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 credit default swaps (CDS) products.
The bank joins as part of LCH’s expansion of its CDSClear service to US credit derivatives participants; the first US buy-side trade has been cleared using the service.
The move follows Barclays and Barclays Ireland becoming clearing brokers at CDSClear just last month.
LCH CDSClear has extended its existing credit index options clearing offering to include the CDX investment-grade 5Y and CDX high yield 5Y indices.
LCH continues to expand membership of CDSClear and its client clearing franchise with Bank of America the latest institution to go live as a clearing broker.
BlueCrest Capital Management has successfully gone live with CDSClear and cleared a trade at the central counterparty service.
LCH says it is the first clearing house to offer clearing of subordinated financials single name credit default swaps through CDSClear.
Morgan Stanley is that latest investment bank to offer client clearing of credit derivatives through LCH CDSClear.
Banca IMI now has access to clearing of credit derivatives and will act as a clearing broker for its client base.
Deutsche Bank is the first German bank to offer client clearing in US and European credit default swaps via LCH CDSClear.