Our Resources page is here to help you learn more about the challenges facing the clearing community, and to understand the solutions that SwapClear is working on in partnership with our members and clients to overcome them. Here are a few of the thought leadership pieces we’ve been working on lately:

LCH USD LIBOR Conversion Quick Guide

This document is designed to provide SwapClear participants with a high-level overview of the SwapClear USD LIBOR Conversion process, including timelines, operational design and trade booking considerations, and a summary of the reporting and analytical tools supporting the conversion process.

LCH Consultation on Conversion of Outstanding Cleared THB THBFIX Contracts

This consultation document sets out LCH’s proposals in connection with THB THBFIX cessation, including the potential conversion of SwapClear’s THB THBFIX contracts, prior to index cessation.

LCH Consultation on Conversion of Outstanding Cleared SGD SOR Contracts

This consultation document sets out LCH’s proposals in connection with SGD SOR cessation, including the potential conversion of SwapClear’s SGD SOR contracts, prior to index cessation.

LCH Consultation on Conversion of Outstanding Cleared USD LIBOR® Contracts

This consultation document sets out LCH’s proposals for converting SwapClear’s USD LIBOR contracts ahead of cessation.

LCH Committed to Europe Factsheet

LCH SwapClear Benefits and Supports the European OTC Swaps Market.

LCH SwapClear USD Swaps Clearing Factsheet

As the CCP of choice for delivering access to global OTC rates markets, LCH SwapClear leads the way in USD Swaps Clearing.

LCH Inflation Swap Clearing Factsheet

As the first CCP to introduce inflation swap clearing, LCH continues to lead the way to even greater efficiencies and capital optimisation.

LCH SwapClear IRS Factsheet

With access to deep liquidity in 26 currencies, SwapClear users are driving sustained growth in IRS clearing.

Best Practices in CCP Risk Management

Clearing houses play a crucial role in ensuring global markets run smoothly. It is therefore vital that CCPs continuously evaluate their risk practices. LCH views and manages risk through four key lenses.


On the Margin: Portfolio Margining at a CCP

LCH is engaged with the industry and regulators in an effort to clarify standards for portfolio margining across CCPs and inform derivatives market participants. In this paper, we explain how the regulatory standard of "significant and reliably correlated" can be interpreted to recognise the benefits of both high and low correlations, and discuss the trade-offs between the level and stability of correlations.

Stress This House: Standardisation of CCP Stress Testing

LCH’s landmark white paper that started the global regulatory debate on standardised CCP stress testing. In this paper, we propose a transparent framework to better compare the risk management procedures of CCPs on a consistent basis, and to more easily determine aggregate member risk exposure.

Systemic Risk and the Impacts of Central Clearing

While central clearing has been successfully used in derivative markets for years, global swaps clearing mandates are in the process of expanding adoption well beyond levels the market has ever seen. This paper explores whether or not this ultimately benefits the market as intended, whether it creates new risks and whether these potential new risks require a deeper analysis of the realities of clearing house operating models.

CCP Risk Management, Recovery & Resolution

Recent debate on the issues of clearing house recovery and resolution has focused on a CCP's total loss absorbing capacity and the size of a CCP's own resources. The risks CCP members are exposed to are different to those of a CCP operator like LCH, and the debate has blurred the distinction between the resources of the clearing members and those of the CCP itself. This paper outlines our approach to risk management, recovery and resolution, and presents the key principles we believe should guide legislators' work in defining CCP recovery and resolution regimes globally.

Compression with SwapClear

Unmatched Efficiency and Freedom

LCH SMART Factsheet

LCH SMART is SwapClear’s award-winning solution for managing initial margin requirements, enabling our members and their clients to simulate portfolio risk exposure in real-time. By allowing users to perform instantaneous and consistent "what-if" margin calculations, our clients are able to estimate initial margin requirements prior to clearing.

SwapClear's LSOC with Excess Explained

This briefing deconstructs, in plain English, phase two of the CFTC's Legally Segregated, Operationally Commingled (LSOC) rule to protect clearing member and client collateral.

In addition, LSOC: Principles and Implementation is our easy to understand briefing introducing LSOC and SwapClear's interpretation of it. This paper is intended to answer all of your LSOC questions.

Mandatory Clearing Checker

Unsure of which interest rate swaps are mandated to clear under US clearing rules are which are not? Fear no more. Our Mandatory Clearing Checker can easily and immediately tell you which interest rate swaps are mandated for clearing in the US. Just submit the basic trade characteristics including swap class, currency, floating rate index and tenor, to receive a quick determination about your trade. Job done.

Lehman Brothers: Managing the Lehman Brothers’ Default

In September 2008, SwapClear successfully managed Lehman Brothers' $9 trillion interest rate swap default by implementing our unique default management process.

The default comprised more than 66,000 trades. Within three weeks, the default was fully resolved, well within the margin held and at no loss to other market participants.

LCH developed this process with its clearing members, who play an invaluable role in providing trade expertise and access to market liquidity during a default.

Stephen O’Connor, managing director at Morgan Stanley and chairman of ISDA, said: “The aim of the default management process is to manage the closeout of a member institution in an orderly fashion, with the minimum of disruption to the markets and without incurring credit losses at LCH or at other member firms. LCH and the bank members of the default management group executed on a well-tested plan in volatile markets and achieved these goals with distinction.”

The Bank of England noted that the ability of LCH to close out positions without using up all available margin “illustrates the ability of a clearing house to protect market participants from bilateral counterparty risk, even in the event of default of a major participant”. (The Bank of England’s Financial Stability Report, October 2008)

Read the 2008 Financial News Article.

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