Morgan Stanley Clears MPS Capital Services OTC Interest Rate Swaps from BGC Trader

London —

Morgan Stanley announced today that it has commenced clearing trades at LCH.Clearnet Ltd for MPS Capital Services which have been executed via BGC Partners’ proprietary electronic platform, BGC™ Trader. This clearing agreement represents the first trilateral client cleared trade executed on BGC Trader and given up to LCH Clearnet for clearing.  BGC Partners is a leading global brokerage company servicing the wholesale financial markets. This business is in addition to the existing clearing relationship for voice executed trades between MPS Capital Services and Morgan Stanley which was announced in May.

 

“As this new regulatory regime takes shape the ability to successfully clear trades executed on electronic trading platforms is a crucial service for clearing brokers to offer their clients. Morgan Stanley’s latest partnership with MPS Capital Services demonstrates how quickly the Firm is adapting to service its clients in every area of client clearing,” said Andy Ross, Executive Director and European Head of OTC Client Clearing at Morgan Stanley.

Philip Norton, Executive Managing Director and Global Head of e-Commerce for BGC Partners said: “In addition to our wide array of hybrid execution services, BGC is committed to providing our clients with multiple central clearing choices and trade reporting routes. We are pleased to assist Morgan Stanley in their ability to expand their execution and clearing optionality with their customers”.

"The new regulatory landscape for the OTC derivatives market will result in a number of challenges but I believe that all institutions in a position to do so will subscribe to and use clearing facilities as best practice. This will either be through joining the clearing houses directly or by appointing a clearing broker. In addition, I expect to see greater use and more liquidity in electronic trading platforms such as BGC Trader as they grow in importance and attract more members," said Matteo Bertotti, Head of Fixed Income Derivatives at MPS Capital services.

Morgan Stanley has been actively engaged in derivatives clearing for many years and now provides clearing services for both OTC and Listed Derivatives for its clients globally.  The Firm currently offers OTC derivative clearing services on existing CCPs  and connectivity to further OTC clearing houses will be added in the future in response to client demand.

Morgan Stanley is a leading global financial services firm providing a wide range of investment banking, securities, investment management and wealth management services.  The Firm's employees serve clients worldwide including corporations, governments, institutions and individuals from more than 1,300 offices in 42 countries.  For further information about Morgan Stanley, please visit www.morganstanley.com and for further information on Morgan Stanley OTC derivatives clearing please contact otcderivs@morganstanley.com

MPS Capital Services Banca per le Imprese Spa

MPS Capital Services is the investment banking subsidiary of the Monte dei Paschi Spa Group. It was created in 2007 after the merger of the investment bank MPS Finance and MPS Banca per l’Impresa, the bank focused on Project Finance, Corporate Finance and Special Loans. MPS Capital Services offers to its Clients high level and specialised solutions for a wide range of financial and credit services with a focus on medium to long term credit, corporate finance, capital markets and structured finance.

Monte dei Paschi di Siena Group

Banca Monte dei Paschi di Siena, founded in 1472 is considered to be the oldest bank in the world. Nowadays Italy’s third largest banking group, the Bank holds significant market shares in all areas of business.

Through a wide presence over Italy and main international Financial Centres, with operations ranging from traditional banking activities to Private Banking and Corporate Banking, Monte dei Paschi Group focuses its attentions mainly on households and small to medium sized businesses. With approximately 31,000 employees and over 3,000 branches, the Monte dei Paschi Group offers its services to more than six million clients.

About BGC Partners, Inc.

BGC Partners is a leading global brokerage company servicing the wholesale financial markets, specializing in the brokering of a broad range of financial products, including fixed income securities, interest rate swaps, foreign exchange, equities, equity derivatives, credit derivatives, commodities, futures, structured products and other instruments. BGC also provides a full range of services, including trade execution, broker-dealer services, clearing, processing, information, and other back office services to a broad range of financial and non-financial institutions.  BGC’s integrated platform is designed to provide flexibility to customers with regard to price discovery, execution and processing of transactions, and enables them to use voice, hybrid, or where available, fully electronic brokerage services in connection with transactions executed either OTC or through an exchange. Through its eSpeed, BGC Trader, and BGC Market Data brands, the Company offers financial technology solutions, market data, and analytics related to select financial instruments and markets.  BGC’s customers include many of the world’s largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments and investment firms. Named after fixed income trading innovator B. Gerald Cantor, BGC has offices in 24 cities, located in New York and London, as well as in Aspen, Beijing, Chicago, Copenhagen, Dubai, Garden City, Hong Kong, Istanbul, Johannesburg, Mexico City, Moscow, Nyon, Paris, Rio de Janeiro, São Paulo, Sarasota, Seoul, Singapore, Sydney, Tokyo, Toronto, and West Palm Beach. 

For more information, please visit: www.bgcpartners.com

Discussion of Forward-Looking Statements by BGC Partners

Statements in this press release regarding BGC Partners’ business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see BGC Partners’ Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors set forth in our public filings which we incorporate by reference, including our most recent 10-K and any updates to such risk factors contained in subsequent 10-Q or 8-K filings.

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