SWIFT helps build a world-class Central Clearing Counterparty in Latin America
Chile's new CCP ComDer clears 50% of the country's OTC FX derivatives using SWIFT
This press release is also available in Spanish.
New York, 28 October 2015 - Since going live on July 30th, Chile's first ever Central Clearing Counterparty (CCP), ComDer, cleared 50% of the country's ‘non-deliverable forwards' market using SWIFT's messaging platform.
In an effort to support Chile's internationalization and its goal to become a financial hub, Chile's financial community and regulators proactively agreed to build a world class CCP, ComDer. This three-year project is the result of a voluntary agreement between 17 banks and the country's regulators who wanted to lay a foundation that could meet Dodd-Frank and EMIR requirements, and thus attract foreign investment. Since becoming operational, ComDer has cleared USD$100 billion in NDF derivatives contracts using SWIFT's messaging platform.
Felipe Ledermann, Chief Executive Officer of ComDer says, "We knew that by choosing SWIFT as our advisory partner three years ago we would immediately earn the trust of the international community. SWIFT continues to help us build a world class CCP, an instrumental part of Chile's plans to become a financial hub."
Jairo Namur, Head Latin America at SWIFT, says: "We are very excited with ComDer's rapid success. Chile's financial community seized the opportunity to keep its competitive edge within the global marketplace by building a market infrastructure that enables them to attract foreign investment. SWIFT is glad to support Chile's community in staying at the forefront of the market's internationalization."
ComDer acts as a central CCP undertaking trade validation, trade matching, position novation, clearing, margin and collateral, as well as trade repository. In addition, ComDer manages the collateral that the Clearing Members pledge on an intraday-basis, with the local custodian and cash at Central Bank. All the ComDer participants are connected to SWIFT, and use standardized SWIFT messages. SWIFT continues to work with ComDer as it adds new instruments.
SWIFT has been working with financial market infrastructures (FMI) for over 40 years, and currently serves more than 230 FMIs around the world across payments, securities and treasury markets. SWIFT allows FMIs to process transactions, mitigate risk, and increase their operational efficiency.
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect more than 10,800 banking organisations, securities institutions and corporate customers in more than 200 countries and territories. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest.
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