LCH.CLEARNET: EBA ADVICE TO EUROPEAN COMMISSION PUBLISHED

26 September 2012

LCH.Clearnet Group Limited (“LCH.Clearnet”) notes that the European Banking Authority (“EBA”) has today published the advice which it has provided to the European Commission in connection with new technical standards for the regulatory requirements for European central counterparties (“CCPs”) under the European Market and Infrastructure Regulation (“EMIR”).

The announcement marks the end of the EBA consultation process on the draft technical standards.

The European Securities and Markets Authority (“ESMA”) has also carried out a consultation process on the draft technical standards which is complementary to the EBA recommendations and it is expected that ESMA will publish its advice to the European Commission by the end of September.

After both EBA and ESMA have published their advice, the European Commission will have a period of three months to endorse these recommendations before finalising technical standards which will govern the regulatory capital requirements for European CCPs in the future.
Following the publication of ESMA’s recommendations, LCH.Clearnet will provide an update of the expected implications of the combined EBA and ESMA recommendations on LCH.Clearnet and its CCPs.

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About LCH.Clearnet

The LCH.Clearnet Group is a leading international clearing house, serving major exchanges and platforms as well as a range of OTC markets. It clears a broad range of asset classes, including securities, exchange-traded derivatives, commodities, energy, freight, foreign exchange derivatives, interest rate swaps, credit default swaps and euro and sterling denominated bonds and repos.  LCH.Clearnet works closely with regulators and clients to identify and develop innovative clearing solutions.

LCH.Clearnet’s world-class risk management framework provides the markets with exceptional levels of protection.  Both the soundness of its risk management approach and the resilience of its systems have been proven in recent times. As demand for robust clearing services continues to grow, LCH.Clearnet is committed to setting and maintaining the highest standards across all asset classes cleared.

For more information about LCH.Clearnet, visit lchclearnet.com