08 November 2016
London
Reporter: Drew Nicol

LCH benefits from margin rules


LCH’s SwapClear service has cleared $1 trillion in notional of inflation swaps since the service launched in April 2015.

In a statement on the achievement, LCH put the significant increase in clearing activity down to implementation of non-cleared margin rules in September.

LCH explained that its clearing members utilising SwapClear for clearing inflation swaps can benefit from offsetting margin requirements against structurally similar cleared products.

SwapClear also extended its compression offering to provide solo compression for inflation swaps to enable members to achieve further portfolio efficiencies.

Daniel Maguire, global head of rates and foreign exchange derivatives at LCH, said: “This is another significant milestone for SwapClear, demonstrating the continued demand for inflation swap clearing on both the buy and sell side.”

“The introduction of bilateral margin rules in September is driving volume growth across our rates and foreign exchange services and we’re pleased to be supporting our members and their clients in achieving improved risk management and capital efficiencies.”

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