27 May 2018
https://aciworldwide.webex.com

LCH Spider portfolio margining service for interest rate derivatives goes live

23 May 2016  |  1560 views  |  0 Source: LCH

LCH, the global clearing house, today announced that it has launched LCH Spider, its portfolio margining tool for interest rate derivatives.

The go-live follows receipt of all necessary regulatory approvals. From today, eligible members and clients using LCH’s SwapClear and Listed Rates services can now offset margin between OTC and listed interest rate derivatives.

LCH Spider is a fully automated service that analyses member and client portfolios and selects which eligible trades correlate and provide risk reduction. If a member has opted in, the listed rates are then transferred to their OTC portfolio for offsetting and delivering risk and collateral efficiences. Initially, portfolio margining will be available for Sterling and Euro-denominated short term interest rate futures (STIRs) with plans to add further eligible contracts, in line with customer demand and LCH’s risk management framework.

LCH Spider is available on an “open access” basis, to any trading venue, that is connected to LCH and which lists suitably correlated interest rate derivatives. LCH has worked with Nasdaq NLX to include its eligible futures contracts as part of LCH Spider’s go-live. LCH is also set to introduce CurveGlobal contracts following the platform’s planned launch in Q3 2016. The implementation of MiFID II will further drive the possibility of greater risk offsets. Members and clients looking to calculate the potential benefits of using LCH Spider on their portfolios can simulate this using SMART Spider, a new extension of LCH’s margin simulation tool.

Daniel Maguire, Global Head of Rates and FX Derivatives, LCH, said: “LCH Spider has the potential to be a game changer for the rates market and we are delighted to deliver this service to our members and their clients. This is another example of our innovation and commitment to partnering with the market to deliver greater choice and efficiencies, in line with LCH’s robust risk management and regulatory framework.

“With the world’s largest interest rate derivatives liquidity pool at SwapClear and our open access approach, LCH Spider represents the next step in portfolio margining and is a compelling offering for those looking to manage their risk and collateral obligations more efficiently.”

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit iliad-solutions.com/Visit www.niceactimize.com

Who is commenting?

Top topics

Most viewed Most shared
satelliteAnt Financial provides tech for China Ever...
29661 views comments | 3 tweets | 2 linkedin
Digital banking transformation creating new systemic risksDigital banking transformation creating ne...
8984 views comments | 18 tweets | 26 linkedin
MUFG to roll out blockchain payment network next yearMUFG to roll out blockchain payment networ...
7650 views comments | 13 tweets | 13 linkedin
There are some things you just can't do with an appThere are some things you just can't do wi...
6940 views comments | 9 tweets | 15 linkedin

Featured job

Find your next job