC and the new, Nyse Euronext-backed, NYPC would "foster the development of an effective clearing solution designed to reduce systemic risk and provide Canadian swap market participants and their trading partners with an optimised solution for clearing," says a statement.

The pair say that if successful, the resulting structure could serve as an important cross-border template for other jurisdictions around the globe that are required to meet similar G20 obligations.

Glenn Goucher, president, CDCC, says: "Today's announcement provides a valuable roadmap for building a clearing solution that best meets the needs of the Canadian OTC derivatives market. NYPC will be a valuable partner as we seek to deliver a viable swaps central counterparty clearing solution for Canada."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

CME to start European clearing in May

CME to start European clearing in May

15 March 2011  |  8479 views  |  0 comments
Iosco supportive of switch from OTC to exchange-based trading

Iosco supportive of switch from OTC to exchange-based trading

18 February 2011  |  10370 views  |  1 comments
Canadian dealers to develop fixed income clearing counterparty

Canadian dealers to develop fixed income clearing counterparty

15 December 2009  |  6319 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.worldpaymentsreport.comvisit www.dorsum.eu

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
10296 views comments | 23 tweets | 23 linkedin
Norwegian banks and startups form fintech clusterNorwegian banks and startups form fintech...
8620 views comments | 19 tweets | 23 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
8405 views 0 | 3 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
8292 views comments | 10 tweets | 7 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
7622 views comments | 15 tweets | 14 linkedin

Featured job

London, UK (or flexible)

Find your next job