On 25 May, the total volume in equity derivatives futures and options registered through Euronext.liffe’s Bclear wholesale service passed the 100 million milestone. The service registered its 50 millionth contract on 13 December 2006.
The additional business attracted to Bclear in the first half of 2007, looks set to eclipse the total registered in 2006. Bclear’s success is due, in part, to the broad adoption by both the hedge fund community and member firms benefiting from the broad range of underlyings and flexibility available on the service.
David Sagnier, Managing Director and head of sales for flow equity derivatives to asset managers for Europe Middle East and Africa at JPMorgan said; "Bclear provides effective solutions to the operational challenges that our clients face when processing equity derivatives trades. This administration and clearing system preserves the flexibility of OTC products in a standard exchange environment, combining the best of the OTC and exchange traded worlds".
Since launch, over 70 member firms have used Bclear to register wholesale equity derivatives transactions. These have included index futures and options as well as single stock options and Universal Stock Futures (USFs) on securities from 16 different European countries and the United States.
Scott Carpenter, Head of Operations at the hedge fund CQS, who are active users of Bclear, said; "Bclear has brought the operational controls and efficiencies of the exchange traded market to an OTC product set. It is a well thought-out platform that we look forward to being able to use globally when it becomes available in other markets in the future".
Bclear is the on-exchange administration and clearing service that provides a simple and cost-effective way to register and process wholesale equity derivatives trades through Euronext.liffe to clearing at LCH.Clearnet Ltd. This can reduce the counter-party credit, legal and operational risks associated with OTC deals. Bclear enables registration of both ‘standard exchange’ and ‘flexible’ trades in futures and options covering 12 country and pan-European indices as well as futures and options on over 650 European and US securities.