Davie Returns to LCH in Rates Role

In the new role, he reports to Daniel Maguire, group COO and global head of rates and foreign exchange (FX) derivatives, who will pass on the rates role to Davie. Paddy Boyle remains as the global head of ForexClear, LCH’s central counterparty (CCP) for FX derivatives.

Davie will take over leadership of SwapClear, LCH’s interest-rate swaps CCP, as well as LCH’s listed rates business, and also assume leadership over drives to further develop areas including compression, portfolio margining and other initiatives within uncleared over-the-counter (OTC) derivatives.

These initiatives include SwapAgent, launched in November 2016, which provides trade processing and margining services for uncleared derivatives markets. Since March 2017, regulators have mandated that counterparties in these trades—which are conducted bilaterally and as the name suggests, do not pass through CCPs—should calculate and exchange variation margin through the course of a trade’s lifespan.

Previously the COO at LCH, Davie joined CurveGlobal in October 2015 as its chairman. The venue, owned by the London Stock Exchange Group (LSEG), which also holds a majority stake in LCH, and a consortium of dealer banks, aims to challenge dominant US rivals in derivatives trading. It went live in September 2016 and is led by Andy Ross, formerly a senior derivatives executive at Morgan Stanley.

The LSEG is currently refocusing its strategy as an independent entity, after a proposed merger with Frankfurt-based rival Deutsche Börse was blocked by the European Commission on competition grounds. That deal would have created a giant in fixed income and derivatives trading, combining LCH with Deutsche Börse’s Eurex Clearing, but the LSEG was unwilling to divest significant elements of its Italian operations to remedy anti-trust concerns.

 A spokesperson for LCH confirmed that Davie started his new role on June 12. He will continue to serve as chairman of CurveGlobal, along with his position at the clearinghouse.