SunGard's Stream GMIpost-trade derivatives solution now gives CME Clearing members the ability to use their existing trade capture and bookkeeping processes to clear Eris Exchange's interest rate swap futures through CME Clearing.
Support for OTC interest rate swaps clearing is a key element of SunGard's strategy to support listed derivatives and the transition of OTC interest rate swap products to the clearinghouse model as mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Actof 2010. In addition to Eris Exchange, Stream GMI currently supports OTC interest rate swaps clearing with CME Group,International Derivatives Clearinghouse(IDCH) and LCH.Clearnet UK SwapClear.
Eris Exchange has traded more than $18 billion in notional value for interest rate swap futures since the first trading activity in August 2010. Eris Exchange interest rate swap futures are eligible to be cleared by any of the more than 50 Class A CME Clearing member firms with more than $50 million in net adjusted capital, without requiring firms to contribute capital to a segregated guarantee pool.
In addition to providing processing and accounting support through Stream GMI, SunGard is also developing financial and regulatory reporting capabilities for cleared interest rate swapswithin its StreamCoredata management and technology framework, as well as enhancing its Stream Credit Monitorcredit management and margin monitoring solution to support new margin methodologies.
Neal Brady, chief executive officer of Eris Exchange, said, "The capability of Eris Exchange's interest rates swap futures to clear seamlessly through the existing infrastructure of CME Clearing members is a critical component of our service offerings. Coupled with the time-tested backing of the CME Clearing guarantee fund that has current safeguards exceeding $8 billion, the integrated support from SunGard's Stream GMI helps set Eris Exchange interest rate swap futures apart from alternative offerings."
Tony Scianna, executive vice president of SunGard's position, risk and operations business, said, "As US-based market participants look for solutions to respond to the regulatory mandate for central clearing of interest rate ate swaps, they need the ability to process and clear OTC interest rate instruments efficiently and cost effectively to meet the July 2011 regulatory deadline. Stream GMI's support for Eris Exchange interest rate swap futures is the latest example of the successful execution of SunGard's post-trade strategy in providing clearance and settlement support for the new cleared interest rate swap marketplace."