LCH.Clearnet opts for new risk-management software

LCH.Clearnet Limited (LCH.Clearnet) has enhanced its market leading interest rate swap (IRS) clearing service, SwapClear, with the successful implementation of Murex’s world-class capital markets platform MX.3. The technology, which has been adapted by LCH.Clearnet and Murex, replaces a series of legacy systems and provides enhanced risk management capabilities.

SwapClear has been the world’s leading OTC IRS clearing service for the past decade and, as the global regulatory landscape changes, is committed to staying at the forefront of OTC derivatives clearing. This successful customisation of Murex’s established derivatives trading and processing platform has provided LCH.Clearnet with the flexibility, scalability and performance to continue to lead the way in bringing further products and services to centralised clearing.

The enhanced solution can handle 25,000 IRS trade sides per hour and a total portfolio of 4 million trade sides, doubling SwapClear’s previous capacity. The system has been designed to scale to 10 million trade sides in anticipation of global market developments in centralised clearing.

“This go-live with the most experienced clearing house in the OTC space is a validation of our technical capability and a proof of our strong commitment to assist our client base managing ongoing market shifts”, adds Maroun Eddé, CEO of Murex. “We position our platform at the heart of the trade life cycle management and risk management processes of an enterprise, which explains why a native management of OTC clearing is so natural and important to us”.

Michael Davie, CEO of SwapClear said: "SwapClear currently offers the most comprehensive range of products to the cleared OTC IRS market. Our customised Murex platform will make it quicker and easier for us to launch new products and services to end-user clients and members. It will facilitate faster and more comprehensive risk management which is critical as OTC markets move to more pervasive adoption of centralised clearing. We’d like to thank Murex for their excellent partnership and look forward to leveraging this investment to provide more and better solutions for clients and members alike”.

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