Image
December 1, 2012

Nasdaq NLX & LCH, new ETD IR platform

Until June next year LCH clears the contracts from LIFFE including STIRs, following which LIFFE will take on the full running of their own clearing service.

NASDAQ have announced the launch of a new ETD platform “NLX” to trade a smaller set of ETD IR products (details in this PDF) which LCH will clear.

I thought it interesting that LCH will employ the PAIRS algorithm for calculating Initial Margin, the same method used for SwapClear for OTC IR products, a form of Filtered Historic VaR. Could this be a play to provide offsets between ETD & OTC to counter a move by LIFFE to move into OTC clearing? (or CME for that matter).

Launching a new trading platform for ETD when LIFFE is already an incumbent isn’t going to be easy, more coverage here.

LCH.Clearnet Group – Derivatives – NLX.


Popular
Most Viewed

Image

Related Articles


June 30, 2022

SIMM Falls Short says PRA Letter to Banks




2 MIN



Risk Management


June 28, 2022

FMSB Statement of Good Practice on Trading Platform Disclosures




2 MIN



Regulation


June 20, 2022

Regulatory change and data fragmentation are key challenges for 85% of firms




2 MIN



Regulation