Inflation Swap Clearing

As the first CCP to introduce inflation swap clearing, LCH continues to lead the way to even greater efficiencies and capital optimisation.

Download our Inflation Swap fact sheet

LCH Spider

The next step in margin efficiencies for OTC and Listed Rates Derivatives.

LCH Spider delivers risk reduction and savings that count.

Click here to find out how

LCH Spider in Four Easy Steps

2017 Road Map: Partnering for Efficiency

Our key initiatives include:

  • LCH SwapAgent Launch
  • LCH Spider Portfolio Margining (LTIRs)
  • Listed Options
  • CustodialSeg
  • Duo & Vendor Compression
  • Blended Rate Compression Inflation & Basis
  • SwapClear Platform Upgrade

For information on the full program, download our 2017 Road Map

CCP Conundrums

The shifting capital, regulatory and industry landscape has created some unexpected consequences for CCPs. In LCH's latest white paper, we examine the impact of these challenges on institutions in this new market paradigm.

Among the areas we explore are:

  1. Liquidity concerns
  2. Central bank access
  3. Central bank programs
  4. Skin-in-the-game
To learn more, please download our white paper here.

On the Margin: Portfolio Margining at a CCP

LCH is engaged with the industry and regulators in an effort to clarify standards for portfolio margining across CCPs. In order to facilitate the process of education and ongoing discussion, we have written a paper on this subject.

This paper explains how the regulatory standard of "significant and reliably correlated" can be interpreted to recognize the benefits of both high and low correlations, and discusses the trade-offs between the level and stability of correlations. These considerations create the need for a standard that applies equally to both situations, and that should be expressed as a threshold around the acceptable level of a Type II model error. We propose that this probability threshold should be < 5 percent.

Click here to download the full paper.

Stress this house: Standardisation of CCP Stress Testing

LCH is pleased to announce the release of a white paper on CCP stress testing. This paper proposes a transparent framework to better compare the risk management procedures of CCPs on a consistent basis, as well as more easily determine aggregate member risk exposure.

Centred on three key principles- transparency, simplicity, and comparability -we hope this paper will prove useful in advancing dialogue around this important issue.

To learn more about our recommended approach to stress testing, please download our white paper here.

Systemic Risk and the Impacts of Central Clearing

While central clearing has been successfully used in derivative markets for years, global swaps-clearing mandates are in the process of expanding adoption well beyond levels the market has ever seen. As such, determining whether or not that ultimately benefits the market as intended, or conversely creates new risks as some believe, requires a deeper analysis of both market perceptions and the realities of clearinghouse operating models.

Download full paper here

CCP Risk Management Recovery & Resolution

An LCH White Paper

LCH welcomes the work underway at national, EU and international level to improve transparency of CCPs' risk management policies and procedures and further strengthen their resilience.

Recent debate on the issues of recovery and resolution has focused on a CCP's total loss absorbing capacity and the size of a CCP's own resources. However, in our view the risks to which CCP members are exposed are different to those of a CCP operator, such as LCH; the debate has blurred the distinction between the resources of the clearing members and those of the CCP operator.

The paper outlines our approach to three key areas which have been the subject of this debate: risk management; recovery; and resolution. Based on our broad product experience and extensive geographic reach, we also outline some key principles that we believe should guide legislators' work in defining CCP recovery and resolution regimes globally.

Download paper


The Capital and Operational Benefits of Compression

Compression has eliminated over $500 trillion in notional since its introduction and this figure is set to grow significantly as OTC derivative market participants seek ways to allocate capital more efficiently, reduce operational costs and better manage counterparty credit risk.

In this Bloomberg Markets LiveINSIGHTS, a panel of clearing and compression experts will discuss the industry challenges compression is addressing, how the process works and new service enhancements on the horizon.

Click here to view the full webinar

Compression with SwapClear

Unmatched Efficiency and Freedom

Download the full brochure

SMART Fact Sheet

SMART: SwapClear Margin Approximation Risk Tool

SMART, the award-winning solution for managing initial margin ("IM") requirements, enables members and clients to simulate portfolio risk exposure in real-time. By allowing users to perform these instantaneous and consistent "what-if" margin calculations, clients are able to estimate initial margin requirements prior to clearing.

