Woodbine Associates announces the release of a new report, OTC Derivative Clearing in the U.S.: An Evaluation of Central Counterparties for Clearing Customers. The report provides an overview of the current market structure and issues faced by clearing customers and focuses on the clearing firms operating in the U.S. for interest rate and credit default swaps. It also provides a framework for market participants to evaluate clearing firms currently active in the U.S. and details their current and proposed initiatives for members and customers.
The report is intended to provide actionable information, analysis, and candid views to aid firms in evaluating and selecting the clearinghouse best suited for their current and future business needs. explains Sean Owens, Director of Fixed Income and Derivatives. It highlights the benefits each clearinghouse brings to the table for its members and their customers.
The firms examined in the report are: CME Clearing, International Derivative Clearing Group, LCH Clearnets SwapClear for interest rate swaps and CME Clearing and ICE Trust for credit default swaps.
The report consists of three primary sections that discuss current and proposed regulatory requirements, criteria that firms should consider when selecting a clearing firm and clearing broker, and an examination of the four firms active in the market. Each clearing house is examined in detail, which include an evaluation of their relevant costs, product availability, and financial structure and their implications for clearing customers.
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