BME Clearing launches OTC swaps service 02 December 2015Madrid Reporter: Stephanie Palmer
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BME Clearing has introduced a new over-the-counter (OTC) interest rate swaps (IRS) service.
BME Clearing, the central counterparty (CCP) component of Spanish stock market operator BME, will cover all EU IRS transactions.
Members of the new segment include existing members of BME Clearing from other segments.
The EU Parliament approved BME for OTC IRS swaps activities under the European Market Infrastructure Regulation in July.
Ignacio Solloa, CEO of BME Clearing, said: “With the creation of this segment, clients of BME Clearing stand to benefit as they will be able to comply with the clearing obligation at a reasonable cost while also achieving efficiencies in capital consumption derived from using a CCP for clearing their trades, instead of taking on counterparty risk in their bilateral transactions, which involves greater capital consumption.”
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