ABN Amro Clearing is expanding its centralised OTC Derivatives Clearing Service with centrally cleared over-the-counter-traded interest-rate swaps as of 1 December.

The service will be available globally and extends ABN Amro Clearing’s offering of exchange-and off-exchange-traded products by providing clients with instant access to OTC products across multi-asset classes.

The new service will help reduce counterparty as well as systemic risk in the OTC market by shielding clients from running counterparty default risk on open swap positions while removing any risk-weighted capital requirements.

This is occurring at a time when regulators and industry bodies globally are looking for ways to reduce risk within the OTC market.

The fully automated OTC clearing service facilitates clients with an end-to-end solution providing trade capture, lifecycle management, confirmation control, settlements and reporting. Clients receive instant legal confirmation, settlement and direct trade allocation into their account.

“ABN Amro Clearing is determined to remain at the forefront of this growth industry by helping financial institutions adapt to and keep up to date with the swiftly changing regulatory environment of clearing services,’’ says Alexander Jacobs, head of the OTC Derivatives Clearing Service at ABN Amro Clearing. “With such an industry-leading service, we add value to our clients’ business as they benefit from our extended OTC product offering, a wide range of trading possibilities and expertise. By offering our clients a centralised service, we help make OTC trading easier and beneficial, while leading the way in cutting costs and gaining efficiencies for our clients.”