LCH clears first Israeli Shekel-denominated swaps
September 16, 2020
- LCH is the first clearing house to offer clearing of Israeli Shekel-denominated interest rate swaps
- Launched in response to customer demand
- SwapClear offers clearing for interest rate derivatives across 27 global currencies
LCH, a leading global clearing house, today announced that it has cleared the first Israeli Shekel-denominated interest rate swaps. Israeli Shekel is the latest currency to be cleared at SwapClear, which offers clearing for interest rate derivatives in 27 currencies.
Bank Leumi and Citi were among the first parties to clear a derivatives trade denominated in Israeli Shekel. Clearing brokers supporting clearing of Israeli Shekel swaps from launch include: Citi, Goldman Sachs, HSBC and J.P. Morgan.
Susi de Verdelon, Global Head of SwapClear and Listed Rates, LCH, said: “We are delighted to bring clearing of Israeli Shekel interest rate derivatives to market. This is a significant enhancement to our global clearing offering and we’ve seen strong demand for the product from our international members and their clients. Many firms are looking to optimise their portfolios as the uncleared margin rules continue to be phased in, and the introduction of this product will be an important tool for them to achieve greater efficiencies."
Mr. Ronen Agassi, Head of Capital Markets Division, Bank Leumi le-Israel B.M., said: “Clearing of derivatives denominated in Israeli Shekel is an important development for the market. By clearing Israeli Shekel, LCH has enabled us to achieve significant efficiencies in our derivatives portfolio. We are delighted to participate in the first cleared Israeli Shekel derivatives trades.”
Neil Corney, Citibank NA, Israel CCO and Head of Markets said: “Access to a multi-currency pool of liquidity is vital to efficient clearing and risk management. The launch of Israeli Shekel clearing at LCH is a positive step for the market, significantly increasing the opportunity to realise margin and capital efficiencies. Citi, as a primary international financial organisation, with a significant local banking presence, are delighted to act as the executor for the launch of Shekel clearing at LCH.”
LCH is a group of leading multi-asset clearing houses that provides proven risk management capabilities across a range of asset classes. As demand for robust clearing services continues to grow, LCH is committed to maintaining the highest standards of risk management across all our services.
As the markets’ partner, LCH operates an open access model, offering a choice of execution venues, delivering unprecedented choice and efficiencies to the marketplace.
LCH operates clearing houses around the world, with clearing houses incorporated in the UK and France and with offices in the United States and the Asia Pacific region. It offers clearing services across asset classes including OTC and listed rates; CDS and FX; fixed income; commodities; cash equities and equity derivatives. LCH also serves the non-cleared derivatives market through LCH SwapAgent, a new service which extends the efficiencies and infrastructure of clearing to the market, without acting as a central counterparty.
LCH is majority owned by London Stock Exchange Group (LSE.L), an international markets infrastructure business that sits at the heart of the world's financial community.
Further information on LCH can be found at www.lch.com
To view this announcement in Hebrew, please download the PDF.