Wells Fargo doubles US swaps client clearing business

Client collateral held at Wells Fargo doubled over the year, while European banks saw their volumes contract.

Wells Fargo has moved into the top five US swaps client clearing rankings as it doubled customer collateral over the year.

According to data compiled by Clarus Financial Technology and the US Commodity Futures Trading Commission (CFTC), which records all US swaps data, client collateral held within Wells Fargo swaps clearing unit reached over $6 billion in March.

Wells Fargo, based in North Carolina, launched its swaps client clearing business in 2011 following the appointment of Jeff Gore to lead the unit. It initially focused on middle market institutional customers and non-financial end-users.

Meanwhile many European banks, which have traditionally sat at the top of the client clearing ranks, saw their business contract.

Credit Suisse, which remains the largest US swaps clearer, saw its client collateral fall by almost $1 billion. Barclays, which in 2014 was the top client clearing, fell out of the top five for the first time. In addition client collateral shrunk at Deutsche Bank by $500 million.

The most notable mover was RBC, which two years ago did not operate a US swaps clearing business, and recorded around $670 million in client collateral, and ranked 13th.

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