SwapClear to restart compression in leverage boon for banks
Banks hope for leverage exposure relief after interest rate swap clearer fixes clash with CFTC rules
LCH.Clearnet's SwapClear plans to restart its multilateral trade compression service next month, dealers say, after making changes that bring it in line with US clearing rules. A conflict with those rules forced part of the service to be suspended in April, restricting members' ability to cut the size of their cleared portfolios – one way in which banks hope to comply with the leverage ratio.
"If you don't have compression, then the leverage ratio is more of a problem," says one London-based
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