17 October 2017
Register now

LCH.Clearnet gets go-ahead to clear CDSs for European clients

19 July 2013  |  2024 views  |  0 Source: LCH.Clearnet

LCH.Clearnet, the multi-national central counterparty's Paris-based European CCP, has received regulatory approval to clear credit default swaps (CDS) for European clients, through CDSClear, LCH.Clearnet's credit default swap clearing business.

This is the first time European clients will be able to clear CDS indices and, subject to regulatory approval, LCH.Clearnet expects soon to be able to offer single name CDS, both of which will bring greater efficiency to the marketplace.

CDSClear's index clearing service offers European clients improved portability conditions through its Asset Tagging solution. Asset Tagging allows clearing members to track which of their client-related non-cash collateral and positions could be "ported" (i.e. transferred) to another member in the event of a default, in line with EMIR requirements. The index clearing service also streamlines the legal documentation process between clients and clearing members.

CDSClear's single name clearing service will provide clients with extensive portfolio margining benefits.

Charlie Longden, CEO, CDSClear said, "Global regulatory momentum is leading OTC market participants to clearing houses with robust and proven risk and default management. LCH.Clearnet clears the broadest set of European credit indices, and we are pleased to extend the benefits of our CDS clearing service to European clients."

Barry Hadingham, Head of Derivatives and Counterparty Risk, Aviva Investors, said, "The market has been looking for a European CDS clearing solution for some time now, and we welcome LCH.Clearnet's launch of CDS clearing for non-US clients. We are particularly pleased to see that the solution offers improved portability conditions and easy to navigate legal arrangements."

Clearing members will continue to benefit from the ability to post non-cash collateral on a pledged account opened in the books of a Central Securities Depository (CSD) to cover their margin requirements. 

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.capgemini.comvisit www.vasco.comvisit www.temenos.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14921 views comments | 12 tweets | 4 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
8196 views comments | 15 tweets | 21 linkedin
hands typing furiouslyHow artificial intelligence can deliver a...
7586 views 0 | 7 tweets | 9 linkedin
satelliteGates Foundation backs Ripple collaboratio...
6906 views comments | 13 tweets | 7 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
6167 views comments | 8 tweets | 16 linkedin

Featured job

to £70K base, £105K ote, benefits
London, UK

Find your next job