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Bloomberg and LCH team up to ease collateral strain

Partnership demonstrates the importance of collateral in the new era of OTC derivatives trading

LCH.Clearnet, the clearing house majority-owned by the London Stock Exchange, has entered into a partnership with Bloomberg to better control the rising collateral costs of swaps trades by bringing crucial analytics straight to traders’ desktops.

The clearing house's SwapClear Margin Approximation Risk Tool, or Smart, helps market participants determine how much it will cost to fund derivatives trades that will become more expensive to transact under new G20-led regulations.

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