LONDON, May 2 (Reuters) - The London Stock Exchange's clearing arm LCH has begun clearing interest rate swaps denominated in yuan, won and rupees to bolster its Asia base as euro business faces the threat of relocation.
LCH said it has begun clearing non-deliverable rate swaps in the three Asian currencies for the first time, pitting it more directly against rival clearers like the Singapore Exchange.
The swaps are used by companies to insure themselves against unexpected moves in interest rates.
Non-deliverable refers to a swap denominated in a currency that is typically restricted or not widely traded outside its home market, and settled in the dollar.
It expands to 21 the number of currencies handled by SwapClear, the LCH service for clearing interest rate swaps.
JPMorgan and Standard Chartered banks said they were among the first to clear the new products.
LCH is fighting a threat from the European Union to force it to move clearing of euro-denominated swaps from London to the bloc after Brexit next year.
Rival Deutsche Boerse has revamped its clearing service to attract the euro business to its own platform in Frankfurt. (Reporting by Huw Jones; Editing by Adrian Croft)