LCH.Clearnet’s SwapClear service has surpassed the $1 trillion market in cleared Overnight Index Swap (OIS) trades in eleven weeks since OIS clearing was launched.
Further developments are planned for the coming months, including a service tailored for the buy-side and extensions to tenors to up to 50 years in some of the 14 currencies currently cleared.
Alberto Pravettoni, Managing Director, Commercial Services, LCH.Clearnet said: The success of SwapClears OIS offering demonstrates the markets appetite for tailored OTC clearing solutions. Dealers have long recognised the operational and risk management benefits of clearing interest rate swaps, as well as the proven effectiveness of the SwapClear default management process.
As potential regulation on derivatives means a greater emphasis on clearing,
the market has been quick to move towards clearing solutions for various products. In June 2009, the IntercontinentalExchange, through ICE Trust, surpassed the $1 trillion mark in cleared credit default swaps (CDS) since operations began on 9 March 2009.