London’s Newedge – the largest futures broker in the world – said Wednesday that it has brokered and cleared its first interest rate swap transactions at the International Derivatives Clearinghouse, a new organization set up to handle the clearing of these financial products. A privately owned organization, the IDCH is operated by the International Derivatives Clearinghouse Group, which is itself owned by the NASDAQ OMX Group.
Newedge’s announcement comes on the same day that the European Commission proposed new rules for derivatives regulation and central clearing which closely match those enacted under the Dodd-Frank financial reform bill.
The landmark transaction involved a dealer-to-client interest rate swap with a notional value of over $100 million. Newedge has previously participated in centrally cleared OTC commodity derivatives trades through CME Group’s ClearPort platform, as well as IntercontinentalExchange’s Clear Europe and the Singapore Exchange’s AsiaClear.
"Our membership with IDCG is an important extension to the OTC clearing platform we offer our clients," said Nicolas Breteau, Newedge’s chief executive officer. "Newedge has devoted considerable resources in developing client OTC clearing solutions that add value and are open to all market participants. Our buy-side clients and liquidity providers are very interested in what we can provide across a range of OTC products."
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