14:04 | 10.03.2010
DGAP-News: Newedge Starts OTC Interest Rate Swap Product Clearing With International Derivatives Clearinghouse
International Derivatives Clearing Group /
10.03.2010 14:04
Dissemination of a Corporate News, transmitted by
DGAP – a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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CHICAGO and NEW YORK, March 10, 2010 (GLOBE NEWSWIRE) — Newedge USA, LLC, a
global leader in multi-asset brokerage and clearing, and the International
Derivatives Clearing Group, LLC (IDCG) announced today that Newedge has
finalized its membership with the International Derivatives Clearinghouse LLC
(IDCH), a derivatives clearing organization regulated by the U.S. Commodity
Futures Trading Commission (CFTC).
With this membership, Newedge can offer central counterparty clearing of
Interest Rate Swap products (IRS), the largest of the OTC derivative markets
with an over $400 trillion notional amount outstanding*. Interest rate swaps
are an important financial risk management tool for corporations and investors
worldwide.
Newedge clients and their swap market makers can continue to execute interest
rate swaps in the well-established OTC market. Then, counterparties can reduce
counterparty risk by simultaneously novating their positions to IDCH, with
Newedge as their clearing firm. Counterparties will benefit from the
clearinghouse performance guarantee and the proven segregated funds protections
of the U.S. futures market.
‘We’ve seen considerable demand from buy-side clients and liquidity providers
for the clearing service we can offer via IDCG’s structure,’ said Nicolas
Breteau, Newedge’s Global Head of Sales and Front Office. ‘In addition,
compared to the incumbent bi-lateral exposure model, we believe there is
potential for considerable cost savings and risk reduction for market
participants using central clearing through Newedge and IDCH.’
‘Furthermore, the opportunity for clearing IRS at Newedge is an important
enhancement to our leading position in the execution and clearing of listed
derivative products. Newedge can provide clients with a central clearing
platform supporting both interest rate swaps and interest rate futures, which
are often employed complementarily by our clients,’ added Breteau.
Garry N. O’Connor, Chief Executive Officer of IDCG, said, ‘We are excited to
have Newedge as a member of IDCH. Newedge, with its knowledge of the
marketplace and established client relationships, gives us a solid partner to
continue building this business, while offering the market the transparency,
normalized valuation data, and risk mitigation necessary for interest rate
swaps.’
IDCG is an independently operated, majority owned subsidiary of The NASDAQ OMX
Group. Inc. (NDAQ).
* According the Bank of International Settlements, globally, interest rate
swaps net asset outstanding were over $400 trillion as of June 2009.
Newedge contacts
PR Global:
Valery Lepinette, Global Head of Press Relations: +33 155 07 2290,
valery.lepinette@newedgegroup.com
PR Europe:
Siobhan Janaway, +44 207 676 8051, siobhan.janaway@newedgegroup.com
PR Americas:
Bill Ferri, +1 212 754 5428, bferri@intermarket.com
Emily Ahearn, +1 212 909 4781, eahearn@intermarket.com
PR Asia:
Damien Ryan, +852 6302 6922, damien@ryanfin.com
Client Contacts:
Marc Katz, +1 312 762 1338, marcus.katz@newedgegroup.com
Thomas Hall, +1 312 762 1067, thomas.hall@newedgegroup.com
International Derivatives Clearing Group contact
Alan Sobba, Chief Policy and Communications Officer, +1 646 867 2535,
alan.sobba@idcg.com
About Newedge Group
Newedge, a 50/50 joint venture between Societe Generale and Credit Agricole
CIB, is a major force in global multi-asset brokerage business, with a
world-leading position in the execution and clearing of listed derivative
products. With a presence of more than 20 locations in 16 countries, Newedge
offers a full range of clearing and execution services covering options and
futures contracts for financial products and commodities, as well as for money
market instruments, bonds, FX, equities, and commodities on OTC markets.
Newedge provides a range of value added services, including prime brokerage,
asset financing, an electronic platform for trading and order routing, cross
margining, and the centralized reporting of client portfolios. Newedge, which
primarily serves institutional clients, provides access to more than 85
exchanges. Newedge’s 3,000+ employees form a close-knit, multinational team
that can innovatively respond to its clients in fast-moving markets. For more
information, visit www.newedge.com. (031010N08)
About the International Derivatives Clearing Group
The International Derivatives Clearing Group (IDCG) is an independently
operated, majority owned subsidiary of The NASDAQ OMX Group, Inc. IDCG brings a
centrally cleared solution to the largest segment of the OTC derivatives
marketplace, specifically interest rate derivatives. It does this through the
operation of International Derivatives Clearinghouse (IDCH), a CFTC regulated
derivatives clearing organization that currently acts as a central counterparty
to interest rate swap futures contracts and expects to do so for other similar
interest rate and currency derivatives in the future. IDCH, in conjunction with
Razor Risk Technologies, utilizes NASDAQ OMX Click XT matching and NASDAQ OMX
SECUR clearing technology to provide an efficient and transparent forum to
clear and settle derivative products. For more information about IDCG and IDCH,
visit www.idcg.com.
News Source: NASDAQ OMX
10.03.2010 14:04 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at
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Language: English
Company: International Derivatives Clearing Group
US
Phone:
Fax:
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Internet:
WKN:
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