LCH, part of the London Stock Exchange Group (LSEG), has announced that Commonwealth Bank of Australia (CBA) has joined LCH SA, becoming the first Australian financial institution to join the Paris-based clearing house. This development highlights the growing demand for the RepoClear service from outside Europe.
RepoClear looks to further support its members in 2022 via the merger of its €GC and RepoClear SA, further extending its collateral solution by widening the scope of eligible currencies to its triparty services.
Corentine Poilvet-Clediere, head of RepoClear, collateral and liquidity, LCH SA, says: “It is a great milestone to welcome CBA as the first Australian member of LCH SA. RepoClear SA has been gaining increasing traction in regions outside Europe, with members joining from Japan, Canada and now Australia.
“Banks such as CBA play a key role in further deepening and enriching our netting pool. We are looking forward to working in collaboration with CBA, providing a best-in-class clearing service.”
Chris McLachlan, executive general manager of global markets at Commonwealth Bank of Australia, adds: “We are delighted to become a member of RepoClear SA. The service’s 13 Euro-denominated debt markets and recent expanded access for the buy-side, offers vital access to secured funding markets for CBA and its clients, as well as offering significant opportunities for capital and operational efficiencies.”
LCH SA reports that volumes through RepoClear SA grew by 21 per cent YoY during 2021 to 9.4 million trades, with nominal cleared value rising by 15 per cent YoY to a record €195 trillion.
With the addition of CBA, RepoClear SA now has 97 members, with a rising number of non-European banks becoming clearing members, according to a statement from LCH SA.
