LCH SA continues the internationalization of its clearing offer

Posted Apr 8, 2022, 1:41 PMUpdated on Apr 8, 2022, 3:28 PM

LCH SA continues its development. The Paris clearinghouse, a subsidiary of the London Stock Exchange Group (owner of the London Stock Exchange), now has a major Australian bank among its members. The Commonwealth Bank of Australia has joined the list of non-European institutions – which already includes Japanese and Canadian banks – using the French market infrastructure. “We sense a desire among the major foreign banks to accelerate the diversification and securing of their sources of financing, by using a currency other than the dollar and by turning more towards compensation”, testifies Corentine Poilvet-Clediere, head of Repoclear at LCH SA.

Through Repoclear, LCH clears “repurchase agreement” or repo (delivered repo, in French) operations. This method of financing is very popular with banks. It makes it possible to pledge very safe assets – mainly State debts – as collateral, to obtain very advantageous short-term loans. Going through a clearing house makes transactions secure. The “clearing house” intervenes between the buyer and the seller to take the place of a party if the latter does not respect its commitments.

Leave a Reply

Your email address will not be published. Required fields are marked *