23 October 2014

LCH.Clearnet to extend SwapClear to hedge funds and asset managers

27 May 2009  |  5262 views  |  0 mouse

LCH.Clearnet is moving to meet regulatory demands for improved risk management in the over-the-counter derivatives markets by extending its interest rate swap clearing service, SwapClear, to the broader buy-side trading community.

The new client clearing service is scheduled to be launched in the second half of 2009. LCH.Clearnet says it will follow the current clearing model, but will have additional functionality to support the segregation of client portfolios and margin. Clients will be able to access the service through a SwapClear clearing member, thereby reducing counterparty credit risk.

Joe Reilly, director of SwapClear, LCH.Clearnet says the move will help reduce systemic risk and improve market transparency.

"The broadening of SwapClear's offering to include buy-side trading clients will significantly increase the proportion of important entities able to access clearing in the rates market," he says. "We are working hard with our membership to produce a solution that is supported both by the key liquidity providers in the market and the buy-side, thereby ensuring our offering is fully attuned to the whole market's needs."

SwapClear currently lays claims to over 60%, or $85 trillion outstanding notional, of the global interbank interest rate swap market, clearing trades in 14 currencies with a tenor of up to 30 years.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

13 May, 2009
07 May, 2009
01 May, 2009
29 April, 2009
07 April, 2009
11 March, 2009
13 February, 2009
03 February, 2009
16 October, 2008
18 September, 2008

Related company news

 

Featured job

£100,000 plus bonus
Central London

Find your next job