LCH.Clearnet officials say they are now clearing credit default swaps for U.S. clearing members through CDSClear, which is LCH.Clearnet SA’s CDS clearing business.
The regulatory approval allows U.S. members to clear proprietary CDS index trades through LCH.Clearnet SA, the multinational central counterparty’s Paris-based CCP, which provides them with greater choice of institutions through which to clear credit default swap indices and provides additional liquidity to the CDSClear service and the market.
“This development provides more choice and flexibility to members in clearing CDS index trades. We’ve built upon our extensive OTC expertise and adapted it to provide robust risk and default management for the credit markets,” said Charles Longden, chief executive of LCH.Clearnet’s CDSClear business.
“This important milestone for our CDS clearing business complements LCH.Clearnet Group’s market leading position in interest rate swaps and foreign exchange OTC clearing, and enables us to offer clearing services across the broadest range of OTC derivative asset classes and geographies in the market,” added Ian Axe, chief executive of LCH.Clearnet Group Limited.