Download Fact Sheet

Recovery and Resolution - A Framework for CCPs

03 October 2016

Click to read the full paper

Equivalence Explained

17 June 2016

Clearing across national boundaries can be confusing. But with the implementation of mandatory European clearing, US and European regulators are now providing greater clarity on the roles and safeguards for CCPs. Watch to find out more.

LCH Spider

20 May 2016

The next step in margin efficiencies for OTC and Listed Rates Derivatives.
LCH Spider delivers risk reduction and savings that count. Watch to find out how.

Compression Explained

14 September 2015

Compression's far-reaching adoption has resulted in the first annual reduction in cleared IRD notional. Find out how and learn more about SwapClear's compression offerings.

Jane Gladstone and Michael Davie

31 March 2015

Watch Jane Gladstone, Senior Managing Director at Evercore, as she discusses 'skin-in-the-game', the unintended consequences of shrinking bank balance sheets, and the future role of the block chain in global finance, with Michael Davie, COO of the LCH Group.

SwapClear's Customer Protection Offering under EMIR (German language version/deutsche Version)

21 November 2014

Transforming European bond trading

30 September 2014

Featuring Rick McVey MarketAxess

Competition critical for the 'London of Asia'

30 September 2014

Featuring Magnus Bocker CEO, Singapore Exchange.

SwapClear's Customer Protection Offering under EMIR

30 April 2014

Uncertain how best to safeguard your assets and positions? Let Kim Short, one of our sales directors, briefly walk you through the range of EMIR compliant choices available at SwapClear.

FCM Perspectives

3 April 2014

Watch Daniel Maguire, Global Head of SwapClear, discuss topics such as resolution and recovery, capital requirements and cost pressures with our panel of leading FCMS; Ray Kahn from Barclays, Citi's Christopher Perkins, and David Olsen from J.P. Morgan.

George Harrington

26 March 2014

Global Head of Fixed Income, Currencies and Commodities Trading at Bloomberg

Sunil Hirani

26 March 2014

CEO and Founder, trueEX

Douglas Friedman

26 March 2014

General Counsel, Tradeweb

SwapClear 2014 Road Map

12 February 2014

SwapClear's Road Map includes a full program of product and service expansion in the U.S., Europe and Asia, and investments in infrastructure and solutions to meet the evolving global regulations in the coming year.

Among the key initiatives intended are:

  • Expansion and enhancement of our compression offerings
  • New product launches, including inflation swaps
  • New customer protection plans in response to EMIR regulations
  • Extension of our opening hours and geographic footprint

Download Road Map

QCCP Status of LCH Limited ("LTD"), and LCH SA ("SA")

15 January 2014

Download PDF

SwapClear's LSOC with Excess Explained

14 August 2013

This briefing deconstructs, in plain English, phase two of the CFTC's Legally Segregated, Operationally Commingled (LSOC) rule.

Download PDF

For further reading on LSOC with Excess, please see the LSOC Explained Section below.

Mandatory Clearing Checker

28 March 2013

Visit our Mandatory Clearing Checker to find out which interest rate swaps are mandated for clearing in the U.S. Submit basic characteristics including swap class, currency, floating rate index, and tenor to receive a quick determination about your trade.

SwapClear Road Map

13 March 2013

SwapClear's Road Map includes a full program of product and service expansion in the U.S., Europe and Asia, and investments in infrastructure and solutions to meet the evolving global regulations in the coming year.

Among the key initiatives intended are:

  • Collateral segregation - LSOC with excess, full physical segregation (non-U.S. clients)
  • Real-time trade registration
  • OIS tenor extensions
  • Inflation-linked swaps and swaptions (preparation for launch)
  • New data queries and reports
  • LCH U.S. DCO approval and launch of the SwapClear U.S.-domiciled service
  • Real-time reporting

Mandatory Clearing Summarized

07 December 2012

Our summary of the CFTC's recent mandatory clearing determination distills:

  • Which products are covered and which are not
  • Anticipated timeline for clearing commencement
  • Definitions and explanations¬†

LSOC Explained

07 November 2012

Part 22 / LSOC: Principles and Implementation is our easy to understand briefing on the CFTC's Legally Segregated, Operationally Commingled (LSOC) rule and SwapClear's interpretation of it.

This paper is intended to answer all of your LSOC questions and includes:

  • General principles on which the rule is based
  • Both LSOC implementation phases
  • Clarification of the rule and its impact on FCMs and the buy side
  • SwapClear's interpretation and implementation plan