CCorp and DTCC form central clearer for derivatives

29 May 2008

CCorp and DTCC have signed an agreement that facilitates central counterparty services for the OTC derivatives marketplace. The initiative will launch 2008 and will be fully implemented 2009.

Clearing Corporation (CCorp) and The Depository Trust & Clearing Corporation (DTCC) have signed an agreement that facilitates central counterparty services (CCP) for the OTC derivatives marketplace. The initiative is targeted to launch in 3rd quarter 2008 and will be fully implemented in several product specific phases in 2008-2009.

 

Under the agreement, CCorp members will benefit from CCorp's netting and risk management processes and will leverage the asset servicing capabilities of DTCC's Trade Information Warehouse (Warehouse). The Warehouse is the industry's only global repository and centralized post-trade infrastructure for servicing OTC credit derivatives (CDS) contracts throughout their multi-year lifecycles. The agreement with DTCC will allow CCorp members to utilize CCorp as the central counterparty (CCP) guarantor for OTC contracts in credit derivatives while continuing to utilize the Warehouse as the "golden" record for net open positions and for post trade event processing.

 

CCorp press release

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