London-based clearing house LCH, announced that Royal Bank of Canada (RBC) became the first Canadian bank to clear Euro debt at LCH SA’s RepoClear service and Royal Bank of Canada (Channel Islands) Limited is the first clearing member from the Channel Islands to join LCH Ltd’s RepoClear service. As members, RBC and Royal Bank of Canada (Channel Islands) Limited are now able to access European & UK pools of cleared debt and to benefit from the risk management efficiencies of central clearing.
LCH’s RepoClear service provides clearing for European & UK government bonds and repos in 14 markets and operates an open access model, connecting to multiple trading venues and CSDs. This method allows the its clearing members to choose where to execute and settle trades.
Bruce Kellaway, Global Head of Rates, Securities and Collateral, LCH, stated:
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, commented:
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, added:
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.
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