Enhancing the Role of Risk Working Groups in LCH Risk Governance

Report date

Circular No.

LCH Circular No 3789


29th September 2016


All LCH Ltd Clearing Members


LCH recognises the importance of engaging the views and expertise of its clearing members when proposing changes to services, products and risk management arrangements.

Our clearing members engage directly with LCH through participation at meetings of the Product Advisory Groups and Risk Working Groups, as well as through membership of the Risk Committee of the Board.

The Risk Working Groups discuss many risk management topics, including proposed changes to margin models, default waterfalls and the impacts of any service changes.

Having reviewed the current working group arrangements, LCH is implementing a number of enhancements. These include:

The role of the Risk Working Groups is to be formalised, such that all key comments and advice received will be documented in change proposals reviewed at internal governance meetings and at both Risk Committee and Board level.
Terms of reference and membership of the Risk Working Groups have been reviewed to ensure the appropriate level of expertise for topics being reviewed.
Clearing members are welcome to review their level of involvement in the Risk Working Groups. Further information is available via the contacts below.

Equities & Exchanges  Ian.Mackenzie@lch.com
ForexClear  Jonathan.Tran@lch.com
RepoClear  Simo.Lamine@lch.com
SwapClear & Listed Rates   Katie.Prideaux@lch.com