LCH RepoClear set new highs in 2021 17 January 2022France Reporter: Bob Currie
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LCH RepoClear SA processed a record €195 trillion in nominal value during 2021 across 9.4 million cleared transactions.
This represented a 15 per cent increase in nominal value and a 29 per cent increase in cleared trades for the Paris-based clearing house for 2021 relative to 2020.
RepoClear Ltd, LCH's London-based repo and cash bond clearing service, saw its nominal value grow by 17 per cent YoY to €42.6 trillion for 2021, with the number of cleared transactions rising 28 per cent to 1.1 million trades over the 12 months.
On an aggregated basis, combined RepoClear Ltd and SA figures set a new record for nominal and trades processed, with combined nominal value rising to €237.8 trillion across 10.5 million cleared transactions.
RepoClear SA launched a sponsored clearing service in December, extending access to the Paris-based clearing service for buy-side clients.
SwapClear, LCH’s clearing service for interest rate derivatives, converted more than 350,000 legacy IBOR-linked contracts, representing notional equivalent of more than US$35 trillion during Q4 21.
During 2021, SwapClear recorded 6.8 million trades, a 7 per cent rise YoY. Clearing of inflation swaps also climbed to new highs over the 12 months, notional cleared rising 37 per cent to US$9 trillion across a new record 322, 639 trades.
SwapAgent processed 10,186 trades during 2021, representing a 489 per cent YoY increase. LCH says that SwapAgent and SwapClear worked with market participants over the period to expedite the industry’s transition to risk-free rates in bilateral OTC derivatives.
Following release of the RFR First Initiative, it reports that 100 per cent of USD/GBP swaps processed at SwapAgent were SOFR versus SONIA, 100 per cent of USD/CHF swaps were SOFR versus SARON and 94 per cent of USD/EUR swaps were SOFR versus €STR.
LCH Group CEO and group head for post-trade at LSEG Daniel Maguire says: “Throughout 2021, LCH continued to provide robust risk management, capital efficiencies and operational benefits that support our customers and help ensure financial stability. Our customer centric approach helped drive strong growth across our services.
“I’m particularly pleased by the growth at SwapAgent as LCH expands its offering to support customers in the non-cleared space. We also enabled a seamless transition to risk-free rates across five major currencies, effectively closing the door on non-USD LIBOR for cleared OTC swaps.”
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