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Clearing

Clearing in partnership with LCH

NLX products are cleared through LCH, allowing participants to portfolio margin short-term and long-term interest rate contracts in a single clearing house.

This unique approach offers participants significant initial margin savings and collateral efficiencies, compared to the traditional market structure of clearing both ends of the curve in two separate vertical silo clearing houses.

Products traded on NLX will benefit from an innovative VaR methodology for margin calculations, along with the PAIRs approach for clearing at LCH. This replaces the 25-year-old SPAN and TIMS methodology, currently used by legacy platforms, and offers a more efficient system of margin calculation and robust approach to risk for diversified portfolios.

The use of VaR margining for NLX products creates a single, consistent risk management methodology across NLX products and a range of OTC derivatives cleared and settled at LCH. This approach creates the potential to easily extend portfolio margining across LCH in the future.

Learn more about LCH

Margin Simulator

The LCH Portfolio Approach to Interest Rate Scenarios (PAIRS) Margin Simulator allows clearing members and their clients to simulate initial margin requirements on a trade or portfolio level. Members will be able to run “what-if” scenarios for estimating margin requirements prior to clearing.

Access to the Margin Simulator can be obtained by contacting synapsenlx@lchclearnet.com

Clearing Software

NLX is cleared through LCH’s Synapse platform which has a number of interfaces:

  • A web based GUI
  • A FIXML post-trade feed
  • End of day reports

We have a number of ISVs that have written to the the Synapse FIXML post-trade feed:

Company Email Phone
ATEO sales@ateofinance.com 44 20 7448 9746
Ffastfill sales@ffastfill.com 44 20 3002 1922
Rolfe & Nolan p.buck@iontrading.com 44 20 7398 0200
SunGard getinfo@sungard.com 44 20 8081 2520

 

If you wish to develop to the FIXML feed yourself then please contact synapseNLX@lchclearnet.com.

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