LCH SwapAgent, a service for the non-cleared derivatives market, today announced that it has processed its first Cross-Currency Basis Swap. The first trade was conducted between Credit Suisse and Deutsche Bank and was a EUR/USD Cross-Currency Basis Swap. The trade was brokered by ICAP, which is part of TP ICAP group, and was processed through MarkitSERV.
The Cross-Currency Basis Swap was the first non-cleared trade to be transacted as LCH STM, SwapAgent’s settlement-to-market legal and operational framework. LCH STM facilitates full and final daily NPV settlement, rather than collateralisation by way of exchange of variation margin, and the netting of such settlement and contractual trade cashflows.
Nathan Ondyak, Global Head of LCH SwapAgent, said: “Our vision for LCH SwapAgent is to extend the trusted infrastructure and efficiencies of clearing to the non-cleared derivatives market. Through SwapAgent, participants in the Cross-Currency Basis market can reduce unnecessary risk and payments, increase trade compression and simplify the post-trade process.”
Joseph Macdonald, Head of Collateral Optimisation Trading, Deutsche Bank, said: “We are continuously looking for new ways to optimise our trading portfolios and balance sheet. Using a service like LCH SwapAgent helps us to achieve this by allowing greater compression opportunities and better capital treatment for asset classes like Cross Currency Swaps. We look forward to continuing to work with LCH and the industry on this initiative.”
Simon Payne, Head of Cross Currency Basis at ICAP, said: “We are pleased to be acting as the interdealer broker for the first brokered trade through LCH SwapAgent. We see the move toward standardisation as a way to improve liquidity in the Cross-Currency Basis market, and see this as a positive step forward for the industry.”
LCH SwapAgent now offers processing for Cross-Currency Basis Swaps denominated in Australian Dollars, Canadian Dollars, Euros, Japanese Yen, Pounds Sterling and Swiss Franc against the US Dollar. This is in addition to its current product set, which covers 18 currencies on Swaps, FRAs, OIS and Inflation Swaps.
14 dealers have already confirmed their support for LCH SwapAgent including: Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Nomura and RBS.
Source: LCH
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
🏆 The 2026 Global Markets Choice Awards are here! 🌍 Nominations are officially OPEN for the celebration of excellence in global capital markets trading & technology. Nominate below:
https://www.jotform.com/form/260086385121150
Delaware Life Insurance Company is becoming the first insurance carrier to offer an index that contains cryptocurrency, adding the BlackRock U.S. Equity Bitcoin Balanced Risk 12% Index to its fixed index annuity (FIA) portfolio.
As the digital assets industry pushes toward
Franklin Templeton is expanding its tokenized fund suite, signaling growing institutional demand for blockchain-based fund infrastructure and regulated investment products moving onchain. Read the full article below:
$50 billion in active ETF inflows helped fuel a record year for @BlackRock 's iShares business, as investors continue to lean into active strategies.
Related articles
-
Staff continue to assess issues related to failed trades and clearing agency outages.
-
Increased volatility highlights the need to provide resilient infrastructure that can process more volume.
-
Clients will be able to offset eligible positions across both clearinghouses & free up capital.
-
The white paper highlights the need for 24/7 clearing and risk management.
-
The FCM delivered significant clearing volumes during Super Bowl LX weekend.