Graham Wright has joined the LCH Limited board as an independent non-executive director. Wright is currently the chief information security officer and global head of digital risk for National Grid.
Prior to this, he has held a number of senior roles relating to cyber security and intelligence for the UK’s Ministry of Defence and in the private sector. These positions follow a career as an operational pilot and senior officer in the Royal Air Force.
Lex Hoogduin, group chairman of LCH, comments: “I am delighted to welcome Graham as an independent non-executive director to the LCH Limited board. He brings exceptional knowledge of the technology and operations space and the Board will benefit greatly from his experience in this area.”
Clearing house LCH says its ForexClear service has seen 10 entities turn to actively clearing FX non-deliverable forwards in the past six months and that it has experienced a “significant” rise in cleared notional and trade count in 2016, with over $220 billion in notional cleared to date in September 2016.
As of 23 September, the firm says over $1 trillion in notional has been cleared in 2016.
“The uncleared margin rules that are coming into force across the world have been a catalyst for driving eligible and appropriate derivatives trades towards central clearing,” says Daniel Maguire, LCH’s global head of rates and FX derivatives.
LCH has announced today that Commonwealth Bank of Australia (CBA) has become its first Australian Protected Payments System (PPS) bank.
Having an Australian PPS bank enables LCH to make and receive Australian dollar payments in the local time zone.
The PPS system is the method by which LCH calls and pays cash margin to its clearing members. As part of the membership criteria for LCH, members are required to maintain a PPS bank account. Overseen by the Bank of England, PPS has been in operation in London for over 20 years, and also operates in New York.
Clearing house LCH is moving into the non-cleared space with the launch of LCH SwapAgent, a new service for the non-cleared derivatives market. The clearing house says LCH SwapAgent will provide market participants with a number of solutions designed to materially improve standardisation, efficiency and simplicity in the bilateral derivatives market.
It will act as an independent calculation agent, facilitating the calculation and exchange of bilateral margin and settlement payments, but will not become the central counterparty to the trade.
The five clearinghouses under US jurisdiction have passed the Commodity Futures Trading Commission’s (CFTC) first stress test.
The purpose of the test was to assess the impact of a hypothetical set of what the CFTC says is an extreme but plausible market scenarios across multiple clearinghouses and their clearing members.
The analysis included five clearinghouses registered with the CFTC located in the US as well as in the UK, they are CME Clearing, ICE Clear Credit, ICE Clear Europe, ICE Clear US, and LCH Clearnet. It encompassed cleared futures and options, interest rate swaps, and credit default swaps.
The analysis included the largest clearing members (measured by margin deposited) at each clearinghouse.