The nominal value of European government bond and repo trades cleared by the LCH.Clearnet group in 2010 increased by 28% year on year, a record fuelled by increased demand as banks seek to manage their counterparty risk exposures.
A total of 19 new participants signed up to clear their fixed income business through LCH.Clearnet, taking the total to 70 and resulting in an increased proportion of inter-bank repo trades being cleared.
The total nominal value of fixed income trades cleared by LCH.Clearnet during 2010 reached EUR137 trillion, equating to over EUR500 billion in nominal value cleared daily.
Also in 2010, LCH.Clearnet launched the first clearing service for Spanish government bonds and repos. A notional value close to EUR700 billion was cleared during the year.
“At times of market stress, clearing becomes increasingly important," says John Burke, director and head of fixed income at LCH.Clearnet. "These impressive volumes show that maintaining liquidity and managing collateral are top of the list of priorities for banks. We look forward to continuing to develop and enhance our fixed income business during 2011.”
