Barclays goes live as clearing broker for LCH

With this move clients of Barclays and Barclays Ireland are set to benefit from capital gain opportunities.

LCH – part of the post-trade division of London Stock Exchange Group – has announced that Barclays and Barclays Ireland are now live as clearing brokers at CDSClear.

Europe-based CDSClear allows users to cross-margin European and US products. It became an international service in 2012, following regulatory efforts to enforce the central clearing of certain credit default swaps. Two years later, the European Securities and Markets Authority reauthorised the CCP to clear the products under the European Market Infrastructure Regulation.

According to LCH, it is currently in the process of expanding its clearing network and the range of credit products eligible for clearing.

“We look forward to partnering with Barclays to enable its clients to gain clearing efficiencies through netting and portfolio margining at the largest CDS CCP in Europe,” said Frank Soussan, global head of LCH CDSClear.

As a clearing broker, Barclays is set to advance its clearing efficiencies and its clients will benefit from capital gain opportunities and the clearing house’s ‘robust’ risk management. 

Gary Saunders, managing director, head of prime derivatives services at Barclays Corporate and Investment Bank, said: “Going live with LCH CDSClear provides new opportunities for our customers in the credit clearing space and extends our strong relationship with LCH into an additional service.”

LCH also announced that its 24-hour foreign exchange clearing service, ForexClear, cleared the first NDF trade for Axis Bank – where Societe Generale acted as clearing broker.