The Australian Securities Exchange (ASX) has cleared its first OTC derivatives transaction, which occurred as an Australian dollar interest rate swap between Commonwealth Bank of Australia and Deutsche Bank.
ASX’s OTC Derivatives Clearing Service launched on July 1st, 2013 and clearing for Australian clients should be launched commercially in Q2 2014.
“We believe the investments ASX is making in post-trade services, such as OTC derivatives clearing, are critical for the ongoing competitiveness and relevance of Australia’s financial markets. Having these services based in Australia is important for Australian asset managers who are seeking to retain their collateral onshore and access the capital efficiency of clearing OTC and exchange-traded derivatives together,” says Peter Hiom, deputy CEO of ASX.
ASX uses a platform from Calypso Technology to clear these swaps, and the platform also provides a cross-margining service that helps ASX’s clearing members reduce their margin requirements.
“Calypso OTC clearing is a proven, future-proof solution that enables efficient and competitive entry into new markets and clearing of new products. We look forward to continuing our partnership with ASX and delivering the next phase—client clearing in Australia,” says Charles Marston, chairman and CEO of Calypso.
ASX Clears First OTC Derivatives Transaction
The Australian Securities Exchange (ASX) has cleared its first OTC derivatives transaction, which occurred as an Australian dollar interest rate swap between Commonwealth Bank of Australia and Deutsche Bank.