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LCH Logo.png
Founded 2003
Headquarters London
Key People Lex Hoogduin, Group Chairman
Daniel Maguire, Group Chief Executive
Products International clearing services
Releases Company News

LCH is Europe’s largest clearing house and is majority owned by the London Stock Exchange Group.[1]

The LCH group of companies comprises LCH Ltd, LCH SA, SwapAgent Ltd and LCH Group Holdings Ltd. Its clearing houses are part of the post trade division of London Stock Exchange Group PLC.[2]

Formed from the 2003 merger of the London Clearing House and the Clearnet unit of Euronext, LCH acts as an independent central counterparty (CCP) group in Europe for international exchanges and platforms. The products it clears include equities, exchange-traded derivatives, interbank interest rate swaps markets and the majority of the euro-denominated and sterling bond and repo markets.

History and Ownership[edit]

LCH was created in 1888 to clear commodities contracts, and was owned by the United Dominions Trust until the 1980s, when control transferred to six UK banks. The company started clearing for the London-based futures exchanges - the London Metal Exchange (LME), LIFFE and the International Petroleum Exchange (IPE) during the 1980s, and the trio took a minority stake in the business in 1996. LCH started clearing cash equities in 1996, subsequently adding bonds, swaps, repos and energy products.[3]

Clearnet was launched in 1969 as the Banque Centrale de Compensation to clear contracts traded in the Parisian commodity markets. It became a subsidiary of Matif in 1990, and of the unified French securities market, SBF Bourse de Paris, before being subsumed into Euronext in 2000.

LCH opened an office in March 2009 in New York to support a push into the U.S. over-the-counter and exchange-traded clearing business.

In October 2008, LCH agreed to a merger with the Depository Trust & Clearing Corporation (DTCC), but the merger was derailed by a counter-bid from a consortium of banks led by ICAP. The DTCC called the merger off on April 29, 2009, saying it would "pursue other strategic alternatives" because LCH had terminated its exclusivity agreement and had not agreed on a basis for consummating the proposed merger.[4] [5]

In July of 2011, LCH's chief executive Roger Liddell retired after five years with the company.[6] In a statement, chairman Jacques Aigrain said that Liddell had "led the firm at a critically important time; LCH’s resolution of Lehman’s $10 trillion default and the successful performance of cleared markets, even at times of extreme market turbulence, have resulted in unprecedented regulatory focus and a growth in responsibility for clearing houses." He was replaced by Ian Axe.[7]

London Stock Exchange Group chief executive Xavier Rolet stepped down as a director of LCH, the LSEG's main clearer, in August of 2010.[8]

In August 2012 LCH acquired the International Derivatives Clearing Group, the interest-rate derivatives clearinghouse majority owned by the Nasdaq OMX Group.[9] [10] LCH paid EUR 19.00 per share of IDCG. As part of the deal, Nasdaq OMX received a 3.7 percent stake in LCH.[11]

After the IDCG acquisition, the U.S. derivatives clearing organization (DCO) was renamed LCH.Clearnet LLC. On January 23, 2013, the Commodity Futures Trading Commission approved LCH's revised rulebook and amended registration as a DCO, which permits it to clear futures contracts, options on futures contracts, commodity options, and interest rates and/or currency swaps in the U.S.[12]

LCH was acquired by the London Stock Exchange Group in early 2013 in a €328 million cash deal that gave LSEG a 55.5 percent stake in the clearer.[13] [14] LCH was previously owned 73.3 percent by users, 10.9 percent by exchanges and 15.8 percent by Euroclear.[15]

On June 5, 2013, The London Metal Exchange (LME) and LCH agreed to end their clearing relationship and move the LME contracts currently cleared by LCH to LME Clear on Sept. 22, 2014.[16] In March 2015 the LME ended all its ties with LCH by selling its outstanding 2 per cent stake to Borsa Istanbul.

In 2013, LCH became the first international player to be granted an Australian clearing license for over-the-counter products. In April 2013, it received regulatory approval to begin clearing energy, commodity and environmental derivatives listed on Australia’s Financial and Energy Exchange. In July, it received approval to begin clearing interest rate swaps for Australian banks via its subsidiary SwapClear. [17]The presence of LCH increased clearing competition in Australian OTC market. It also would help London Stock Exchange to expand and compete with the Australian Securities Exchange in OTC listed derivative products.[18]

In August of 2017 Euronext extended its contract with LCH to clear trades, rather than switch to Intercontinental Exchange as it had said in April that it planned to do. The deal is for 10 years.[19]

In June of 2018 Banco de México gave their approval for LCH to clear over-the-counter interest rate derivatives in Mexico.[20]

In July 2019, Isabelle Girolami was named CEO of LCH Ltd., starting November 1, 2019, replacing Martin Pluves.[21]

Products and Initiatives[edit]

