Portfolio optimisation and margin efficiencies for rates
LCH’s Listed Rates clearing services provide a platform for generating significant capital and operational efficiencies between OTC and listed derivatives positions. Members and their clients can trade futures contracts through CurveGlobal® and clear them at LCH.
With the introduction of SONIA* as the new reference rate for sterling derivatives, it’s essential to ensure a smooth transition of your sterling portfolios. That’s why we’ve launched clearing for CurveGlobal® One Month SONIA Futures – a new monthly contract that complements the existing CurveGlobal® Three Month SONIA Futures – together with components of the CurveGlobal® Inter Commodity Spread (between the CurveGlobal® SONIA and Short Sterling Futures). For more information on the ICS and Finer Price Tick watch the video.
By clearing CurveGlobal® products such as these through LCH, which uses the same default fund as SwapClear, members can realise substantial margin efficiencies – portfolio margining their listed futures positions against SwapClear OTC’s interest rate swap positions, through LCH Spider.
That means reduced counterparty risk, delivered with a lower margin requirement for your business. It’s a win-win.
LCH has over 25 years’ experience in clearing listed derivatives across a number of asset classes, and it shows in the sophistication of our clearing offering.
In interest rate markets, we provide clearing options for a range of short-term and long-term derivatives, including both cash-settled and physically settled interest rate futures.
With a growing suite of cleared exchange-traded derivatives, and continually expanding trading efficiencies afforded through the development of innovative new tools, LCH’s futures clearing exemplifies our commitment to being the markets’ partner.
LCH offers clearing for a number of listed rates contracts that can be executed on CurveGlobal®, the fixed income trading venue operated by the London Stock Exchange Group.
Among the CurveGlobal® listed products accepted for clearing at LCH are a selection of both short-term interest rate (STIR) and long-term interest rate (LTIR) derivatives instruments that are available to trade on the CurveGlobal® platform.
Clearing these contracts with LCH not only vastly reduces your credit risk exposure to other market counterparties, but it can also potentially yield substantial portfolio margining benefits for LCH members clearing OTC interest rate swaps on our SwapClear service using our LCH Spider offering.
Clearing futures at LCH makes your portfolio safer and more efficient.
Clearing members wishing to clear these services please contact firstname.lastname@example.org
* The “SONIA” mark is used under licence from the Bank of England (the benchmark administrator of SONIA), and the use of such mark does not imply or express any approval or endorsement by the Bank of England. “Bank of England” and “SONIA” are registered trademarks of the Bank of England.