The Depository Trust & Clearing Corporation (DTCC) has selected CLS Bank International (CLS) to provide central settlement of payments for over-the-counter (OTC) derivatives contracts housed in DTCC Deriv/SERV’s Trade Information Warehouse.
Initially supporting credit derivatives, the solution is designed to be extended to other OTC derivatives products including rates, equities, and commodities, the timing of which will be determined through collaboration with warehouse customers.
“This strategic partnership will provide an automated, seamless processing and settlement environment for the handling of OTC derivatives contracts on a global basis,” says Robert McGrail, an executive managing director of Domestic and International Core Services at the DTCC. “After an extensive review and selection process by DTCC and its Board’s OTC Derivatives Operations and Planning Committee, CLS became the logical choice because of our shared customer base, and CLS’ reputation for resiliency, reliability and broad experience handling foreign exchange.”
“We are pleased to be partnering with DTCC, bringing together Deriv/SERV’s strength in automating OTC derivatives processing with CLS’ multi-currency expertise and robust settlement infrastructure,” adds Rob Close, the President and Chief Executive Officer of CLS Bank International. “It is excellent to see the financial industry leveraging the CLS infrastructure. We share DTCC’s vision of a strategic partnership that will support the global expansion of the OTC derivatives market and reduce cost and risk, and CLS is committed to working with DTCC to expand this solution to other OTC derivatives products over time.”