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Citi tops swaps clearing ranks for H1 2017

CFTC data of clearing banks showed Citi held almost $18 billion in client margin for swaps clearing as of 30 June.

By Joe Parsons joe.parsons@strategic-i.com August 07, 2017 3:05 PM GMT

Citi currently ranks as the top client clearer for OTC derivatives for the first half of the year, according to data from the US derivatives watchdog.

Data compiled by the Commodity Futures Trading Commission (CFTC) for swaps dealers showed Citi held almost $18 billion in client margin for swaps clearing as of 30 June.

It tops rivals Morgan Stanley and Credit Suisse, which held around $13.5 billion and $12.6 billion in required client swaps margin respectively.

Citi has further bolstered its derivatives clearing team in Europe with the hire of Sabrina Wilson, the former EMEA head of listed derivatives and markets clearing, as regional head for EMEA of futures, clearing and collateral.

Citi are among a number of FCMs that are looking to become specialists in services for clearing processes, counterparty management, collateral and cash management.

Clearing banks will be expected to provide services such as cross-margining and compression to provide efficiencies to their clients.

Speaking to The TRADE Derivatives earlier this year Jerome Kemp, global head of futures, clearing and collateral management for Citi, said: “The next major change in clearing is moving from the traditional role of marshalling flows between ourselves, clients and CCPs, to a much keener focus on optimising those flows.

“Being able to leverage what is on offer for, the CCP to net across futures and swaps, but also developing our own ability to help clients optimise margin, collateral and the use of CCPs.”

Goldman Sachs remains as the top futures commission merchant (FCM) in the US with $22.3 billion in client segregated margin.

CFTC data showed 63 FCMs remain in the derivatives clearing space, with seven FCMs pulling out from the business from the same time last year. However the number of swaps clearers remained unchanged at 19.