Deutsche Bank has electronically executed and cleared the first OTC interest rate derivative transaction through the bank's electronic trading platform called Autobahn and its new clearing infrastructure named dbClear.
The new clearing infrastructure allows electronic derivative deals to flow straight through to SwapClear, the interest rate derivative clearing service operated by London Clearing House. The automated transaction provides greater transparency and counterparty risk management.
Michele Faissola, global head of rates at Deutsche Bank, said that seamless electronic execution and clearing is an essential part of offering a comprehensive clearing service.
"Client and regulator requirements mean that there is an increased need for efficient clearing," Faissola said. "Our ability to execute and clear is a key differentiator for Deutsche Bank and this groundbreaking trade paves the way for the market as a whole. We were very pleased to complete this first milestone in electronic clearing."