LCH CDSClear today announced the expansion of its client clearing services to US credit derivatives market participants, offering greater access to the capital reduction, margin offsets and operational efficiencies available through clearing to more clients worldwide.
BNP Paribas Securities Corporation is the first futures commission merchant (FCM) entity to join LCH CDSClear and has cleared the first US buy-side transaction for the service.
The expansion of customer clearing to US customers builds on the development of LCH CDSClear as a global service. In December 2022, CDSClear launched with clearing for a range of Asian and emerging market indices and their single names, as well as Sovereign Single Names. This followed the announcement in September 2022 that LCH CDSClear was launched with clearing for iTraxx Australia indices and Single Name assets.
Frank Soussan, Global Head of CDSClear and Head of SA EquityClear & CommodityClear, LCH, said:
“The integration of FCM members and the expansion of our services to US clients means that we not only extend the benefits of clearing to more market participants, but also increase the choices they have in CDS clearing. This is an important step in our commitment to provide a truly global service with a single set of liquidity in the cleared CDS market and we look forward to continuing to support our clients worldwide.”
Gaspard Bonin, Deputy Global Head of Derivatives Execution & Clearing, BNP Paribas, said:
“We are proud to be the first FCM member to go live with client clearing on LCH CDSClear for US market participants and are grateful to LCH for this opportunity. We continue to invest in our services and demonstrate our commitment to our American customers as their European bank of choice.”