Mitsubishi UFJ Securities International is now clearing its interest rate swap business through LCH.Clearnet’s interest rate swap clearing service, SwapClear.

With a total value of USD347trn, interest rate swaps continued to be the largest part of the OTC derivatives market in the first half of 2010.

Kirsty Brown, head of business development and strategy at MUSI, says: “Increased regulation and scrutiny mean reducing risk in the fast-growing OTC market is a substantial challenge. LCH.Clearnet is the industry standard in clearing and counterparty services and our partnership confirms MUSI’s commitment to offering the best possible protection from risk.”

Michael Davie, chief executive of SwapClear at LCH.Clearnet, says: “The speed with which MUSI has introduced clearing for its IRS business attests to their commitment to manage risk. We look forward to providing them with the benefits of centralised clearing such as reduced counterparty risk, increased capital efficiencies and lower operational costs. This extension to SwapClear’s membership confirms the key position that our service has established within the OTC post-trade environment.”