The Clearing Corporation has announced the availability of an integrated over-the-counter (OTC) derivatives clearing and cash market settlement service.
Named Concero, this service platform aims to enhance credit risk-management and counterparty settlement services through CCorp’s central counterparty (CCP) facilities for commercial and institutional users of the OTC energy, foreign exchange, and financial markets.
Specifically, Concero enhances traditional CCP services by offering freedom to choose non-exchange execution venues such as bilaterally negotiated and voice or electronically brokered transactions and submit them for clearing and lower transaction costs and greater capital efficiencies due to bilateral position offset, portfolio margining and re-use of collateral. The platform also offers STP of related derivative and cash market transactions and flexible capture of OTC-style trade details.
In certain instances, Concero will also allow market participants to execute the products on multiple marketplaces and realize the efficiency of a single CCP for risk and collateral management.