Marex has revealed plans to offer client clearing of interest rate swaps.
As part of the move, Marex will become a member of LCH’s SwapClear service on 15 July 2024, subject to final approval.
Marex will become the first non-bank futures commission merchant (FCM) clearing member to offer client clearing of interest rate swaps via the LCH SwapClear service, aiming to meet client demand for greater counterparty risk diversification, clearing capacity and enhanced market connectivity.
Client clearing of interest rate swaps expands Marex’s existing clearing memberships spanning across energy, commodity and financial markets.
Marex’s non-bank clearing solution is broker agnostic and will complement existing bank relationships.
“Our entry into interest rate swap clearing is a significant move given the size of this market and complements our existing clearing offering,” said Thomas Texier, head of clearing at Marex.
“Recent consolidation in the interest rate swaps clearing market has heightened the need for new players. Our clients will be empowered to trade with greater confidence using Marex’s robust balance sheet, comprehensive end-to-end offerings and our consistent delivery on excellent client service.”