LCH Achieves Record Volumes Across Multiple Asset Classes

The clearinghouse saw an uptick in OTC derivatives and fixed income clearing.

LCH has announced its volumes for 2019 this Thursday. According to a statement released by the company, the global clearinghouse achieved record volumes across multiple asset classes.

In particular, activity across its over-the-counter (OTC) derivatives and fixed income clearing services exceed the volumes reported in 2018. This uptick was driven by an increased flow from new and existing customers.

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ForexClear clearing volumes increase 5%

The foreign exchange (forex) derivative clearing service of LCH, ForexClear, finished 2019 with more than $18 trillion in notional cleared during 2019. This is higher by 5 percent on a yearly comparison.

During 2019, LCH continued to expand the services offered through ForexClear. As Finance Magnates reported, in October, the service started clearing deliverable FX Forwards. By the end of the year, cleared deliverable notional accounted for $456.47 billion.

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Looking ahead, the clearinghouse expects that cleared FX volumes will further increase this year, aided by phase 5 of the uncleared margin rules, the statement released today said.

Commenting on the results, Daniel Maguire, CEO, LCH, and Group Director, Post Trade, London Stock Exchange Group, said: “2019 has been another successful year for LCH with record levels of activity across many of our services. 

“We’ve continued to collaborate with the market to launch efficient and resilient solutions to support our customers’ risk management and capital efficiency. As we move into 2020, LCH, and the LSEG Post Trade division as a whole, is looking forward to continuing to partner with the market to foster further innovation and enable compliance with regulatory reforms, including the migration to alternative reference rates.”

LCH’s interest rate derivatives clearing service, SwapClear, registered over $1,229 trillion in notional last year. Measuring this against the previous year’s volumes, there has been a 14 percent growth. 

SwapAgent, which is the clearing house’s non-cleared derivatives service, also posted growth in cross-currency swaps offering, with $726 billion processed during 2019.

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