CME Ramps Up Swaps Clearing, Sets Early Records

CME Group said it set new monthly records for clearing both interest rate swaps and credit default swaps.

The operator of derivatives marketplaces said it cleared more than $45 billion in over the counter interest rate swaps and credit default swaps through its open clearing solutions since their launch.

For the month of September, the company cleared more than $35.5 billion in interest-rate swaps, compared to $1.2 billion in August.

The company also cleared $6.5 billion in credit-default swaps in September, compared to $287 million in August.

As of September 30, open interest stood at $34.2 billion in interest-rate swaps and $5.9 billion in credit-default swaps.

CME said it will start clearing Euro-denominated interest-rate swaps on October 17.

By year-end, CME Group will expand to interest-rate swaps in British points, Japanese yen, Swiss frances and Canadian dollars.

CME Group said it has 15 clearing members with approximately 500 customer accounts actively clearing trades.

A rival, IntercontinentalExchange, said its credit default swap clearing houses had cleared $20 trillion in gross notional value with aggregate open interest of $1.5 trillion, as of July 8, 2011.

ICE Trust operates in the United States. ICE Clear Europe operates in Europe.

The $20 trillion is a cumulative number, since both clearing houses’ inception.

ICE Trust began clearing credit-default swaps in March 2009. ICE Clear Europe started in July 2009.

CME cleared its first credit-default swaps in December 2010.

-- This article first appeared on Securities Technology Monitor.