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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.[1]It is a limited liability company owned by its bank partners.

Its purpose is 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.

It was announced on Oct. 8, 2008 that LCH.Clearnet and OTCDerivnet had successfully wound down Lehman Brothers subsidiary Lehman Brothers Special Financing Inc. over-the-counter (OTC) interest rate swap positions. Lehman's interest rate swap portfolio comprised 66,390 trades across 5 major currencies.[2]

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.



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  2. Press Release. LCH.Clearnet.