Clearing house of the year: LCH.Clearnet

Michael Davie and Dennis McLaughlin

Often, when people want to explain what a central counterparty (CCP) does, they turn to the world of plumbing – as though margin models, collateral and default funds have something in common with U-bends, washers and waste traps. Michael Davie, chief executive of LCH.Clearnet Ltd, offers a different analogy. “I constantly have this image of air traffic control in my mind. In terms of operating a CCP, we need to act as though we are landing at JFK or Heathrow. You don’t want