With the UK still headed for a Brexit in 2020, subject to December’s General Election, German banking group DekaBank, the securities services provider of the German Savings Banks Finance Group, has successfully transferred a substantial portion of its swap book from UK-based LCH to Frankfurt-based Eurex Clearing in a single day. What the firm calls […]
Clearinghouse LCH has announced that it has expanded its deliverable FX offering to include FX forwards, meaning members of it ForexClear service are now able to clear this product in eight currency pairs, AUDUSD, EURUSD, GBPUSD, USDJPY, USDCHF, EURJPY, EURCHF and EURGBP, with physical delivery. The product extension builds on the launch of deliverable FX options […]
Clearing house LCH has announced that it is the first clearing house to integrate with FX Connect TradeNexus, State Street’s FX trading platform that provides exception-based automated matching, trade and settlement confirmation enrichment and third party messaging. Kate Lowe, managing director, global head of TradeNexus, says, “Uncleared margin rules are changing the way the market […]
LCH has appointed Isabelle Girolami as its CEO, effective November 1. Based in London, Girolami will report to Daniel Maguire, CEO of LCH Group. In this role, she will be responsible for driving continued expansion across LCH’s services, which run across asset classes including interest rate derivatives, FX, equities and fixed income. Girolami’s appointment follows […]
Bank of China (UK) Limited, the firm’s UK entity, has joined LCH’s SwapClear service as its first clearing member from a Chinese banking group thus gaining access to clearing of interest rate derivatives. The bank will also act as a clearing broker, offering clearing services to its client base. In 2015, Bank of China became […]
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.”
Following a review of UK-based central counterparties (CCPs) and central securities depositories (CSDs), the European Securities and Markets Authority (ESMA) has announced that in the event of a no-deal Brexit, three CCPs established in the UK – LCH Limited, ICE Clear Europe Limited and LME Clear Limited – will be recognised to provide their services in the European Union.
ESMA says it has adopted these recognition decisions in order to limit the risk of disruption in central clearing and to avoid any negative impact on the financial stability of the EU.
TriOptima, a provider of multilateral compression services for OTC markets, set a new record for its triReduce portfolio compression service in 2018, having compressed $250 trillion gross notional value of trades at LCH SwapClear.The firm says this record, which represents an annual increase of 31% in terms of notional value, was driven by a combination of increased participation of both dealers and their clients, increased trade submission to triReduce cycles and a wider adoption of the Trade Revision methodology, which improves compression efficiency by up to 50% by allowing a wider range of trade economics to be changed.“We are proud that another record compression year continues to help the industry achieve important capital and operational cost reductions,” says Peter Weibel, co-CEO at TriOptima.
For the first time, trades registered in LCH’s SwapAgent service were successfully compressed in TriOptima’s multilateral USD/EUR cross-currency swap compression cycle. Using its triReduce compression service, €4.5 billion in notional of trades registered in SwapAgent were compressed. During the run, SwapAgent and non-SwapAgent trades were blended together to achieve better benefits from the compression.Compression is the process by which members can eliminate offsetting trades to reduce notional outstanding and the number of line items in a portfolio. Capital requirements such as those introduced under the Basel III leverage ratio have incentivised banks to reduce notional outstanding.
LCH says that its ForexClear members have reduced their notional outstanding by $4.5 billion through the use of the service’s compression solution. Citi and Standard Chartered Bank are among the first participants to actively compress their trades at ForexClear.
Compression is the process by which clearing members and their clients can eliminate offsetting trades to reduce notional outstanding and the number of line items in a portfolio. Capital requirements such as those introduced under the Basel III leverage ratio have incentivised banks to reduce notional outstanding.