LCH.Clearnet Introduces IRS Service in the US

LCH.Clearnet’s has launched a US-domiciled interest rate swap clearing service in the US.

David Weisbrod, CEO of LCH.Clearnet in the U.S. said the launch is part of the group’s long-term growth strategy in the US, and it will continue to seek new opportunities to expand the business in this important market. “Proven risk management, liquidity and choice are always in demand,” said Weisbrod.

Executing brokers and futures commission merchants (FCMs) from 10 major firms (Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley, Nomura and UBS) have joined the US-domiciled service from day one, with further major firms expected in the coming months.

Headquartered in New York City, the new service is governed by New York law and regulated by the CFTC.

“LCH.Clearnet is an active buy-side partner for segregation of client collateral, which we fully support,” said Richard Prager, head of Global Trading at Blackrock. ”The US DCO promises not only to enhance client asset protection, but provide asset managers with the functionality necessary to efficiently clear interest rate swaps.”
“The launch of this new service reinforces our market-leading position in the US,” said Daniel Maguire, managing director, SwapClear. “FCMs, their clients and dealers will all benefit by leveraging the same proven risk management framework, breadth of product offering and real efficiencies that the existing SwapClear service provides.”