About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

SwapClear Passes US$1 Trillion in Overnight Index Swap Trades in 11 Weeks Since Launch

Subscribe to our newsletter

LCH.Clearnet Limited’s SwapClear service has surpassed the US$1 trillion market in cleared overnight index swap (OIS) trades in only 11 weeks since OIS clearing was launched.

SwapClear is the leading global interest rate swap clearing service. Launched in 1999, it currently clears circa 64% of the global interbank interest rate swap market and, at 30 September 2009, had US$202 trillion in outstanding notional trade sides.

Further developments are planned for the coming months, including a service tailored for the buy side and extensions to tenors to up to 50 years in some of the 14 currencies currently cleared.

Alberto Pravettoni, managing director of Commercial Services, LCH.Clearnet said: “The success of SwapClear’s OIS offering demonstrates the market’s appetite for tailored OTC clearing solutions. Dealers have long recognised the operational and risk management benefits of clearing interest rate swaps, as well as the proven effectiveness of the SwapClear default management process.”

The resilience of SwapClear’s default management process was demonstrated in September 2008 when it successfully handled Lehman’s US$9 trillion interest rate swap default. The highly effective default management process ensured that 66,390 trades were hedged and auctioned off to other clearing members in a timely fashion and that the default was managed well within the margin held and with no recourse to the default fund.

LCH.Clearnet Limited is both a Financial Services Authority (FSA) Recognised Clearing House and a Commodity Futures Trading Commission (CFTC) registered Derivatives Clearing Organisation (DCO).

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Hearing from the Experts: AI Governance Best Practices

The rapid spread of artificial intelligence in the financial industry presents data teams with novel challenges. AI’s ability to harvest and utilize vast amounts of data has raised concerns about the privacy and security of sensitive proprietary data and the ethical and legal use of external information. Robust data governance frameworks provide the guardrails needed...

BLOG

Nature-Risk Data Proposals Hailed as Pathway to Better Investment Decisions

Proposals to improve the nature-risk data value chain has been welcomed by sustainability data leaders who said they will pave the way for better decision making and reporting by financial institutions and provide more detailed analyses for investors. The proposals offer a slate of principles to improve the quality of state-of-nature data collection and integration...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

The Data Management Implications of Solvency II

Bombarded by a barrage of incoming regulations, data managers in Europe are looking for the ‘golden copy’ of regulatory requirements: the compliance solution that will give them most bang for the buck in meeting the demands of the rest of the regulations they are faced with. Solvency II may come close as this ‘golden regulation’:...