BNP Paribas Begins Clearing Swaptions at CME

BNP Paribas has joined the expanding network of liquidity providers capable of clearing swaptions at CME. BNP Paribas cleared their first swaption on October 28 with RBS as their counterparty.

"We are excited to provide liquidity on CME Cleared swaptions to our clients. We see swaptions clearing as an efficient means to manage credit exposure with our counterparties and increase margin efficiencies across our portfolio, particularly with margin rules for uncleared derivatives increasing the cost of holding swaptions bilaterally.”

David Moore, Head of G10 Rates Trading Americas, BNP Paribas

"Uncleared margin rules are a major catalyst for market participants to voluntarily clear swaptions. We are pleased to be among the first global banks to provide our customers with the ability to execute these important instruments with a clearing option. It is apparent to us that the CME cleared swaptions ecosystem will continue to evolve as more firms are impacted by uncleared margin rules."

Alan Mittleman, Head of Trading, Americas, RBS

CME now has seven approved swaptions clearing members, with the addition of two new members since August. We continue working to transform the swap clearing landscape by working with clearing members, liquidity providers and buy side clients to further expand the participant base for both client cleared and interdealer swaptions.

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