VIDEO | Netting – of risk exposures, as well as of opposite-way trades that don’t need to go to the costly settlement phase – is one of the drivers behind growing interest in central counterparty clearing. An panel of LCH representatives at PostTrade 360° Stockholm on Tuesday looked into their clients’ nuances in determining what to clear or not.

This conference session was sponsored by LCH

On one level, well-managed clearing operations should be boring. The art of not producing surprises for participants is one of the most central quality parameters. In crises, such as around the Covid-19 spread or Russian Ukraine invasion, that is put to the test (though it is generally considered that clearinghouses have stood up well).

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While the regulatory “uncleared margin rules” (“UMR”) have been the most visible driver behind increasing CCP clearing lately, economic assessments have contributed a lot, too. The session saw Sean Quinlan list some of these: multilateral netting including of variation margin, optimisations in relation to regulatory capital requirements at banks, as well as the possibilities to allocate assets efficiently for trade margining.

The speakers were:
Alex Krunic, Head of EquityClear, LCH Ltd,
Sean Quinlan, Strategic Relationship Director, Sales EMEA & APAC, LCH, and
James Stacey, EquityClear Commercial Services Director, LCH Ltd.


• PostTrade 360° Stockholm 2022 took place on 29–30 March. News around the event is gathered here
• The conference info site, with detailed agenda, is here.
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