LCH.Clearnet may offer 'lite' membership to sovereigns

Clearer's plans to create a special membership category for central banks and other sovereigns could undermine CCPs' risk-mutualisation model, rivals claim

Sovereign derivatives users that want to directly access central counterparties (CCPs) may be able to do so without shouldering the same responsibilities expected of other members - possibly including an exemption on the posting of initial margin - under plans for a special membership category being discussed by London-based clearing house LCH.Clearnet.

However, rival clearers warn the whole CCP model - which reduces counterparty exposure by mutualising risk - could be undermined if some members