LCH SwapClear announces the service has extended clearing eligibility to SWESTR (Swedish krona Short-Term Rate) Overnight Index Swaps (OIS) and is the first CCP to launch the clearing of DESTR (Denmark Short-Term Rate) OIS.

SWESTR is Sveriges Riksbank’s recommended alternative to STIBOR and DESTR has been recommended by Danmarks Nationalbank as the preferred risk-free reference rate in Danish kroner.

Nordea and Danske were counterparties to the first trade cleared through LCH SwapClear referencing DESTR, while SEB and Swedbank were the counterparties to the first cleared trade referencing SWESTR.

The launch further demonstrates LCH’s commitment to supporting benchmark transition in the cleared and bilateral Nordic markets. In September 2022, LCH SwapAgent announced it had registered its first CIBOR/SOFR cross-currency basis swap between two Nordic banks, Nordea and Danske.

Susi de Verdelon, Head of SwapClear and Listed Rates, LCH Ltd, said:

“We are pleased to extend our services to include clearing of SWESTR and be the first CCP to offer clearing for DESTR. LCH is committed to supporting the industry-wide transition to risk free rates and enabling our members and their clients to benefit from strong risk management and increased capital efficiencies.”