OTCDerivNet Welcomes JPMorgan And HSBC To Strengthen SwapClear Services

HSBC and J.P Morgan have become shareholders of OTCDerivNet, the company which provides strategic direction to LCH.Clearnet's SwapClear service. SwapClear currently clears around 50% of the $140 trillion interbank OTC interest rate market and its members include many world's banks.

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HSBC and J.P Morgan have become shareholders of OTCDerivNet, the company which provides strategic direction to LCH.Clearnet’s SwapClear service.

SwapClear currently clears around 50% of the $140 trillion interbank OTC interest rate market and its members include many world’s banks.

“The support of these two key institutionswill significantly help the expansion and oversight of the SwapClear service,” says Stephen O’Connor, managing director, Morgan Stanley and chairman of OTCDerivNet. “The clearing of OTC Derivatives through a strong central counterparty is critical to the reduction of systemic risk in the marketplace.”

“At JP Morgan we view LCH.Clearnet’s SwapClear derivatives clearing service as a vital component of the OTC Rates industry,” says Chris Willcox, global head of Rates Trading, JPMorgan. “We see the service as a key enabler in supporting greater capacity and improved efficiencies in the Rates market.”

“The partnership between OTCDerivNet and LCH.Clearnet has created a significant asset for the industry,” says Elie El Hayek, global head, Rates, HSBC. “HSBC is very pleased to be part of a group committed to developing the SwapClear service.”

“A key factor in the outstanding success of the SwapClear service, which now accounts for circa 50% of the OTC global inter-bank interest rate swap market, is the close collaboration with the industry through OTCDerivNet,” says Roger Liddell, chief executive, LCH.Clearnet.

“Their input to the service’s development and the default management process is invaluable and enabled us to so successfully handle the default on Lehman’s OTC interest rate swap book.”

L.D.

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