CHICAGO and SINGAPORE, July 18,
2017 /PRNewswire/ -- CME Group, the world's leading and
most diverse derivatives marketplace, today announced it has
cleared two new swap currencies: the Indian Rupee (INR) Overnight
Index Swaps (OIS) and Korean Won (KRW) Interest Rate Swaps (IRS).
With these two new additional currencies, CME Group now offers 21
clearable OTC IRS currencies.
"Clearing Korean won and Indian rupee swaps in the first week
they're available for customers is a testament to the strong demand
from global clients and liquidity providers, particularly in
Asia, to voluntarily clear these
products," said Sean Tully, Senior
Managing Director of Financial and OTC Products for CME Group. "Our
focus is to provide better long-term liquidity, as well as
counterparty, capital and operational efficiencies to market
participants who are looking for solutions in the cleared
space."
"Credit Suisse is excited to clear the first Indian Rupee OIS
and to offer Korean Won swaps at CME as we feel these new
currencies provide a great deal of value to our global clients,"
said John Dlubuc, Director in Prime Services at Credit Suisse. "As
our clients prepare for the implementation of uncleared margin
rules, voluntary clearing is paramount to manage counterparty risk,
gain capital efficiencies, and streamline operational
processes."
"Citi is thrilled to extend KRW and INR interest rate swap
clearing to our global client base, and we expect voluntary
clearing to significantly increase as uncleared margin rules are
implemented throughout the world," said Thomas Treadwell, APAC Head of OTC Clearing.
"These products will nicely complement Citi's comprehensive and
industry-leading Futures and OTC clearing platform."
The launch of clearable KRW out to 21 years and INR out to 10
years represents CME Group's efforts to expand its cleared OTC IRS
offerings based on client demand, and allows for global market
participants to access liquidity and participate in clearing in all
regions. Most recently, CME launched clearing for Brazilian
Real (BRL) CDI swaps, which has more than 80 market participants
clearing $7 billion per day in 2017.
Like BRL, KRW and INR are non-deliverable, allowing CME Group to
offer customers more efficient access to emerging markets.
The average daily notional of the INR swaps market is approximately
$6 billion per day, and the average
daily notional of KRW swaps market is approximately $12 billion per day according to the 2016 BIS
Triennial Survey Data.
For more information on KRW or INR swaps clearing at CME Group,
please visit www.cmegroup.com/krwinr
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 products and metals. Around
the world, CME Group brings buyers and sellers together through its
CME Globex® electronic trading platform and its exchanges based in
Chicago, New York and London. 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 and
over-the-counter derivatives. CME Group's products and services
ensure that businesses around the world can effectively manage risk
and achieve growth.
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, the Chicago Board of Trade, KCBOT, KCBT and
Kansas City 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
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CME) and its products can be found at www.cmegroup.com.
CME-G
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SOURCE CME Group