LCH.Clearnet is launching a new interest rate portfolio margining capabilities within its SwapClear service.
Market participants using SwapClear and LCH.Clearnet’s listed rates service will be able to maximise margin offsets between OTC and listed interest rate derivatives.
The new service aims to help clients to manage their collateral obligations more efficiently.
Portfolio margining will be available on an open access basis to those regulated venues that list suitable interest rate derivatives. The service should go live within the next 12 months, subject to regulatory approval.
Daniel Maguire, global head of SwapClear and listed rates at LCH.Clearnet, said: “This is a transformational initiative for the interest rate derivatives market. SwapClear is delighted to be delivering even greater efficiencies in processing, capital and collateral for our members and their clients across the world. This is another example of innovation in our increasingly dynamic industry.”
“SwapClear is uniquely positioned to efficiently aggregate, clear and portfolio-margin interest rate derivatives from multiple venues across multiple products. Portfolio margining across both OTC and listed interest rate derivatives, on a fully open access basis, will give our members and their clients execution venue choice and access to our deep global pool of liquidity.”
