LCH.Clearnet Ltd opens Australian dollar account with Reserve Bank of Australia
- Provides Ltd entity with access to central bank liquidity
LCH.Clearnet Ltd (LCH.Clearnet), the global clearing house, is today pleased to announce that it has established new deposit and liquidity facilities with the Reserve Bank of Australia (RBA).
LCH.Clearnet is the first overseas licensed CCP to maintain an Exchange Settlement Account (ESA) with the RBA and has started to settle its Australian Dollar payments via this account. LCH.Clearnet has also become a direct member of the Reserve Bank Information and Transfer System (RITS), Australia's high-value payments system, which is used by banks and other approved institutions to settle their payment obligations on a real-time gross settlement (RTGS) basis.
National and international regulatory standards encourage CCPs to settle in central bank money where practical and available, to avoid credit and liquidity risks. Where a CCP uses central bank money, a payment obligation is discharged by providing the CCP with a direct claim on the central bank.
Martin Pluves, CEO, LCH.Clearnet Ltd said: “We are delighted to announce the opening of a new central bank account with the Reserve Bank of Australia. LCH.Clearnet Limited is a global leader in the provision of clearing and risk management services and this addition will help further improve sources of liquidity, in line with regulatory standards.”
LCH.Clearnet also maintains a sterling and euro central bank account at the BoE and a Canadian dollar account at the Bank of Canada.
For further information
Rhiannon Davies, Tel: +44 (0)20 7426 7523
Lucie Holloway, Tel: +44 (0)20 7797 1126
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The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and trading platforms as well as a range of OTC markets.
LCH.Clearnet’s world-class risk management framework provides exceptional levels of protection to international markets, as has been proven through the management of past defaults. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to achieving the highest standards of risk management across all asset classes cleared.
LCH.Clearnet Group is majority owned by London Stock Exchange Group (LSE.L), a diversified international exchange group that sits at the heart of the world's financial community.