Pelagus Capital Fund LP and Newedge, a global leader in multi-asset brokerage and clearing, today announced that the fund has cleared OTC interest rate swaps (IRS) at LCH.Clearnet’s SwapClear using Newedge’s SwapClear Clearing Membership, which operates alongside its Futures Commissions Merchant membership.
Pelagus, an award winning fixed income relative value fund, already cleared OTC trades on LCH SwapClear to comply with OTC clearing requirements and benefit from reduced counterparty risk, an efficient and industrial collateral management service, and potential capital and margin efficiencies.
Peter Jayawardena, COO of Mako Investment Managers, investment manager to Pelagus, said,“We were early adopters of OTC clearing and are pleased to have now worked with Newedge on this business - in particular, being able to test the Business As Usual portability of cleared trades for the first time.”
Nicolas Breteau, CEO at Newedge, said,“We have enhanced our clearing services significantly over the past six months, strengthening our offer from listed derivatives and OTC commodity swaps, to IRS OTC swaps to include both CME and LCH SwapClear. Augmenting our cross border and clearing solutions positions us well to continue to meet client needs and tap into future growth opportunities.”
John Wilson, Global Head of OTC Clearing at Newedge added,“We are delighted to have supported Pelagus’ ongoing OTC clearing activities, and to work with them on proving the portability of trades. Our expansion to more CCPs in the coming months gives funds like Pelagus confidence to manage a changing and challenging marketplace.”
Newedge’s OTC Clearing services, part of a multi-asset class offering designed for investment firms of all sizes, are supported by a partnership between Societe Generale Corporate & Investment Banking (SG CIB) and Crédit Agricole Corporate and Investment Bank (CACIB).
Newedge is a leader in global exchange-traded and cleared derivatives and amongst the top clearing firms in derivatives trading worldwide, ranking third in the USA as measured by customer assets.
Newedge (newedge.com), a 50/50 joint venture between Société Générale and Crédit Agricole CIB, is a major force in global multi-asset brokerage business, with a world-leading position in the execution and clearing of listed derivative products. With a presence in more than 20 locations in 15 countries, Newedge offers a full range of clearing and execution services covering options and futures contracts for financial products and commodities, as well as for money market instruments, bonds, FX, equities, and commodities on OTC markets. Newedge provides a range of value added services, including prime brokerage, asset financing, an electronic platform for trading and order routing, cross margining, and the centralized reporting of client portfolios. Newedge, which primarily serves institutional clients, provides access to more than 85 exchanges. Newedge's 2,700 employees form a close-knit, multinational team that can innovatively respond to its clients in fast-moving markets.
Newedge is an established participant in cleared OTC commodity and IRS swaps through CME ClearPort. The firm also participates as clearing broker in cleared OTC commodity swaps at ICE Clear Europe and SGX AsiaClear and is expected to participate as clearing broker in additional OTC central counterparty clearing venues as well as other asset classes.
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