Newedge UK has become a member of EurexOTC Clear for interest rate swaps (IRS) as part of the expansion of its clearing services business.
The move brings total membership of EurexOTC Clear, which launched in November 2012, to 17 firms.
Exchange traded and cleared derivatives specialist Newedge has been growing its clearing services business over the past nine months, across listed derivatives, OTC commodity swaps and IRS OTC swaps.
Becoming a member of EurexOTC Clear will expand the choice of clearing venues available to Newedge clients and enable cross margining opportunities in the future.
Nicolas Breteau, CEO at Newedge, said: “Strengthening our cross border services and broadening our clearing offer means that we remain well-placed to meet client needs and tap into future growth opportunities.”
Launched last year, EurexOTC Clear offers integrated clearing and collateralisation of OTC transactions and listed derivatives.
Regulations to centrally clear OTC derivatives are currently being implemented in the US, while European regulators are still negotiating the final form of regulation in the EU. The moves follow the agreement by the Group of 20 countries to improve reporting and reduce bilateral clearing arrangements in derivatives, which were seen as being partly responsible for the financial crisis in 2008.