During a heated debate among a panel of derivatives exchange chief executives at London derivatives week, the annual event hosted jointly by FOW, Futures Industry Association and Future and Options Association, CME's CEO Craig Donohue labelled a pan-European central counterparty a "ruinously poor idea," sparking a fierce rebuff from a spokesperson for LCH Clearnet (LCH-C).
The clearinghouse has made no secret in the past of its backing of the cross-continental model under the guidance of its former CEO David Hardy. However, a little over a month after the discussion and only two months after the resignation of chairman Gérard de la Matiniére, Hardy left LCH-C amid rumours of customer discontent over the lengthy integration process at the clearinghouse. A further announcement stating that LCH-C had abandoned work on its generic clearing system left many wondering about the prospects for both the clearinghouse and clearing in general across Europe.
European Commission...