LCH is committed to opening the benefits of central clearing to the entire market. Here’s why
At LCH we are passionate about broadening access to central clearing. By doing so, we aim to reduce market risk, while making the portfolios of individual members and clients more efficient from a capital and margin perspective.
That’s why we believe that market participants should be able to clear all eligible trades, regardless of the venue traded on. We refer to this approach as open access.
Giving clients the choice of where to trade and clear their products brings economic benefits, as well as greater transparency and safety to all market participants. In particular, open access allow users to consolidate equity positions across trading platforms and offset listed derivatives executed on one platform against OTC positions entered at another. We believe this can only help to drive innovation, lower clearing costs and provide improved service standards for all users.
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.