LCH Clears First ILS Interest Rate Swaps

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LCH has cleared the first Israeli Shekel-denominated interest rate swaps.

ILS is the latest currency to be cleared at SwapClear, which offers clearing for interest rate derivatives in 27 currencies. Clearing brokers supporting ILS include Citi, Goldman Sachs, HSBC and J.P. Morgan.

Susi de Verdelon, Global Head of SwapClear and Listed Rates at LCH said, "We are delighted to bring clearing of Israeli Shekel interest rate derivatives to market. This is a significant enhancement to our global clearing offering and we've seen strong demand for the product from our international members and their clients. Many firms are looking to optimise their portfolios as the uncleared margin rules continue to be phased in, and the introduction of this product will be an important tool for them to achieve greater efficiencies."

Mr. Ronen Agassi, Head of Capital Markets Division at Bank Leumi le-Israel B.M. said, "Clearing of derivatives denominated in Israeli Shekel is an important development for the market. By clearing Israeli Shekel, LCH has enabled us to achieve significant efficiencies in our derivatives portfolio."

Neil Corney, Israel CCO and Head of Markets at Citibank NA said, "Access to a multi-currency pool of liquidity is vital to efficient clearing and risk management. The launch of Israeli Shekel clearing at LCH is a positive step for the market, significantly increasing the opportunity to realise margin and capital efficiencies."

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