For Release: October 30, 2001
CFTC Recognizes First Offshore Clearinghouse Under CFMA
Washington DC - The Commodity Futures Trading Commission (Commission) has issued an order granting registration as a derivatives clearing organization (DCO) to the London Clearing House (LCH) pursuant to the Commodity Exchange Act (CEA), as amended by the Commodity Futures Modernization Act of 2000 (CFMA). LCH is the first offshore clearing organization to be granted registration since passage of the new legislation last December. It is only the second clearinghouse not affiliated with an exchange to be registered.
LCH currently provides clearing and settlement services for several markets in the United Kingdom. As a registered DCO, LCH will be able to provide clearing and settlement services for its clearing members, both U.S. and foreign based, in over-the-counter (OTC) interest rate swap contracts through its SwapClear facility and in OTC energy derivatives contracts executed on commercial markets exempted under section 2(h) of the CEA.
Copies of the Commission's order granting registration may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100.