LCH SwapAgent completes its first swaption trade
15 November 2018 London
Image: Shutterstock
LCH SwapAgent, a service for the non-cleared derivatives market, has processed its first swaption trade.
Two swaptions trades were completed between Nomura and Deutsche Bank, one denominated in euro and the other in US dollars.
The trades were brokered by ICAP, part of TP ICAP group, and processed by MarkitSERV.
Swaptions are the latest addition to LCH SwapAgent鈥檚 product offering for the non-cleared derivatives market, which includes cross-currency basis swaps, as well as interest rate swaps, and inflation swaps.
Aaron Mayor, head of new product development for rates at LCH, said: 鈥淲e are excited to launch USD and EUR swaptions in partnership with the market.鈥�
He added: 鈥淲e support the alignment of swaptions settlement and collateralisation with the cleared swap market and have launched swaptions in SwapAgent with net present value based settlement in both USD and EUR.鈥�
Martial Collet-Billon, head of EUR rates exotics trading at Deutsche Bank, commented: 鈥淒eutsche Bank is delighted to be entering the first swaption trade into the SwapAgent service. We are continually looking for ways to be more efficient and provide a better service to our clients, and SwapAgent is helping us to achieve that.鈥�
Chris Wells, managing director, Europe, Middle East and Africa, head of middle office at Nomura, said: 鈥淭he SwapAgent framework enables significant improvements in the processing and settlement of uncleared over-the-counter derivatives.鈥�
He added: 鈥淣omura is pleased to be one of the first counterparties to book a swaptions trade using this new service and see this as a significant milestone in the industry鈥檚 drive for efficiency.鈥�
Two swaptions trades were completed between Nomura and Deutsche Bank, one denominated in euro and the other in US dollars.
The trades were brokered by ICAP, part of TP ICAP group, and processed by MarkitSERV.
Swaptions are the latest addition to LCH SwapAgent鈥檚 product offering for the non-cleared derivatives market, which includes cross-currency basis swaps, as well as interest rate swaps, and inflation swaps.
Aaron Mayor, head of new product development for rates at LCH, said: 鈥淲e are excited to launch USD and EUR swaptions in partnership with the market.鈥�
He added: 鈥淲e support the alignment of swaptions settlement and collateralisation with the cleared swap market and have launched swaptions in SwapAgent with net present value based settlement in both USD and EUR.鈥�
Martial Collet-Billon, head of EUR rates exotics trading at Deutsche Bank, commented: 鈥淒eutsche Bank is delighted to be entering the first swaption trade into the SwapAgent service. We are continually looking for ways to be more efficient and provide a better service to our clients, and SwapAgent is helping us to achieve that.鈥�
Chris Wells, managing director, Europe, Middle East and Africa, head of middle office at Nomura, said: 鈥淭he SwapAgent framework enables significant improvements in the processing and settlement of uncleared over-the-counter derivatives.鈥�
He added: 鈥淣omura is pleased to be one of the first counterparties to book a swaptions trade using this new service and see this as a significant milestone in the industry鈥檚 drive for efficiency.鈥�
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