DBS Joins LCH SwapClear

LSEG’s LCH has unveiled DBS Bank as its first SwapClear direct clearing member in Singapore.

LCH says the move to central clearing continues to be a focus for banks in the region as they look to benefit from operational efficiencies in addition to regulatory capital relief. As a result, SwapClear has continued to see an increase in the use of its services in the APAC region, recording a 15% increase year-on-year in volumes from APAC-domiciled clients and APAC currencies.

By joining LCH SwapClear as a direct member, DBS will be able to post Singapore government bonds as collateral, marking the first time a global offshore clearing house has accepted this asset class as eligible collateral.

“We are proud to welcome DBS as our first member in Singapore and look forward to helping them achieve their optimisation goals as they continue their impressive growth,” says Isabelle Girolami, CEO of LCH. “Singapore is a strategic focus for us as we look to expand our services throughout APAC. Through our continued investments in regional products, services, and people we hope DBS and other APAC firms continue to derive incremental value.”

Andrew Ng, group head of treasury and markets at DBS Bank, adds, “This partnership will also provide us with the highest standard of risk mitigation and unparalleled capital and margin efficiencies to further fortify our treasury markets business amid an increasingly competitive landscape. In particular, LCH’s expansion of collateral services to include Singapore government bonds was a particularly important step to meet our local market needs.”