The Royal Bank of Canada (RBC) has achieved a significant milestone by becoming the first Canadian clearing member to join LCH CDSClear, the credit default swap (CDS) clearing service operated by the London Stock Exchange Group (LSEG).
This development, announced on May 30, 2025, marks a notable step in the continued global expansion of LCH CDSClear and provides RBC with access to a broad spectrum of credit products for clearing, enhancing margin and operational efficiencies across its extensive CDS portfolio.
As a prominent market maker in both European and US indices, RBC’s integration into CDSClear allows it to tap into a growing pool of CDS liquidity and benefit from streamlined risk management processes. LCH CDSClear has reported substantial growth, particularly in the first quarter of 2025, which saw record clearing volumes for US Dollar and Euro-denominated indices.
The platform cleared a record US$1 trillion of CDX™ and iTraxx® indices notional in Q1 2025, an increase of 332% compared to Q1 2024. Similarly, a record €1.58 trillion of European iTraxx® indices notional was cleared, up 52% from the previous year.
Marcus Robinson, Head of CDSClear and DigitalAssetClear at LCH, expressed his enthusiasm, stating, “We are delighted to welcome RBC as our first Canadian clearing member, and for the bank to be part of our significant growth journey at CDSClear. We are committed to increasing the level of choice market participants have in CDS clearing and are proud to offer an international clearing member such as RBC access to our broad range of CDS products and access to trade with members and clients across the globe.”
Echoing this sentiment, Santosh Sateesh, MD, Global Head of Credit Derivatives Trading at RBC, commented, “We are proud to be a part of the growing service at LCH CDSClear, with capability to clear a wide range of credit derivative products while achieving significant risk management efficiencies. This move demonstrates our commitment to our clients across the globe.”
LCH CDSClear has been actively broadening its product offerings in recent years. These expansions include the addition of Asian and Emerging Market indices and their single names, Sovereign Single Names, and clearing services for iTraxx Australia Indices and their single name constituents. Furthermore, in 2024, LCH CDSClear extended its client clearing services to participants in the US credit derivatives market, reinforcing its position as a leading global credit central counterparty.
