LCH.Clearnet extends SwapClear down under 02 July 2013New York Reporter: Jenna Jones
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The Australian government has granted an extension to its existing clearing and settlement facility license allowing LCH.Clearnet to offer its SwapClear OTC interest rate swap clearing service directly to Australian banks.
As members of SwapClear, Australian banks will now be able to participate alongside international clearing members, enabling them to mitigate counterparty risk through clearing and realise greater portfolio netting efficiencies.
In May, LCH.Clearnet appointed Jack Drewe to serve as the local representative based in Sydney. Drewe will lead the build out of the office and SwapClear’s offering in Australia.
Michael Davie, CEO of LCH.Clearnet’s SwapClear business, said: “This is an important milestone for LCH.Clearnet’s long-term growth strategy in the region, and we are looking forward to working with our new members and local partners to bring greater efficiency and transparency to the Australian market.”
Eddie Listorti of ANZ Global Markets said: “ANZ welcomes the government's decision to license LCH.Clearnet’s SwapClear business to offer clearing services for interest rate swaps in Australia.”
“We see this as an important step for Australian financial institutions providing OTC derivatives products for their customers. We look forward to becoming a direct member of LCH.Clearnet as one of the key entities for clearing our global interest rate swaps business.”
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