LCH has gone live with LCH Spider, its portfolio margining tool for interest rate derivatives. Eligible members and clients using its SwapClear and Listed Rates services can now offset margin between OTC and listed interest rate derivatives.
The global clearing house says LCH Spider is an automated service that analyses member and client portfolios and selects which eligible trades correlate and provide risk reduction. If a member has opted in, the listed rates are then transferred to their OTC portfolio for offsetting and delivering risk and collateral efficiencies.
Initially, portfolio margining will be available for sterling and euro-denominated short-term interest rate futures (STIRs) with plans to add further eligible contracts, in line with customer demand and LCH’s risk management framework.