LCH.Clearnet Ltd said it has received from the Commodity Futures Trading Commission (CFTC) an extension to its existing derivatives clearing organization (DCO) registration.
The extended DCO license authorizes it to clear futures and options contracts traded on US designated contracts markets, derivatives transaction execution facilities, and exempt boards of trade.
The initial authorization was originally granted in November 2001, and covered the provision of clearing services in respect of OTC, inter-professional business.
LCH.Clearnet Ltd is the only non-US domiciled central counterparty to hold DCO status.
“It was always our intention to seek extension of the scope of our DCO registration to enable us to meet growing demand for central counterparty services,” said Andrew Lamb, Chief Executive. “Since initial DCO authorization in 2001, changes to English insolvency law have enabled us to seek an extension to our registration. We are delighted that the CFTC felt able to approve our further application, and to have completed its assessment in such a short period of time.”
LCH.Clearnet is the leading independent central counterparty (CCP) group in Europe, serving major international exchanges and platforms, equity, exchange-traded derivatives, energy, interbank interest rate swaps markets and the majority of the Euro-denominated and sterling bond and repo markets. It has as one of its goals to serve as a catalyst for further CCP consolidation in Europe. LCH.Clearnet is owned 45.1% by exchanges, 45.1% by users, with the balance being held by Euroclear.