LCH.Clearnet Receives EMIR Authorisation as Central Counterparty from the Bank of England
- The British final regulatory approval comes just three weeks after the French Prudential Supervisory Authority certified LCH.Clearnet’s subsidiary in France meets the standards required by EMIR rules.
LCH.Clearnet Ltd, the London-based international 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 e 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 e Read this Term, announced today that the Bank of England has approved its application as a central counterparty (CCP) under the European Market Infrastructure Regulation (EMIR).
This is the final step in the regulatory approval process for LCH.Clearnet in the UK, certifying that LCH.Clearnet Ltd's 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, 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, Read this Term framework, technology, governance, operating model and capital meet the standards required by EMIR rules.
Michael Davie, Chief Executive of LCH.Clearnet Ltd, commented on the announcement: "We are delighted with this affirmation that our services are fully compliant under the EMIR rules. We have worked diligently with our regulators, our members and their clients to develop best-in-class solutions to meet the requirements and we remain fully committed to supporting the market as the European clearing mandates evolve."
The approval by the Bank of England follows LCH.Clearnet S.A.’s authorisation by the Prudential Supervisory Authority (L’Autorité de Contrôle Prudentiel et de Résolution or ACPR) on May 22, 2014. The ACPR is an independent administrative authority founded in January 2010, which monitors the activities of financial firms, banks and insurance companies in France. It operates under the auspices of the French central bank.
With its final regulatory approvals both in the UK and France, LCH.Clearnet is well-positioned to benefit from the push toward mandatory required centrally cleared electronic trading in Europe. The focus of the group on CCP services in Europe is exemplified by the company’s recent collaboration with Cantor Fitzgerald to provide the first European centrally cleared OTC CFD offering.
LCH.Clearnet Ltd, the London-based international 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 e 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 e Read this Term, announced today that the Bank of England has approved its application as a central counterparty (CCP) under the European Market Infrastructure Regulation (EMIR).
This is the final step in the regulatory approval process for LCH.Clearnet in the UK, certifying that LCH.Clearnet Ltd's 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, 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, Read this Term framework, technology, governance, operating model and capital meet the standards required by EMIR rules.
Michael Davie, Chief Executive of LCH.Clearnet Ltd, commented on the announcement: "We are delighted with this affirmation that our services are fully compliant under the EMIR rules. We have worked diligently with our regulators, our members and their clients to develop best-in-class solutions to meet the requirements and we remain fully committed to supporting the market as the European clearing mandates evolve."
The approval by the Bank of England follows LCH.Clearnet S.A.’s authorisation by the Prudential Supervisory Authority (L’Autorité de Contrôle Prudentiel et de Résolution or ACPR) on May 22, 2014. The ACPR is an independent administrative authority founded in January 2010, which monitors the activities of financial firms, banks and insurance companies in France. It operates under the auspices of the French central bank.
With its final regulatory approvals both in the UK and France, LCH.Clearnet is well-positioned to benefit from the push toward mandatory required centrally cleared electronic trading in Europe. The focus of the group on CCP services in Europe is exemplified by the company’s recent collaboration with Cantor Fitzgerald to provide the first European centrally cleared OTC CFD offering.