LCH.Clearnet Limited (LCH.Clearnet) announced today that it has been granted clearing house recognition by the financial watchdog of the Canadian province Québec, Autorité des marchés financiers (AMF). Following the recognition, LCH.Clearnet will be able to offer its SwapClear, RepoClear, ForexClear and Nodal clearing services to clearing members based in Quebec.
The London-based international clearing house has recently been intensifying its global regulatory approval with the UK, and France’s financial authorities have approved its application as a central counterparty (CCP) under the European Market Infrastructure Regulation (EMIR).
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LCH.Clearnet is also already recognised as a clearing agency by the Ontario Securities Commission (OSC) and six Canadian institutions are currently operating as members of LCH.Clearnet’s SwapClear service. In recognition of the central role of interest rate derivatives in the Canadian financial system, and the significant volumes cleared through SwapClear by Canadian institutions, SwapClear was designated as “systemically important” by the Bank of Canada in April 2013.
Michael Davie, CEO of LCH.Clearnet Ltd, commented on the announcement: “We are delighted to have secured recognition from the AMF. Given the prominence of Canada’s financial sector within the global marketplace it has been a key focus of our geographic expansion plans for some time now. This development is a testament to our contributions to market resilience in the region thus far, particularly for OTC interest rate derivatives, where adoption of clearing has increased significantly. As a global CCP, we deliver efficiencies to local markets, providing clearing in multiple jurisdictions and currencies, offering our large and diverse membership access to an unrivalled pool of liquidity.”