LCH, a global clearing house, has announced that J.P. Morgan has gone live as CDSClear’s first US bank to offer client clearing. As a result, Swedish pension fund AMF is now clearing European and US credit default swaps through CDSClear, using J.P. Morgan Securities Plc as its clearing broker.
This development is the latest achievement for CDSClear, which began offering client clearing in 2017.
- J.P. Morgan is the first US bank to offer client clearing through CDSClear
- AMF is live clearing both EUR and US CDS products
- Builds on LCH SA’s growing CDS clearing business
Frank Soussan
Frank Soussan, Global Head of CDSClear, LCH, said:
As the first US bank to offer CDSClear’s services to its clients, we’re delighted to welcome J.P. Morgan as our latest clearing broker. We’re focused on continuing to grow our reach and extending clearing broker access is an important part of this.
Nick Rustad, Head of Global Clearing, J.P. Morgan, commented:
We are focused on providing clients with a choice of derivatives clearing solutions, and access via LCH. CDSClear will further open up a wide range of European and US credit derivatives to them. The associated cross margining opportunity is also one of the core benefits that clearing has to offer.
Bengt Björkén, Head of Fixed Income AMF added:
Risk management is a high priority for us and clearing offers us an efficient way of mitigating counterparty risk. CDSClear offers access to clearing a wide range of credit products and AMF are very pleased to be working with LCH and JP Morgan in this area.
LCH has the broadest CDS coverage of any CCP, clearing 500+ single-name CDS and 124 index series. It is the first CCP to offer clearing of Credit Index Options and is also the only European CCP to offer clearing of both European and US Indices and Single Name constituents.