LCH to become more commercially driven, says Axe
Regulatory changes mean the over-the-counter clearing space is becoming hugely competitive, with new entrants launching services to rival long-established clearer LCH.Clearnet. Long seen as a member-driven utility, LCH.Clearnet needs to become more commercial to compete, says new chief executive Ian Axe. By Nick Sawyer
LCH.Clearnet used to stand alone in the world of over-the-counter derivatives clearing. Those days are over. Encouraged by a Group of 20 (G-20) commitment to centrally clear all standardised OTC trades by the end of 2012, new central counterparties (CCPs) are jostling for position – at least 10 have either launched or announced plans to do so since the G-20 embraced clearing at its Pittsburgh summit two years ago.
In some senses, LCH.Clearnet still has an advantage over the newcomers – its
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