When it comes to clearing OTC interest rate swaps, not all services are created equal. The SwapClear offering is the only truly global service and the market leader in OTC interest rate swaps. It’s also the only platform backed by the safety, security and reliability of the world’s leading clearing house group, LCH.
Here are a few more reasons why SwapClear is the smarter solution for both buy- and sell-side clients:
Since 1999 we have cleared over 9.6 million OTC interest rate swaps, and currently have $416 trillion notional outstanding, with more than $349 trillion compressed notional (end August 2014). Our massive liquidity results in more accurate risk assessment, better systems, deeper experience and superior pricing for you. View our clearing volume report here.
Global Power, Local Expertise
With offices in London, New York and Sydney, and a presence in Washington D.C., our Global and US-Domiciled Services ensure we are highly attuned to client needs and regulatory implications regardless of when or where they happen. In this way, we continue to shape the industry as we have for decades.
Real-World Cost Savings
SwapClear has saved clients hundreds of millions of dollars through real efficiencies—more than all other OTC interest rate clearing services put together. And these savings have been experienced throughout the trade lifecycle, from sharper execution prices to a wide range of portfolio margining opportunities. Together these benefits have enabled clients to offset risk, reduce cost and lower collateral requirements.
Rigorous Risk Management
SwapClear has a proven track record of mitigating risk for its users for more than 14 years. Our success is due to SwapClear’s very stringent membership criteria and rigorous back testing, including worst-case losses based on historical scenarios. As a result, the derivatives community has recognized us for our thought leadership by adopting many of our risk management standards. Read about our clearing service in detail here.
Real-Time Trade Registration, Done Right
SwapClear has developed an approach to real-time trade registration that adheres to regulatory requirements whilst minimizing additional risk to the clearing house. This is the first time that a CCP has provided real-time collateral and risk management—a significant step forward for the industry.
Access and Flexibility
Since 1999, SwapClear's Global Service has grown to include 97 members, providing access to 170 executing brokers. As demand for clearing services continues to grow, we work closely with market participants to improve our services. One of the results of this collaboration is our new US-Domiciled Service, which gives clients more flexibility than ever to meet their clearing requirements.
Extensive Clearable Products and Currencies
We offer one of the broadest ranges of OTC interest rate swap products in the marketplace, covering 95% of the plain vanilla market. And with a system that supports 18 currencies (some with tenors out to 50 years), SwapClear’s focus is on providing clients with the flexibility they need to clear trades while facilitating thorough compliance.
In the year ahead, clients can look forward to a full program of product and service expansions in the U.S., Europe and Asia. Download SwapClear’s Roadmap.
LCH Ltd became the only clearing house to have successfully handled a significant OTC swaps default when it resolved Lehman Brothers’ $9 trillion interest rate swap default in 2008. Read the Lehman case study here.
A Horizontal Clearing Model
We remain committed to a horizontal clearing model because we believe strongly in its benefits. Open access, transparency, competition and choice enable market participants to access a broad range of members, execution venues, products and services, resulting in minimal business disruptions in the evolution to central clearing.
We clear the market, because we are the market. LCH Group Ltd, the ultimate parent of LCH Ltd. and LCH LLC, is majority (c.57%) owned by the London Stock Exchange Group, with the remainder being owned by its users (i.e. clearing members) and other exchanges Read more about LCH here.
Active collaboration with clients on both the buy- and sell-sides allows us to continually refine our systems and methodologies so that we’re clearing what you need, the way that you need it.