The U.S. Securities and Exchange Commission has proposed a framework for "swap data repositories" in a bid to bring transparency to the over-the-counter derivatives market. The move would fulfill a requirement in the Dodd-Frank law designed to reduce the risk of defaults and keep banks accountable.
Intercontinental Exchange is set to establish an over-the-counter interest-rate swap-clearing service next year, just as mandatory European buy-side clearing rules are launched, a source says. ICE, which is active in the trading and clearing of credit default swaps and energy derivatives, staked a position in interest-rate futures last year.
Newedge plans to take its clearing business for over-the-counter interest-rate swaps to Asia, senior executive Ramir Cimafranca says. "We will continue to expand our proven prime-clearing infrastructure and our agency-broker model to service major OTC players in the region," he said. In February, the company cleared an OTC interest-rate swaps trade on the Chicago Mercantile Exchange, becoming the first nontraditional swaps dealer to do so.
Preparing for legislation that will take effect this year, Poland's KDPW_CCP is clearing zloty-denominated forward-rate agreements, interest-rate swaps, overnight index swaps and basis swaps, as well as repo transactions that involve Polish treasury bonds. Over-the-counter clearing of derivatives in other currencies is due to be introduced next year.