LCH.Clearnet to launch interest rate portfolio margining capability
- Margin offsets to be available for listed and OTC interest rate derivatives portfolios
- Members and their clients offered significant opportunity for portfolio margin optimisation
- Service will be provided on an open access basis via regulated venues that list suitable interest rate derivatives
LCH.Clearnet Limited ("LCH.Clearnet"), the global clearing house, today announced that its SwapClear service will be launching new interest rate portfolio margining capabilities for its members and their clients around the world. Under the new offering, market participants using SwapClear, the largest interest rate derivatives liquidity pool, and LCH.Clearnet's listed rates service will be able to maximise their margin offsets between OTC and listed interest rate derivatives, allowing them to more efficiently manage their collateral obligations.
Portfolio margining will be available on an open access basis, to regulated venues that list suitable interest rate derivatives. The initiative is expected to go-live within 12 months, subject to regulatory approval.
Daniel Maguire, Global Head of SwapClear and Listed Rates, LCH.Clearnet, said: "This is a transformational initiative for the interest rate derivatives market. SwapClear is delighted to be delivering even greater efficiencies in processing, capital and collateral for our members and their clients across the world. This is another example of innovation in our increasingly dynamic industry. SwapClear is uniquely positioned to efficiently aggregate, clear and portfolio-margin interest rate derivatives from multiple venues across multiple products. Portfolio margining across both OTC and listed interest rate derivatives, on a fully ‘open access' basis, will give our members and their clients execution venue choice and access to our deep global pool of liquidity."
For further information
Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126
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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.