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QUESTIONS AND ANSWERS...
I OTCDerivNet Ltd
1. Who is OTCDerivNet Ltd?
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It is a limited liability company owned by Bank of
America, BNP Paribas, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan
Stanley, Royal Bank of Scotland, Société Générale and Union
Bank of Switzerland. |
2. What is the purpose of OTCDerivNet?
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To partner with the LCH.Clearnet in the development of
a secure, efficient and cost-effective post trade dated
environment for the benefit of the OTC derivative
industry. |
3. What is its involvement with the
LCH.Clearnet?
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OTCDerivNet will provide strategic direction and
funding for the development of LCH.Clearnet SwapClear and will
work with the LCH.Clearnet to extend the existing range of
clearable transactions. |
4. What will the OTCDerivNet do?
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The Group will work with the LCH.Clearnet to determine
and prioritise the future development for LCH.Clearnet
SwapClear, to ensure that the strategic direction closely
follows the needs of the
industry/market. |
5. OTCDerivNet - Partners and Ownership %
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There are currently 12 equal
shareholders. |
6. How is the OTCDerivNet organised?
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OTCDerivNet is managed by a board of directors made up
of a board member appointed by each of the twelve
shareholders. The board meets regularly and is advised by an
Executive Committee composed of four of the board members. In
addition there are various working groups staffed from each
organisation working closely with
LCH.Clearnet. |
7. What is the size of the investment commitment to the
LCH.Clearnet SwapClear service?
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OTCDerivNet will provide sufficient funds to meet the
cost of developing the system in the manner in which
OTCDerivNet would like the system developed.
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8. How will existing members be affected?
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Existing members will benefit from the enlarged user
group and the expanded product range as well as increased
trade volume. |
9. Does OTCDerivNet own LCH.Clearnet
SwapClear
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No, SwapClear is owned by LCH.Clearnet
Limited. |
II Product Development
Issues
1. How does OTCDerivNet envisage the direction of further
product development?
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Planning is underway to develop the clearing of
cross-currency swaps and to add more currencies.
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2. Who will be responsible for the financing of such
development?
3. What is the timescale envisaged for development of the
additional product suite?
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Initial estimates indicate a phased roll out over the
next several years, to include feasibility, design,
development and delivery for all the collective products
mentioned above. This has yet to be
finalised. |
III Trading Platforms -
Other
1. What is the relationship with SwapsWire
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In August 2004 LCH.Clearnet established an interface
with the SwapsWire electronic derivatives platform that will
enable a straight-through link from trade affirmation to
clearing. |
2. Will LCH.Clearnet SwapClear be linking into any
automated confirmation or transaction initiatives?
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Interfaces will be added where there is user
demand. | | 
