CHICAGO, Oct. 19, 2011 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced that it has begun clearing Euro-denominated interest rate
swaps (IRS). The company also announced that it set a new
daily record for IRS clearing on October 18,
2011, with $8 billion in U. S.
customer volume cleared.
The new CME Group Euro-denominated clearing offering expands the
company's existing U.S. dollar-denominated interest rate swaps
clearing service, providing over-the counter risk management
opportunities for interest rate maturities in both currencies
extending to 50 years.
"We continue to be very focused on voluntary client clearing
and, as a result, are expanding our offering to satisfy specific
customer demand," said Laurent Paulhac, CME Group Managing
Director, OTC Products and Services. "Adding Euro-denominated
swaps further enhances our clearing offering, allowing us to
satisfy a user base looking for non-dollar based products, as well
as to complement our newly launched Euribor futures,
enabling capital efficiencies for market participants as open
interest grows."
"Citi is pleased to clear one of the first EUR-denominated
interest rate swaps through CME Clearing," said Christopher Perkins, Global Head of Derivatives
Clearing at Citi. "Citi is strategically committed to
supporting our clients' OTC derivatives clearing needs, and will
continue to work with CME Clearing to further expand its
eligible product set going forward."
CME Group also announced that it will further expand its IRS
clearing service by year-end, with the addition of British pound,
Japanese yen, Swiss franc and Canadian dollar-denominated
IRS. According to data from the Bank for International
Settlements, these six currencies account for 94 percent of the
vanilla IRS market.
To date since launching these OTC clearing services, CME Group
has cleared nearly $67.3 billion in
over-the-counter customer volume, including $58 billion in IRS and $9.3 billion in credit default swaps (CDS),
making CME Group the leading OTC clearing service by U.S. customer
volume. As of October 14, IRS
open interest stands at $50 billion,
with CDS at $6 billion.
"Morgan Stanley is pleased to partner with
CME Clearing and our clients to participate actively in the
voluntary adoption phase of OTC clearing," said Andrew Huszar, U.S. Head of OTC Clearing at
Morgan Stanley. "Early usage of clearing allows market
participants to gain comfort with the system infrastructure,
develop operational readiness and accrue the benefits of
clearing. Additionally, this increase in volume
critically facilitates market readiness in advance of
the regulatory clearing mandates."
To learn more about CME Group's OTC clearing offering, visit our
resources on IRS and CDS.
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. Further information about CME Group (NASDAQ:
CME) and its products can be found at www.cmegroup.com.
CME-G
SOURCE CME Group