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.

About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

Follow us for global economic and financial news.

CME Group on Twitter

CME Group on Facebook

CME Group on LinkedIn