Spanish central counterparty BME Clearing has applied to European regulators to launch a new OTC interest rate swaps clearing segment.
The branch will build on BME’s existing derivatives clearing capabilities, which includes equity, index, dividend and rates futures and options.
The clearing house is aiming to offer customers the coveted ability to benefit from capital efficiencies through clearing OTC and exchange-traded derivatives.
Under new rules stemming from the G20 agreement in 2009, certain OTC interest rate swaps have to be cleared through a registered CCP.
BME Clearing OTC IRS will cover all Euro contracts subject to mandatory clearing by EU regulations. The market exceeds €550 trillion in annual gross notional outstanding.
The service is set to launch in Q3 2015. The European Securities and Markets Authority approved BME Clearing in September as a registered central counterparty under new regulations.
"With the new products admitted for clearing in BME CLEARING, we will offer an efficient and affordable service to firms subject to the requirements of the new regulation," Ignacio Solloa, CEO of BME Clearing.