CME and LCH.Clearnet Gain Clearing Approval

CME Group has received authorization as a central counterparty (CCP) clearing house under the European Market Infrastructure Regulation (EMIR), and LCH.Clearnet has been granted clearing house recognition by the Autorité des marchés financiers (AMF) in Québec, which will allow the firm to offer SwapClear, RepoClear, ForexClear and Nodal clearing services to LCH.Clearnet's clearing members based in the province.
By Jake Safane(2147484770)
CME Group has received authorization as a central counterparty (CCP) clearing house under the European Market Infrastructure Regulation (EMIR), and LCH.Clearnet has been granted clearing house recognition by the Autorité des marchés financiers (AMF) in Québec, which will allow the firm to offer SwapClear, RepoClear, ForexClear and Nodal clearing services to LCH.Clearnet’s clearing members based in the province.

CME’s recently became the first CCP globally to offer the full segregation client protection model with enhanced protection for all bankruptcy scenarios, which goest beyond EMIR requirements.

For LCH.Clearnet, the authorization in Québec follows their recognition as a clearing agency by the Ontario Securities Commission (OSC); six Canadian institutions currently clear as members of SwapClear, leading to SwapClear’s designation as systemically important by the Bank of Canada in April 2013.

“We are delighted to have secured recognition from the AMF,” says Michael Davie, CEO of LCH.Clearnet Ltd., the U.K. entity of LCH.Clearnet Group. “Given the prominence of Canada’s financial sector within the global marketplace it has been a key focus of our geographic expansion plans for some time now.”

The AMF is also reviewing applications from DTCC Data Repository (U.S.) and ICE Trade Vault for recognition as trade repositories in Québec. These repositories are also seeking similar approval from the OSC and the Manitoba Securities Commission.

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