FIS AND LCH.CLEARNET LAUNCH CLEARING FOR FERTILIZER SWAPS

摘要

FIS, the derivatives broker and LCH.CIearnet Ltd (LCH.CIearnet) will launch an OTC clearing service for the fertilizer swap market on 16 October 2009 in a move that will increase transparency and liquidity and greatly reduce counterparty risk. The global physical fertilizer market had an estimated annual turnover of $500bn in 2008 with nearly 1bn tonnes of raw materials and products produced annually. The addition of clearing will increase trading capacity, improve operational efficiencies and facilitate optional post-trade anonymity, making the product more appealing to participants from outside the industry - particularly financial institutions.