London
09 January 2017
Reporter: Stephanie Palmer

SwapClear reveals record-breaking 2016


LCH’s SwapClear service saw a record high in interest rate derivatives cleared in 2016, processing a total of over $665 trillion in 3.8 million trades.

This represents a 25 percent increase in clearing volumes compared to 2015.

Buy-side clearing volumes also hit a record high of $139 trillion cleared. According to LCH, these increases can be partly attributed to customers clearing new products, such as inflation swaps, and to the ongoing effects of regulatory change.

SwapClear’s compression service also saw increased activity, with more members and clients using the service, and a record high of $384 trillion in notional compressed throughout the year.

The service allows clearing members and their clients to reduce the number of items in their portfolios, and therefore reduce their notional outstanding.

Increased use of the compression services could have been encouraged by expansion to the offering, which now includes compression of inflation swaps and multilateral compression for clients.

Cameron Goh, global head of product management, rates and foreign exchange derivatives at LCH, said: “Capital and balance sheet management continues to be a top priority for banks impacted by the Basel III capital requirements. Central clearing and the use of compression remains an extremely effective method of driving down notional outstanding and line items in a portfolio, with the goal of maximising capital and operational efficiency.”

He added: “We will continue to work with our members to further expand the services available to them to bring more efficiencies to the market.”

The compression services are now being used by 97 clearing members and 510 clients, more than ever before.

More clearing and settlement news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Caceis gains ICF bank trading platform mandate
21 December 2017 | Frankfurt | Reporter: Zsuzsa Szabo
Caceis has received a mandate from ICF Bank to be the settlement agent for the Frankfurt-based bank’s Quotrix platform
LCH establishes clearing of credit index options
20 December 2017 | London | Reporter: Jenna Lomax
The central counterparty is the first clearinghouse to implement a risk framework specifically for the clearing of credit index options
Post-trade upgrade on the cards for Saudi Stock Exchange
07 December 2017 | Riyadh | Reporter: Jenna Lomax
Nasdaq will replace Tadawul’s current post-trade registry, depository, clearing and settlement solution
CSD Prague opens a direct account in Euroclear Bank SA/NV
05 December 2017 | Frankfurt | Reporter: Drew Nicol
The account will allow the central securities depositary to access a wider range of services and to have access to many additional foreign markets, according to Euroclear
Japan earmarks Q2 2019 for T+2 settlement shift
07 November 2017 | Tokyo | Reporter: Drew Nichol
Japan has unveiled a “tentative” timeline for its exchanges’ shift from a T+3 to T+2 settlement cycle, with eye towards Q2 2019
Iberclear bank on Citi to provide global custody
20 October 2017 | Madrid | Reporter: Jenna Lomax
The agreement, signed at this years Sibos conference in Toronto, will enable Spanish clearing houses to settle international securities via local CSDs
Eurex Clearing launches partnership programme
09 October 2017 | Frankfurt | Reporter: Theo Andrew
The programme plans to build a “balanced ecosystem”, responsible for aligning responsibilities and benefits related to economics and governance, bringing “greater choice and transparency” to the market
More clearing and settlement news