LCH CDSClear continues global expansion with launch of clearing for Sovereign Single Names and new indices

Report date
Summary
  • LCH CDSClear launches clearing of iTraxx Asia ex-Japan Indices and CDX Emerging Market Indices, and their single name constituents, as well as other Sovereign single name CDS including Western European name
  • Clearing services expanded to offer users the widest breadth of products of any credit CCP globally
  • Service enables access to significant funding capital and operational efficiencies available through clearing
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LCH CDSClear today announces the expansion of its clearing services to include the iTraxx Asia ex-Japan Indices and CDX Emerging Market Indices, and their single name constituents, as well as other Sovereign Single Names, as it looks to extend the benefits of clearing to an even greater number of firms globally.  

The new products comprise 11 contracts within the iTraxx Asia ex-Japan indices, including 62 Corporate and Sovereign Single Names, of which 41 are exclusive to LCH CDSClear; 11 contracts within the CDX Emerging Markets indices, including 19 Sovereign Single Names; 21 additional Emerging Markets and Asia Pacific Sovereign Single Names, of which 14 are exclusive to LCH CDSClear; and 16 Western European Sovereign Single Names, four of which are exclusive to LCH CDSClear.

This follows the announcement in September 2022, that LCH CDSClear has gone live with clearing for 11 iTraxx Australia Indices and 38 of its Single Name constituents. LCH CDSClear has seen record activity this year, in particular with cleared notional and market share in European Single Names reaching new highs in Q3 2022. 

Frank Soussan, Global Head of CDSClear and Head of SA EquityClear & CommodityClear, LCH, said: “We are pleased to expand the risk management benefits and efficiencies of clearing to firms trading such a wide variety of credit derivatives products across the globe.”

Learn more about LCH CDSClear here.

 

For further information
Harriet Leatherbarrow / Nandeep Roopray
Tel: +44 (0)20 7797 1222 
Email: newsroom@lseg.com

Notes to Editors

Markit CDX™ and Markit iTraxx® are service marks of Markit North America Inc. and Markit Indices Limited and have been licensed for use by LCH SA. The Markit CDX™ and Markit iTraxx® indices referenced herein are the property of Markit North America Inc. and Markit Indices Limited and are used under license.  The Index CDS eligible for clearing by LCH SA are not sponsored, endorsed, or promoted by Markit North America Inc. and Markit Indices Limited or any of its members. 

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 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