LCH.Clearnet

LCH.Clearnet Ltd.(LCH.Clearnet) today announced that State Street Global Markets, LLC (SSGM), intends to join SwapClear, LCH.Clearnet's global over-the-counter (OTC) IRS clearing service, by June, 2012 subject to regulatory approval. SwapClear's total clearing membership is currently 61.

SwapClear membership reaches 37

November saw record volumes for LCH.Clearnet Limited’s (LCH.Clearnet) market leading interest rate swap clearing service, SwapClear. The total number of cleared OTC trades for the month reached 76,650 trade sides, 12% more than October and a 24% increase on November 2009. The increased figures bring the total outstanding number of IRS transactions to 1,720,390 trade sides with a notional value of USD248.3 trillion equivalent.

LCH.Clearnet Ltd (LCH.Clearnet) has today launched clearing for over-the-counter (OTC) hot rolled coil steel swaps. The service is a natural extension to LCH.Clearnet’s market leading OTC offering and complements the successful freight and iron ore services.

- 20 key currencies now cleared

LCH.Clearnet Limited’s (LCH.Clearnet) SwapClear service is to extend the range of currencies cleared from 14 to 20. From Q1 2011, interest rate swaps (IRS) denominated in HUF, CZK, KRW, MXN, BRL and SGD will be clearable.

This extension, which follows consultation with market participants, enables over 95% of the global IRS market to be cleared through SwapClear. This will further facilitate the transition of the OTC IRS market into clearing, in line with the thrust of regulatory reforms globally.

LCH.Clearnet Ltd (LCH.Clearnet) OTC emissions clearing service has had a record third quarter, with volumes increasing 148% on the same period last year. September was a particularly strong month with open interest increasing 281% year on year. The service clears contracts on EU Allowances and Certified Emissions Reductions (CER).

LCH.Clearnet SA (LCH.Clearnet) has enhanced the clearing functionality of its CDS offering in line with best market practice. These enhancements, which have been designed and tested in collaboration with its clearing members, include;

• Refinements to the risk management framework
• Integration of the DTCC’s new automated credit events procedures (implemented 4 October 2010)
• Implementation of CLS system connection for product related cash flows settlement; margins still flow through Target 2

Nodal Exchange, LLC and LCH.Clearnet Ltd (LCH.Clearnet) are to offer trading and clearing for a Henry Hub natural gas contract.

The contract, which will be launched in the fourth quarter of 2010, will allow Nodal Exchange participants to enhance capital efficiency by cross-margining their power and natural gas portfolios using VaR margining. The Henry Hub natural gas contract will be available through Nodal Exchange’s cleared over-the-counter (OTC) trade platform.

Transaction represents first major client to move to full scale clearing
Backloading of $200 billion total notional value of OTC interest rate swaps already underway

SIX x-clear Ltd and LCH.Clearnet Limited (LCH.Clearnet), have today published the complete documentation which covers the existing interoperability arrangement between the clearing houses. This arrangement currently serves the London Stock Exchange (LSE) and SIX Swiss Exchange.

There has been significant interest in the arrangement from both financial institutions and trading venues. The full inter-CCP contract has been published to support the market’s understanding of interoperability.