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LCH SwapAgent goes live with Cross-Currency Basis Swaps

First Published 1st December 2017

Credit Suisse and Deutsche Bank conduct the first Cross-Currency Basis Swap processed through LCH SwapAgent

LCH SwapAgent, a service for the non-cleared derivatives market, has processed its first Cross-Currency Basis Swap. The first trade was conducted between Credit Suisse and Deutsche Bank and was a EUR/USD Cross-Currency Basis Swap. The trade was brokered by ICAP, which is part of TP ICAP group, and was processed through MarkitSERV.

The Cross-Currency Basis Swap was the first non-cleared trade to be transacted as LCH STM, SwapAgent's settlement-to-market legal and operational framework. LCH STM facilitates full and final daily NPV settlement, rather than collateralisation by way of exchange of variation margin, and the netting of such settlement and contractual trade cashflows.

LCH SwapAgent now offers processing for Cross-Currency Basis Swaps denominated in Australian Dollars, Canadian Dollars, Euros, Japanese Yen, Pounds Sterling and Swiss Franc against the US Dollar. This is in addition to its current product set, which covers 18 currencies on Swaps, FRAs, OIS and Inflation Swaps.

14 dealers have already 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.

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