Roger Liddell to retire in 2011

London, 21 July 2010

Roger Liddell has informed the Board of his intention to retire from his role as chief executive of LCH.Clearnet Group Limited and its subsidiary company LCH.Clearnet Ltd in July 2011, after five years with the group.

During his time with LCH.Clearnet, Roger has overseen some important developments, including the successful realignment of the shareholder base and the establishment of the company as the global leader in OTC clearing.  Its strong franchise in clearing interest rate swaps and fixed income is the basis for the expansion into other OTC asset classes, such as CDS and FX, expected to launch in 2011. The first phase of the CDS service, which went live in March 2010, is anticipated to be followed by a second phase which will include wider participation and a broadened product offering.  In addition, the company’s expertise in metals and commodities is enabling it to benefit from the continued growth in Asia.

Jacques Aigrain, Chairman, LCH.Clearnet said: “Roger has turned the business around and has created a clearing house for the future.  The company is now well positioned to benefit from the anticipated growth in OTC clearing and to leverage its position as a global leader.

“Roger has led the firm at a critically important time; LCH.Clearnet’s resolution of Lehman’s $10 trillion default and the successful performance of cleared markets, even at times of extreme market turbulence, have resulted in unprecedented regulatory focus and a growth in responsibility for clearing houses.”

The Chairman will undertake the search for the new CEO with the support of the Board and Nomination Committee.  In due course, the Board will appoint the new CEO on the Chairman’s recommendation.

To view the press release as a pdf click here.

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About LCH.Clearnet

LCH.Clearnet is the leading independent clearing house group, serving major international exchanges and platforms, as well as a range of OTC markets.  It clears a broad range of asset classes including: securities, exchange traded derivatives, energy, freight, interbank interest rate swaps, credit default swaps and euro and sterling denominated bonds and repos; and  works closely with market participants and exchanges to identify and develop clearing services for new asset classes.

A clearing house sits in the middle of a trade, assuming the counterparty risk involved when two parties (or members) trade.  When the trade is registered with a clearing house, it becomes the legal counterparty to the trade, ensuring the financial performance; if one of the parties fails, the clearing house steps in.  By assuming the counterparty risk, the clearing house underpins many important financial markets, facilitating trading and increasing confidence within the market.

Initial and variation margin (or collateral) is collected from clearing members; should they fail, this margin is used to fulfill their obligations.  The amount of margin is decided by the clearing house’s highly experienced risk management teams, who assess a member’s positions and market risk on a daily basis.  Both the soundness of the risk management approach and the resilience of its systems have been proven in recent times.

LCH.Clearnet is regulated or overseen by the national securities regulator and/or central bank in each jurisdiction from which it operates.