Acting as the central counterparty to large percentage of Lehman Brothers trades, LCH.Clearnet brought risk exposure down by 90 percent since the company’s filing for bankruptcy.
LCH.Clearnet also has worked with market participants to minimize the impact of transition and management of positions. The company announced that equity and energy portfolios of Lehman exchange traded derivative positions have been sold through a sealed bid process.
Also:
* The vast majority of client requests to transfer derivative positions held in client and house accounts have been completed.
* The repo portfolio is now hedged and the remaining settlements are being worked through.
* The swap book is being managed according to the SwapClear default management process. The market risk exposure has been hedged on our behalf by six of the SwapClear members and the swap portfolio is due to be auctioned over the next two weeks.