11:04 AM
MPS Capital to Clear Interest Rate Swaps Through SwapClear
MPS Capital Services announced that it signed an agreement to clear interest rate swaps on LCH.Clearnet’s SwapClear service through Barclays Capital.
Under the agreement, MPS Capital said more than $200 billion of its interest rate swaps have been back-loaded. The moves were made in response to the widely anticipated European regulatory reform towards central clearing, the firm added.
By back-loading and clearing future interest rate swap transactions, MPS Capital said it will benefit from reduced counterparty risk, potential capital relief, a more effective collateral management process and lower overall operation risks.
“This is an important step for the OTC market and the buy-side community as a whole and reflects the prevailing impetus to reduce systemic risk through central clearing,” Michael Davie, the head of LCH.Clearnet’s SwapClear service said in a statement.
As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio