LCH Clears First Israeli Shekel-Denominated Interest Rate Swaps

Global clearing house LCH announced this Wednesday that it has cleared the first Israeli Shekel-denominated interest rate swaps via its dedicated service SwapClear.

With the addition of the Israeli Shekel, SwapClear now offers clearing for interest rate derivatives in 27 currencies. Bank Leumi and Citi were among the first parties to clear a derivatives trade denominated in the Israeli currency via LCH.

Furthermore, in its statement today, the clearing house highlighted that the following clearing brokers supported the clearing of Israeli Shekel swaps from launch: Citi, Goldman Sachs, HSBC and J.P. Morgan.

Commenting on the announcement, Susi de Verdelon, Global Head of SwapClear and Listed Rates, LCH, said in the statement: “We are delighted to bring clearing of Israeli Shekel interest rate derivatives to market.

“This is a significant enhancement to our global clearing offering and we’ve seen strong demand for the product from our international members and their clients. Many firms are looking to optimise their portfolios as the uncleared margin rules continue to be phased in, and the introduction of this product will be an important tool for them to achieve greater efficiencies."

LCH has been constantly expanding its offering, with the clearing house recently announcing back in May that it had cleared the first Singapore Dollar (SGD) interest rate swaps referencing the Singapore Overnight Rate Average (SORA), which was in response to customer demand.

Citi and Bank Leumi Call LCH Development a Positive Step

“Clearing of derivatives denominated in Israeli Shekel is an important development for the market. By clearing Israeli Shekel, LCH has enabled us to achieve significant efficiencies in our derivatives portfolio. We are delighted to participate in the first cleared Israeli Shekel derivatives trades,” added Mr. Ronen Agassi, Head of Capital Markets Division, Bank Leumi LE-Israel B.M., in the statement.

“Access to a multi-currency pool of Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term is vital to efficient clearing and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term,” continued Neil Corney, Citibank NA, Israel CCO and Head of Markets.

“The launch of Israeli Shekel clearing at LCH is a positive step for the market, significantly increasing the opportunity to realise margin and capital efficiencies. Citi, as a primary international financial organisation, with a significant local banking presence, is delighted to act as the executor for the launch of Shekel clearing at LCH."