LCH SwapAgent registers cross currency basis swap between Nordea Bank and Danske Bank

The move underlines LCH SwapAgent’s ongoing support of the industry transition to risk free rates.

LCH SwapAgent has processed its first CIBOR/SOFR cross-currency basis swap between two Nordic banks.

The two counterparties to the trade were Nordea Bank and Danske Bank, brokered by ICAP.

LCH SwapAgent said that as a service offering standardisation for the non-cleared derivatives market, the trade highlights its capability to facilitate a coordinated transaction to risk free rates for non-cleared OTC derivatives.

In addition, the transaction underlines LCH SwapAgent’s commitment to supporting the industry’s transition to risk free rates.

“Participating in this landmark trade means we continue to develop liquidity in risk free benchmark rates,” said Morten Rasmussen, head of markets trading at Nordea.

“Through LCH SwapAgent, we look forward to bringing further operational and capital efficiencies to non- cleared derivatives markets in the Nordic region.”

LCH SwagAgent has continued to grow its offering, with $6 trillion in notional registered since it launched in 2017. The service now has 37 counterparties from nine countries, including Nordea Bank and Danske Bank.

“We are pleased to be part of this important trade for the Nordic region and further contribute to the global transition to risk free rates,” said Jeppe Østerby Thomsen, global head of STIR trading at Danske.

“The standardisation benefits LCH SwapAgent brings to the bilateral market means we can further mitigate risk and enhance settlement capabilities.”

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