State Street Global Markets has joined CME Group for clearing of over-the-counter (OTC) interest rate swaps, effective August 24.
With CME Group, State Street adds additional clearing options to clients complying with the Dodd-Frank Act and similar European measures that are pushing OTC derivatives through clearing houses.
As derivative markets evolve, State Streets membership provides buy-side clients with a new, neutral model for trading, clearing and processing of their swap positions, says Cliff Lewis, executive vice president and head of State Streets eExchange business. Joining CME Group, one of the worlds leading derivatives marketplaces, is an important step towards offering a fully comprehensive, end-to-end derivatives solution for our clients.
CME Group membership is the latest action State Street has taken in the new derivatives regulatory environment. Last year, State Street revealed plans to expand its futures commission merchant services to cover swap clearing capabilities and launched DerivOne, its end-to-end derivatives servicing offering. This year, it launched SwapEx, a swap execution facility.
We are pleased that State Street has joined CME as an OTC IRS clearing member, says Kim Taylor, president of CME Clearing. As we continue to work with both the buy- and sell-side to identify capital and operational efficiencies for all market participants, we also are very pleased to continue to offer market participants a diverse pool of clearing membership as they transition to central clearing.
(CG)