The leading knowledge platform for the financial technology industry
The leading 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

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).

Related content

WEBINAR

Recorded Webinar: Developing operational resilience

Financial institutions’ operational resilience – essentially the ability to prevent, adapt and respond to, and recover and learn from operational disruptions – has come under extreme pressure during the coronavirus pandemic, with last year’s March lockdown creating unprecedented circumstances for financial firms. Employees working from home raised the stakes, as they still do, adding to...

BLOG

CUSIP Calls on Financial Institutions to Get More Involved in Data Standards Development

CUSIP Global Services is working in partnership to accelerate data standards development in emerging markets including digital securities and ESG investing. The standards organisation is also working with the ANNA Service Bureau to improve coverage and quality of ISINs, and with regulators and the Derivatives Service Bureau on the introduction of the UPI later this...

EVENT

TradingTech Summit London

TradingTech Summit London will explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility. Leveraging the cloud, AI and ML technologies to get an edge, automate processes and simplify operations in a cost effective way is the name of the game and will share practical insight from practitioners and technology leaders who are innovating and driving forward change in trading operations.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...