LCH.Clearnet to clear for Australian-based FEX Global

11 April 2013

LCH.Clearnet Ltd (LCH.Clearnet), the multi-national, multi-asset clearing house, has been granted regulatory approval by the Australian Government to clear energy, commodity and environmental derivatives listed on Australia’s Financial and Energy Exchange, FEX Global.

As a multi-national clearing house, LCH.Clearnet considers Australia as an important part of its geographic expansion strategy.  LCH.Clearnet will leverage its extensive risk management and clearing capabilities across multiple asset classes to provide commodity market participants in Australia and the broader Asia-Pacific region with enhanced liquidity and transparency.

The service is set to launch mid 2013.Alberto Pravettoni, CEO, Repo and Exchanges at LCH.Clearnet said; “This extension into Australia reinforces our commitment to expanding our geographic reach and highlights the benefits of our open, horizontal clearing model.  We look forward to working with FEX Global to deliver more transparency, liquidity and efficiency to this rapidly growing market.”

Thomas Price Director and CEO of FEX Global said; “FEX Global welcomes to Australia its derivatives clearing provider LCH.Clearnet. LCH.Clearnet is a multi-national clearing house with significant experience in derivatives clearing. We look forward to working with LCH.Clearnet to utilize its multi-national experience to assist FEX Global in providing to its customers world-class risk management capabilities to maximize returns from existing and evolving market products and structures.”

LCH.Clearnet has a long history of clearing commodities and energy trades, providing services for the Hong Kong Mercantile Exchange, London Metal Exchange and NYSE Euronext and the North American electronic commodities exchange, Nodal. Dedicated to providing innovative clearing solutions to new markets, LCH.Clearnet also clears a range of OTC commodity derivatives including, FFAs, Steel, Iron Ore, Fertilizer, Emissions, Coal, Gold and Silver.

Additionally, LCH.Clearnet plans to apply for an Australian clearing and settlement facility license that would enable Australian banks to clear OTC interest rate swaps as members of the SwapClear service.

Contact:  Rachael Harper +44 (0) 207426 7175

To view the press release as a pdf click here

About LCH.Clearnet:

The LCH.Clearnet Group is a leading multi-asset class and multi-national clearing house, serving major exchanges and platforms as well as a range of OTC markets.

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 on LCH.Clearnet visit www.lchclearnet.com/media_centre

About The FEX Group:
 
The FEX Group is an Australian unlisted public company which was established in 2006. The FEX Group offers globally competitive licensed marketplaces in exchange traded and OTC derivative markets with a particular focus on the development and listing of products in the commodity, energy and environmental asset classes. The FEX Group seeks to provide market participants and users in the Asia-Pacific region greater access to products in the commodity, energy and environmental asset classes to enhance both the management of risk and the facilitation of investment in the region. FEX Global is a wholly owned subsidiary of the Financial and Energy Exchange.