LCH Automates Three Workflows With genesis
genesis, the international capital markets software firm, has been working with LCH, a leading global clearing house, to design, build and implement three new solutions to automate workflows, which will in turn support business growth.
— genesis (@GenesisFinTech) April 4, 2019
In order to support increased volumes at its ForexClear service, LCH was looking for a streamlined solution to automate the FX ‘option expiry’ process. Following a competitive tender process, LCH selected genesis due to their domain knowledge and microservices technology framework, enabling fast and agile software development.
Collaborating closely with LCH, genesis helped develop the exercise and expiry service for ForexClear with the first iteration developed and deployed into User Acceptance Testing (UAT) within weeks; demonstrating genesis to be faster and more cost-effective than other internal/external vendors. The solution is now fully integrated within LCH’s production environment.
Following the ForexClear project, genesis has collaborated further with LCH to build a suite of complementary solutions; namely member & client web portals for SwapClear, and a CDS option electronic exercise platform for CDSClear, similarly to help to support business growth. Once again, the solutions were built and deployed into LCH’s production environments.
Christophe Noblet, Chief Operating Officer, CDSClear, LCH said: “LCH is experiencing continued growth across a multiple asset-classes, serving an increasing number of market participants who are looking to clear their activity. We’re pleased that genesis has supported us in developing a tool to automate exercise and options expiry, bringing enhanced operational efficiency to the benefit of our members and clients.”
James Harrison, Chief Operating Officer of genesis, added: “We are very excited and privileged to work with such a prestigious client as LCH. This was a truly collaborative and blended effort between the LCH and genesis’ teams and we are very proud that we were able to support LCH and deliver exceptional products both ahead of time and within budget. We look forward to innovating with LCH to develop future products that will ultimately help scale the business.”
As much as 50% of the market could be cleared.
The posting of initial and variation margin reduces counterparty credit risk.
Post-crisis regulation has pushed markets toward centralised clearing.
Supervisors should focus on continued implementation of agreed principles for the clearing ecosystem.
The US regulator has provided guidance on the transfer of uncleared legacy swaps.