LCH.Clearnet launches clearing of European Senior Financials Credit Derivatives

Report date
  • First CCP to offer its members the full range of European Senior Financials indices and single names for clearing
  • Participants now benefit from greater capital and margin efficiencies through portfolio margining
  • LCH.Clearnet is the only EMIR-authorised clearing house to clear credit default swaps

LCH.Clearnet SA (“LCH.Clearnet”), the global clearing house, today announced its CDSClear service has started clearing Markit iTraxx Senior Financials Indices along with all single name constituents of these indices. This represents a significant development for the industry as this is the first time that credit default swaps (CDS) referencing banks, including some of CDSClear’s clearing members, can be centrally cleared.

Senior Financials are credit default swaps and CDS indices which reference major European financial institutions. Clearing the full range of Senior Financials single names along with indices provides CDSClear members with significantly enhanced capabilities for margin offsets through effective portfolio margining. CDSClear expanded its eligible product set to include these instruments in response to member demand.

Frank Soussan, new Global Head of CDSClear, LCH.Clearnet, said: “We’re delighted to extend our product suite, following rigorous risk reviews and testing. This launch is a testament to CDSClear’s commitment to innovation and providing robust risk management to the market. We’re seeing significant demand for clearing these products as members strive to efficiently manage their margins.”

The following products are now eligible for clearing through CDSClear:

  • iTraxx Senior Financial Indices from Series 5 onwards, 5Y & 10Y tenors
  • All 36 Single Names that have ever been a constituent of the indices

LCH.Clearnet is the only EMIR-authorised clearing house to clear credit default swaps and offers the broadest European coverage of any CCP, clearing 300+ single-name CDS and 73 index series.

iTraxx® is a registered trade mark of Markit Indices Limited.

For further information

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

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