LCH.Clearnet has joined the fight against a US legislative proposal that would stop banks from owning collectively more than 20% of a derivatives clearing house or execution service.
The measure is contained in an amendment put forward by Representative Stephen Lynch to the Over-the-Counter Derivatives Markets Bill. The bill is sponsored by a fellow Massachusetts Democrat, Barney Frank, chairman of the House Financial Services Committee.
Lynch’s intent is to ensure powerful banks or exchanges cannot block their rivals from using a clearing service.
LCH.Clearnet expressed surprise yesterday (December 9) at a comment by Lynch that his amendment would not affect existing organisations.
The Anglo-French clearing firm said it could not...