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Citi and Deutsche Bank execute first trades via LCH SwapAgent

First Published 7th September 2017

LCH SwapAgent completes first trades

Nathan Ondyak, LCH SwapAgent

Nathan Ondyak, LCH SwapAgent

LCH SwapAgent, a service for the non-cleared derivatives market, has processed its first trades. Citi and Deutsche Bank were the counterparties to the Swiss Franc-denominated interest rate swap and Euro-denominated inflation swap. The trades were processed through MarkitSERV.

LCH SwapAgent is available for market participants trading non-cleared OTC interest rate derivatives. Acting as an independent calculation agent, LCH SwapAgent calculates and enables customers to exchange bilateral margin and settlement payments, without the need for a central counterparty.

Nathan Ondyak, Global Head of LCH SwapAgent, said: "Through LCH SwapAgent we can extend the efficiencies of centralised clearing to the non-cleared market and we look forward to expanding this offering to include products such as cross-currency swaps in due course."

14 dealers have confirmed their support for LCH SwapAgent including: Bank of America Merrill Lynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Nomura and RBS. LCH also plans to supply risk calculation data to the AcadiaSoft Hub to further streamline the margining process for the banks already using The Hub to comply with the non-cleared margin rules.

The service is due to expand to encompass cross-currency swaps from Q4 2017.