International Derivatives Clearing Group, a majority-owned, independently operated subsidiary of the Nasdaq OMX Group, has begun accepting US dollar-denominated interest rate swap futur
International Derivatives Clearing Group, a majority-owned, independently operated subsidiary of the Nasdaq OMX Group, has begun accepting US dollar-denominated interest rate swap futures contracts for clearing and settlement.
The interest rate swap futures have been cleared by IDCG’s wholly owned clearinghouse, International Derivatives Clearinghouse, which received a derivatives clearing organisation licence from the Commodity Future Trading Commission on 22 December.
Nasdaq OMX chief executive Bob Greifeld says: ‘By completing its first trade in 2008, IDCG has become the clear leader in delivering central counterparty clearing to the massive over-the-counter derivatives market.’
Vincent Viola, IDCG founder and chairman, says: ‘We have the right product, the right technology, the right partner with Nasdaq OMX, and most importantly, we have launched this unique clearing solution at exactly the right time.’
The OTC interest rate market is the largest derivative asset class in the world, with an estimated USD460trn in notional principal outstanding as of June 2008, according to the Bank for International Settlements.
Nasdaq OMX Group subsidiary, the Philadelphia Board of Trade, is the designated contract market licensed to list the futures contracts cleared by IDCH.
IRS futures may be traded either through an exchange of futures for swaps process via Swapdrop.com for existing interest rate swaps, or by entering orders into the IDEX XT matching platform.
