Default vote failure prompts integration anger to surface
In asking members to vote on potential changes to its
default fund, LCH Clearnet (LCH-C) has stirred a hornets' nest
as FCMs have voiced concerns over the way the clearinghouse
deals with its members and over the expense and delay of its
Failure to garner sufficient member support forced the
clearinghouse to withdraw the default fund proposal last
According to a senior executive at one member firm, LCH-C
was looking to remove a £200m insurance fund which
currently sits behind the default fund and instead double each
member's fund contribution. However, the wisdom of the changes
notwithstanding, he said some members had been displeased with
the way the clearinghouse had approached the issue.
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