Asset management firm Alliance Bernstein has started clearing OTC interest rate swaps (IRS) through LCH.Clearnet’s SwapClear service.
Citi executed and cleared the initial trades, which were affirmed using MarkitSERV.
Alliance Bernstein’s decision to begin clearing its OTC IRS comes ahead of regulatory changes in the US that are aimed at pushing OTC derivatives into clearinghouses.
James Wallin, senior vice president, fixed income, at Alliance Bernstein, said: “Clearing ahead of the regulations makes sense for us. It means we can plan for the changes in market structure and optimise our clearing solutions in line with our portfolio requirements.”
“Alliance Bernstein is the latest in a rapidly growing and diverse group of clients to adopt central clearing. These firms are reaping the capital and operational efficiencies of being at the vanguard of change,” said Daniel Maguire, the head of SwapClear US “We are delighted that they—like the others—selected SwapClear as their clearing service of choice for our broad product range, unrivaled liquidity, and superior risk management capabilities.”
Christopher Perkins, the global head of OTC clearing at Citi, added: “Mandatory central clearing for some members of the buy side is rapidly approaching, and we’re seeing many clients, like Alliance Bernstein, making an early transition ahead of regulation because they believe it makes commercial sense.”
