19 NOVEMBER 2020, New York

LCH clears first SORA swaps

May 19, 2020

LCH clears first SORA swaps
  • LCH is the first clearing house to offer clearing of Singapore Dollar swaps benchmarked to SORA
  • Launched in collaboration with the market and in response to customer demand
  • Demonstrates LCH’s continued support for global rates reform

LCH, a leading global clearing house, today announced that it has cleared the first Singapore Dollar interest rate swaps referencing the Singapore Overnight Rate Average (SORA). LCH has implemented clearing of SORA swaps as the industry continues to adopt alternative interest rate benchmarks. LCH also offers clearing in €STR swaps, SOFR swaps, SONIA Futures and SARON swaps.  

Standard Chartered was party to the first cleared derivatives trade referencing SORA.

Kate Birchall, Head of Asia Pacific, LCH, said: “The introduction of clearing derivatives referencing SORA is another important milestone in the global efforts to move to alternative reference rates. Clearing this product has involved close collaboration with a variety of stakeholders in Singapore and the wider market. We are pleased to bring these efforts to fruition by being the first to offer these new cleared products to our members and their clients to facilitate increased efficiencies.”

Daniel Koh, Global Head, Treasury Markets, Standard Chartered and Chair of the Derivatives Sub-Group of the Steering Committee on SGD Swap Offer Rate (SOR) transition to SORA (SC-STS)said: “Standard Chartered is delighted to clear the first SORA swaps at LCH and to contribute to building liquidity in this product. Clearing this product is a vital step in the transition to broader adoption of SORA across the Singapore market, and we are in turn pleased to be able to offer SORA swaps to our clients for hedging.”

About 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.

Source: LCH