LCH.Clearnet Ltd, the global clearing house, announced that it will be using SWIFT to notify clearing members of margin calls. Under the new process, LCH.Clearnet’s members will receive margin call notifications faster and in a standardised format, increasing operational efficiency and straight through processing (STP). The service was developed in collaboration with SWIFT and the global ISO Standards Evaluation Group and will also be available to members of LCH.Clearnet LLC.
LCH.Clearnet already uses SWIFT to send and receive collateral messages with its members. Firms will be able to sign up to the extended service from November 2015 so they can receive margin call notifications via SWIFT. The messages will comply with ISO 20022 MX standards.
Gerard Smith, Director, Collateral Services, LCH.Clearnet, said: “We’re committed to improving efficiency for our members, and we have developed this new service with them in mind. Leveraging SWIFT enables members and their clients to be notified of their margin obligations in a more timely and standardised fashion. We’re delighted to have collaborated with SWIFT to be the first CCP to offer this service to our members and their clients.”
To see the official release for more information, click here.
To view the non-deliverable currencies that LCH.Clearnet currently clears, click here.