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 platform.
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.