08 January 2018
Reporter: Jenna Lomax

LCH hits record highs volumes in 2017

LCH has achieved record growth for volumes in 2017 with its equities, fixed income, and over-the-counter (OTC) derivatives clearing services all surpassed clearing activity from previous years.

LCH reported that during 2017 its interest rate derivatives clearing service SwapClear processed over $873 trillion in notional.

Members and their clients increased their flows through LCH by 31 percent, compared with 2016, the clearing house reported.

According to LCH, the growth came from the activity driven by new customers across Europe, the Americas and Asia Pacific, the initiation of new products and the effects of regulatory change.

For inflation swaps, over $3.1 trillion was cleared in 2017, almost three-times the volume processed in the previous year.

Compression volumes also continued to increase, with over $608 trillion compressed over the year, up 58 percent on levels from 2016.

Over the last 12 months, ForexClear, LCH’s foreign exchange derivatives clearing service, processed over $11 trillion in notional, up from approximately $3.2 trillion in 2016.

LCH launched LCH SwapAgent in September, a service for the non-cleared derivatives market.

The service processed its first trades last year and has since initiated cross-currency basis swaps.

Daniel Maguire, group CEO of LCH, said: “2017 has been another strong year for LCH across all our business areas. We’ve seen significant growth in volumes across multiple asset classes driven by new customers as well as additional flow from existing customers.”

“[LCH] is committed to its open access approach, working in partnership with our customers to promote greater choice and innovation, reducing risk and maximising capital and operational efficiencies. In 2018, we look forward to continuing to partner with our customers, as we look to add additional products and services to our existing wide range spanning the cleared and increasingly the non-cleared market.”

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