The director of public affairs at Europe’s leading clearing house, LCH.Clearnet, said on Thursday that increased price competition between European clearing houses would not come at the cost of weakening risk management.
“I honestly don’t believe that anybody’s reducing risk standards to compete,” said Rory Cunningham at the Clearing and Settlement conference held in London by the Association for Financial Markets in Europe (AFME) on Thursday April 29.
“If anybody believes that anybody’s doing that,” he added, “whether it’s LCH.Clearnet or another company, then they should speak publicly about it. They should say, to the regulators, to the users: ‘We can demonstrate that they’ve reduced their risk standards in order to compete.’”
Asked...