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LCH.Clearnet Fixed Income clearing business achieves new highs

London, 7 February 2008

LCH.Clearnet’s Fixed Income clearing business has achieved significant growth both in terms of an organic increase in the existing service plus through the introduction of new products.

In 2007, new levels of business saw the total nominal value of trades cleared across the service reach some €109 trillion, representing a 19% increase on the 2006 total.

Of particular note in 2007 was the introduction of a successful new service called RepoClear Sterling GC, which is based on the clearing of Gilt DBV trades settled at Euroclear UK & Ireland.  A steady increase in business volume was seen in Sterling GC throughout 2007. This growth has continued into this year with January 2008 already observing new daily records being set on 31 January of €45 billion (£33 billion) nominal value of trades registered, contributing to an outstanding balance for the product of some €96 billion (£71 billion).  The January 2008 monthly total nominal cleared of €570 billion (£422 billion) is also a new record.

Sterling GC’s performance augurs well for the introduction of a sister product, RepoClear EuroGC which goes live in Q2 2008. EuroGC will support repo general collateral trading in standardised baskets of euro-area euro-denominated government bonds utilising triparty settlement.

John Burke, Director of Fixed Income, commenting on business performance said “At a time of major market uncertainty and volatility, LCH.Clearnet’s Fixed Income business has not only shown a great resilience, but has clearly demonstrated the benefits of our central counterparty service to the bond and repo markets. We are particularly pleased that the growth in volume in 2007 has continued in 2008 and that the Sterling GC product, which was designed in conjunction with Gilt market participants, has proven to be of such value to the market.” 

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Editors Notes

LCH.Clearnet is currently owned 67.6% by users, 17.8% by exchanges with the balance of 14.6% being held by Euroclear. Upon completion of the Euronext share buy-back programme by 2009, the Group will be owned 73.3% by users, 10.9% by exchanges and 15.8% by Euroclear.

LCH.Clearnet is committed to operating under strict principles of non-discrimination across its user base. LCH.Clearnet serves major international exchanges and platforms, equity, exchange-traded derivatives, energy, interbank interest rate swaps markets and the majority of the Euro-denominated and sterling bond and repo markets.