Global  Clearing House  Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the execution of trades. Consequently, as a third party, the role of the clearing house is to centralize and standardize all of the steps leading up to the settlement of any transaction. Clearing houses are integral in helping reduce the cost, settlement or operational risk of clearing as well as settling multiple transactions across multiple entities.Role of Clearing Houses Across ExchangesFinancial exchanges such as commodities and stock exchanges have relied on clearing houses for over a century. Today, the futures market is often associated with a clearing house, as its financial products are leveraged and necessitate a stable intermediary. Every reputable exchange possesses its own clearing house. This requires all members of an exchange to effectively clear their trades via a clearing house at the terminus of each trading session.Additionally, exchange members are obligated to reconcile clearing house's margin requirements, sufficient to cover the member's debit balance.This is a crucial stopgap to help prevent risk to individual traders. For example, if a trader doesn't meet a margin call, any and all trades will be closed. This is to prevent against any additional losses. This process helps reduce the risk to individual traders, ensuring sufficient funds in the account to cover any losses which may occur. A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the execution of trades. Consequently, as a third party, the role of the clearing house is to centralize and standardize all of the steps leading up to the settlement of any transaction. Clearing houses are integral in helping reduce the cost, settlement or operational risk of clearing as well as settling multiple transactions across multiple entities.Role of Clearing Houses Across ExchangesFinancial exchanges such as commodities and stock exchanges have relied on clearing houses for over a century. Today, the futures market is often associated with a clearing house, as its financial products are leveraged and necessitate a stable intermediary. Every reputable exchange possesses its own clearing house. This requires all members of an exchange to effectively clear their trades via a clearing house at the terminus of each trading session.Additionally, exchange members are obligated to reconcile clearing house's margin requirements, sufficient to cover the member's debit balance.This is a crucial stopgap to help prevent risk to individual traders. For example, if a trader doesn't meet a margin call, any and all trades will be closed. This is to prevent against any additional losses. This process helps reduce the risk to individual traders, ensuring sufficient funds in the account to cover any losses which may occur. Read this Term LCH announced on Thursday that it has appointed industry expert Rohit Verma as the new Head of Asia Pacific. Verma will be based in Singapore and take over the role on July 26.

Verma is replacing Kate Birchall, who became LCH’s Head of Sales earlier this year.

He will be responsible for the company’s business across the Asia Pacific region, meaning he will oversee all activities of the clearinghouse operations in Singapore, Sydney and Tokyo. Further, he will sit on LCH’s sales leadership team and be responsible for sales in the region.

Commenting on his new role, Verma said: “Asia is an immensely diverse and dynamic region, and LCH is committed to supporting the markets in mitigating risk and promoting capital efficiencies in multiple asset classes. I am excited to steer LCH’s business in the Asia Pacific, driving growth across the region and enabling our members and their clients to benefit from LCH’s operationally streamlined, capital-efficient  Risk Management  Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. Read this Term platforms.”

Solid Background in Financial Services

Verma brings more than two decades of industry experience to his new role. He joins LCH from Citi, where he spent more than nine years in a couple of key leadership roles: first as the Director of Futures and OTC Clearing and then as the APAC Head of OTC Clearing and FX Prime Brokerage.

In addition, he had more than a couple of years of a stint at Deutsche Bank as a Vice President and before that was LBBW’s Head of Marketing Control in the Asia Branch. He spent years at Credit Suisse and Siemens as well.

“I am delighted to welcome Rohit to LCH to lead our team in Asia,” said Isabelle Girolami, CEO at LCH Ltd. “Rohit has extensive experience of the derivatives markets in Asia and across the world. Asia Pacific is a region of strategic growth and importance for LCH, and I look forward to working with him and our local teams to grow our presence further.”