LCH.Clearnet to Clear for Australia’s Financial and Energy Exchange
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 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, and clearing capabilities across multiple asset classes to provide commodity market participants in Australia and the broader Asia-Pacific region with enhanced Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent 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.”
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.
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 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, and clearing capabilities across multiple asset classes to provide commodity market participants in Australia and the broader Asia-Pacific region with enhanced Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent 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.”
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.