Intercontinental Exchange is set to establish an over-the-counter interest-rate swap-clearing service next year, just as mandatory European buy-side clearing rules are launched, a source says. ICE, which is active in the trading and clearing of credit default swaps and energy derivatives, staked a position in interest-rate futures last year.
CME Clearing Europe says that on Monday, it will begin clearing the Iron Ore 62% CFR China Calendar Swap and the Iron Ore 62% CFR China Average Price Option contracts. Previously, CME could clear the contracts only through the CME clearinghouse in the U.S.
Sapient Global Markets has introduced the Clearing Connectivity Standard to make it easier for futures-commission merchants to send information about clearing of over-the-counter derivatives to custodians on behalf of the asset managers. Sapient developed CCS in collaboration with custodians and FCMs. The standard will initially cover credit default swaps and interest-rate swaps processed by CME Group and LCH.Clearnet.
Jae-Joon Lim of the Korea Exchange says the exchange has been preparing for four years for the trading and clearing of over-the-counter futures and options contracts. The exchange hopes to launch an interest-rate swap denominated in Korean currency this year, he said.