LCH.Clearnet
has hired a former executive from BNY Mellon to build out its new US repo
clearing business.
John Vinci, former head of global product management and strategy within BNY’s
broker-dealer services division, will join the clearing house as head of the
unit on July 13.
The hiring of Vinci comes as clearing houses in the US look to expand into repo
clearing, following increasing interest from buy-side participants.
“LCH.Clearnet Group is already a market leader in repo clearing and this new
appointment will support the business’ growth ambitions in North America,
working with our clients and members to deliver greater efficiencies in the US
fixed income markets,” says David Weisbrod, CEO, LCH.Clearnet LLC.
Regulators in the US have recently expressed concerns about the repo market,
where financial institutions from large banks to asset managers pawn their
assets in exchange for trillions of dollars’ worth of short term
financing.
In the face of this, banks are pushing for an expanded role for clearing houses
in the repo and securities lending market.
The launch of a US repo clearing service by LCH.Clearnet will put it into
direct competition with the Depository Trust & Clearing Corporation (DTCC),
currently the only US clearer for repo.
CME Group is also looking to set up a clearing service for repo.
LCH.Clearnet taps former BNY exec to head US repo clearing unit
LCH.Clearnet has hired a former executive from BNY Mellon to build out its new US repo clearing business.