LCH.Clearnet Ltd, the London-based international clearing house, 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 framework, technology, governance, operating model and capital meet the standards required by EMIR rules.
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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.