  • In April 2008, LCH launched a new repo clearing service called RepoClear €GC. The service gives repo traders a mechanism to address their euro funding needs more effectively by making it faster and easier to move the collateral that underlies their repo trades.[22]
  • In August of 2008, LCH transferred the clearing of ICE Futures Europe and ICE OTC trading positions from LCH to ICE Clear Europe.
  • On Feb. 13, 2009, LCH announced plans to launch a service that will clear credit default swaps by December 2009.[23]
  • On May 6, 2009 LCH announced it was set to launch clearing of OTC iron ore swap contracts in May 2009.
  • On May 6, 2009 LCH was selected to clear for NYSE Arca Europe, subject to regulatory approval.
  • On May 6, 2009, LCH signed a memorandum of understanding (MOU) to provide central counterparty clearing services to Chi-X Europe.[24]
  • On March 17, 2010, LCH said it would launch the first clearing of European equity contracts for difference (CFDs), in conjunction with Chi-X Europe.[25]
  • On March 29, 2010, the French arm of LCH launched clearing of credit default swaps.[26]
  • In June 2010, LCH became the first derivatives clearinghouse in the world to use overnight index swap (OIS) rate curves to discount interest rate swaps. [27]
  • On November 22, 2010, news broke that LCH had rejected a GBP400 million bid from ICE. However, reports noted that the claims were unsubstantiated and LCH denied any bids were made.
  • On March 8, 2011, LCH launched SwapClear FCM Service, a platform for the clearing of OTC swaps. The platform was created in anticipation of new Dodd-Frank-related regulations, which stipulate that swaps "eligible for clearing" be cleared via a swap execution facility (SEF). On July 27, 2011, asset management giant BlackRock announced that it had cleared its first two interest rate swap contracts on SwapClear.[28]
  • It was announced on March 14 of 2011 that NYPC's products may include interest-rate swaps backed by the U.S. operations of LCH.[29]
  • On May 29, 2013, NASDAQ OMX NLX and LCH received regulatory approval to launch the NLX market (“NLX”), a new London market offering a range of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro- and sterling-denominated listed derivative products on a single market. [30] NLX launched on May 31 with all products cleared through LCH.
  • On March 4, 2015, LCH announced that its SwapClear service would be launching new interest rate portfolio margining capabilities for its members and their clients around the world.[31]
  • On May 2, 2018 LCH began clearing clearing non-deliverable interest rate swaps denominated in yuan, won and rupees for the first time, expanding its Asia offering.[32]
  • On October 21, 2019, LCH was the first clearing house to offer clearing on Euro-denominated swaps that are benchmarked to a new reference rate called the euro short-term interest rate, or €STR. German bank LBBW and Morgan Stanley were among the first to clear derivatives using the new rate. The move followed LCH's introduction of clearing on SOFR swaps in July 2018 and SONIA futures in April 2018 and SARON swaps in October 2017.[33][34]

Board of Directors[edit]


  1. LME joins offer for LCH.Clearnet. The Financial Times.
  2. About Us. LCH.
  3. History. LCH.Clearnet.
  4. Proposed Merger Between LCH.Clearnet and DTCC Not Proceeding. DTCC.
  5. Interdealer brokers may join bid for LCH.Clearnet. Financial Times.
  6. Roger Liddell to retire in 2011. LCH.
  7. LCH.Clearnet Announces New Chief Executive. LCH.Clearnet.
  8. Rolet Quits Board of LCH.Clearnet. Financial News.
  9. LCH.Clearnet in Talks to Buy International Derivatives Clearing Group from Nasdaq. Securities Technology Monitor.
  10. LCH.Clearnet in Talks to Buy Nasdaq's Rate Clearinghouse. Bloomberg.
  11. LCH Buys IDCG, U.S. Swaps Clearinghouse, From Nasdaq. Bloomberg.
  12. CFTC Approves Rulebook and Issues Amended Registration Order for LCH.Clearnet LLC. CFTC.
  13. LSEG agrees terms of stake in LCH. Financial Times.
  14. LSE and LCH agree revised $426 million offer. Reuters.
  15. Interdealer brokers may join bid for LCH.Clearnet. Financial Times.
  16. LME Clear and LCH.Clearnet agree migration date for LME clearing services. LCH.Clearnet Group.
  17. LCH.Clearnet ramps up Australian business. Financial News.
  18. London Stock Exchange Pushes case for expansion into Australia. The Australian.
  19. Euronext renews deal with LSE business in clearing u-turn. Reuters.
  20. LCH gains approval to act as CCP in Mexico. The Trade News.
  21. Isabelle Girolami appointed CEO, LCH Ltd. LCH.
  22. LCH.Clearnet Launch Innovative New RepoClear €GC Service. LCH Clearnet Group.
  23. LCH.Clearnet enters crowded derivatives ring. Reuters.
  24. LCH.Clearnet signs MOU with Chi-X Europe. LCH.Clearnet.
  25. LCH to start handling CFD contracts. The Financial Times.
  26. Blow to London as LCH.Clearnet launches clearing house in Paris. The Financial Times.
  27. LCH Launches U.S. SwapClear FCM Service. Futures Magazine.
  28. LCH.Clearnet Clears OTC Trades For BlackRock. Futures Magazine.
  29. LCH.Clearnet may join NYSE effort to take on CME Group on rates. Futures.
  31. LCH.Clearnet to launch interest rate portfolio margining capability. LCH.Clearnet.
  32. London Stock Exchange clearing unit expands Asia offering. Reuters.
  33. LCH clears first €STR swaps. LCH.
  34. LCH clears first €STR swaps trades with Morgan Stanley and LBBW. The Trade.