CHICAGO, March 8, 2016 /PRNewswire/ -- CME Group, the
world's leading and most diverse derivatives marketplace, today
announced it will begin clearing Interest Rate Swaptions on April
11.
"CME Clearing is proud to be the first clearing house to deliver
interest rate swaption clearing, a capital efficient clearing
solution that has the opportunity to transform the interest rate
swaps landscape for our customers," said Sunil Cutinho, President, CME Clearing.
"Swaption clearing enables clients and dealers to substantially
reduce their risk and gain margin efficiencies of up to 90 percent
by adding swaptions to their CME cleared interest rate swaps
portfolios."
Five clearing members are approved to clear swaptions upon
launch, with additional firms working through the approval process
to begin clearing swaptions.
"With uncleared margin rules coming into greater focus for our
clients, Credit Suisse is excited to facilitate voluntary swaptions
clearing at CME Group," said John
Dabbs, Global Head of Prime Derivatives Services at Credit
Suisse. "Clearing swaptions enables our clients to obtain the
greatest operational and capital efficiencies from clearing, while
reducing the risks in their portfolios."
"RBS plc is pleased to take a leadership role as one of the
first banks that will provide cleared swaption liquidity to our
global client base," said Alan
Mittleman, Head of Rates Trading, Americas at RBS plc. "We
are very supportive of the early adopters that use the CME swaption
clearing solution to reduce bilateral counterparty exposure,
particularly with the added cost of margin for non-cleared
derivatives coming later this year."
The initial product scope will include US Dollar denominated
swaptions with European style exercise, a maximum two-year option
expiry, and a maximum underlying swap tenor of 30 years.
For more information on swaption clearing at CME Group, please
visit www.cmegroup.com/swaptions.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) is where the world comes to manage
risk. CME Group exchanges offer the widest range of global
benchmark products across all major asset classes, including
futures and options based on interest rates, equity indexes,
foreign exchange, energy, agricultural commodities, metals, weather
and real estate. CME Group brings buyers and sellers together
through its CME Globex® electronic trading platform, its trading
facilities in New York and
Chicago, and through its
London-based CME Europe
derivatives exchange. CME Group also operates one of the
world's leading central counterparty clearing providers through CME
Clearing and CME Clearing Europe, which offer clearing and
settlement services across asset classes for exchange-traded
contracts and over-the-counter derivatives transactions.
These products and services ensure that businesses everywhere can
substantially mitigate counterparty credit risk.
CME Group is a trademark of CME Group Inc. The Globe Logo, CME,
Globex and Chicago Mercantile Exchange are trademarks of Chicago
Mercantile Exchange Inc. CBOT and the Chicago Board of Trade are trademarks of the
Board of Trade of the City of
Chicago, Inc. NYMEX, New York Mercantile Exchange and
ClearPort are registered trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. KCBOT, KCBT and Kansas
City Board of Trade are trademarks of The Board of Trade of
Kansas City, Missouri, Inc.
All other trademarks are the property of their respective owners.
Further information about CME Group (NASDAQ: CME) and its products
can be found at www.cmegroup.com.
CME-G
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SOURCE CME Group