LCH.Clearnet gets CFTC license to clear derivatives

Top tier FX derivatives and CFD’s liquidity provider is already regulated by FCA and ACP

The Commodity Futures Trading Commision has announced in a statement on Tuesday that it has granted a license to Banque Centrale de Compensation, part of LCH.Clearnet SA (LCH.C SA) a registration to handle derivatives transactions as a derivatives clearing organization in accordance to section 5b of the Commodity Exchange Act.

LCH.C SA is a subsidualry of LCH.Clearnet Group Ltd., which has recently launched its buy side clearing of FX derivatives through its service ForexClear. The company has also announced the availability of the first centrally cleared CFD trading mechanism in partnership with Cantor Fitzgerald and Commerzbank, Citi and ING.

The company is headquartered in London and has been formed by a merger of London Clearing House and French company Clearnet. It is regulated under UK’s FCA (Financial Conduct Authority) and French ACP (Autorité de Contrôle Prudentiel) and based on 2012 figures LCH.Clearnet has cleared about 50% of global interest rate swaps market and is the second largest organization clearing bonds and repo deals.

The CFTC authorizes LCH.C SA to clear credit default swaps and other swaps that the Commission determines as eligible to clear under current legislation.

For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.

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