The Financial Services Authority (FSA) has approved a new clearing system between LCH.Clearnet and Swiss group, X-Clear, Financial Times reports. The newly approved risk management structures address issues, such as margin collateral between the two clearers.
The new arrangements will let other clearing houses join the network once they have been given regulatory approval. The two companies are working with Swiss, Dutch and U.K. regulators to define conditions to conduct interoperability so that a user of one clearing house can execute a trade with a counterparty that has chosen another.
Click here for the story from Financial Times.