Nomura, the global investment bank, today announced that its global interbank interest rate business has successfully commenced trading through LCH.Clearnet's SwapClear platform.
Nomura is the 22nd financial institution to be given dealer status by LCH.Clearnet and is the only member to represent the Asia region. By clearing interest rate swaps through LCH.Clearnet, Nomura benefits from lower counterparty credit and operational risk and more secure collateral handling procedures.
"This is a key stage in the development of Nomura's Global Rates business," said Kieran Higgins, Co-Head of Fixed Income, Europe, Middle East and Africa. "LCH.Clearnet is the industry standard in clearing and counterparty services and our partnership confirms to the market that we are fully committed to the growth and global reach of our Fixed Income franchise."
Nomura already utilises LCH.Clearnet's EquityClear and RepoClear services and this development with SwapClear grants the firm further liquidity in the global inter-dealer market.
Nomura's dominance in the Asian interest rate swap market provides the opportunity for SwapClear's member firms to have increased liquidity where previously they may not have had market share. Inversely, the relationship provides Nomura with a platform to provide diversity outside of Asia, particularly in Europe and the Americas.