Societe Generale Prime Services Executes and Clears Non-Deliverable Forwards Through LCH.Clearnet
NEW YORK and LONDON, May 6, 2015 /PRNewswire/ -- Societe Generale Prime Services, a global leader in multi-asset brokerage and clearing, today announced that its Futures Commission Merchant (FCM) has conducted its first customer Non-Deliverable Forward (NDF) cleared trade with LCH.Clearnet's ForexClear service acting as the clearing house. The trade signifies the bank's move toward providing active NDF clearing services and is a positive step in the development of a more capital and operationally efficient method for trading this product.
Nicholas Gionfriddo, Americas Head of OTC Clearing Sales for Societe Generale Prime Services, said: "As a market leader in cleared derivatives, this illustrates our commitment to OTC Clearing as well as our ability to leverage expertise and infrastructure to provide clients with solutions during a time of rapid industry change."
In the current context: NDFs are not currently mandated for clearing and the upcoming Basel Committee on Banking Supervision will require margin for un-cleared bilateral positions. Clearing NDFs provides capital and operational efficiencies as well as achieves the systemic risk reduction sought by regulators. The bank's proprietary cross-asset margining platform enables its customers to gain margin efficiencies by providing risk offsets across their entire portfolio. Additionally, Societe Generale Prime Services' cleared derivatives processing model is robust and highly automated which reduces customer processing risk and cost of overhead.
Trading firms who transact NDFs outside of a centrally cleared environment face valuation challenges due to the wide variety of models used by their trading counterparts. The centrally cleared single valuation model approach provides a simple and highly transparent method for valuating client positions and portfolios. By reducing valuation complexity with a standardized model and daily reporting, centrally cleared NDFs provide customers with the assurance their accounts are being accurately valued in a timely fashion.
Societe Generale Prime Services
Societe Generale Prime Services, part of the Global Markets' division of Societe Generale Corporate & Investment Banking, is the bank's Prime Brokerage business, formally Newedge, offering a unique combination of execution, clearing, custody and financing services. It is truly multi-asset and multi-instrument across Listed Derivatives, Equities (Cash/synthetic), FX, Fixed Income and OTC Cleared. As a firm offering world leading derivatives brokerage services, unrivalled access to 125+ markets and exchange venues, Societe Generale Prime Services provides its clients an extensive pool of liquidity and tailored value added services.
Societe Generale
Societe Generale is one of the largest European financial services groups. Based on a diversified universal banking model, the Group combines financial solidity with a strategy of sustainable growth, and aims to be the reference for relationship banking, recognised on its markets, close to clients, chosen for the quality and commitment of its teams.
Societe Generale has been playing a vital role in the economy for 150 years. With more than 148,000 employees, based in 76 countries, we accompany 32 million clients throughout the world on a daily basis. Societe Generale's teams offer advice and services to individual, corporate and institutional customers in three core businesses:
- Retail banking in France with the Societe Generale branch network, Credit du Nord and Boursorama, offering a comprehensive range of multichannel financial services on the leading edge of digital innovation;
- International retail banking, financial services and insurance with a presence in emerging economies and leading specialised businesses;
- Corporate and investment banking, private banking, asset management and securities services, with recognised expertise, top international rankings and integrated solutions.
Societe Generale is included in the main socially responsible investment indices: FTSE4Good (Global and Europe), Euronext Vigeo (Global, Europe, Eurozone and France), ESI Excellence (Europe) from Ethibel and 4 of the STOXX ESG Leaders indices.
For more information, you can follow us on twitter @societegenerale or visit our website www.societegenerale.com
Societe Generale Corporate & Investment Banking
At the core of Societe Generale's universal banking business model, the Corporate & Investment Bank is a well-diversified and leading player with nearly 10 500 professionals present in more than 31 countries across Europe, the Americas and Asia-Pacific.
Standing by its clients across sectors, the Corporate & Investment Bank tailors solutions for them by capitalising on its worldwide expertise in investment banking, global finance, and global markets.
- For Corporates, Financial Institutions and Public Sector: providing a global advisory approach (M&A, debt, equity transaction, capital structure, and asset & liability management), as well as quality capital raising solutions across the debt and equity spectrum, optimised financing and expert risk management responses notably in the realm of foreign exchange and rates derivatives.
- For Investors: offering reliable and sound investment opportunities and risk management solutions through its integrated global markets platform delivering seamless access to markets (equity, rates, credit, currencies, commodities and derivatives), as well as advice and solid financial engineering, quality of execution – both Agency and principal-, forward-looking research across asset classes, an industry-leading clearing proposition and prime brokerage services.
SOURCE Societe Generale
Related Links
http://www.societegenerale.com
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article