LCH.Clearnet closes its SwapClear US interest rate swaps clearing service

International clearing house LCH.Clearnet, majority owned by London Stock Exchange Group Plc (LON:LSE), has announced that it plans to close its SwapClear US Service as of next week, on June 23, 2016.

The closure of the SwapClear US service will have no effect on the SwapClear Global service offered via LCH.Clearnet Ltd, which continues to be the market-leading interest rate clearing offering.

LCH has filed a notice with the U.S. Commodity Futures Trading Commission (CFTC) to facilitate the return of all remaining default fund contributions to Clearing Members on June 23, 2016.

The full notice issued by LCH today reads as follows:


VIA EMAIL TO: [email protected]

June 2 2016

Mr. Christopher Fitzpatrick
Commodity Futures Trading Commission
1155 21st Street, N.W.
Three Lafayette Centre
Washington, DC 20581

Dear Mr. Fitzpatrick:

Pursuant to CFTC regulation §40.6(a), LCH.Clearnet LLC (“LCH”), a derivatives clearing organization registered with the Commodity Futures Trading Commission (the “CFTC”), is submitting for self-certification a member circular to announce plans to close its SwapClear US Service as of June 23, 2016. LCH intends for this member circular to be treated as a rule of LCH as defined in CFTC regulation §40.1(i).

The member circular is attached as Appendix I.

Part II: Description of Rule Changes

Regulation 303 has been amended to provide LCH with the ability to set the default fund amount to an amount determined by LCH in its sole discretion, provided that LCH complies with all applicable laws.

The amendment to Regulation 303 is attached as Appendix II.

Part III: Core Principle Compliance

LCH has concluded that compliance with the Core Principles will not be adversely impacted by this change.

Part IV: Public Information

LCH.Clearnet has posted a notice of pending certification with the CFTC and a copy of the submission on LCH.Clearnet’s website here.

Part V: Opposing Views

There were no opposing views expressed to LCH.Clearnet by governing board or committee members, members of LCH.Clearnet or market participants that were not incorporated into this submission.


LCH.Clearnet LLC hereby certifies to the Commodity Futures Trading Commission, pursuant to the procedures set forth in the Commission regulation § 40.6, that attached rule submission complies with the Commodity Exchange Act, as amended, and the regulations promulgated thereunder.

Should you have any questions regarding this submission please contact me at [email protected].

Yours Sincerely,

Suprio Chaudhuri
Chief Compliance Officer
LCH.Clearnet LLC

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