Newedge has finalized its membership with the International Derivatives Clearinghouse (IDCH), and can now offer central counterparty clearing of Interest Rate Swap products (IRS).
Newedge clients and their swap market makers can continue to execute interest rate swaps in the well-established OTC market. Counterparties can then reduce counterparty risk by simultaneously novating their positions to IDCH, with Newedge as their clearing firm.
Nicolas Breteau, Newedges Global Head of Sales and Front Office said: Compared to the incumbent bi-lateral exposure model, we believe there is potential for considerable cost savings and risk reduction for market participants using central clearing through Newedge and IDCH.