For Release: July 1, 1998
CFTC Seeks Public Comment on the London
Clearing House's Petition for Exemption
The Commodity Futures Trading Commission (Commission) has issued a
notice seeking public comment on a petition submitted by the London
Clearing House (LCH) requesting an exemption, pursuant to Section 4(c)
of the Commodity Exchange Act. LCH has developed a clearing facility
for swap agreements which intends to commence operations in mid-1999.
The facility will be used to clear interest rate swaps and forward
rate agreements. Participation will be limited to large institutions
that participate as dealers in the swap market and that meet specified
financial and operational standards.
The Commission is seeking comment on all aspects of the LCH petition.
In this regard, the Commission directs the attention of commenters to
the issues raised in the discussion of swaps clearing in the OTC
derivatives concept release published by the Commission on May 12,
1998 (63 FR 26114) which is also available on the Commission's
Internet Home Page (www.cftc.gov).
The notice will be published in the Federal Register shortly and comments must be received within 60 days of its publication. Copies of the notice and the LCH petition 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, or by accessing the Commission's website, www.cftc.gov.