SwapClear dealers cede control as CCP seeks Emir approval
Founding banks no longer have 'powers of direction', which could have big implications for competition in Europe's interest rate derivatives market
The dealers that founded SwapClear at the turn of the millennium have given up control of the interest rate swap clearing service, following lengthy discussions. The move is required by Europe's new clearing regime, which restricts the power of shareholders in a central counterparty (CCP) and could open the door to significant changes in the competitive landscape – making it more likely dealers will move their business to a rival service and providing cross-margining opportunities for planned
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