CME Group reports successful start of clearing of Interest Rate Swaptions

In line with its plans to launch IRS clearing, international derivatives marketplace CME Group Inc (NASDAQ:CME) announces today that it cleared its first interest rate swaptions trade on April 11, 2016.

CME Group is the first clearing house to commence swaptions clearing. There are five clearing members currently approved to clear swaptions, including Barclays, BNP Paribas, Citi and RBS plc. A number of other firms are working through the process to get the necessary approvals.

Sunil Cutinho, President of CME Clearing, says,

“This groundbreaking solution is designed to help transform the interest rate swaps landscape for CME Group’s customers by offering greater capital efficiencies and helping mitigate counterparty risk. Delivering innovative products and services that meet our customers’ evolving needs is at the core of CME Group’s business, and we’re proud to lead the way for the industry on swaptions clearing.”

The initial product scope includes U.S. Dollar denominated swaptions with European-style exercise, a maximum two-year option expiry, and a maximum underlying swap tenor of 30 years.

You can view the full announcement from CME by clicking here.

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