RBC becomes the first Canadian bank to join the cleared repo platform

LCH, a leading global clearing house, today announced that Royal Bank of Canada (RBC) is the first Canadian bank to become a clearing member at LCH SA’s RepoClear service, while Royal Bank of Canada (Channel Islands) Limited has become the first clearing member from the Channel Islands to join LCH Ltd’s RepoClear service. By joining the service, RBC and Royal Bank of Canada (Channel Islands) Limited are now able to access the largest European & UK pools of cleared debt, respectively. As a result, both entities are benefiting from the risk management efficiencies of central clearing.

LCH’s RepoClear service offers clearing for European & UK government bonds and repos across 14 markets. The service operates an open access model, connecting to multiple trading venues and CSDs. This approach provides its clearing members with a choice of where to execute and settle its trades.

Bruce Kellaway, Global Head of Rates, Securities and Collateral, LCH, said: “I’m delighted to welcome these two RBC entities as LCH SA’s first Canadian clearing member, and LCH’s first member from the Channel Islands. This is another significant milestone in RepoClear’s global growth, following a record year for the service in 2019. We look forward to supporting RBC, and continuing to grow our international membership further.”

Ian Williams, Head of European FI Repo, RBC, said: “Royal Bank of Canada is pleased to participate as the first Canadian bank to become members of RepoClear. This platform bolsters our connections to core market infrastructure, and offers RBC additional financing liquidity to support our European client activity. RBC is committed to building on our position as a leading financial services provider and an innovative, trusted partner to clients.”

Jeremy Fenn, Director, Central Funding Group, Royal Bank of Canada (Channel Islands) Limited, said: “Becoming a clearing member of LCH Ltd is a core part of our strategy to enhance our direct connections to key market infrastructure providers. Clearing allows us to effectively manage our counterparty risk as well as accessing a broad range of market participants and liquidity.”

More information

• RepoClear: https://www.lch.com/services/repoclear
• Royal Bank of Canada is first Canadian member to clear Euro debt at LCH SA
• Royal Bank of Canada (Channel Islands) Limited is first member from the jurisdiction to clear Sterling debt at LCH Ltd