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CFTC permits LCH to commingle futures and cleared swaps collateral to offer portfolio margining

First Published 16th January 2017

CFTC grants order to LCH.Clearnet permitting portfolio margining of customer positions in futures, foreign futures, and cleared swaps

Washington - The U.S. Commodity Futures Trading Commission (CFTC ) has issued an order to LCH.Clearnet Limited, a CFTC-registered derivatives clearing organization, under Section 4d(f) of the Commodity Exchange Act. The order was issued in response to a petition filed by LCH.

The order permits LCH and its clearing members that are registered futures commission merchants to:

(1) commingle in an account subject to Section 4d(f) (a cleared swaps customer account) positions in futures, foreign futures, and cleared swaps, and related customer money, securities, and property;

(2) portfolio margin these positions in the cleared swaps customer account.

RELATED LINK: LCH.Clearnet Limited 4d(f) Order 1-13-2017