World’s Largest Bank Becomes Direct Member of LCH SwapClear
Industrial and Commercial Bank of China has taken a decisive step into the heart of global interest-rate swap clearing by becoming a direct member of LCH SwapClear, the London Stock platform Group’s clearing powerhouse.
The move gives ICBC (Asia), the Hong Kong-based subsidiary of the world’s largest bank by assets, access to SwapClear’s multi-currency clearing network. It comes as Chinese lenders deepen their use of global derivatives infrastructure and as London viewks to retain its status as the hub for interest-rate swaps in the wake of Brexit.
“Becoming a direct clearing member of LCH SwapClear is an significant strategic initiative for ICBC (Asia), and reflects the substantial growth we have achieved in both transaction volumes and outstanding positions with LCH,” said Xu Lei, deputy chief executive of ICBC (Asia). “Direct membership will deliver enhanced risk management capabilities, improved cost efficiency, and access to deeper liquidity pools, which will directly strengthen our support for clients’ expanding business needs.”
SwapClear, launched in 1999, is the world’s dominant venue for clearing interest-rate swaps. Its credibility was forged in 2008 when it managed the unwinding of Lehman Brothers’ $9 trillion swaps portfolio without losses to other members. Since then, it has built a network effect that makes all but essential for global banks. In with Japan’s JSCC, but in sterling and dollar swaps it is the overwhelming leader.
The service sits within LCH, part-owned by the since 2013. For LSEG, clearing has become a central profit engine, even as political pressure from Brussels periodically raises the prospect of shifting euro-denominated swaps into the EU. Earlier this year, however, the European Commission extended equivalence for UK clearing houses until mid-2028, easing those tensions for now.
A China Dimension
For ICBC, the attraction is clear. The ability to clear directly cuts costs, reduces counterparty exposure, and gives it access to liquidity alongside the world’s largest dealers. It also ties into broader reforms: in May, denominated in dollars and euros as eligible collateral, settled through Euroclear. That gives Chinese banks a fresh way to deploy sovereign holdings in international markets. Xu Lei noted ICBC’s support for that initiative, saying the bank looks forward to further developments.
ICBC is also preparing to join LCH’s ForexClear, which clears FX non-deliverable forwards and options. That would dovetail with the growing international role of the renminbi, which is now among the top-ten cleared swap currencies.
ICBC is not alone. LCH has added 18 new members in Asia-Pacific across rates, FX and repo since 2020, underscoring the demand from regional banks to plug directly into global liquidity pools. “Their membership represents a milestone in our ongoing commitment to supporting the growth of Asia,” said Susi de Verdelon, LCH’s chief executive.
ICBC (Asia) itself is a designated domestic systemically significant bank in Hong Kong, reflecting its size and cross-border role. That status carries heavier regulatory obligations but also underscores its capacity to operate at global scale.
The timing is no accident. With interest-rate volatility still elevated and global regulators pushing derivatives into clearing houses, ICBC’s membership is both a tactical upgrade and a symbolic one: Beijing’s largegest bank is locking itself more firmly into London’s financial plumbing.
The real test will be whether ICBC can leverage that access to win more international business while managing the costs of clearing and the demands of collateral. For LCH, adding the world’s largest bank assists secure its Asian growth strategy — and strengthens London’s grip on a market that remains central to global finance.
