DBS joins LCH SwapClear as the first direct member in Singapore
- SwapClear offers clearing for interest rate derivatives across 27 global currencies
- Services in Asia Pacific (APAC) continue to grow with 13 APAC direct members and 170 clients
LCH, an LSEG business, today announced that DBS Bank has joined SwapClear as the first direct member in Singapore.
The move to central clearing continues to be a focus for banks in the region as they look to benefit from operational efficiencies in addition to regulatory capital relief. As a result, SwapClear has continued to see an increase in the use of its services in the APAC region, recording a 15% increase year-on-year in volumes from APAC-domiciled clients and APAC currencies.
DBS, one of the largest regional market participants in APAC, continues to grow, with its Treasury and Markets (T&M) business recording stellar income growth in recent years, from SGD2.2 billion in 2019 to SGD3.2 billion in 2021, an increase of more than 46%. DBS’ T&M business’ 5-year revenue CAGR (2017-2021) of 13% also exceeds the industry average of 6%.
By joining LCH SwapClear as a direct member, DBS will be able to post Singapore Government Bonds as collateral, marking the first time a global offshore clearing house has accepted this asset class as eligible collateral.
Isabelle Girolami, CEO of LCH Ltd, said: “We are proud to welcome DBS as our first member in Singapore and look forward to helping them achieve their optimization goals as they continue their impressive growth. Singapore is a strategic focus for us as we look to expand our services throughout APAC. Through our continued investments in regional products, services, and people we hope DBS and other APAC firms continue to derive incremental value.”
Andrew Ng, Group Head of Treasury and Markets at DBS Bank, said: “We are delighted to be LCH SwapClear’s first direct member in Singapore, unlocking even greater liquidity in the OTC interest rate swap and IRS markets for our global client base. This partnership will also provide us with the highest standard of risk mitigation and unparalleled capital and margin efficiencies to further fortify our treasury markets business amid an increasingly competitive landscape. In particular, LCH’s expansion of collateral services to include Singapore Government Bonds was a particularly important step to meet our local market needs.”
For further information
Silke Marsh / Nandeep Roopray / Harriet Leatherbarrow
Tel: +44 (0)20 7797 1222
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 and France and with offices in the United States and 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 also serves the non-cleared derivatives market through LCH SwapAgent, a service which extends the efficiencies and infrastructure of clearing to the market, without acting as a central counterparty.
LCH is majority owned by London Stock Exchange Group (LSEG.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com