Non-cleared margin rules see LCH clear over $1 trillion

SwapClear service saw increased activity since margin rules were implemented in September this year.

LCH has announced that its SwapClear service has cleared a total of $1 trillion of notional value in inflation swaps since its launch in April last year.

The total follows an increase in cleared activity from the buy- and sell-side following the implementation of non-cleared margin rules in September this year, LCH said.

Daniel Maguire, global head of rates and FX derivatives at LCH, explained reaching $1 trillion total is another “significant milestone for SwapClear,” which demonstrates the growing demand for inflation swap clearing from the buy-side and sell-side.

“The introduction of bilateral margin rules in September is driving volume growth across our rates and FX services,” he added.

LCH recently announced the launch of its bilateral derivatives platform to provide centralised trade processing, valuation, margining, risk calculation and optimisation for OTC bilateral rates and FX markets.

The new service is backed by 11 dealers including Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and UBS.