The Australian Securities Exchange will extend its OTC Derivatives Clearing Service to the buyside by the end of this year, subject to regulatory approval and customer readiness.

The service will give investors and asset managers the option to protect positions and collateral held at the ASX's clearing house in the event of a significant default. Nine buyside firms comprising: AMP Capital; Colonial First State Global Asset Management; Future Fund; NSW Treasury Corporation; QIC, Queensland Treasury Corporation; Suncorp Bank; Treasury Corporation of Victoria and; Victoria Funds Management Corporation are working with the ASX on the client clearing service.