07.16.2021

LCH ForexClear has Record Half Year

Daniel Maguire, Group Head, Post Trade, LSEG and CEO of LCH Group, said:

LCH has continued to perform well in the first half 2021, with robust volumes and growth across many of our services. We take our commitment to ensuring financial stability seriously and we are pleased to have continued to offer unparalleled efficiencies to the market over the year.”

 SwapClear

·         Continued to deliver strong volumes

·         Cleared $469 trillion, from 3.5 million trades in H1 2021

·         Compressed $298 trillion in notional H1 2021, delivering capital and operational efficiencies

ForexClear

  • Record half year for the service; $10.8 trillion in notional cleared
  • Strong growth in deliverable clearing and client clearing: Deliverable Service:
    • $390bn in deliverable notional cleared, up 28% from H1 2020

$119bn in notional cleared by clients (via a clearing broker or FCM), up 34% from H1 2020

CDSClear

  • Saw an increase in activity across a number of metrics:
    • 37% share of iTraxx Indices (up 3 pts from H1 2020)
    • 46% share of European Single Names (up 11 pts from H1 2020)
  • €974bn Index and Single Name notional cleared in H1 2021
  • Record half year on iTraxx Options, with €64bn notional cleared in H1 2021 vs. €42bn in H1 2020 (up 53% from H1 2020)
  • $18bn US Index and Single Names notional cleared in H1 2021 (up 4% from H1 2020)

SwapAgent

  • Continued its solid growth trajectory in processing non-cleared derivatives
  • As of 30 June, SwapAgent processed $2.72 trillion since its launch, from over 28,000 trades
  • Completed RFR vs RFR Cross Currency swaps in all LIBOR currencies (CHF, EUR, GBP, JPY and USD) to support market RFR transition
  • 17 member groups are now live and using the service

RepoClear

  • Continued to grow its netting pool of UK and European debt
  • €113 trillion in nominal was cleared across LCH RepoClear in H1 2021, up 10% from H1 2020  and an all-time record H1
  • June 2021 was a record month for RepoClear in terms of trade count across the Group: over 904,000 trade sides were cleared
  • RepoClear reached a record peak open outstanding of €4.4 trillion in June 2021

EquityClear

  • Delivered strong volumes
  • 1.25 billion trade sides were cleared in H1 2021 across LCH Group
  • LCH SA’s Listed Derivatives service cleared 170 million contracts in H1 2021

CommodityClear

  • Delivered strong volumes and set new records
  • 20 million Commodity Derivatives were cleared in H1 2021, up 22% from H1 2020
  • January 2021 was a record month, with LCH SA clearing 5 million contracts, contributing to a quarterly record in Q1, with 11 million contracts processed

Hana Bank becomes first Korean bank to clear at LCH ForexClear

  • Hana Bank has gone live as a client clearing FX derivatives at LCH
  • Societe Generale is acting as Hana Bank’s clearing broker
  • Members and clients of ForexClear benefit from enhanced risk management, as well as margin, capital and operational efficiencies
  • Further demonstration of ForexClear’s continued growth in Asia and globally

James Pearson, Head of ForexClear, LCH, said: “As phase 5 of the uncleared margin rules rapidly approaches, we are seeing increased demand for clearing from firms looking to optimise their derivatives portfolios.  South Korea has a vibrant FX and derivatives market and we are delighted to welcome Hana Bank as the first from the country to clear at ForexClear.”

Youngsun Moon, Head of FX&Derivatives Trading Section, Hana Bank, said: “We are proud to offer our customers a wide range of FX services. Having access to ForexClear allows us to effectively manage our risk while benefitting from a number of efficiencies associated with clearing. We are pleased to be the first Korean bank to use the service, and believe this will help us to expand our position as the best Foreign Exchange Provider in Korea to the global market.”

Eric Jungers, Head of Prime Asia, Societe Generale, said: “As a global leader in FX and OTC Clearing, Societe Generale is proud to support Hana Bank in clearing its first FX derivatives on LCH. The transaction is a testament to our Prime Service and OTC Clearing capability in Asia – a key region for the development of our activities.  We look forward to continue supporting our clients in the region in their pursuit of capital and operational efficiencies.”

Source: LCH

Related articles

  1. Outlook 2016: Alexander Lehmann, LSEG

    Latest phase of the uncleared margin rules were implemented in September.

  2. From The Markets

    CFTC Fines ICE Clear Europe

    ICEU allegedly violated regulations requiring written acknowledgment letters from a depository.

  3. Benefits include a reduction in settlement and counterparty risk, and lower risk of market disorder.

  4. Year-to-date cleared contract volume through end of September up 35%.

  5. Clock Synchronization: A Matter of Timing

    Operating 24 hours a day, five days a week will better support the Asia Pacific region.