Aviva Investors has become the first UK-based asset manager to successfully clear Over the Counter (OTC) interest rate swap transactions with CME Clearing Europe.
Following the G20 initiative in September 2009, regulators in the US, Europe and Asia have moved towards the mandatory centralised clearing of OTC derivatives. Aviva Investors has been working since 2010 to prepare for this new landscape.
Shahid Ikram, Chief Investment Officer at Aviva Investors said:
"Aviva Investors view OTC derivatives as integral to the investment management process, enabling us to better manage our clients' portfolios and to capture investment performance on their behalf. It is key for us to have the necessary infrastructure in place to continue to use OTC derivatives to add value to our clients' portfolios.
"This first cleared OTC trade with CME Clearing Europe represents a significant step towards our goal of developing the clearing infrastructure to enable the ongoing use of OTC derivatives at Aviva Investors in accordance with the G20 mandate."
CME Clearing Europe is one of the world's leading central counterparty clearing providers, which offers clearing and settlement services for Over the Counter Derivatives transactions.
Paul Abberley Interim CEO at Aviva Investors added:
"Our OTC Clearing Project Team is continuing to develop the necessary infrastructure to comply with the G20 mandatory clearing requirements in support of our investment teams and clients. It has always been our intention to ensure that our preparations are completed well in advance of the mandatory deadlines and we remain on course to achieve that."