LCH Group
Industry NewsApril 05, 2019

LCH Enhances Clearing Services in Partnership With Genesis

LCH, a leading global clearing house, has partnered with with capital markets software firm genesis to design, build and implement three new solutions: automating workflows for its ForexClear service, a CDS option electronic exercise platform for CDSClear, and member/client web portals for SwapClear.

The ForexClear platform was in need of improving its capacity to support increased volumes. Workflow automation designed by genesis allowed just that, with a streamlined solution to automate the FX ‘option expiry’ process. genesis’ domain knowledge and microservices technology framework – enabling fast and agile software development – was also selected to help develop the exercise and expiry service for ForexClear. The first iteration was developed and deployed into User Acceptance Testing (UAT) within weeks. The solution is now fully integrated within LCH’s production environment.

LCH also hired genesis to build a suite of complementary solutions for SwapClear – member and client web portals for SwapClear – and CDSClear – a CDS option electronic exercise platform.

Christophe Noblet, Chief Operating Officer at CDSClear
Christophe Noblet
Christophe Noblet, Chief Operating Officer at CDSClear, commented: “LCH is experiencing continued growth across a multiple asset-classes, serving an increasing number of market participants who are looking to clear their activity. We’re pleased that genesis has supported us in developing a tool to automate exercise and options expiry, bringing enhanced operational efficiency to the benefit of our members and clients.”
James Harrison, Chief Operating Officer of genesis
James Harrison

James Harrison, Chief Operating Officer of genesis, said: “We are very excited and privileged to work with such a prestigious client as LCH. This was a truly collaborative and blended effort between the LCH and genesis’ teams and we are very proud that we were able to support LCH and deliver exceptional products both ahead of time and within budget. We look forward to innovating with LCH to develop future products that will ultimately help scale the business.”

In late 2018, LSEG entered into agreements with certain minority shareholders of LCH to acquire up to a further 15.1% of LCH’s share capital, which took its majority ownership to over 80%. The acquisition was valued at around €438m and was funded from cash and existing debt facilities.
LCH’s FX-Derivative clearing service Forex Clear registered a record volume in 2018, clearing over $17 trillion in notional value and is up by 55 per cent compared to 2017.
LCH’s Interest Rate derivatives clearing services, SwapClear processed over $1,077 trillion in notional value, which is an increase of 23 per cent year on year, and also for the first time it has cleared $1 quadrillion in one year.
CDSClear also recorded €1.2 trillion in notional value processed across its CDS index and single names offering. It is 12 per cent higher compared to 2017 full year volumes.
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