09.25.2020

CDSClear Goes Live Clearing New ESG index series

  • LCH live clearing iTraxx MSCI ESG Screened Europe Index and its constituent single names for members and their clients
  • The index is a broad European corporate CDS index, using the iTraxx Europe index series as the starting point, derived with ESG criteria
  • First credit clearing house to offer clearing of the product
  • Further expands products available for clearing  the broadest range of cleared credit derivatives of any CCP

Frank Soussan, Global Head of CDSClear, LCH, said: “Sustainability continues to grow as a priority for the investment community, and the credit space is no exception. LCH is committed to innovation and partnership with our customers and we are delighted to be the first clearing house to launch clearing of this ESG-focused credit index.”

Florian Peter, Head of OTC Client Clearing, Deutsche Bank, said: “Facilitating clearing access to this new ESG index series at CDSClear supports our commitment to sustainable investment and demonstrates our ability to respond quickly to our clients’ priorities. CDSClear’s offering will support increased liquidity in this product, providing significant margin and operational benefits.”

Christoph Hock, Head of Multi-Asset Trading, Union Invest, said: “Our ability to clear this ESG focused iTraxx index at CDSClear supports our focus on ESG as well as that of our investors, who are increasingly looking for ways to incorporate ESG based criteria into their portfolios. In addition to managing counterparty risk, clearing also enables greater liquidity and supports the wider industry focus on sustainability.”

Source: LCH

Related articles

  1. Outlook 2016: Alexander Lehmann, LSEG

    LCH SwapAgent registered over 10,000 trades in 2021, a five fold increase.

  2. Overall trading volumes across all products fell 8% from 2020.

  3. Klimpel won Excellence in Human Clearing at Markets Media Group’s 2021 Women in Finance (U.S.) Awards.

  4. Expansion to buy side increases multilateral netting opportunities for members.

  5. RQD said it offers the first clearing platform built entirely on cloud-native, real-time technology.