LCH SwapAgent announces that it has settled its first EUR/USD cross-currency swap under a German DRV master agreement governed by German law. Trading counterparties were Unicredit Bank AG and Commerzbank AG.
#LCH #SwapAgent has completed its first EUR/USD cross-currency swap under a German DRV framework agreement governed by German law. Learn more here https://t.co/8bmESubqcZ pic.twitter.com/xTIhu35YD6
— LCH, an LSEG entity (@LCH_Clearing) February 13, 2023
The extension of its rulebook to support the German DRV framework agreement underscores LCH SwapAgent’s commitment to support the requirements of the German market and to be fully integrated with the global SwapAgent service. This follows the expansion of the service to support the FBF/AFB framework contract under French law, announced in February 2022.
Nathan Ondyak, Global Head of LCH SwapAgent, said: “We welcome the first trading of Unicredit Bank AG and Commerzbank AG under the German framework agreement of the DRV. The expansion of LCH SwapAgent’s services demonstrates our commitment to improving standardization, efficiency and reducing risk in the global uncleared derivatives market.
Thomas Rösner, Head of Financial Markets Rates, Commerzbank AG, said: “We are pleased to have deployed LCH SwapAgent to facilitate the execution of a DRV transaction for the first time. The service offers increased standardization that allows us to offer our clients further liquidity in the cross-currency swap market.”
Pierrick Fenon, Head of Flow Rates Derivatives Trading, Unicredit Bank AG, said: “The simplification of trade processing and the increased optimization improve the efficiency of the bilateral derivatives market. We are pleased to have participated in this milestone first with LCH SwapAgent.”
LCH SwapAgent services 37 derivatives counterparties in EMEA, US and Asia Pacific and has processed over US$7.5 trillion in notional volume since inception. 2022 marked a record year for LCH SwapAgent with registered swaption notionals of US$1.0 trillion and cross-currency notionals of US$2.7 trillion.
Source: LCH
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