CHICAGO, May 16, 2011 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced the launch of post-execution clearing services for
over-the-counter (OTC) U.S. dollar/Chilean peso non-deliverable
forwards (NDFs) through CME ClearPort.
"This is the first step in our broader initiative to provide
clearing services for a wide range of FX products later this year,"
said Craig LeVeille, CME Group's
Director of FX Products. "Chile has a strong economy generating large
investment exposures to foreign assets. Local institutions
can use our clearing service to mitigate the growing credit
constraints they face when hedging currency risks, and this should
lead to a boost in liquidity and an expansion in cross border
activity."
The initial product launch will be for NDF-style transactions
for U.S. dollar (USD) versus Chilean peso (CLP), where original
trades conducted in the standard "USD/CLP" interbank terms of
Chilean peso per U.S. dollar, can be submitted for clearing.
This clearing service will benefit from daily valuation
curves provided by ICAP, the world's premier interdealer broker and
a leading provider of brokerage services to the Latin American FX
markets. The key benefits of the offering include:
- Mitigated counterparty risk - CME ClearPort uses a
central counterparty clearing model, which allows the central
clearing house to guarantee the performance of every
transaction.
- Expanded liquidity - With these clearing and risk
services in place, existing accounts will now have the ability to
free-up credit lines.
- Enhanced operational efficiency - Post-trade clearing
and processing with CME ClearPort eliminates significant
documentation time. All OTC FX positions sent to CME Clearing
will eventually allow for the same powerful cross-margin
efficiencies as exchange-traded FX futures and options.
Additionally, the availability of daily valuation curves will
help counterparties in daily marking and position margining, which
may serve as valuable risk mitigation for portfolios of
longer-dated risk products.
CME ClearPort is a set of flexible OTC clearing services
available to all OTC market participants to significantly mitigate
their counterparty credit risk and provide neutral valuations. The
open-access, platform-agnostic structure of CME ClearPort means
customers have access to a post-execution clearing service that
lets you control how, with whom and on what terms you trade – while
increasing your security, efficiency and confidence. CME
ClearPort has nearly 1,000 products available for clearing across
multiple asset classes. There are about 16,000 registered
users and average daily volumes are approximately 500,000
contracts.
For additional information, visit:
www.cmegroup.com/fxclearing.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers
together through its CME Globex® electronic trading platform and
its trading facilities in New York
and Chicago. CME Group also operates CME Clearing, one of the
world's leading central counterparty clearing providers, which
offers clearing and settlement services for exchange-traded
contracts, as well as for over-the-counter derivatives transactions
through CME ClearPort®. These products and services ensure that
businesses everywhere can substantially mitigate counterparty
credit risk in both listed and over-the-counter derivatives
markets.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. All other trademarks are the property of their
respective owners.
ICAP is the world's premier interdealer broker and provider of
post trade risk and information services. The Group matches buyers
and sellers in the wholesale markets in interest rates, credit,
commodities, foreign exchange, emerging markets, equities and
equity derivatives through voice and electronic networks.
ICAP plc was added to the FTSE 100 Index on 30 June 2006. For
more information, please go to www.icap.com.
CME-G
SOURCE CME Group