Societe Generale has strengthened its clearing services once again by agreement to transfer futures execution and clearing activities from Jefferies Bache.
The French banking and financial services company purchased multi-asset brokerage Newedge last year, giving it a major presence in the exchange-traded and OTC derivatives clearing space.
The acquisition of the futures execution and clearing arms of Jefferies Bache equips Soc Gen with more members and assets as the market prepares for the mandatory clearing of OTC derivatives.
“This transfer is a good opportunity which allows us to cement our leadership in the rapidly growing sector of listed and OTC derivatives clearing and execution, and post-trade services whilst continuing to position ourselves favourably in the new regulatory environment,” said David Escoffier, deputy head of global markets for Societe Generale Corporate & Investment Banking and CEO at Newedge.
“Transferred clients will benefit from the bank’s full suite of innovative solutions. All our teams are already mobilised and thrilled to welcome those new clients and facilitate their transition to our high quality service platform."
Reports of Jefferies looking to offload parts of its clearing business began circulating at the end of 2014, as the investment bank struggled with the costs of running the business.
With mandatory clearing regulations coming into force many years later than planned, a number of clearing brokers have decided to exit certain parts of the business, including BNY Mellon and RBS.
Sources have also told theTRADEnews.com that a number of other brokers are looking to scale back their operations as the cost of running these businesses increases as profits began to fall the other way.
Societe Generale’s latest acquisition reiterates its commitment to the sector.