LCH Clears First Israeli Shekel-Denominated Swaps
- LCH is the first clearing house to offer clearing of Israeli Shekel-denominated interest rate swaps
- Launched in response to customer demand
- SwapClear offers clearing for interest rate derivatives across 27 global currencies
LCH, a leading global clearing house, today announced that it has cleared the first Israeli Shekel-denominated interest rate swaps. Israeli Shekel is the latest currency to be cleared at SwapClear, which offers clearing for interest rate derivatives in 27 currencies.
Bank Leumi and Citi were among the first parties to clear a derivatives trade denominated in Israeli Shekel. Clearing brokers supporting clearing of Israeli Shekel swaps from launch include: Citi, Goldman Sachs, HSBC and J.P. Morgan.
#Clearing for Israeli Shekel (#ILS) swaps & FRAs is now live at #SwapClear. The expanded service now clears 27 currencies, creating even more opportunities for #margin and capital efficiencies across your portfolio. Find out more here – https://t.co/qu59vZVx5B pic.twitter.com/gX8LvA9BK9
— LCH (@LCH_Clearing) September 16, 2020
Susi de Verdelon, Global Head of SwapClear and Listed Rates, LCH, said: “We are delighted to bring clearing of Israeli Shekel interest rate derivatives to market. This is a significant enhancement to our global clearing offering and we’ve seen strong demand for the product from our international members and their clients. Many firms are looking to optimise their portfolios as the uncleared margin rules continue to be phased in, and the introduction of this product will be an important tool for them to achieve greater efficiencies.”
Mr. Ronen Agassi, Head of Capital Markets Division, Bank Leumi le-Israel B.M., said: “Clearing of derivatives denominated in Israeli Shekel is an important development for the market. By clearing Israeli Shekel, LCH has enabled us to achieve significant efficiencies in our derivatives portfolio. We are delighted to participate in the first cleared Israeli Shekel derivatives trades.”
Neil Corney, Citibank NA, Israel CCO and Head of Markets said: “Access to a multi-currency pool of liquidity is vital to efficient clearing and risk management. The launch of Israeli Shekel clearing at LCH is a positive step for the market, significantly increasing the opportunity to realise margin and capital efficiencies. Citi, as a primary international financial organisation, with a significant local banking presence, are delighted to act as the executor for the launch of Shekel clearing at LCH.”
Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.
Temporary equivalence is set to expire on June 30 2022.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.