18 April 2016
Chicago
Reporter: Drew Nicol

CME Group clears first interest rate swaptions


CME Group saw its first interest rate swaptions cleared last week, with Barclays, BNP Paribas, Citi and RBS among the first approved to clear the trades.

US-dollar denominated swaptions clearing offers a maximum two-year option expiry and a maximum underlying swap tenor of 30 years.

Five clearing members are approved to clear swaptions, including Barclays, BNP Paribas, Citi and RBS. Others are poised to be approved as clearing members soon, according to CME Group.

"This groundbreaking solution is designed to help transform the interest rate swaps landscape for CME Group's customers by offering greater capital efficiencies and helping mitigate counterparty risk," said Sunil Cutinho, president of CME Clearing.

Sabri El Jailani, global head of rates options trading at Barclays, added: "Clearing through CME will allow both Barclays as well as our clients to significantly improve the capital consumption and risk management of our swaptions portfolios."

More swaps news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
J.P. Morgan and Citi collaborate on truePTS post-trade platform
15 December 2017 | New York | Reporter: Zsuzsa Szabo
The New-York-based startup processes ecosystem for the global $700 trillion derivatives market
Eurex Clearing secures five signups for its OTC partnership programme
05 December 2017 | Frankfurt | Reporter: Zsuzsa Szabo
BGC Partners, Bloomberg, TP ICAP Group subsidiary i-Swap, Tradeweb and, Tradition’s Trad-X are on track to become approved platforms as part of the Eurex Clearing partnership programme
NEX boasts major client growth for collateral management service
28 November 2017 | New York | Reporter: Drew Nicol
NEX Optimisation has secured more than 100 clients for its collateral management service, triResolve Margin
Eurex introduces fresh fixed income hedging tools
16 November 2017 | Frankfurt | Reporter: Drew Nicol
The Deutsche Boerse Group noted significant end-user demand for European-listed fixed income ETF options, with institutional investors in Europe ready to migrate from US-listed options once the options are listed
LCH migrates to new Swiss reference rate
18 October 2017 | Zurich | Reporter: Jenna Lomax
Basler Kantonalbank, Credit Suisse and Zürcher Kantonalbank are due to be among the first financial services to clear using the new rate from December 2017
Tradeweb launches first electronic swaption trade on TW SEF
17 October 2017 | New York | Reporter: Jenna Lomax
The trade, which was executed by asset management firm, Garda Capital, and processed through MarketWire, officially marked the launch of swaptions trading on the TW SEF
Eurex Clearing launches partnership programme
09 October 2017 | Frankfurt | Reporter: Theo Andrew
The programme plans to build a “balanced ecosystem”, responsible for aligning responsibilities and benefits related to economics and governance, bringing “greater choice and transparency” to the market