Citi has cleared its first US client interest rate trades through LCH.Clearnet, a leading independent clearing house group serving international exchanges and platforms, as well as a range of OTC markets.
In Europe, Citi has been clearing for clients on the LCH.Clearnet model for interest rate swaps since December 2009. Citi is one of the first Futures Commission Merchants (FCMs) to clear interest rate swap trades for a US client, reflecting Citi’s commitment to a consolidated, global and platform-agnostic approach to central clearing. Citi has also been clearing interest rate swaps through the Chicago Mercantile Exchange (CME) since October, 2010.
“Citi has been working closely with LCH.Clearnet on the design of its solution for U.S. clients in accordance with the provisions of Dodd-Frank,” said Jerome Kemp, Global Head of Derivatives Sales and Clearing at Citi. “Our says is to leverage our unparalleled global footprint to provide our clients with access to viable OTC clearing houses as they emerge globally in accordance with international regulation. We are now expanding clearing into Asia. ”
Mike Zimits, Global Head of Derivatives Clearing at Citi, adds: “Our objective is to become the global leader in central clearing across every viable platform, and adding LCH.Clearnet to our offering is a significant step toward that goal. Citi has more than 60 years of experience clearing futures as a futures commission merchant (FCM) and we are committed to providing derivatives clearing services with this same level of excellence across any platform a client chooses.”
Citi views clearing as a core offering within its franchise and a key relationship service. As a leader in central clearing, Citi is willing to connect clients to their choice of viable OTC clearing platforms that have broad buy-side and sell-side support.