LCH SwapClear Compresses over $1 Quadrillion of Cleared Notional
- Demand for compression services are at an all time high with a value of $115 trillion in notional compressed so far in 2016.
LCH, a global 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 owned by the 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, today announced that its SwapClear service has compressed over 8.4 million cleared trades. The figure represents $1 quadrillion ($1,000,000,000,000,000) in notional since it started offering compression services in 2008.
Notional outstanding now stands at $280 trillion down from an all time high of $452 trillion in November 2013.
Compression is the process by which clearing members and their clients can 'tear-up' offsetting trades to reduce the notional outstanding and number of line items in their portfolio.
The news is an important milestone for LCH and follows a number of recent developments in SwapClear’s compression offering which have significantly expanded the number of trades eligible for compression.
LCH has reported a continued strong uptake of compression services by members and their clients as it builds on its success, as reported by Finance Magnates in December 2015.
Cameron Goh, Head of Clearing Solutions, SwapClear and Listed Rates, LCH, said: “Compressing this volume of Swaps is a significant achievement for us. Capital efficiency is top of mind for many banks, who are looking for ways to drive down their notional outstanding. As a result, demand for compression services are at an all time high.”
SwapClear offers various types of compression, via LCH proprietary services and through TriOptima’s triReduce service. In October 2015, SwapClear expanded its blended-rate compression offering to enable members and their clients to compress FRAs.
A series of enhancements is also planned, including multilateral compression for buyside customers in conjunction with TriOptima and LCH duo compression services.
Notional outstanding now stands at $280 trillion, down from an all time high of $452 trillion in November 2013.
LCH, a global 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 owned by the 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, today announced that its SwapClear service has compressed over 8.4 million cleared trades. The figure represents $1 quadrillion ($1,000,000,000,000,000) in notional since it started offering compression services in 2008.
Notional outstanding now stands at $280 trillion down from an all time high of $452 trillion in November 2013.
Compression is the process by which clearing members and their clients can 'tear-up' offsetting trades to reduce the notional outstanding and number of line items in their portfolio.
The news is an important milestone for LCH and follows a number of recent developments in SwapClear’s compression offering which have significantly expanded the number of trades eligible for compression.
LCH has reported a continued strong uptake of compression services by members and their clients as it builds on its success, as reported by Finance Magnates in December 2015.
Cameron Goh, Head of Clearing Solutions, SwapClear and Listed Rates, LCH, said: “Compressing this volume of Swaps is a significant achievement for us. Capital efficiency is top of mind for many banks, who are looking for ways to drive down their notional outstanding. As a result, demand for compression services are at an all time high.”
SwapClear offers various types of compression, via LCH proprietary services and through TriOptima’s triReduce service. In October 2015, SwapClear expanded its blended-rate compression offering to enable members and their clients to compress FRAs.
A series of enhancements is also planned, including multilateral compression for buyside customers in conjunction with TriOptima and LCH duo compression services.
Notional outstanding now stands at $280 trillion, down from an all time high of $452 trillion in November 2013.