Release Number 8458-21

CFTC Grants Order to LCH SA Permitting Portfolio Margining of Swaps and Security-Based Swaps in a Cleared Swaps Customer Account

November 10, 2021

— The Commodity Futures Trading Commission announced today that it has issued an order granting a request made by Banque Centrale de Compensation, doing business as LCH SA, a CFTC-registered derivatives clearing organization (DCO), under Section 4d(f) of the Commodity Exchange Act (CEA).

The order establishes terms and conditions under which LCH SA and its clearing members that are dually registered as futures commission merchants and broker-dealers may (1) hold credit default swaps (CDS) and security-based CDS in a cleared swaps customer account subject to Section 4d(f) of the CEA; and (2) portfolio margin such CDS and security-based CDS held in the cleared swaps customer account.

The CFTC issued the same relief to ICE Clear Credit and ICE Clear Europe in 2013. [See CFTC Press Release Nos. 6495-13 and 6566-13 respectively.]