Morgan Stanley has joined LCH’s CDSClear service as a US futures commission merchant (FCM), further expanding the clearing house’s presence in the US credit derivatives market.
The move allows Morgan Stanley’s clients to clear a wider range of credit default swaps (CDS) products, with the potential for margin offsets and improved operational efficiency, reports the Trade. LCH’s CDSClear platform, part of the London Stock Exchange Group’s Post-Trade division, aims to centralise and streamline CDS clearing processes.
Marcus Robinson, head of LCH CDSClear, said Morgan Stanley’s membership is a step toward creating a more integrated global clearing service, with access to a single liquidity pool for CDS markets. The platform supports clearing through both US and European models, broadening its appeal to international participants.
Grow US footprint
Morgan Stanley is the second US FCM to join CDSClear, following BNP Paribas Securities Corporation’s membership in February. The expansion is part of LCH’s effort to grow its footprint in the US credit derivatives market, offering participants more options for capital, margin, and operational efficiencies.
