LCH SwapAgent, a service for the uncleared derivatives market, today announces it has welcomed KfW to the service, and that it has successfully processed the first Transport Currency trades between KfW and counterparties Bank of America, Commerzbank, Danske Bank and Santander.
KfW is one of the largest end-users of cross currency swaps globally and uses bilateral derivative transactions to hedge against interest rate and currency risks. It has worked closely with LCH SwapAgent and its market participants to bring Transport Currency trades to fruition.
The Transport Currency settlement methodology enables market participants to use EUR for daily margin payments on cross-currency swaps and benefit from standardised discounting and valuations. This important innovation leverages the unique footprint of LCH SwapAgent as a trusted third-party in the bilateral derivatives…
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