LCH.Clearnet expands credit default swap clearing
16 December 2013 London
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LCH.Clearnet SA has expanded its credit default swap clearing service, CDSClear, to offer single-name CDS clearing.
The extension aims to provide the market with significant CDS portfolio margining benefits.
Using the expanded service, European members and clients can benefit from significant capital efficiencies through risk offsets between 187 single-names and existing index products through Monte Carlo Simulation VaR-based portfolio margining.
Gavin Wells, CEO of CDSClear, said: “With the addition of these 187 index constituents we believe the market will benefit from significant efficiencies. As regulations and clearing commitments evolve, we will continue to work collaboratively with market participants to ensure they can clear with confidence.”
Simon Morris, managing director and head of credit trading EMEA and Asia at Goldman Sachs, said: “We are pleased to see LCH.Clearnet introduce clearing across the broadest range of cleared European single-name CDS. We welcome the increased margin efficiencies generated through portfolio margining offsets of these 187 eligible single-names with the indices already cleared alongside the 86 additional single names now introduced to clearing.”
The extension aims to provide the market with significant CDS portfolio margining benefits.
Using the expanded service, European members and clients can benefit from significant capital efficiencies through risk offsets between 187 single-names and existing index products through Monte Carlo Simulation VaR-based portfolio margining.
Gavin Wells, CEO of CDSClear, said: “With the addition of these 187 index constituents we believe the market will benefit from significant efficiencies. As regulations and clearing commitments evolve, we will continue to work collaboratively with market participants to ensure they can clear with confidence.”
Simon Morris, managing director and head of credit trading EMEA and Asia at Goldman Sachs, said: “We are pleased to see LCH.Clearnet introduce clearing across the broadest range of cleared European single-name CDS. We welcome the increased margin efficiencies generated through portfolio margining offsets of these 187 eligible single-names with the indices already cleared alongside the 86 additional single names now introduced to clearing.”
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