LCH and Eurex extend new swap VM treatment

Three US banks used method to cut swaps assets by more than $300bn in third quarter

lch-clearnet-app
LCH: plans to apply STM to US client trades from January

Banks will have more ways to save capital on cleared swaps books in the coming months, as LCH plans to extend settled-to-market (STM) margining to the clients of US clearing members in January, while Eurex makes it available for members’ own trades next week.

When UBS applied the treatment to its LCH-cleared swaps in the first half of 2016, it cut the bank’s capital by around $300 million.

A clearing source at one European bank says it will look to adopt the STM approach quickly once it is

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: