Banks call for CCPs to act on compression
With the leverage ratio making clearing members sensitive to gross exposure numbers, CCPs are under pressure to develop new, more efficient ways of compressing cleared portfolios. LCH.Clearnet has revamped its offering and its rivals are expected to follow suit.
Trade compression will become a key battleground in over-the-counter derivatives clearing, dealers predict, as central counterparties (CCPs) vie to ease the capital burden on their bank members. LCH.Clearnet's SwapClear was forced to shut its existing compression service for a large chunk of 2013, as it sought to comply with US clearing rules, but has since restarted it and on March 10 expanded the service in an attempt to make it more efficient. CME Group plans to launch a multilateral
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