OTC derivatives clearing on LCH.Clearnet
has seen significant growth, with client clearing of swaps more than doubling
as market participants implement global regulatory reform.
In the 11 months to end of February 2014,
LCH.Clearnet’s SwapClear business saw global client clearing of swaps grow to a
notional of US$8.8 trillion cleared, while interest rate swap notional cleared
increased by 17% to US$472 trillion.
London Stock Exchange Group (LSEG), which
owns a majority stake in LCH.Clearnet, also stated that clearing volumes for
fixed income, commodities and equities have increased in its latest financial
Xavier Rolet, CEO of LSEG, said: “The
clearing volumes in the SwapClear OTC business continue to grow and we are
pleased with its performance. We
remain focused on delivering the benefits from our partnership with
Regulatory reform stemming from the
Dodd-Frank Act in the US and European market infrastructure regulation (EMIR)
requires OTC derivatives transactions to be centrally cleared.
Central clearing and electronic trading of
swaps has already begun in the US, while in Europe, the recent approval of
Nasdaq OMX Clearing to clear OTC contracts under EMIR means that regulators
will now have six months to formulate technical standards for clearing of OTC