LCH extends buy-side repo clearing model to Euro debt
- Sponsored Clearing from RepoClear now available at LCH SA
- Offers buy-side firms access to repo clearing across 13 Euro debt markets and €GCPlus
- Builds on the offering for UK gilts, live at LCH Ltd
LCH, a leading global clearing house, today announces the expansion of its Sponsored Clearing model to include Euro repo clearing. This latest development enables buy-side firms to directly access repo clearing at LCH SA, including €GCPlus. Members of LCH SA’s RepoClear benefit from increased capacity and access to the service’s deep netting pool, as well as achieving price and settlement efficiencies. LCH’s Sponsored Clearing model is based on open access and has been developed to provide participants with a choice of trading venues and settlement options, Tradeweb is the first trading venue to offer access to the Sponsored Clearing service at LCH SA.
Buy-side firms such as pension funds and insurance firms are now able to access LCH SA’s RepoClear via a sponsorship model, whereby an agent bank provides support to the sponsored member. This support includes facilitating margin payments and providing default fund contributions for transactions made by the sponsored member. The move builds on the model offering access to LCH Ltd, which launched in 2017.
Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA, said: “The rollout of our successful Sponsored Clearing model to LCH SA is a significant moment for the European fixed income market. We are delighted to extend the benefits of clearing to an even broader set of market participants. We are looking forward to continuing to support our customers in achieving balance sheet efficiencies through netting, while significantly reducing counterparty and operational risk.”
Nicky Parsons, Head of Product - Fixed Income Prime Brokerage EMEA, Societe Generale, said: “We are very pleased to confirm our support as an agent bank for this initiative. This model will enable us to offer an even broader clearing solution for our clients, who are now able to access LCH-cleared euro government bonds. This is also a positive risk management move: diversifying the members of the CCP and increasing the capacity of the repo market, more generally.”
Enrico Bruni, Head of Europe & Asia Business, Tradeweb, said: “We are delighted to connect to LCH SA to offer our buy-side customers access to the large pool of cleared repo liquidity at RepoClear. This is an exciting milestone for the market and we are proud to be the first trading venue to provide access to this service, further enhancing our clients’ workflows.”
For further information
Rhiannon Davies / Christopher Loscher, 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