Open Access

LCH is committed to opening the benefits of central clearing to the entire market. Here’s why

Open Access at LCH

At LCH we are passionate about broadening access to central clearing. Central clearing aims to reduce market risk, while making the portfolios of individual members and clients more efficient from both a capital and margin perspective.

In other words, the benefits of central clearing are multifaceted.

That is why we believe that all market participants should be able to clear all trades that are eligible to be cleared, regardless of the venue they are traded on. This is what we refer to as open access.

Open access enables customers to have the choice of where to trade and clear their products. It’s a principle enshrined at LCH. We believe that it is the fairest approach and one that can bring economic benefits, greater transparency and safety to market participants.

These economic benefits include the ability to consolidate equity positions across trading platforms in one place and offset listed derivatives executed on one platform against OTC positions entered into at another venue. The open access approach creates opportunities that LCH believes can help drive innovation, lower clearing costs and provide improved service standards for you.

Robust Risk Management

LCH offers clearing services to members and clients across the globe. This means that our clearing offering has to abide by the regulatory requirements established by financial supervisors in multiple jurisdictions.

While any eligible party is welcome to clear at LCH, members can rest assured that our membership criteria ensures  a high and  stringent level of risk management is required of all participants.

This gives our customers the best of both worlds: a large and diversified clearing community, balanced against robust risk management standards. We take our risk management role seriously, and are proud of the standards we adhered to.