On December 17, the Commodity Futures Trading Commission approved the application of LCH.Clearnet Ltd. for an Amended Order of Registration as a derivatives clearing organization (DCO). Pursuant to the Amended Order, LCH is permitted to clear (i) swaps and (ii) futures and options on futures contracts on all assets classes traded on or subject to the rules of a designated contract market. LCH had been clearing swaps pursuant to no-action relief issued by the CFTC Division of Clearing and Risk.
LCH was first registered as a DCO in 2001, with authority to clear over-the-counter derivatives contracts, agreements and excluded or exempt transactions. In 2004, LCH’s Order of Registration was amended to authorize LCH to clear futures and options on futures contracts on certain financial products.
Click here to view the LCH.Clearnet Ltd Order.