LCH reports several record clearing volumes in September

Rick Steves

As to LCH’s ForexClear, the clearing service specialized in foreign exchange has supported the market with the implementation of Phase 5 of the uncleared margin rules.

LCH has reported overall strong growth, including record months and quarters, for its clearing services: SwapClear, ForexClear, SwapAgent, RepoClear, EquityClear, CDSClear, and CommodityClear.

Daniel Maguire, Group Head, Post Trade, LSEG and CEO of LCH Group, said: “LCH has continued its robust 2021 performance in Q3, with increased clearing activity from both new and existing customers. We are continuing to support our members and our clients in achieving efficiency while navigating regulatory change.

“The implementation of the latest phase of the uncleared margin rules in September served as a specific milestone for the derivatives market. As we enter Q4, attention is turning to the cessation of LIBOR at the end of the year and we remain committed to supporting the market in this reform and driving the migration to risk-free rates.”

LCH has reported clearing volumes for SwapClear, pointing to strong volumes as the LCH subsidiary drives the transition to risk-free rates.

The firm cleared $202 trillion in notional from 1.6 million trades in Q3 2021, an increased trade count of 14% from Q3 2020.

LCH’s SwapClear cleared $50 trillion in client (end user) notional in Q3 2021, 14% higher than Q3 2020 and compressed $134 trillion and 1.1 million trades.

As to LCH’s ForexClear, the clearing service specialized in foreign exchange has supported the market with the implementation of Phase 5 of the uncleared margin rules.

Its service delivered growth in volumes: $5.5 trillion in notional (an increase of 21% from Q3 2020) cleared from over 840,000 trades in Q3 2021.

The client clearing franchise cleared $57 billion in Q3 2021 (up 37% from Q3 2020) with September being a record month for client clearing: $28 billion cleared, up 79% on September 2020.

LCH’s SwapAgent also reported continued growth in volumes of non-cleared derivatives processing – $3.1 trillion from over 31,000 trades – and record quarterly trade registration – 2,946 cross-currency swap trades processed in Q3. SwapAgent counts with 18 member groups using the service.

LCH’s RepoClear delivered growth and netting efficiencies while expanding LCH SA’s service to the buy-side and making more green bonds available for clearing.

RepoClear has reported a record quarter in Q3 – €62 trillion cleared from 2.8 million trades – and a record month in September – total of €22 trillion cleared from over 1 million trade sides.

The subsidiary processed €18 trillion in nominal Euro debt clearing and over £3.3 trillion in UK gilt clearing.

LCH’s EquityClear cleared 629 million trades across LCH in Q3 2021, with LCH SA’s Listed Derivatives service clearing 77 million contracts in Q3 (up 9% from Q3 2020).

CDSClear saw growth across a number of metrics, having cleared €430 billion Index and Single Name notional in Q3 2021, €37 billion in Options notional (up 318% from Q3 2020), $7.3 billion US Index and Single Names notional in Q3 2021(up 7% from Q3 2020), and a record quarterly share of European Single Names clearing: 53% (up 7 points from Q1 2021).

CommodityClear has also reported a Record quarter for commodity derivatives clearing: 10.9 million, up 4% from previous record in Q1 2021.

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