Amundi Live on CDSClear

Clearing
house LCH has announced that its first European buy-side client is now live on
CDSClear with Amundi now clearing credit default swaps (CDS) at via its
clearing broker BNP Paribas.

LCH says it
has seen activity on its service grow significantly in recent months and that
CDSClear now has 13 active clearing members. From Q2 2017, end-users trading
CDS will be able to connect via two additional clearing brokers, which will be
offering clearing through LCH SA, the firm adds.

“Risk
management is a top priority for us and our investors, and by clearing through
LCH we are able to benefit from an experienced and robust CCP, that proved
instrumental in accompanying us on mandatory clearing,” says Emmanuel Gaffet,
head of dealing risk management at Amundi. “At the same time, CDSClear’s broad
product offering and portfolio margining capabilities means that we would be
able to offset the risk of correlated CDS contracts and make margin savings
as a result.”

Raphaël
Masgnaux, global head of prime solutions & financing at BNP Paribas, adds,
“This launch is an important development for us and the industry as it gives
buy-side firms more choice of where to clear their CDS contracts, following the
introduction of the non-cleared margin requirements and credit clearing mandate
in Europe.”

Colin_lambert@profit-loss.com

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@lamboPnL

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Colin Lambert

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