Clearinghouse LCH last week launched portfolio margining for interest rate products, enabling clients to offset exchange traded and OTC derivatives for margin purposes. Some two years after rival Eurex Clearing debuted its version of the same service, and nearly four years after CME Clearing, LCH said that it had received the necessary regulatory approvals to offset margin between OTC and listed interest rate derivatives. Called LCH Spider, the new service analyses portfolios and automatically selects which eligible trades correlate. Initially, portfolio margining will be available for sterling and euro-denominated short term interest rate futures (STIRs) with plans to add further eligible contracts in due course.
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