LCH.Clearnet releases 2012 highlights
15 February 2013 New York
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LCH.Clearnet's RepoClear product cleared more than €142.4 trillion nominal in 2012, according to its results.
Net underlying investment income was €132.3 million—down 5 percent—while average cash and collateral under management rose 13 percent to €83.6 billion.
The firm's OTC clearinghouse, SwapClear, passed $339.9 trillion notional cleared. ForexClear cleared notional of more than $440 billion in 2012 following its launch in March 2012.
Net revenues also increased by 24 percent to €426.2 million, headline operating profit grew 89 percent to €127.5 million and clearing fees increased 7 percent to €253.9 million.
Other 2012 highlights include the firm’s acquisition of International Derivatives Clearing Group from the Nasdaq OMX Group in August.
The acquisition enabled the firm to improve its range of clearing solutions and operate a US-based central counterparty. As part of the deal, Nasdaq OMX was given a stake of 3.7 percent in LCH.Clearnet.
Revised terms for the London Stock Exchange (LSEG) offer for a majority stake share in LCH.Clearnet was also provisionally agreed in December.
LCH.Clearnet and LSEG have received approval from the Portuguese competition authority for the deal. The transaction remains subject to other outstanding conditions, including approval from the UK FSA.
Ian Axe, group chief executive at LCH.Clearnet Group, said: “Last year saw unprecedented stress in European sovereign debt markets and extensive global financial regulatory reforms covering CCPs. LCH.Clearnet came through for clients and regulators demonstrating once again our effectiveness within the global capital markets risk management framework.”
“A €127.5 million profit is sound evidence of how we strengthened our financial stability and is proof of our longevity. We also achieved a number of important milestones in our strategic development, including reinforcing our leading market position in Europe by growing our OTC businesses and extending our horizontal exchange model, as well as investing in the US and Asia.”
Net underlying investment income was €132.3 million—down 5 percent—while average cash and collateral under management rose 13 percent to €83.6 billion.
The firm's OTC clearinghouse, SwapClear, passed $339.9 trillion notional cleared. ForexClear cleared notional of more than $440 billion in 2012 following its launch in March 2012.
Net revenues also increased by 24 percent to €426.2 million, headline operating profit grew 89 percent to €127.5 million and clearing fees increased 7 percent to €253.9 million.
Other 2012 highlights include the firm’s acquisition of International Derivatives Clearing Group from the Nasdaq OMX Group in August.
The acquisition enabled the firm to improve its range of clearing solutions and operate a US-based central counterparty. As part of the deal, Nasdaq OMX was given a stake of 3.7 percent in LCH.Clearnet.
Revised terms for the London Stock Exchange (LSEG) offer for a majority stake share in LCH.Clearnet was also provisionally agreed in December.
LCH.Clearnet and LSEG have received approval from the Portuguese competition authority for the deal. The transaction remains subject to other outstanding conditions, including approval from the UK FSA.
Ian Axe, group chief executive at LCH.Clearnet Group, said: “Last year saw unprecedented stress in European sovereign debt markets and extensive global financial regulatory reforms covering CCPs. LCH.Clearnet came through for clients and regulators demonstrating once again our effectiveness within the global capital markets risk management framework.”
“A €127.5 million profit is sound evidence of how we strengthened our financial stability and is proof of our longevity. We also achieved a number of important milestones in our strategic development, including reinforcing our leading market position in Europe by growing our OTC businesses and extending our horizontal exchange model, as well as investing in the US and Asia.”
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