LCH.Clearnet to use SWIFT for margin calls 13 October 2015London Reporter: Mark Dugdale
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LCH.Clearnet plans to use SWIFT to notify clearing members of margin calls from November.
The clearinghouse already uses SWIFT to send and receive collateral messages with its members.
Under the new process, LCH.Clearnet’s members will receive margin call notifications faster and in a standardised format, increasing operational efficiency and straight-through processing (STP). The messages will comply with ISO 20022 MX standards.
The service was developed in collaboration with SWIFT and the global ISO standards evaluation group. It will also be available to members of LCH.Clearnet LLC.
Gerard Smith, director of collateral Services at LCH.Clearnet, said: “We’re committed to improving efficiency for our members, and we have developed this new service with them in mind. Leveraging SWIFT enables members and their clients to be notified of their margin obligations in a more timely and standardised fashion."
"We’re delighted to have collaborated with SWIFT to be the first CCP to offer this service to our members and their clients.”
Arun Aggarwal, head of UK, Ireland and the Nordics at SWIFT, added: “LCH.Clearnet’s adoption of ISO 20022 standards for these margin calls is a great example of the market moving towards greater standardisation and efficiency."
"We’re pleased to be working with LCH.Clearnet to deliver a fast and effective way for members to receive notifications of margin calls. This forms part of SWIFT’s wider global efforts to assist members with STP programmes for collateral management.”
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