SunGard has enhanced its Stream GMIpost-trade listed derivatives solution to provide processing and accounting support for CME Group cleared interest rate swaps, which it began clearing in October 2010.
Stream GMI's support of CME Group interest rate swaps helps provide automated, centralized clearing and settlement, thereby helping CME Clearing members and market participants to increase transparency, reduce counterparty risk and gain processing efficiencies.
The global regulatory push for central clearing of all standardized OTC contracts has created both challenges and opportunities for the global interest rates swaps market, which recent ISDAestimates valued at more than $434 trillion in outstanding notional value. CME Clearing provides an open access solution for cleared interest rate swaps that offers market participants the flexibility of the OTC market without having to change their execution processes, as well as central counterparty clearing. A listed derivatives clearing and accounting solutionfor post-trade recordkeeping, clearing and settlement, Stream GMI provides the ability to clear CME Group interest rate swaps alongside traditional listed derivatives in order to consolidate back-office processing of all centrally cleared products on a single platform.
The support for CME Group cleared interest rate swaps on Stream GMI is one element of SunGard's post-trade strategy for settlement and clearance. SunGard is also developing financial and regulatory reporting capabilities within its StreamCore data management and technology framework, as well as enhancing its Stream Credit Monitor credit management and margin monitoring solution to support new margin methodologies.
Kim Taylor, president of CME Clearing, said, "CME Group cleared interest rate swaps help to preserve key OTC market practices while also offering operational flexibility, customer protections and capital efficiencies. SunGard's support of this emerging asset class through its Stream GMI solution will help firms streamline processing, clearing and settlement."
Gerry Murphy, president of SunGard's brokerage and clearancebusiness, said, "Stream GMI has supported products on the central clearing model for many years. As the market evolves, SunGard continues to add value by facilitating customers' ability to process and clear OTC interest rate instruments efficiently and cost effectively. With this enhanced support for CME Group cleared interest rate swaps, Stream GMI is well positioned to support cross-margining between OTC cleared products and listed derivatives when it becomes available."