Wall Street & Technology is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Infrastructure

10:26 AM
Connect Directly
Facebook
Google+
Twitter
RSS
E-Mail
50%
50%

LCH.Clearnet's SwapClear IRS Volumes Up 30 Percent Year On Year

LCH.Clearnet said the record volumes demonstrate the effectiveness of the SwapClear clearing model for OTC interest rate swaps.

LCH.Clearnet said the volume of interest rate swaps (IRS) cleared through Swap Clear in Q2 2010 hit a record. The total of trades for the quarter reached 191,694, trade sides, a 30 percent increase over Q2 1009, driven by record volumes in May of 73, 440 trade sides. The increased volume brings the total outstanding amount of IRS transaction to $224.6 trillion.

Established over 10 years ago SwapClear’s membership has increased to 32 direct member and the product scope has grown to cover the world’s 14 largest currencies with tenors up to 50 years in US, EUR and GBP. As the only global clearing service for IRS, SwapClear now clears over 40 percent of the market.

In a statement, Joe Reilly, director, SwapClear said: "SwapClear was developed to provide a global solution for the IRS market. For ten years now it has delivered a secure, reliable and efficient environment for processing trades. The growing demand for the service and these impressive volumes demonstrate just how effective the SwapClear clearing model is.”

SwapClear said the resilience of its default management process was demonstrated in September 2008 when it successfully handled Lehman Brothers’ USD9 trillion interest rate swap default. The effective default management process ensured that over 60,000 trades were hedged and auctioned off to other clearing members in a timely fashion and that the default was managed well within Lehman Brothers’ margin held and with no recourse to the default fund, stated the release.

LCH.Clearnet is a Recognized Clearing House with the Financial Services Authority and a registered Derivatives Clearing Organization (DCO) with the Commodity Futures Trading Commission.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

Register for Wall Street & Technology Newsletters
Video
7 Unusual Behaviors That Indicate Security Breaches
7 Unusual Behaviors That Indicate Security Breaches
Breaches create outliers. Identifying anomalous activity can help keep firms in compliance and out of the headlines.