Compression accelerates at SwapClear

LCH.Clearnet says its SwapClear service has eliminated over US$100 trillion in notional outstanding since January 1 2015. This net reduction in notional outstanding has been driven by an acceleration of compression activity by SwapClear’s members and their clients throughout the year, it adds. SwapClear calculates that its notional outstanding reached an all-time high of $426 trillion in November 2013.

Amidst record volumes of cleared trades in 2015, SwapClear compressed $323 trillion over the year, reducing the notional outstanding from almost $362 trillion at the start to the year to $254 trillion. This was achieved through its proprietary compression services, such as blended-rate, and those offered in partnership with TriOptima, says LCH.Clearnet.

Members are currently able to compress interest rate swaps (IRS), forward rate agreements (FRA) and overnight index swaps (OIS) using the service. Plans to introduce compression services for inflation swaps and FX non-deliverable forwards (NDF) remain in place for 2016.