Derivatives Clearing Services
Goldman Sachs has been a market leader in the evolution of OTC Clearing.
We participated in the initial launch of interest rate swaps and credit default swaps clearing for clients in December 2009 and will fully support client clearing in these products as the markets continue to evolve and expand. To support customer clearing for derivatives that were previously done bilaterally, Goldman Sachs has created Derivatives Clearing Services (DCS). The DCS team is aligned with and was built out of our globally recognized Prime Brokerage and Futures clearing business to maximize efficiency and provide consolidated reporting across asset classes.
DCS is designed to streamline the client clearing experience across products, asset classes and regions. In addition to credit default swaps and interest rate swaps, DCS will also support centralized clearing for foreign exchange, commodities and equity swaps as they become clearing-eligible. Our DCS business offers our clients numerous benefits including access to all major clearinghouses globally, margin solutions and optimized collateral management.
Objective Criteria for the Acceptance of Customers for Clearing
Goldman Sachs’s decision to provide swaps clearing services to any client is determined based on some or all of the following criteria: (i) the client’s credit profile, (ii) the client’s capital and other financial resources, (iii) the client’s expertise in trading complex financial products, including swaps, (iv) the operational, liquidity and risk management capabilities of the client in trading financial products, including swaps, (v) the types of swaps that the client intends to trade and clear at Goldman Sachs, (vi) whether Goldman Sachs has the ability to clear the swaps the client is intending to trade, (vii) whether commercial and legal terms can be agreed with the client, (viii) the approach the client takes to legal and compliance issues, (ix) satisfaction by the client of Goldman Sachs’s client on-boarding requirements, (x) Goldman Sachs’s credit exposure, capital and other financial resources/condition, and (xi) any other relevant objective considerations.