23 Jan 2012

LCH.Clearnet Ltd : $270 trillion in Interest Rate Swaps for 2011

I was recently moaning about the fact that LCH.Clearnet failed to provide their 2010 to the BIS dataset - definitely a shame given that they single-handedly managed to process some £ 862.6 trillion worth of transactions in 2008.

But it turns out that if you look closely at their website, you can find some quite impressive numbers. For example, they have a page that provides numbers concerning daily figures for the amounts of Interest Rate Swaps. It appears to only provide numbers for the latest day. So for instance, today I was able to find out that on the 20th of January, LCH.Clearnet Ltd handled $1,117,548,438,674. Over 1 trillion dollars. In fact, they tell us that
"SwapClear clears more than 50% of all OTC interest rate swaps and more than 95% of the overall cleared OTC interest rate swap market. We regularly clear in excess of $1 trillion new trades per day and have more than 1 million cleared trades outstanding."
 And further down the page they provide the following graph of monthly national volumes for 2010 and 2011.

It looks like the average per month was around 22-23 trillion dollars. Shall we call that $270 trillion for the year? OK, it's not the £862.5 trillion that BIS announced for 2008, but it's clear that LCH.Clearnet Ltd are not out of business yet. And a modest FTT would generate quite a lot of revenue for the UK government.

The fact is that Interest Rate Swaps are just one of the many "Business Streams" that LCH.Clearnet handles. Here they are:

Unfortunately, I couldn't find any numbers with the other areas.

1 comment:

  1. Oh that's frustrating. It sad to know this kind of situation. Thanks for sharing this information.