February 11, 2014

CFTC Requests Public Comment on a Petition Submitted by LCH.Clearnet Ltd for an Amendment to its Orders of Registration as a Derivatives Clearing Organization

Washington, DC — The U.S. Commodity Futures Trading Commission (Commission or CFTC) is requesting public comment on a petition from LCH.Clearnet Ltd (LCH) for an amendment to and consolidation of its orders of registration as a derivatives clearing organization (DCO). Specifically, the amendment would permit LCH to provide clearing services for “swaps,” as defined in the Commodity Exchange Act and Commission regulations, as well as all futures and options on futures.

LCH received its first order of registration as a DCO on October 29, 2001. The order permits LCH to clear over-the-counter derivatives contracts, agreements or transactions that were at the time excluded or exempt from the CEA. LCH now seeks to clear swaps executed on, or subject to the rules of, DCMs or SEFs (DCM/SEF Swaps). On September 23, 2013, the Commission’s Division of Clearing and Risk (DCR) issued a no-action letter permitting LCH and its clearing members to clear DCM/SEF Swaps until the earlier of (1) March 31, 2014, or (2) the date upon which the Commission approves or denies LCH’s application for an amended DCO registration order to permit it to clear DCM/SEF Swaps.

LCH received a second order of registration as a DCO on May 11, 2004, that permits it to clear financial futures and options thereon traded on, or subject to the rules of, DCMs, derivatives transaction execution facilities, and exempt boards of trade. LCH now seeks to clear all futures and options on futures, regardless of the underlying asset class, that are listed for trading on, or subject to the rules of, DCMs. On September 27, 2013, DCR and the Commission’s Division of Market Oversight (DMO) issued a no-action letter permitting LCH and its clearing members to clear futures contracts and options on futures contracts listed for trading on Nodal Exchange LLC (Nodal Contracts) until the earlier of (1) March 31, 2014, or (2) the date upon which the Commission approves or denies LCH’s application for an amended DCO registration order to permit it to clear all futures and options on futures, including Nodal Contracts.

Comments should be submitted on or before February 26, 2014.

Comments may be submitted electronically through the CFTC’s Comments Online process. All comments received will be posted on the CFTC’s website.

Last Updated: February 11, 2014