LCH Breaks Clearing Volume Record in 2021
- LCH sets a new clearing volume record in 2021.
- The company’s clearing services achieve profitability.
On January 17, LCH, part of LSEG (London stock exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term group), announced record clearing volume for 2021, which came as a result of expanding its services and building new connectivity. Throughout the previous year, LCH saw overall strong growth, including record months and quarters for its clearing services such as SwapClear, ForexClear, SwapAgent, RepoClear, EquityClear, CDSClear and CommodityClear.
LCH’s Swapclear converted more than 350,000 legacy IBOR-linked contacts, which represented a notional equivalent of more than $35 trillion in the fourth quarter of 2021. In the entire previous year, SwapClear registered 6.8 million trades, which is an increase of 7% from 2020 and its highest on record. Additionally, clearing of inflation swaps witnessed record highs with $9 trillion of notional cleared across 322,639 trades, 37% and 39% increases on 2020, respectively.
LCH’s SwapAgent saw strong growth in 2021. The SwapAgent recorded a 489% year-on-year increase with 10,186 trades processed during that year. The SwapAgent worked with market players to facilitate industry transition to risk-free rates in bilateral OTC derivatives, thus, boosting financial stability. Since the go-live of the RFR First initiative, SwapAgent saw a sharp increase in the volume of RFR trades processed in its service, which represented a combined $31 billion of notional trades. 100% of GBP/USD cross-currency swaps processed at SwapAgent were SOFR versus SONIA, 100% of USD/CHF swaps processed were SOFR versus SARON, and 94% percent USD/EUR swaps processed were SOFR versus €STR.
According to the report, LCH’s RepoClear processed a record €195 trillion of nominal across 9.4 million trades during 2021 in LCH SA. This represented increases of 15% and 29%, respectively, compared to 2020. At LCH Ltd, RepoClear witnessed a year-on-year rise of 17% and 28% with €42.6 trillion in nominal cleared across 1.1 million trades, respectively. Across Ltd and SA, RepoClear processed €237.6 trillion of nominal across 10.5 million trades, both represented record highs for the service.
LCH’s ForexClear saw an increase in client clearing volumes. It recorded rec$21.7 trillion in notional cleared across the service, which is an increase of 14% from 2020. The service cleared 243 billion by clients, which is a 45% increase over the previous year. At the beginning of 2021, ForexClear expanded its product offerings with the go-live of non-deliverable FX options.
LCH’s CDSClear saw 133% growth in iTraxx Options cleared at the service in 2021 as compared to 2020, the service recorded €163 billion of notional clearance in 2021. In European Single Names CDS, the service processed a record €210 billion, which is an increase of 40% in 2020. Furthermore, CDSClear processed a record $42.5 billion of notional of US Indices CDS, which is an increase of 28% in 2020.
Lastly, LCH’s EquityClear recorded 1.9 billion trades, which is a 5% increase from 2020. In addition, EquityClear SA connected to central securities depositories (CSDs) in Austria and Italy.
LCH Is Striving to Boost Its FX Operations
The development by LCH comes at a time when the clearing house Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term company has been dedicated to boost its FX operations. In the recent past, LCH received approval from the Hong Kong Securities and Futures Commission to offer automated trading services in Hong Kong via its swap clear and Forexclear services. Such authorization was a huge step in LCH’s growth in ASIA Pacific and complemented its existing licenses across the globe as part of its commitment to provide market players with efficient clearing solutions across multiple asset classes.
On January 17, LCH, part of LSEG (London stock exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term group), announced record clearing volume for 2021, which came as a result of expanding its services and building new connectivity. Throughout the previous year, LCH saw overall strong growth, including record months and quarters for its clearing services such as SwapClear, ForexClear, SwapAgent, RepoClear, EquityClear, CDSClear and CommodityClear.
LCH’s Swapclear converted more than 350,000 legacy IBOR-linked contacts, which represented a notional equivalent of more than $35 trillion in the fourth quarter of 2021. In the entire previous year, SwapClear registered 6.8 million trades, which is an increase of 7% from 2020 and its highest on record. Additionally, clearing of inflation swaps witnessed record highs with $9 trillion of notional cleared across 322,639 trades, 37% and 39% increases on 2020, respectively.
LCH’s SwapAgent saw strong growth in 2021. The SwapAgent recorded a 489% year-on-year increase with 10,186 trades processed during that year. The SwapAgent worked with market players to facilitate industry transition to risk-free rates in bilateral OTC derivatives, thus, boosting financial stability. Since the go-live of the RFR First initiative, SwapAgent saw a sharp increase in the volume of RFR trades processed in its service, which represented a combined $31 billion of notional trades. 100% of GBP/USD cross-currency swaps processed at SwapAgent were SOFR versus SONIA, 100% of USD/CHF swaps processed were SOFR versus SARON, and 94% percent USD/EUR swaps processed were SOFR versus €STR.
According to the report, LCH’s RepoClear processed a record €195 trillion of nominal across 9.4 million trades during 2021 in LCH SA. This represented increases of 15% and 29%, respectively, compared to 2020. At LCH Ltd, RepoClear witnessed a year-on-year rise of 17% and 28% with €42.6 trillion in nominal cleared across 1.1 million trades, respectively. Across Ltd and SA, RepoClear processed €237.6 trillion of nominal across 10.5 million trades, both represented record highs for the service.
LCH’s ForexClear saw an increase in client clearing volumes. It recorded rec$21.7 trillion in notional cleared across the service, which is an increase of 14% from 2020. The service cleared 243 billion by clients, which is a 45% increase over the previous year. At the beginning of 2021, ForexClear expanded its product offerings with the go-live of non-deliverable FX options.
LCH’s CDSClear saw 133% growth in iTraxx Options cleared at the service in 2021 as compared to 2020, the service recorded €163 billion of notional clearance in 2021. In European Single Names CDS, the service processed a record €210 billion, which is an increase of 40% in 2020. Furthermore, CDSClear processed a record $42.5 billion of notional of US Indices CDS, which is an increase of 28% in 2020.
Lastly, LCH’s EquityClear recorded 1.9 billion trades, which is a 5% increase from 2020. In addition, EquityClear SA connected to central securities depositories (CSDs) in Austria and Italy.
LCH Is Striving to Boost Its FX Operations
The development by LCH comes at a time when the clearing house Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term company has been dedicated to boost its FX operations. In the recent past, LCH received approval from the Hong Kong Securities and Futures Commission to offer automated trading services in Hong Kong via its swap clear and Forexclear services. Such authorization was a huge step in LCH’s growth in ASIA Pacific and complemented its existing licenses across the globe as part of its commitment to provide market players with efficient clearing solutions across multiple asset classes.