Â鶹´«Ã½

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
≔ Menu
Â鶹´«Ã½
Leading the Way

Global Â鶹´«Ã½ Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Derivatives news
  3. LCH completes clearing of its first €STR swaps
Derivatives news

LCH completes clearing of its first €STR swaps


21 October 2019 London
Reporter: Maddie Saghir

Generic business image for news article
Image: Shutterstock
LCH has cleared its first euro interest rate swaps referencing the euro short-term rate (€STR), making it one of the first clearing houses to offer the swaps benchmarked to the new reference rate.

Morgan Stanley and LBBW, the parent company of three commercial banks, were among the first participants to clear derivatives using the new rate, which was first published on 2 October.

According to LCH, it introduced clearing of €STR swaps as the industry adopts new interest rate benchmarks.

The move follows LCH’s , Sterling Overnight Index Average futures in April 2018, and .

Thilo Rossberg, head of fixed income, currencies, and commodities markets at LBBW, said: “We’re encouraged by the swift introduction of clearing for this product, as it’s a vital step for the development of a vibrant market. €STR is taking over, and we aim to be a reliable partner and liquidity provider in €STR swaps.â€

“Besides underlining our ambitions of being a reliable liquidity provider for our clients, this €STR-trade was moreover helpful in managing our overall risk position.â€

Meanwhile, Andrew Millward, European head of macro trading at Morgan Stanley, added: “We anticipate that €STR swaps will inherit much of the pre-existing liquidity from the EONIA swaps market and are expecting strong investor demand from the out-set.â€

“As an active participant in the global derivatives market, we are delighted to offer this cleared product to our clients.â€
Next derivatives article →

LCH CDSClear reaches new volume heights
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Â鶹´«Ã½ Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Liquidity

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →