LCH SwapAgent today announced it has processed its first EUR swaption trade under an FBF/AFB master agreement governed by French law. Natixis CIB and Crédit Agricole CIB were the counterparties to the trade.

The EUR swaption trade will be ESTR discounted and Euro collateralised under the SwapAgent Credit Support Annex (CSA). The SwapAgent CSA is the first widely adopted standardised CSA in the bilateral derivative market and seeks to improve efficiencies by standardising Euro collateral as variation margin for Euro swaptions. The SwapAgent standardised CSA is now in use by 33 global derivative counterparties across EMEA, the US and Asia Pacific.

The extension of the SwapAgent rulebook to support the French law FBF/AFB master agreement represents SwapAgent’s commitment to support the requirements of the French market, fully integrated within the global SwapAgent service.

Nathan Ondyak, Global Head of LCH SwapAgent, said:

“SwapAgent’s extension to support the French law FBF/AFB master agreement further exhibits our commitment to increase standardisation and reduce risk in the global derivative market. It is great to see Crédit Agricole CIB and Natixis CIB conduct the first EUR swaption trade under FBF/AFB on SwapAgent.”