LCH.Clearnet Taps Former BNY Exec to Head U.S. Repo Clearing Unit

LCH.Clearnet has hired a former executive from BNY Mellon to build out its new U.S. repo clearing business.

John Vinci, former head of Global Product Management and Strategy within BNY’s broker-dealer services division, will join the world’s largest clearing house as head of the unit on July 13.

The hiring of Vinci comes as clearing houses in the U.S. look to expand into repo clearing, following increasing interest from buy-side participants.

“LCH.Clearnet Group is already a market leader in repo clearing and this new appointment will support the business’ growth ambitions in North America, working with our clients and members to deliver greater efficiencies in the US fixed income markets,” says David Weisbrod, CEO, LCH.Clearnet LLC.

Regulators in the U.S. have recently expressed concerns about the repo market, where financial institutions from large banks to asset managers pawn their assets in exchange for trillions of dollars’ worth of short term financing.

In the face of this, banks are pushing for an expanded role for clearing houses in the repo and securities lending market.

The launch of a U.S. repo clearing service by LCH.Clearnet will put it into direct competition with the Depository Trust & Clearing Corporation (DTCC), currently the only U.S. clearer for repo.

CME Group are also looking to set up a clearing service for repo.