NO 239 – JANUARY 2013
2012 WFE market highlights

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WFE Focus January 2013
Post trade

ASX develops OTC interest rates derivatives clearing

ASX announces that seven domestic and international banks in Australia have signed non-binding commitments to help develop ASX’s new OTC Interest Rate Derivatives Clearing Service. The first phase of ASX’s OTC clearing solution will be delivered by mid-2013. 

Clearstream to launch triparty repo service

Clearstream and 360T Trading Networks are cooperating on the delivery of a streamlined triparty repo solution through 360T’s sophisticated front office facilities and Clearstream’s integrated collateral management platform and securities lending product portfolio, the Global Liquidity Hub. The partnership with 360T, the leading independent global provider of a multi-bank, multi-asset trading platform with buy-side customers in more than 50 countries, will strengthen Clearstream’s growing service offering for the non-financial sector and further enhance the service diversification for financial institutions. The two companies expect the service to go live in the first quarter of 2013.

DTCC opens data center in Singapore

The Depository Trust & Clearing Corporation opened its Asia Pacific global data site headquartered in Singapore. The Singapore location is part of the global trio infrastructure designed to support DTCC’s Global Trade Repository services. The other two locations operate from the US and Netherlands. This milestone expansion into the Asian market highlights DTCC’s commitment to worldwide systemic risk mitigation and enhanced market surveillance in the OTC derivatives market.

ICE receives regulatory approval for customer portfolio margining

IntercontinentalExchange announced that ICE Clear Credit has received regulatory approval by SEC and CFTC to provide portfolio margining relief for buy-side clearing of CDS. Portfolio margining allows clients to achieve capital efficiencies by clearing index and single name CDS in a single segregated CFTC customer account.

ICE and NYSE Euronext enter clearing services agreement

IntercontinentalExchange and NYSE Euronext announced that their wholly owned subsidiaries, ICE Clear Europe and LIFFE Administration and Management, have entered into a clearing services agreement pursuant to which ICE Clear Europe will provide clearing services to the London market of NYSE.Liffe. The clearing services agreement will allow NYSE.Liffe to transition seamlessly from their current clearing arrangements.

LCH.Clearnet and NYSE Euronext sign agreement for cash equity clearing

LCH.Clearnet, the Paris-based clearing house of LCH.Clearnet Group, and NYSE Euronext have reached an agreement on the main terms and conditions of a six-year clearing contract with respect to NYSE Euronext’s continental cash equities markets. The parties are currently reviewing the technical elements and are in the process of finalizing the agreement which started on 1 January 2013 and will run through 2018. The new contract would then replace the existing contract that was due to end on 31 December 2013 for cash equity transactions. The contract, once signed, would enable LCH.Clearnet to further reduce clearing fees.

NASDAQ OMX Nordic to introduce clearing of interest rate swaps

NASDAQ OMX Nordic will launch the clearing of SEK denominated interest rate swaps for end client trades in the Nordic market in February 2013. This will provide the entire market with a clearing solution for standardized SEK denominated interest rate swaps.

Singapore Exchange broadens clearing services for OTC customers

From 25 February 2013, the Singapore Exchange will provide international customers the choice of clearing OTC transactions as swaps or futures contracts, broadening access to Asian OTC commodity and financial derivatives markets. SGX AsiaClear will offer a suite of futures contracts called AsiaClear Futures, starting with iron ore, freight and oil.