RLAM clears first derivatives trades at London Clearing House
Royal London Asset Management (RLAM) has cleared its first significant trades at the London Clearing House (LCH.Clearnet) as part of its preparations to meet its obligations under the proposed European Market Infrastructure Regulation (EMIR), due to be introduced in 2013.
RLAM is one of the first traditional asset managers in the UK to do so.
EMIR will require all standardised OTC derivative contracts to be cleared through central counterparties, in a move designed to reduce market and counterparty risks and increase transparency.
RLAM has been preparing for the implementation of EMIR since the start of 2012 and the clearing of GBP550m of vanilla interest rate swaps is a major milestone in the progress of the project. RLAM is now completing testing on its external client clearing offering and expects to be in a position to offer this capability to its external clients in Q1 2013.
Darren Bustin, head of derivatives at RLAM, says: “The significant progress that RLAM has made in working towards centralised clearing of OTC derivative trades means that we are very well placed to meet our regulatory obligations under EMIR in 2013. It also means that we will be able to offer our external clients a comprehensive capability that has been fully tested in advance of the regulatory deadlines. Significant effort has been required by a range of parties, both internal and external, to enable this milestone to be reached and all those involved deserve full credit.”
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