EquityClear service and Interoperability

Dear Member,

LCH.Clearnet Limited has been working closely for many months with proposed interoperating CCPs to deliver a service of choice across multiple trading venues. The Master Clearing Link Agreements (MCLA) have been agreed and signed between CCPs with further operational procedures in place to facilitate working partnerships.

The agreed MCLAs have been forwarded to the relevant regulators for non-objection, at which point some concerns have been raised, in particular regarding inter-CCP margin requirements.  It has not yet been possible to obtain full details of the concerns and the regulators are, for now, reviewing the agreements.

Therefore, LCH.Clearnet Limited regrets to inform you that until regulatory non-objection has been obtained, it will not be possible to offer clearing services on an interoperable basis to any further trading venues.

We understand that the current interoperability arrangements will not be affected for the time being.

Members requiring further information should contact Ian Mackenzie on 020 7426 7265 ian.mackenzie@lchclearnet.com

Yours sincerely
Wayne Eagle, Director, LCH.Clearnet EquityClear®