BNP Paribas Securities Corporation has become the first US futures commission merchant to join the LCH CDSClear service as part of the clearing house’s expansion into US credit derivatives.
The expansion is designed to offer participants greater choice on where to clear their CDS portfolios. BNP Paribas Securities Corporation has cleared the first US buy-side trade using the service.
“We are proud to be the first FCM member to go live with client clearing at LCH CDSClear for US market participants and are thankful to LCH for this opportunity,” said Gaspard Bonin, deputy global head of derivatives execution and clearing, BNP Paribas. “We continue to invest in our services and demonstrate our commitment to our American clients as their European bank of choice.”
LCH said the extension builds on its plans to grow into a global service. The clearinghouse went live clearing for several Asian and emerging markets indices – in single and sovereign single names – in December 2022. It had gone live clearing iTraxx Australia indices in the few months prior.
“Onboarding FCM members and expanding our services to US clients means we are not only extending the benefits of clearing to more market participants, but we are also increasing the choices that they have in CDS clearing,” said Frank Soussan, global head of CDSClear and head of SA EquityClear and CommodityClear, LCH.
“This is a significant step in our commitment to providing a truly global service with a single pool of liquidity to the cleared CDS market and we look forward to continuing to support our clients globally.”