LONDON, June 12 (IFR) - Michael Davie has returned to LCH as
global head of rates following a stint at the firm's parent
company London Stock Exchange Group.
As former head of LCH, Davie's return reflects the growing
importance of the clearing business to the wider exchange group.
In addition to running the firm's SwapClear platform for
over-the-counter interest rate swaps clearing, Davie will also
be responsible for the wider listed rates business.
During his 18 months as head of rates services at LSEG,
Davie developed the firm's approach to rates products including
the launch of listed interest rate derivatives platform,
CurveGlobal. Davie will retain his position as chairman of
CurveGlobal following his move, which is effective immediately.
Portfolio margining between OTC and listed derivatives forms
a core part of LCH's strategy and Davie will lead the next phase
of the Spider portfolio margining service, which went live May
2016 for short-term contracts. He will also manage other capital
optimisation services such as swaps compression.
As part of his new role, Davie will be responsible for the
development of LCH SwapAgent, which aims to bring efficiency
savings to the uncleared bilateral swaps market through greater
standardisation and simplification.
The appointment sees Davie return to a business where he
spent five years in senior positions, including a stint as CEO.
In his new role, Davie reports to Daniel Maguire, who was
appointed group COO of LCH in April. That is a reversal of three
years ago, when Maguire was promoted to global head of
SwapClear, reporting to Davie.
Following Davie's return, Maguire will relinquish his
additional responsibilities as global head of rates and FX for
LCH. While Davie takes over the expanded rates activities, Paddy
Boyle will continue as global head of the firm's ForexClear
In the FX business, LCH expects to launch clearing of FX
options towards the end of this year, following an agreement
with FX settlement provider CLS.
(Reporting by Helen Bartholomew)