LCH SwapClear
Key highlights and achievements across the LCH SwapClear service in 2023 include:
- In May2023, LCH completed its conversion of ~600,000 USD LIBOR contracts into SOFR equivalents, by far the largest conversion undertaken to-date with an aggregate notional value of $45 trillion. LCH also completed the conversion events for SGD SOR & THB THBFIX in June. The global programme remains ongoing, with CAD CDOR the next major benchmark set for conversion in June 2024, with an aggregate notional of $7trillion (C$9trillion).
- In August 2023, LCH SwapClear extended its operating times to 24 hours a day, 5 days a week to better support the growing regional demand for longer time periods to access clearing for OTC swaps.
- In Q3 2023, LCH SwapClear supported the onboarding of Singaporean local bank OCBC (Oversea-Chines Banking Corporation) as SwapClear’s global offering grows and expands across the APAC region. The onboarding of UOB (United Overseas Bank) to membership marks the completion of all Singapore local banking groups as direct members of SwapClear.
- In September 2023, LCH SwapClear launched PLN WIRON and ILS SHIR clearing eligibility.
End of year volumes:
- SwapClear registered a record high 9.1 million trades cleared in 2023, up 11% from 2022. The total number of client trades cleared increased 18% from 2022, to a record high 3.2 million.
- Outstanding notional cleared totalled $400trillion, up 7% from 2022.
- Total notional cleared was also reached a record high, up 21% from 2022 to $1,319trillion. Total client notional cleared was $405trillion, the highest on record and up 39% from 2022.
- The clearing of inflation swaps reached record high volumes of $10.8trillion, up from 16% on 2022.
- The number of trades compressed totalled 7.8 million, up 18% from 2022 and the highest annual total on record.
Please see here for LCH SwapClear’s quarterly dashboard highlights from 2023.
LCH SwapClear Dashboard Q1 2023
LCH SwapClear Dashboard Q2 2023
LCH SwapClear Dashboard Q3 2023
LCH SwapClear Dashboard Full Year 2023
LCH CDSClear
Key highlights and achievements across the LCH CDSClear service in 2023 include:
- CDSClear experienced record growth in 2023 across clearing activity, number of participants onboarded and shown strong growth with 198 live client entities across 1,672 accounts, up from 110 live entities across 827 accounts, at the end of 2022.
- In 2023 Barclays Bank PLC, Barclays Bank Ireland, Goldman Sachs International and Goldman Sachs Bank Europe SE, all went live as Clearing Brokers.
- BNP Sec Corp LLC went live as the first FCM entity
End of year volumes:
- The service registered a record €4.76 trillion in Index, Single Names and Options notional cleared as of December 29th, up 41% from 2022 (€3.36 trillion).
- A record $548 billion in USD Index and Single Names (Corporate and Sovereigns) notional cleared (up 342% on 2022) and a record €586 billion Client notional cleared (up 93% on 2022).
- CDSClear also achieved a record global market segment share in Q4 2023 (first quarter post ICE EU
CDSClearing closure) on both European Indices (27%, up 13 pts vs. 2022) and European Single Names (45%, up 14pts vs. 2022).
Please see here for LCH CDSClear’s quarterly dashboard highlights from 2023.
LCH CDSClear Dashboard Q1 2023 LCH CDSClear Dashboard H1 2023
LCH CDSClear Dashboard Q3 2023
LCH CDSClear Dashboard Full Year 2023
LCH RepoClear including RepoClear SA and RepoClear Ltd
Key highlights and achievements across the LCH Repoclear SA and Ltd. services in 2023 include:
- Ongoing development of additional RepoClear general collateral (GC) baskets following the merger of
RepoClear Euro debt service and €GCPlus service, such as the GovSSA basket (Governments, Supranationals, Subnational and Agencies basket), as well as the first sustainable, Green Basket.
- The go-live of intraday margin calls between RepoClear and Euronext Clearing, provides enhanced intraday risk management for members.
- Increased liquidity in Sponsored Clearing across 2023, with 13 dealers – representing one third of total LCH SA liquidity pool – now connected to quote prices on Tradeweb for Euro debt.
