LCH has expanded its non-deliverable interest rate swaps offering to include five additional currencies.
Market participants are now able to clear this product denominate in Brazilian Real, Chilean, Peso, Colombian Peso, Taiwan Dollar and Thai Baht.
According to LCH, the product extension has been launched in response to customer demand, particularly among members and their clients in the Asia Pacific (APAC) and Latin America regions.
The initiative builds on LCH鈥檚 existing non-deliverable interest rate swaps offering of Chinese Yuan, Indian Rupee and Korean Won, launched in April 2018.
Cameron Goh, global head of product, rates, LCH, said: 鈥淲e鈥檙e delighted to be expanding our non-deliverable swaps offering to include these currencies. Our focus continues to be on providing maximum capital and margin efficiencies for the market, and this latest extension is another example of LCH partnering with our customers to extend our cleared product set.鈥�
Bruno Lettich, global head rates trading, Standard Chartered Bank, said: 鈥淭his is an important development for the market, and we are delighted to be among the first members to clear these derivatives at LCH as we continually look to expand the risk management benefits that we provide to our clients.鈥�
鈥淭his move by LCH to expand the Asian product offering and the inclusion of Latin America currencies extends the significant margin and capital efficiency benefits of LCH鈥檚 global liquidity pool.鈥�
Felicia Grumet, global head of over the counter clearing at Bank of America Merrill Lynch, cited: 鈥淟CH鈥檚 expansion into additional APAC currencies provides us with further opportunity to increase capital and margin efficiencies for our clients through SwapClear鈥檚 global pool of cleared liquidity.鈥�
鈥淲e鈥檙e delighted to be able to offer the substantial benefits of clearing these products to our clients across the globe.鈥�
Ariel Jezierski, head trader of Latin America currencies and emerging markets, J.P. Morgan, added: 鈥淲e are pleased to be one of the first participants to clear these products at LCH. This extension into additional Latin American swaps helps us to effectively manage counterparty risk.鈥�
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