Goldman Sachs on Tuesday said it is launching a service to facilitate central clearing for clients in all listed and privately traded derivatives asset classes.
The service will aid clients in clearing interest rate, credit, foreign exchange, equity and commodity derivatives through external clearing houses. Goldman will not clear trades itself but will route trades to clearing houses selected by clients.
The move to central clearing for over-the-counter derivatives is a significant turning point in the marketplace, Jack McCabe, managing director and co-head of futures and the and derivatives clearing service business at Goldman said in a release.
Regulators are preparing rules that will require the majority of privately traded derivatives be cleared through central counterparties, which stand between trading partners and guarantee the trades.
Derivatives are based on underlying securities such as stocks, bonds, foreign exchange or commodities or are used to bet or protect against changes in interest rates.
(Reporting by Karen Brettell; Editing by James Dalgleish)