DTCC expands CDS matching service

The Depository Trust and Clearing Corporation (DTCC) has expanded it credit default swaps matching service to cover Asia-Pacific corporates and sovereigns, as well as a number of credit default swap indexes.

The New York-based company previously only provided automated matching and confirmation for single-entity CDSs issued on North American and European credits.

The DTCC said it expected the move to increase trading volumes and to continue to build a “critical mass” in its over-the-counter derivatives services. It believes its index coverage will result in the largest jump in transactions.

A total of 23 organisations were using its credit default swap service at the end of April, with all the top 15 dealers in synthetic credit live or subscribed to use the service, the DTCC said. Peter Axilrod, managing director of new business development at the DTCC, added that seven buy-side firms have gone live or signed subscription agreements since March. He expects between 10 and 12 firms to join the system in the next few months.

The DTCC expects to add a partial termination of swaps service in July.