LCH gains approval to act as CCP in Mexico

Banco de México grants approval for LCH to act as CCP for Mexican-domiciled market participants.

The London Stock Exchange Group’s clearinghouse LCH has been granted approval to clear over-the-counter (OTC) interest rate derivatives in Mexico.

Banco de México granted the approval allowing LCH to act as a central counterparty (CCP) in the country, providing Mexican-domiciled market participants clearing support for interest rate derivatives via LCH SwapClear as of 22 June.

LCH said the move provides a greater choice of CCPs to those participants in the country who are affected by the Mexican clearing mandate.

“Mexico and the Americas are important markets for us, and we are pleased to obtain recognition from the Banco de México,” LCH’s chief executive, Martin Pluves, commented.

“The approval complements our existing licences, and is a further demonstration of our open access clearing model enabling market participants across the world to achieve enhanced risk management and greater efficiencies.”

LCH will continue to offer clearing to global participants for Mexican Peso-denominated interest rate derivatives as one of the 21 currencies offered by SwapClear. The clearinghouse currently clears for members and their clients based in 55 countries.