Morgan Stanley has become the latest major sell-side firm to join LCH’s CDSClear service as a US futures commission merchant (FCM).
“We are thrilled to be joining LCH CDSClear’s FCM member base for US participants,” said Jason Swankoski, global head of strategy and product, derivatives clearing, at Morgan Stanley & Co in a statement on Wednesday.
“We look forward to this collaboration as we continue to invest in our services and expand our product offering.”
LCH said the move will enable Morgan Stanley’s clients to benefit from margin offsets and operational efficiencies by accessing a broader range of cleared CDS products.
“We are delighted to welcome Morgan Stanley to LCH CDSClear as a new FCM,” said Marcus Robinson, head of LCH CDSClear, part of LSEG Post-Trade, in a statement.
“This will provide the bank and its clients with new opportunities to achieve significant capital, margin and operational efficiencies. As we extend LCH CDSClear’s clearing capabilities to even more market participants, we are committed to creating a truly global service with a single pool of liquidity for the cleared CDS market with client access either via FCMs or the EMIR clearing model. This is just the next step on an exciting journey, as we expand our support worldwide.”
BNP Paribas Securities Corporation became the first US futures commission merchant to join the LCH CDSClear service in February as part of the clearing house’s expansion into US credit derivatives.