LCH.Clearnet leverages SWIFT for standardised margin call messages

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Summary
  • First CCP to use standardised MX messages over SWIFT to notify clearing members of margin calls
  • Adoption of ISO 20022 standard brings increased operational efficiency to members
  • Targeting go-live in November 2015
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LCH.Clearnet Ltd, the global clearing house, announced that it will be using SWIFT to notify clearing members of margin calls. Under the new process, LCH.Clearnet’s members will receive margin call notifications faster and in a standardised format, increasing operational efficiency and straight through processing (STP). The service was developed in collaboration with SWIFT and the global ISO Standards Evaluation Group and will also be available to members of LCH.Clearnet LLC.

LCH.Clearnet already uses SWIFT to send and receive collateral messages with its members. Firms will be able to sign up to the extended service from November 2015 so they can receive margin call notifications via SWIFT. The messages will comply with ISO 20022 MX standards.

Gerard Smith, Director, Collateral Services, LCH.Clearnet, said: “We’re committed to improving efficiency for our members, and we have developed this new service with them in mind. Leveraging SWIFT enables members and their clients to be notified of their margin obligations in a more timely and standardised fashion. We’re delighted to have collaborated with SWIFT to be the first CCP to offer this service to our members and their clients.”

Arun Aggarwal, Head of UK, Ireland and Nordics, SWIFT, said: “LCH.Clearnet’s adoption of ISO 20022 standards for these margin calls is a great example of the market moving towards greater standardisation and efficiency. We’re pleased to be working with LCH.Clearnet to deliver a fast and effective way for members to receive notifications of margin calls. This forms part of SWIFT’s wider global efforts to assist members with STP programmes for collateral management”

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.Clearnet

The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and trading platforms as well as a range of OTC markets.

LCH.Clearnet’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of past defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared.

LCH.Clearnet Group is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community.