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News: LCH.Clearnet to Clear Credit Default Swaps for US Clearing Members

12 July 2013 | Bill Hodgson

Comments

There must be a belief they can win business through one strategy or another, but your commentary makes sense.

Surely, given much higher IM per notional for CDS than for IRS, the margin optimization pull of the big player's portfolios at ICE the incumbent leader will be hard to resist as they play through to CDS CCP-specific pricing once the client clearing mandate fully bites (an a slightly staggered schedule to IRS)? In the case of CDS it seems the only hope for a countervaling force is CDS swapfutures but neither LCH nor CME seem to be making much headway there either.A quick website check reveals the current open notional numbers: ICE $1.60 tn, CME $0.04 tn, LCH CDSclear $ 0.02 tn