LCH, part of LSEG, today revealed it has added Commonwealth Bank of Australia (CBA) as the first Australian financial institution to join the Paris-based clearing house. The announcement highlighted this as sign of the growing demand for the RepoClear service from outside Europe.
As a member of RepoClear SA, CBA will be able to benefit from the deep, stable and fast-growing pool of cleared euro-denominated repos offered across 13 markets.
The official announcement further revealed that in 2022 RepoClear is looking to further support its members through the merger of its €GC and RepoClear SA offering in one single pool of liquidity with cross netting. It will also further extend its collateral solution by expanding the scope of eligible currencies to its triparty services and adding a wider range of buy side firms into the netting pool.
Corentine Poilvet-Clediere, Head of RepoClear, Collateral and Liquidity, LCH SA, said:
It’s a great milestone to welcome CBA as the first Australian member of LCH SA. RepoClear SA has been gaining increasing traction in regions outside Europe, with members joining from Japan, Canada and now Australia. Banks such as CBA play a key role in further deepening and enriching our netting pool. We are looking forward to working in collaboration with CBA, providing a best-in-class clearing service.
Chris McLachlan, Executive General Manager of Global Markets at Commonwealth Bank of Australia, said:
We are delighted to become a member of RepoClear SA. The service’s 13 euro-denominated debt markets and recent expanded access for the buy-side, offers vital access to secured funding markets for CBA and its clients, as well as offering significant opportunities for capital and operational efficiencies.
RepoClear SA saw significant growth in volumes and membership in 2021 as it registered €195 trillion of nominal cleared across 9.4 million trades. With the addition of CBA, its members are now 97.
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