CIBC announced today that it has signed a letter of intent to join LCH.Clearnet Ltd’s (LCH.Clearnet) SwapClear, a global clearing service for over-the-counter (OTC) interest rate swaps.
By joining SwapClear, CIBC will be able to meet clearing requirements that the bank’s U.S. counterparties will be subject to under the Dodd-Frank Act concerning interest rate swaps. CIBC will also be well-positioned to be in compliance with G20 commitments concerning OTC derivatives by the December 2012 deadline.
LCH.Clearnet’s interest rate swap clearing service, SwapClear, has cleared over 1.5 million OTC IRS trades since launch in 1999. It currently has 49 clearing members and its portfolio contains 850,000 trades with a notional value in excess of $266 trillion, down from $305 trillion as a result of terminating $39 trillion cleared IRS transactions through on-going compression.
CIBC (TSX: CM) (NYSE: CM) is a leading North American financial institution with nearly 11 million personal banking and business clients. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, and has offices in the United States and around the world. You can find other news releases and information about CIBC in our Press Centre on our corporate website at www.cibc.com.