LCH announced the expansion of its range of acceptable securities to include a number of fixed rate Danish covered bonds as collateral in LCH Ltd, its UK-registered clearing house.
The acceptance of Danish covered bond collateral will be an important tool in improving collateral management optionality and capabilities for both the Danish and international markets. LCH and the member community are looking forward to a broad market adoption.
Isabelle Girolami, CEO at LCH Ltd, said in a statement: “By accepting this collateral type, we are able to further support our members’ needs and bring further efficiencies to the Danish clearing ecosystem.”
Anders Schou, Economic executive director at Finans Danmark, said in a statement: “We are proud to work closely with our members and LCH in support of their expansion of eligible collateral to include Danish covered bonds. This is an important milestone which emphasizes the high liquidity and resilience in the Danish covered bond market.”