Survey of CCP Progress Since the US Clearing Mandate Kicked In
It's been a few months since we last updated the CCP chart, and in that time clearing has become mandated in the US. In most cases the quantity of trades in each CCP has increased, but the effects of netting and tear-ups might be behind the reduction in others. There have been plenty of announcements of the intention to provide clearing, and in most cases no evidence of progress on those plans – building a CCP is a hard task, and even harder to bring liquidity given the netting benefits of having fewer CCPs. If you are one the CCPs below – please check the figures and let me know if there are corrections, gathering this data is non-trivial. The raw statistics from each CCP are published in their own particular style, some provide the amount of open business measured by Notional, some Open Interest, and for SGX only the cumulative total amount cleared (unless I'm mistaken).
Note: Research carried out by Tabitha Jay.
Overall State of CCPs
The column on the right shows which software platform is being used to operate the CCP itself – this doesn't mean a member or client should use that platform necessarily, other platforms are available, as they say.
Below is the historical data showing the evolution of clearing by asset class, the change column is the delta from last July to now.
The chart combines SwapClear Global and SwapClear US for a combined total (they are split out above).
Conclusions & Comments
- In the past twelve months CME & JSCC have established themselves as players in the IRS market, but SwapClear remains the clear leader in amount of business
- ICE is the leader for Credit products in every region
- This situation bears out the argument that Initial Margin is optimised by keeping as much of an asset class in one CCP as possible, the converse being that splitting a portfolio across multiple CCPs decreases the benefits of netting
- LCH ForexClear owns the cleared FX NDF market
- I will continue to try and acquire data for Chile, Brazil, Hong Kong, Poland, Australia etc, don't be shy ;-)
These charts take considerable effort to create – if you would like to re-use them or their data, please let me know in advance and be aware that these charts and this site are subject to a copyright statement here where I ask that you make an attribution back to this site, do not use this for commercial purposes and do not distribute modified versions of these charts without prior discussion with myself. I am very happy for people to link to this page and re-use the materials provided The OTC Space is fully credited.
Each chart has a caption underneath, these are taken directly from the CCP websites, not all services provide graphs.