Start-up looks to break swaps clearing bottleneck

Sernova promises everything an FCM can do – apart from taking risk

Photo of Venkatesh Ramasamy
Venkat Ramasamy: “If you speak to a chief executive and tell them you can remove $20 billion of balance sheet, they would take that any time”

In the middle of last year, something unusual happened in the world of swaps clearing that may offer a way for the market to escape its reliance on a shrinking number of intermediary banks.

Propelled by fears of a sovereign downgrade that could have locked it out of the world’s biggest interest rate swap clearing house, Rand Merchant Bank – a unit of South Africa’s FirstRand Bank – joined LCH as a direct member in July, meaning it receives margin calls directly from LCH, contributes to the

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