LCH clears over $1 trillion in inflation swaps notional

Report date

Press Release

  • Over $1 trillion in inflation swaps since the service launched in April 2015
  • 43 members, 47 clients and 12 clearing brokers live and clearing GBP, EUR and USD inflation swaps
  • Significant uptick since introduction of bilateral margin rules, in some jurisdictions, on 1  September 2016
  • Record months in September and October with $170 billion in inflation swaps cleared in each month;  a 500% increase compared to preceding 12 month average

LCH, a leading global clearing house, announced today that its SwapClear service has cleared a total of $1 trillion in notional of inflation swaps since the service launched in April 2015. This achievement follows a significant increase in cleared activity on the buy and sell side following the implementation of non-cleared margin rules in September 2016.

Inflation-linked swaps are typically used by asset managers and pension funds looking to hedge against rising inflation and interest rates. Members and their clients clearing inflation swaps at SwapClear benefit from offsetting margin requirements against structurally similar cleared products at LCH. SwapClear has also extended its compression offering to provide Solo Compression for inflation swaps to enable members to achieve further portfolio efficiencies.

Daniel Maguire, Global Head of Rates & FX Derivatives, LCH, added: “This is another significant milestone for SwapClear, demonstrating the continued demand for inflation swap clearing on both the buy and sell side. The introduction of bilateral margin rules in September is driving volume growth across our rates and FX services and we’re pleased to be supporting our members and their clients in achieving improved risk management and capital efficiencies.”

For further information

Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126 

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About LCH

LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.

As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.

LCH operates clearing houses around the world, with clearing houses incorporated in the UK, France and the United States with additional offices in the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives.

LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.