From humble beginnings in Victorian London, to global clearing service, this is the story of LCH
LCH has been managing risk for over 100 years. Our journey has taken us from a small commodities clearing firm working out of a City of London backstreet, to a central counterparty that spans the globe, offering clearing services to customers across five continents and multiple asset classes.
Here is a taste of our story so far:
1888 - Establishment of the London Produce Clearing House (LPCH), which offered clearing services for futures contracts in coffee, sugar and other soft commodities.
1971 - LPCH was renamed the International Commodities Clearing House.
1988 - Business was acquired by a consortium of six banks.
1992 - The London Clearing House was born, signalling the firm’s intent to broaden its clearing offering beyond commodities.
1999 - SwapClear, a service for clearing interest rate swaps, was launched. Today, SwapClear is open to buy-side clients, allowing end users clearing options in 14 currencies, with maturities of up to 40 years, and non-IRS instruments such as inflation swaps.
2003 - Merger between LCH and Paris-based central counterparty Clearnet. The merged company - renamed LCH.Clearnet - revolutionised our service offering expanding the range of products offered for clearing.
2008 - LCH successfully resolved the $9 trillion notional interest rate swap portfolio of the defaulted clearing member Lehman Brothers. From a portfolio that comprised more than 66,000 trades, SwapClear was able to fully resolve the default within three weeks and with no loss to its other clearing members.
2012 - London Stock Exchange Group assumed a majority stake in LCH, while LCH expanded its US clearing capabilities by purchasing the International Derivatives Clearing Group. 2012 also saw LCH launch CDSClear, our credit default swap clearing service for its clearing members in Europe.
2014 – LCH launched new compression and portfolio margining tools to improve the economics of clearing for its customers, all the while growing its product offering to extend the clearing possibilities for its members.
2016 – LCH was rebranded as LCH, The Markets’ Partner.