LCH Increases Clearing Activity in Q310.11.2021
Daniel Maguire, Group Head, Post Trade, LSEG and CEO of LCH Group, said:
“LCH has continued its robust 2021 performance in Q3, with increased clearing activity from both new and existing customers. We are continuing to support our members and our clients in achieving efficiency while navigating regulatory change. The implementation of the latest phase of the uncleared margin rules in September served as a specific milestone for the derivatives market. As we enter Q4, attention is turning to the cessation of LIBOR at the end of the year and we remain committed to supporting the market in this reform and driving the migration to risk-free rates.”
- Continued to deliver strong volumes and drive transition to risk-free rates
- Cleared $202 trillion in notional from 1.6 million trades in Q3 2021, an increased trade count of 14% from Q3 2020
- Cleared $50 trillion in client (end user) notional in Q3 2021, 14% higher than Q3 2020
- Compressed $134 trillion and 1.1 million trades
- Delivered growth in volumes and supported the market with the implementation of Phase 5 of the uncleared margin rules
- $5.5 trillion in notional (increase of 21% from Q3 2020) cleared from over 840,000 trades in Q3 2021
- Strong growth in client clearing franchise: cleared $57 billion in Q3 2021, an increase of 37% from Q3 2020
- September was a record month for client clearing: $28 billion cleared, up 79% on September 2020
- Continued to grow its volumes in non-cleared derivatives processing and support transition to risk-free rates
- As of 30 September, SwapAgent processed $3.1 trillion, from over 31,000 trades
- Record quarterly trade registration: 2,946 cross-currency swap trades processed in Q3
- 18 member groups are now live and using the service
- Delivered growth and netting efficiencies while expanding LCH SA’s service to the buy side and making more green bonds available for clearing
- Q3 was a record quarter: €62 trillion cleared from 2.8 million trades
- An increase of 19% and 35% respectively, from Q3 2020
- September was a record month for RepoClear
- Total of €22 trillion cleared in September, from over 1 million trade sides
- Euro debt clearing: €18 trillion in nominal processed
- UK gilt clearing: over £3.3 trillion in nominal was processed
- Delivered strong volumes
- 629 million trades cleared across LCH in Q3 2021
- LCH SA’s Listed Derivatives service cleared 77 million contracts in Q3 (up 9% from Q3 2020)
- Continued to see growth across a number of metrics
- Cleared €430 billion Index and Single Name notional in Q3 2021
- Cleared €37 billion in Options notional (up 318% from Q3 2020)
- Cleared $7.3 billion US Index and Single Names notional in Q3 2021(up 7% from Q3 2020)
- Record quarterly share of European Single Names clearing: 53% (up 7 points from Q1 2021)
- Built on a strong H1
- Record quarter for commodity derivatives clearing: 10.9 million, up 4% from previous record in Q1 2021
CEDX is planning to expand its range of products in 2023, subject to regulatory approvals.
The CFTC regulated derivatives market and clearer was not included in FTX's bankruptcy filing.
Schroders cleared NDF trades across a Asian and Latam currency pairs via Citi.
The derivatives venue owned by FTX wanted to offer products that were not fully collateralized.
Cboe acquired EuroCCP on 1 July 2020.