LCH figures published today suggest that its more speculative plays, such as SwapClear and RepoClear, are starting to pay off. Trading, by both volume and value, was at record levels last year. LCH says the 40 per cent jump in transactions, from 224 million worth GBP 105.1 trillion to 315 million contracts worth GBP 168.1 trillion, reflects not just increasing activity by itstraditional futures and options members but the success of its newer business streams: LCH EquityClearTM, LCH RepoClearTM, and LCH SwapClearTM.
David Hardy Chief Executive, said: During the past 12 months LCH has recorded impressive growth across all areas of its business, with members benefiting from capital and cost efficiencies, netting and post-trade anonymity. For the markets, the benefits include greatly increased liquidity and protection of the integrity of their infrastructures. Our aim for 2002 and beyond is to consolidate our position as Europe’s leading central counterparty.
In addition to consolidating its strong position in Europe, LCH, through its futures and options business stream, was last year appointed by the IntercontinentalExchange (ICE), one of the world’s leading energy exchanges, to provide clearing services to its global OTC markets. To enable this appointment LCH successfully sought recognition as a Derivatives Clearing Organisation (DCO) by the Commodities Futures Trading Commission (CFTC), the first and only non-US central counterparty to achieve such status.
LCH business streams will continue their rapid growth through the addition of services and functionality in 2002. LCH EquityClear will be introducing optional netting to its service to the London Stock Exchange, and will be launching a central counterparty service for virt-x. LCH RepoClearTM will be extending its range of instruments cleared to include UK Gilts. LCH SwapClearTM will be also be widening its product range, and extending maximum tenors to 30 years.