LCH completes clearing of its first 鈧琒TR swaps
21 October 2019 London
Image: Shutterstock
LCH has cleared its first euro interest rate swaps referencing the euro short-term rate (鈧琒TR), making it one of the first clearing houses to offer the swaps benchmarked to the new reference rate.
Morgan Stanley and LBBW, the parent company of three commercial banks, were among the first participants to clear derivatives using the new rate, which was first published on 2 October.
According to LCH, it introduced clearing of 鈧琒TR swaps as the industry adopts new interest rate benchmarks.
The move follows LCH鈥檚 , Sterling Overnight Index Average futures in April 2018, and .
Thilo Rossberg, head of fixed income, currencies, and commodities markets at LBBW, said: 鈥淲e鈥檙e encouraged by the swift introduction of clearing for this product, as it鈥檚 a vital step for the development of a vibrant market. 鈧琒TR is taking over, and we aim to be a reliable partner and liquidity provider in 鈧琒TR swaps.鈥�
鈥淏esides underlining our ambitions of being a reliable liquidity provider for our clients, this 鈧琒TR-trade was moreover helpful in managing our overall risk position.鈥�
Meanwhile, Andrew Millward, European head of macro trading at Morgan Stanley, added: 鈥淲e anticipate that 鈧琒TR swaps will inherit much of the pre-existing liquidity from the EONIA swaps market and are expecting strong investor demand from the out-set.鈥�
鈥淎s an active participant in the global derivatives market, we are delighted to offer this cleared product to our clients.鈥�
Morgan Stanley and LBBW, the parent company of three commercial banks, were among the first participants to clear derivatives using the new rate, which was first published on 2 October.
According to LCH, it introduced clearing of 鈧琒TR swaps as the industry adopts new interest rate benchmarks.
The move follows LCH鈥檚 , Sterling Overnight Index Average futures in April 2018, and .
Thilo Rossberg, head of fixed income, currencies, and commodities markets at LBBW, said: 鈥淲e鈥檙e encouraged by the swift introduction of clearing for this product, as it鈥檚 a vital step for the development of a vibrant market. 鈧琒TR is taking over, and we aim to be a reliable partner and liquidity provider in 鈧琒TR swaps.鈥�
鈥淏esides underlining our ambitions of being a reliable liquidity provider for our clients, this 鈧琒TR-trade was moreover helpful in managing our overall risk position.鈥�
Meanwhile, Andrew Millward, European head of macro trading at Morgan Stanley, added: 鈥淲e anticipate that 鈧琒TR swaps will inherit much of the pre-existing liquidity from the EONIA swaps market and are expecting strong investor demand from the out-set.鈥�
鈥淎s an active participant in the global derivatives market, we are delighted to offer this cleared product to our clients.鈥�
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