Source: Wells Fargo
Wells Fargo & Company (NYSE:WFC) - one of the G14 members working with the Federal Reserve to reduce risk in the derivatives industry - today announced its subsidiary Wells Fargo Securities, LLC has joined the CME Group, the world's leading and most diverse derivatives exchange and clearing house, for clearing of over-the-counter interest rate derivatives.
Recent financial reform has mandated most derivatives between financial institutions be cleared through a clearinghouse. By utilizing CME's central clearing services for interest rate derivatives, Wells Fargo will fulfill this mandate, satisfy its G14 industry commitments and better serve its customers' clearing needs.
"Selecting the CME as our OTC interest rate derivative clearing solution will allow Wells Fargo to reduce risk in the financial sector while meeting its regulatory obligations," said Paul Rettig, head of Technology, Operations and Compliance for Wells Fargo Securities.