Leading credit default swaps dealers are putting IT systems in place to clear CDS through Bclear, Liffe’s clearing platform for over-the-counter derivatives, according to a senior Liffe executive. The first trades should be cleared before the end of March, he said.
Liffe spoke to Futures and Options Intelligence a day after Charlie McCreevy, the EU internal market commissioner, welcomed a commitment by leading European CDS dealers and banks to clear a substantial part of their CDS trades through a European central counterparty (CCP) by the end of July (see separate FOi story of February 20).
Bclear, which was originally established to clear OTC equity derivatives, went live for CDS clearing on December 22, winning a race between four central counterparties (CCPs) to be first to offer the service.
InterContinental Exchange and CME Group are ready to offer CCP clearing in the US but are waiting for regulatory clearance,...