JP Morgan Using LCH CDSClear as a Clearing Broker in Credit Default Swaps

JP Morgan has gone live with LCH CDSClear, being the first US investment bank to offer client clearing of credit default swaps (CDS) with the service, according to a story in Reuters news. The move means Swedish pension fund AMF is now clearing European and US credit default swaps through LCH CDSClear with JP Morgan as its clearing broker. The London Stock Exchange Group’s clearinghouse LCH began offering client clearing in 2017 and it is the currently the only European central counterparty (CCP) to offer clearing of both European and US indices and single name constituents. Major European banks have significantly reduced their exposure to client clearing of derivatives over the past few years, due to regulatory requirements and capital pressures.