LCH RepoClear signs on Commonwealth Bank of Australia

  • Commonwealth Bank of Australia joins LCH SA’s RepoClear service
  • RepoClear SA is LCH’s international service for 13 euro denominated debts

LCH, part of LSEG (London Stock Exchange Group), announced Commonwealth Bank of Australia (CBA) has joined LCH SA, becoming the first Australian financial institution to join the Paris-based clearing house. This underlines the ever growing demand for the RepoClear service from outside Europe.

Membership of RepoClear SA provides access to the largest euro denominated pool of cleared repos, significant capital and operational efficiencies, including balance sheet netting and intra-day liquidity management. As a new member, CBA is now able to benefit from the deep, stable and fast-growing pool of cleared euro-denominated repos offered by RepoClear SA across 13 markets.

In 2022, RepoClear will look to further support its members via the merger of its €GC and RepoClear SA offering in one single pool of liquidity with cross netting; further extend its collateral solution by widening the scope of eligible currencies to its triparty services and welcome a wider range of buy side firms into the netting pool via its sponsored clearing model.

Corentine Poilvet-Clediere, head of RepoClear, Collateral and Liquidity at LCH SA, said in a statement: “RepoClear SA has been gaining increasing traction in regions outside Europe, with members joining from Japan, Canada and now Australia. Banks such as CBA play a key role in further deepening and enriching our netting pool.”

Chris McLachlan, executive general manager of Global Markets at Commonwealth Bank of Australia, said in a statement: “The service’s 13 euro-denominated debt markets and recent expanded access for the buy-side, offers vital access to secured funding markets for CBA and its clients, as well as offering significant opportunities for capital and operational efficiencies.”

In 2021, RepoClear SA saw significant growth in volumes and membership with a record €195 trillion of nominal cleared across 9.4 million trades, representing increases of 15% and 29% respectively. With the addition of CBA, RepoClear SA now counts 97 members, with a growing proportion of banks from outside Europe joining the service. At the end of 2021, RepoClear SA went live with Sponsored Clearing, expanding access to the service for the buy-side.

Source

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