10.13.2020

LCH SA To Clear EU’s SURE Bonds

10.13.2020
Shanny Basar
Buy Side Responds to Esma on Clearing Swaps

• €87.4 billion of loans will be provided to 16 EU member states through EU’s SURE programme

• LCH SA to support the EU SURE programme by clearing these Bonds

• Clearing provides enhanced risk management, liquidity and efficiencies to market participants

• Members will benefit from clearing at RepoClear’s deep netting pool of EUR debt

LCH, a leading global clearing house, today announced that it will be supporting the clearing of bonds issued as part of the European Union’s temporary support to mitigate unemployment risks in an emergency (SURE) programme*. Bonds issued as part of the scheme will be eligible for clearing at LCH SA’s RepoClear service. Participants in the market will therefore be able to benefit from enhanced counterparty risk management as well as operational and capital efficiencies. LCH SA offers clearing of Euro-denominated bonds and repos across 13 government bond markets.

€87.4 billion of loans will be provided to 16 EU member states under the SURE programme, which aims to help finance increased national expenditure on short-term work schemes and other similar measures. Similarly, LCH SA will support and clear the upcoming Next Generation EU Bonds.

Christophe Hémon, CEO, LCH SA, said: “The Covid-19 pandemic has significantly impacted both public health and the labour market across the globe. The EU’s SURE programme offers vital financing for employment schemes throughout the EU. At LCH, we are committed to supporting financial stability and we are delighted to be in a position to support this programme and contribute to the EU’s economic recovery by clearing the new debt.”

Source: LCH

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