SUNGARD TO CLEAR INTEREST-RATE SWAPS THROUGH IDCH

Posted March 20, 2009

CHICAGO – Financial institutions using SunGard’s GMI clearing and accounting system for exchange-traded derivatives, futures and options are now able to process over-the-counter (OTC) US dollar-denominated interest-rate swap futures business through the International Derivatives Clearinghouse (IDCH), a CFTC-regulated clearinghouse.  

“The OTC interest-rate swaps market is the largest derivative asset class in the world,” says Christopher Edmonds, Chief Executive Officer of IDCH. “The use of a centrally cleared platform for OTC interest-rate swap futures contracts helps address problems of opacity and counterparty credit risk. SunGard’s GMI provides firms the ability to process and clear transactions with IDCH in an efficient and cost-effective manner.”

The ability for financial institutions to process and clear OTC derivatives through central clearing entities, such as IDCH, will be crucial to helping institutions increase transparency and manage exposures. IDCH provides a platform for firms to execute trades in interest-rate swap futures as well as to convert OTC transactions to cleared interest-rate swap futures. SunGard’s GMI provides customers with processing and clearing capabilities for OTC interest-rate swap futures through IDCH’s centrally cleared platform.

“SunGard’s GMI helps firms simplify the process for booking interest-rate swap futures business, providing back-office processing, and helping them manage relationships,” says Gerry Murphy, President, Brokerage and Clearance Business, SunGard. “GMI is providing processing with a clearinghouse that can potentially help reduce counterparty risk and provide the added transparency and stability that is needed in the OTC swaps industry.”