Difference between revisions of "OTCDerivnet"

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Its purpose was to partner with [[LCH.Clearnet]] in the development of a secure, efficient and cost-effective [[post-trade dated environment]] for the benefit of the OTC derivative industry and boost the [[volume]] of swaps [[cleared]] on [[SwapClear]].
 
Its purpose was to partner with [[LCH.Clearnet]] in the development of a secure, efficient and cost-effective [[post-trade dated environment]] for the benefit of the OTC derivative industry and boost the [[volume]] of swaps [[cleared]] on [[SwapClear]].
  
TCDerivNet was launched in October 2000 by Bank of America, Barclays, Citibank/ Schroder Salomon Smith Barney, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Merrill Lynch and Société Générale.
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OTCDerivNet was launched in October 2000 by Bank of America, Barclays, Citibank/ Schroder Salomon Smith Barney, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Merrill Lynch and Société Générale.
  
 
Under the partnership, OTCDerivNet provides strategic direction and funding for SwapClear and works with LCH to extend the existing range of clearable OTC derivatives transactions and promote broad market participation.<ref>{{cite web|url=http://www.futuresindustry.org/fi-magazine-home.asp?a=707|name=Futures Industry Magazine|org=FI Magazine|date=October 8, 2008}}</ref>  
 
Under the partnership, OTCDerivNet provides strategic direction and funding for SwapClear and works with LCH to extend the existing range of clearable OTC derivatives transactions and promote broad market participation.<ref>{{cite web|url=http://www.futuresindustry.org/fi-magazine-home.asp?a=707|name=Futures Industry Magazine|org=FI Magazine|date=October 8, 2008}}</ref>  

Revision as of 14:54, 8 October 2008


OTCDerivnet
Founded 2000
Headquarters London
Web site http://www.otcderivnet.com/index.html

OTCDerivnet is a consortium of banks in the over-the-counter (OTC) fixed income derivatives markets. It is a limited liability company owned by its bank partners.[1]

Its purpose was to partner with LCH.Clearnet in the development of a secure, efficient and cost-effective post-trade dated environment for the benefit of the OTC derivative industry and boost the volume of swaps cleared on SwapClear.

OTCDerivNet was launched in October 2000 by Bank of America, Barclays, Citibank/ Schroder Salomon Smith Barney, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Merrill Lynch and Société Générale.

Under the partnership, OTCDerivNet provides strategic direction and funding for SwapClear and works with LCH to extend the existing range of clearable OTC derivatives transactions and promote broad market participation.[2]

It was announced on Oct. 8, 2008 that LCH.Clearnet and OTCDerivnet had successfully wound down Lehman Brothers Special Financing Inc.'s over-the-counter (OTC) interest rate swap positions. Lehman's interest rate swap portfolio comprised 66,390 trades across 5 major currencies.[3]The unwind of the book involved first hedging the counterparty risk of the contracts, then auctioning the swaps to other members of SwapClear, LCH Clearnet's clearing arm.

The total notional value of the portfolio was $9 trillion, encompassing a total of 66,390 trades across 5 major currencies. This was achieved through the risk neutralization and competitive auctioning of the Lehman OTC interest rate swap portfolio among SwapClear members.

Partners

History

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Products and Services

Key People

References

  1. Questions And Answers. OTCDerivnet.
  2. Futures Industry Magazine. FI Magazine.
  3. Press Release. LCH.Clearnet.