LONDON--The London Clearing House (LCH) has announced plans to develop an international clearing service for OTC interest rate swaps. The service, dubbed SwapClear, is scheduled for launch in August next year. SwapClear membership will be restricted to major banks and securities houses, which will be able to use the LCH as an intermediary counterparty for privately negotiated swaps. This will free up credit lines by multilaterally netting banks' swaps payments, say LCH officials.
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