LCH launches new portfolio margining service

LCH has launched a new portfolio margining tool for interest rate derivatives, aimed at providing collateral efficiencies to the market.

By Editorial
LCH has launched a new portfolio margining tool for interest rate derivatives, aimed at providing collateral efficiencies to the market.

The service will be available to members and clients of LCH SwapClear enabling them to offset margin between OTC and listed interest rate derivatives.

Initially, portfolio margining will be available for Sterling and Euro-denominated short-term interest rate futures (STIRs).

The clearing house has been working with Nasdaq NLX to include its eligible futures contracts as part of LCH Spider’s go-live. LCH is also set to introduce CurveGlobal contracts following the platform’s planned launch in Q3 2016.

“LCH Spider has the potential to be a game changer for the rates market and we are delighted to deliver this service to our members and their clients,” Daniel Maguire, global head of rates and FX derivatives, LCH.

“This is another example of our innovation and commitment to partnering with the market to deliver greater choice and efficiencies, in line with LCH’s robust risk management and regulatory framework.

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