Release: #4163-98
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 (

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,