Deutsche Bank offers client clearing via CDSClear


By Pia Hecher.

Deutsche Bank has gone live offering client clearing via the global clearing house group LCH’s CDSClear service. Asset management firms MEAG and Union Investment are the first clients to connect to CDSClear via Deutsche Bank. They are clearing European and US credit default swaps at LCH.

Deutsche Bank is the first German bank to put forward client clearing through CDSClear.

Frank Soussan, CDSClear

“We’re delighted that Deutsche Bank is the latest clearing broker to join our growing network of firms offering their clients the ability to clear credit derivatives at LCH,” said Frank Soussan, global head of CDSClear. “The German market is a major hub for credit derivatives, and we are pleased to welcome additional clients from Germany as our customer base continues to expand.”

Nic Maalouf, global head of listed derivatives and clearing at Deutsche Bank, stated, “We are committed to the derivatives clearing business and continuously review our offering to evolve and grow in line with the demands of our clients. Offering clients access to LCH CDSClear will provide them with more choice, and we are delighted to have completed this milestone.”

Jan Reher, senior portfolio manager for fixed income at MEAG, explained that central clearing allows MEAG to profit from boosted risk management for their credit derivatives trading business. He added that the connection with LCH grants MEAG access to many cleared US and European Credit Default Swap (CDS) products.

Head of multi-asset trading at Union Investment, Christoph Hock, said that transparency is important for risk management and that CDSClear enables Union Investment to trade and clear its credit derivatives in a standardised manner. He added that within the European central counterparty clearing house (CCP) terrain, LCH has many credit derivatives available.

©TheDESK 2019