SwapClear hopes to crush notionals by $600trn
Removing old bilateral records for cleared trades will allow CCP to ramp up its compression services, cutting notionals by as much as $300 trillion this year and next, the industry hopes
The swaps market may be about to wriggle out of the leverage ratio's stranglehold, thanks in part to a radical new approach to trade compression that is being rolled out at LCH.Clearnet. The clearing house is aiming to slash the outstanding gross notional of interest rate swaps at its SwapClear service by $600 trillion over 2013 and 2014 – roughly equivalent to the current size of the entire rates
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