- Improving efficiency of cleared repo continued last year, with a focus in LCH Ltd on initial margin for Gilt clearing, and enhancements to model reaction and normalisation.
- 2023 saw the go-live of BrokerTec Quote with RepoClear’s Euro debt service, and the integration of GLMX and LCH SA to provide access to sponsored clearing for European Repo.
End of year volumes:
- Across RepoClear SA and Ltd, record highs were seen with €304.9trillion in nominal cleared across Euro debt and Gilts, up 6% from 2022.
- A record high 13.4 million trade sides cleared across Euro debt and Gilts, up 11% from 2022.
Please see here for LCH RepoClear’s quarterly dashboard highlights from 2023:
LCH RepoClear Dashboard Q1 2023
LCH RepoClear Dashboard Q2 2023
LCH RepoClear Dashboard Q3 2023 LCH RepoClear Dashboard Q4 2023 LCH ForexClear
Key highlights and achievements across the LCH ForexClear service in 2023 include:
- With 23 new clients onboarded in 2023, there are now a total 77 clients, and 41 member entities live on the service.
- 2023 saw the launch of Smart Clearing to provide optimised clearing of FX Swaps and FX Forwards for the purpose of financial resource optimisation, particularly counterparty credit risk capital under SA-CCR.
- In Q4, LSEG went live with NDF Matching, bringing together the liquidity, execution, operational and capital benefits of an NDF central limit order book with clearing for the first time.
End of year volumes:
- Record year for total notional cleared in 2023, with $27.6trillion cleared, 11% higher than the previous record in 2022.
- ForexClear cleared a record $2.6tn of FX Options notional in 2023, more than double the volume cleared in 2022.
- Record client clearing activity in 2023 with $739billion notional cleared – 44% higher than 2022.
Please see here for LCH ForexClear’s quarterly dashboard highlights from 2023.
LCH ForexClear Dashboard January 2023
LCH ForexClear Dashboard February 2023
LCH ForexClear Dashboard March 2023
LCH ForexClear Dashboard April 2023
LCH ForexClear Dashboard May 2023
LCH ForexClear Dashboard June 2023
LCH ForexClear Dashboard July 2023
LCH ForexClear Dashboard August 2023
LCH ForexClear Dashboard September 2023
LCH ForexClear Dashboard October 2023
LCH ForexClear Dashboard November 2023 LCH ForexClear Dashboard December 2023
SwapAgent
Key highlights and achievements across the LCH SwapAgent service in 2023 include:
- 2023 saw a sixth successive record year for cross currency and swaptions trade registrations, with average daily values up 78% year on year to $21.9bn and $13.4trn
- SwapAgent registered via Quantile, its first FX Forward trades
- SwapAgent processed its first EUR Transport Currency trades with KfW, Bank of America, Commerzbank, Danske Bank and Santander
- SwapAgent successfully activated the ISDA 2020 IBOR Fallbacks Protocol for all USD LIBOR trades
- In 2023, SwapAgent extended its cross currency service to support Fed Funds vs SONIA and new RFR crosscurrency pairings (SWESTR/DESTR), supporting the shift from legacy IBOR rates
End of year volumes:
- SwapAgent saw a 78% year-on-year increase in ADV (average daily volume) with over $5.9 trillion of notional registered.
- In 2023 membership at SwapAgent continued to grow to 26 dealer groups with 41 entities as well as welcoming its first 3 buy-side clients.
- The service continued to reduce trading frictions in Cross-currency swap markets, registering a record $5 trillion of notional, including a 401% increase in JPY cross currency average daily volumes.
- SwapAgent’s Swaption offering also saw new trade ADV growth of 85%.
Please see here for LCH SwapAgent’s quarterly dashboard highlights from 2023.
LCH SwapAgent Dashboard Q1 2023
LCH SwapAgent Dashboard Q2 2023
LCH SwapAgent Dashboard Q3 2023 LCH SwapAgent Dashboard Q4 2023
Source: LCH
