CME set to launch swaptions clearing in Q2

Uncleared margin rules the driver; may also impact CME-LCH basis

cme
CME shelved an earlier launch following concerns about risk and default management procedures

CME Group's long-delayed swaptions clearing service is set to launch in the second quarter of this year, according to clearing executives, driven by the incoming margin rules for non-cleared derivatives.

Dealers say it could also help the central counterparty (CCP) fight the unfavourable basis that has opened up against LCH.Clearnet for certain cleared US dollar interest rate swaps.

"This could be the solution to the CME-LCH basis," says the New York-based global head of OTC clearing at a US ban

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: