LCH.Clearnet nets €1.2 quadrillion of government bonds since 1999
LCH.Clearnet Limited’s RepoClear service today celebrates its tenth anniversary. Launched on 20 August 1999, it was the first over-the-counter (OTC) clearing service for multi-market government bonds and repo in Europe.
Since 1999, LCH.Clearnet has cleared and netted OTC fixed income trades with a settlement value of circa €1.2 quadrillion (€1.2×1015). During this time, settlement obligations have been reduced by circa €800 trillion through netting, thereby significantly reducing systemic and settlement risk in the European fixed income markets.
John Burke, director and head of Fixed Income said: “RepoClear is a highly innovative service, which has led the way in OTC clearing. Its success has fundamentally improved the risk management and post-trading infrastructure of the European government bond and repo markets. Banks have benefitted from being able to expand their businesses by trading anonymously in full confidence of LCH.Clearnet’s counterparty risk management, and by maximising balance sheet, credit line and operational efficiencies.
“I would like to thank all fixed income members, the original RepoClear pioneers and all those who have contributed to the success of the service.”
Currently, over 50 banks benefit from LCH.Clearnet’s centralised clearing service for fixed income.