LCH goes live with Spider

Banks will be able to offset margin calls for cleared interest rate swaps and listed futures.

LCH has gone live with its new portfolio margining service to enable clients to offset margin between OTC and listed interest rate derivatives.

The service, called LCH Spider, analyses client portfolios and selects which eligible trades correlate in order to offset collateral calls.

“LCH Spider has the potential to be a game changer for the rates market and we are delighted to deliver this service to our members and their clients,” says Daniel Maguire, global head of rates and FX derivatives, LCH.

Nasadq NLX will be the first exchange to take advantage of the service, which includes NLX’s interest rate futures. CurveGlobal, the new interest rate derivatives platform from LSE, will also become introduced to the service once it goes live in the third quarter of this year.

Speaking to The Trade Derivatives earlier this month, NLX’s head of business development, Victoria Kent, said the service could breathe new life into the exchange.

“[Once LCH’s Spider goes live] we hope to see volumes increase at NLX. The conversations we’ve had to date with potential bank clients has been based on the theoretical portfolio margining exercise, but now it is up and live we can prove those savings,” she said.