LCH.Clearnet S.A. Receives EMIR Authorisation as central counterparty

LCH.Clearnet S.A., LCH.Clearnet Group’s French central counterparty (CCP), has announced that it is now authorized under the European Market Infrastructure (EMIR). L’Autorité de Contrôle Prudentiel et de Résolution (ACPR), as LCH.Clearnet S.A.’s national competent authority, granted the authorisation on May 22 and also approved the interoperability arrangement with the Italian central counterparty CC&G.

The decision confirms that LCH.Clearnet S.A.’s risk management framework, technology, governance, operating model and capital meets the standards required by EMIR, which is instigating similar protocols to that of the Dodd-Frank Act in North America, in which trade reporting must be carried out in a specific way, including the use of central counterparties via which trades must be executed.

This is the final step in the authorisation process. LCH.Clearnet S.A. submitted its application to French regulators on 15 September 2013 and was deemed complete on 27 November, however LCH.Clearnet has recently demonstrated that it is committing resources toward adhering to the requirement for centrally cleared electronic trading in Europe, exemplified by the company’s recent collaboration with Cantor Fitzgerald to provide the first European centrally cleared OTC CFD environment.

Christophe Hémon, Chief Executive of LCH.Clearnet S.A. said: “Being authorised as EMIR compliant confirms the high standards of risk and operational management to which we adhere. With this major milestone now achieved we look forward to working collaboratively with our regulators, our members and their clients as we grow our business.”

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