Trends: Voluntary Clearing: Buy Side, CDX and CDS

Transcription

1 Trends: Voluntary Clearing: Buy Side, CDX and CDS Canadian Annual Derivatives Conference Lisa A. Cavallari, CAIA, FRM Director, Fixed Income Derivatives and Commodities DECEMBER

2 Important information and disclosures Nothing contained in this material is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional. Copyright Russell Investments. All rights reserved. This material is proprietary and may not be reproduced, transferred, or distributed in any form without prior written permission from Russell Investment. It is delivered on an as is basis without warranty. Securities products and services offered through Russell Investments Implementation Services, LLC, part of Russell Investments, a SEC Registered investment adviser and broker-dealer, member FINRA, SIPC. Russell Investments Implementation Services, LLC is a wholly owned subsidiary of Russell Investments US Institutional Holding Co. Russell Investments ownership is composed of a majority stake held by funds managed by TA Associates with minority stakes held by funds managed by Reverence Capital Partners and Russell Investments management. Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company. The members of the Russell Investments group of companies are not affiliated in any manner with Frank Russell Company or any entity operating under the FTSE RUSSELL brand. The Russell Investments' logo is a trademark and service mark of Russell Investments. Standard & Poor s Corporation is the owner of the trademarks, service marks, and copyrights related to its indexes. Indexes and/or benchmarks are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Unless otherwise noted, source for the data in this presentation is Russell Investments Implementation Services, LLC. This material is a product of Russell Investments Implementation Services, LLC, a registered investment advisor and broker-dealer, member FINRA, SIPC. Date of first use: November RIIS RC: 3035

3 BUY-SIDE SINGLE NAME CLEARING UPDATE CONTINUED MOMENTUM IN Quarterly Notional in $ Billions $40 $30 $20 $10 Cleared Client Single Name Notional Quarterly vs. Cumulative $250 $150 Cumulative Notional in $ Billions 150 Single Name Clients Single Name Instrument Breakdown $1.13 $4.41 $7.02 $24.1 $ $ $4.66 $21.96 $106.9 Accts* Accts* Accts* Accts* *Count is at the Fund Manager level, not sub account level Sov NA Corp Eur Corp INTERCONTINENTAL EXCHANGE

4 BUY-SIDE SINGLE NAME CLEARING UPDATE SINCE INCEPTION SN User by Entity Type Activity by Submission Type Asset Manager Hedge Fund Non-Member Bank Notional ($ Bns) $150 Daily Backloading Eligible Instruments ICC Clearable Single Name Overview NA SN EUR SN SOV SN Cleared Clearing Eligible INTERCONTINENTAL EXCHANGE

5 EM CDX AND ITRAXX SENIOR FINANCIAL INDICES STRONG MARKET UPTAKE DESPITE NO MANDATE TO CLEAR CDX Emerging Market Index Notional Quarterly vs. Cumulative Quarterly Notional in $ Billions $35 $30 $25 $20 $15 $10 $5 $250 $150 Cumulative Notional in $ Billions Quarterly Notional in $ Billions $160 $140 $120 $80 $60 $40 $20 itraxx Senior Financial Index Notional Quarterly vs. Cumulative $1 200 $1 000 $800 $600 $400 Cumulative Notional in $ Billions INTERCONTINENTAL EXCHANGE

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