RepoClear at the London Clearing House The client recognised a great opportunity for repo clearing by providing both standardised product definitions and settlement procedures and utilising the credit risk advantage of a central clearing party. All this however required very efficient management of the residual market and credit risk remaining with the exchange. We designed the financial and software engineering required to derive good quality general collateral and special repo curves from the incoming repo transaction data. Then we agreed the risk management algorithms with LCH’s risk management department and designed and implemented the ultra-resilient variation margin component of the repo clearing system. The launch went without a hitch and the system is still experiencing the nice-to-have challenges of ever-expanding volume.