Morgan Stanley will start clearing MPS Capital Services’ over-the-counter (OTC) interest rate swaps (IRS) on LCH.Clearnet. The clearing project started at the beginning of 2010 will allow a better management of possible credit events. Morgan Stanley recently cleared some of the first OTC IRS transactions through LCH’s SwapClear Futures Commision Merchant (FCM) service for U.S. clients. The firm currently provides OTC derivative clearing services at CME Group and ICE Trust in addition to LCH.
Click here for the release from Morgan Stanley.