LCH has expanded its non-deliverable interest rate swaps offering to include five additional currencies.
Market participants are now able to clear this product denominated in Brazilian real, Chilean peso, Colombian peso, Taiwan dollar and Thai baht.
This builds on LCH’s existing non-deliverable interest rate swaps offering of Chinese yuan, Indian rupee and Korean won, launched in April 2018. LCH has cleared over $5.47 trillion of these currencies since going live.
Cameron Goh, global head of product, rates at LCH, says: “We’re delighted to be expanding our non-deliverable swaps offering to include these currencies. Our focus continues to be on providing maximum capital and margin efficiencies for the market, and this latest extension is another example of LCH partnering with our customers to extend our cleared product set.”
Bruno Lettich, global head rates trading at Standard Chartered Bank, comments: “This is an important development for the market, and we are delighted to be among the first members to clear these derivatives at LCH as we continually look to expand the risk management benefits that we provide to our clients. This move by LCH to expand the Asian product offering and the inclusion of Latam currencies, extends the significant margin and capital efficiency benefits of LCH’s global liquidity pool.”
Felicia Grumet, global head of OTC clearing at Bank of America Merrill Lynch, adds: “LCH’s expansion into additional APAC currencies provides us with further opportunity to increase capital and margin efficiencies for our clients through SwapClear’s global pool of cleared liquidity. We’re delighted to be able to offer the substantial benefits of clearing these products to our clients across the globe.”