LCH recently announced that they will launch a client clearing service for repo trades. This is good news for banks as it will ease the balance sheet impact of repo trades with buy-side firms. Buy-side firms will now be able to clear their repo trades through the RepoClear service by using a bank as their clearing member. The buy-side client will not be able to access the RepoClear service directly, as the LCH needs to ensure that it is only ever facing exposure to approved C

Global financial regulation is focused on reducing systemic risk and central clearing is one of the ways in which regulators plan to achieve this. Currently central clearing has been implemented in the US and EU for the most standardized OTC derivatives contracts. The Financial Markets Act in South Africa has made provision for the establishment of central clearing houses and it is anticipated that by 2018 a central clearing house may be authorized to begin clearing standardi