LCH.Clearnet, the multi-national, multi-asset clearing house, has been granted regulatory approval by the Australian Government to clear energy, commodity and environmental derivatives listed on Australia’s Financial and Energy Exchange, FEX Global.
As a multi-national clearing house, LCH.Clearnet considers Australia as an important part of its geographic expansion strategy. LCH.Clearnet will leverage its extensive risk management and clearing capabilities across multiple asset classes to provide commodity market participants in Australia and the broader Asia-Pacific region with enhanced liquidity and transparency.
The service is set to launch mid 2013.Alberto Pravettoni, CEO, Repo and Exchanges at LCH.Clearnet said; “This extension into Australia reinforces our commitment to expanding our geographic reach and highlights the benefits of our open, horizontal clearing model. We look forward to working with FEX Global to deliver more transparency, liquidity and efficiency to this rapidly growing market.”
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Thomas Price Director and CEO of FEX Global said; “FEX Global welcomes to Australia its derivatives clearing provider LCH.Clearnet. LCH.Clearnet is a multi-national clearing house with significant experience in derivatives clearing. We look forward to working with LCH.Clearnet to utilize its multi-national experience to assist FEX Global in providing to its customers world-class risk management capabilities to maximize returns from existing and evolving market products and structures.”
LCH.Clearnet has a long history of clearing commodities and energy trades, providing services for the Hong Kong Mercantile Exchange, London Metal Exchange and NYSE Euronext and the North American electronic commodities exchange, Nodal. Dedicated to providing innovative clearing solutions to new markets, LCH.Clearnet also clears a range of OTC commodity derivatives including, FFAs, Steel, Iron Ore, Fertilizer, Emissions, Coal, Gold and Silver.
Additionally, LCH.Clearnet plans to apply for an Australian clearing and settlement facility license that would enable Australian banks to clear OTC interest rate swaps as members of the SwapClear service.