Four of five largest Australian banks look to clear with LCH

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LCH.Clearnet is expanding its clearing offering to domestic Australian banks but is not looking to set up a local clearing house in Australia, it says. LCH.Clearnet announced plans to apply for an Australian clearing and settlement facility licence on December 12, which would enable it to offer its SwapClear over-the-counter interest rate swap clearing to Australian banks. Four of the five largest Australian banks have submitted letters of intent to use SwapClear to clear interest rate swaps.