Global clearing house LCH announced that it will be supporting the clearing of bonds issued as part of the European Union’s temporary support to mitigate unemployment risks in an emergency (SURE) programme.

Bonds issued as part of the programme will be eligible for clearing at LCH SA’s RepoClear service. Participants in the market will be able to take advantage from enhanced counterparty risk management as well as operational and capital efficiencies. LCH SA provides clearing of Euro-denominated bonds and repos across 13 government bond markets.

Under the SURE programme €87.4 billion of loans will be provided to 16 EU member states. The programme aims to help finance increased national expenditure on short-term work schemes and other similar measures. Similarly, LCH SA will back and clear the upcoming Next Generation EU Bonds.

Christophe Hémon, CEO, LCH SA, commented:

The Covid-19 pandemic has significantly impacted both public health and the labour market across the globe. The EU’s SURE programme offers vital financing for employment schemes throughout the EU. At LCH, we are committed to supporting financial stability and we are delighted to be in a position to support this programme and contribute to the EU’s economic recovery by clearing the new debt.

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