LONDON & BOSTON--(EON: Enhanced Online News)--State Street Global Exchange announced today that it is now clearing over-the-counter interest rate swaps using LCH.Clearnet Ltd.’s, SwapClear service. The announcement comes shortly after SwapExSM, State Street’s electronic trading platform for interest rate and FX derivatives, was provisionally registered as a swap execution facility (SEF) by the CFTC in September. SwapEx began trading on October 8, 2013.
“As an entire industry aligns itself with the new regulatory environment, having comprehensive clearing and servicing solutions ensures that our clients are efficient across the entire derivatives trade lifecycle.”
“Our SwapClear membership gives our global client base access to the world’s largest clearing house for interest rate swaps with deep liquidity pools and superior risk management,” said Martine Bond, head of trading and clearing at State Street Global Exchange. “As an entire industry aligns itself with the new regulatory environment, having comprehensive clearing and servicing solutions ensures that our clients are efficient across the entire derivatives trade lifecycle.”
“State Street is an important addition to SwapClear’s global membership roster” said Daniel Maguire, head of SwapClear US at LCH.Clearnet. “Buy-side clients will benefit from the addition of a global industry leader to an already strong pool of direct clearing members and liquidity providers.”
SwapClear membership expands State Street Global Exchange’s existing end-to-end derivatives solution, DerivOneSM, which includes execution, clearing, servicing, collateral management, valuation, and risk and analytics for over the counter and exchange traded derivatives. State Street has been a member of CME Group since 2010 and is actively pursuing other clearing memberships.
State Street Global Exchange delivers proprietary data, insights, analytics and trading solutions to address clients’ needs to make better investment decisions, generate superior returns and effectively manage data and risk. LCH.Clearnet is the largest clearer of interest rate swaps, clearing over 95% of the world's cleared interest rate swaps. LCH.Clearnet launched SwapClear in 1999, and it has been a CFTC-regulated derivatives clearing organization since 2001.
The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and platforms as well as a range of OTC markets. LCH.Clearnet’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of recent defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared. LCH.Clearnet is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community.
For more information on LCH.Clearnet visit www.lchclearnet.com/media_centre
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $26 trillion in assets under custody and administration and $2.2 trillion in assets under management* at September 30, 2013, State Street operates in more than 100 geographic markets worldwide, including the U.S., Canada, Europe, the Middle East and Asia. For more information, visit State Street’s web site at www.statestreet.com.
* This AUM includes the assets of the SPDR Gold Trust (approx. $39 billion as of September 30, 2013), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.