LCH.Clearnet group has cleared bond and repo trades with a notional value of €101 trillion in the first nine months of the year, an increase of 31% on the same period last year. Notional volumes in September were up 21% on 2009. This growth has been driven by an increase in demand for both the Euro and Sterling clearing services.
On 9 August LCH.Clearnet Ltd began clearing Spanish government bonds and repos. In the 8 weeks since launch, the service has attracted 45 participants and cleared Spanish government debt with a notional value of €256 billion. September was a particularly strong month with €151billion of notional cleared, representing some €3.6 trillion term adjusted volumes.
John Burke, director and head of fixed income, LCH.Clearnet said; “The strong growth in fixed income volumes indicates the continued interest in clearing for European government bond and repo markets. In the current market conditions the benefits of clearing, such as reduced counterparty risk and anonymity when trading, as well as the significant efficiencies that balance sheet netting brings are extremely attractive.”
LCH.Clearnet group is the largest clearer of bonds and repos in Europe, providing services across 13 government markets. The group clears over 80%* of the cleared European government bond repo market.
*Estimate based on LCH.Clearnet analysis