MAS approves LCH.Clearnet as a clearing house in Singapore

LCH.Clearnet has been given the status of Recognised Clearing House by Singapore's regulatory, the Monetary Authority of Singapore (MAS); recognition applies to LCH.Clearnet's EnClear freight division, and over-the-counter ForexClear and SwapClear services. LCH.Clearnet's CEO, Martin Pluves, said this was a "significant development" as the company continues to "see tremendous demand for our services in the region".

LCH.Clearnet Ltd, a worldwide Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term, has achieved formal status as a Recognized Clearing House by the Monetary Authority of Singapore (MAS), the country’s central banking entity, according to an LCH.Clearnet statement.

The recognition will go a long way in helping shore up LCH.Clearnet’s status domestically, with specific regards to the group’s EnClear, ForexClear, and SwapClear services. The recognition by MAS also represents the next step by the clearing house to more deeply integrate its operations in Singapore, following the existing business it has conducted there.

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Presently, LCH.Clearnet clears a variety of assets and trading instruments, including Singapore dollar-denominated interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, commodities futures, each of which executed on the Cleartrade Exchange (CLTX), MAS’ regulated trading venue. The recognition is also important for LCH.Clearnet as it looks to strengthen its clearing mandate and capabilities in Singapore and the Asia-Pacific (APAC) region as a whole.

Martin Pluves, CEO, LCH.Clearnet

According to Martin Pluves, Chief Executive Officer (CEO), LCH.Clearnet Ltd, in a recent statement on the recognition" “Singapore’s proposal to introduce a mandate for the clearing of US Dollar and Singapore Dollar-denominated interest rate swaps in the future is a significant development and we look forward to supporting firms in meeting their clearing obligations.”

“Achieving recognition status in Singapore is an important part of our growth strategy in Asia Pacific and complements other licenses we have already and those we are applying for in the region. As a global CCP, we provide open access to clearing for members and clients across many asset classes and in multiple jurisdictions, offering greater efficiencies for their business,” he added.