LCH SA expands clearing model to include Euro repo clearing
05 August 2021 UK
Image: William
LCH SA, LCH Group’s Paris-based clearing house, has expanded its sponsored clearing model to include Euro repo clearing.
LCH SA’s sponsored clearing model is based on open access and has been developed to provide participants with a choice of trading venues and settlement options.
The expansion will enable buy-side firms to directly access repo clearing at LCH SA, which will include access to LCH SA’s tri-party basket repo clearing service, €GCPlus.
Buy-side firms such as pension funds and insurance firms are now able to access LCH SA’s RepoClear via a sponsorship model, whereby an agent bank provides support to the sponsored member.
This support includes facilitating margin payments and providing default fund contributions for transactions made by the sponsored member. The move builds on the model offering access to LCH, which launched in 2017.
Current members of LCH SA’s RepoClear will benefit from increased capacity and access to the service’s deep netting pool, as well as achieving price and settlement efficiencies, LCH SA claims.
Tradeweb is the first trading venue to offer access to the sponsored clearing service at LCH SA.
Enrico Bruni, head of Europe & Asia business at Tradeweb, says: “We are delighted to connect to LCH SA to offer our buy-side customers access to the large pool of cleared repo liquidity at RepoClear. This is an exciting milestone for the market and we are proud to be the first trading venue to provide access to this service, further enhancing our clients’ workflows.”
Corentine Poilvet-Clediere, head of RepoClear, collateral and liquidity at LCH SA, comments: “The rollout of our successful sponsored clearing model to LCH SA is a significant moment for the European fixed income market.”
She adds: “We are delighted to extend the benefits of clearing to an even broader set of market participants. We are looking forward to continuing to support our customers in achieving balance sheet efficiencies through netting, while significantly reducing counterparty and operational risk.”
LCH SA’s sponsored clearing model is based on open access and has been developed to provide participants with a choice of trading venues and settlement options.
The expansion will enable buy-side firms to directly access repo clearing at LCH SA, which will include access to LCH SA’s tri-party basket repo clearing service, €GCPlus.
Buy-side firms such as pension funds and insurance firms are now able to access LCH SA’s RepoClear via a sponsorship model, whereby an agent bank provides support to the sponsored member.
This support includes facilitating margin payments and providing default fund contributions for transactions made by the sponsored member. The move builds on the model offering access to LCH, which launched in 2017.
Current members of LCH SA’s RepoClear will benefit from increased capacity and access to the service’s deep netting pool, as well as achieving price and settlement efficiencies, LCH SA claims.
Tradeweb is the first trading venue to offer access to the sponsored clearing service at LCH SA.
Enrico Bruni, head of Europe & Asia business at Tradeweb, says: “We are delighted to connect to LCH SA to offer our buy-side customers access to the large pool of cleared repo liquidity at RepoClear. This is an exciting milestone for the market and we are proud to be the first trading venue to provide access to this service, further enhancing our clients’ workflows.”
Corentine Poilvet-Clediere, head of RepoClear, collateral and liquidity at LCH SA, comments: “The rollout of our successful sponsored clearing model to LCH SA is a significant moment for the European fixed income market.”
She adds: “We are delighted to extend the benefits of clearing to an even broader set of market participants. We are looking forward to continuing to support our customers in achieving balance sheet efficiencies through netting, while significantly reducing counterparty and operational risk.”
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