LCH payments system raises concentration concerns

Most cash payments to the CCP routed via just two banks, sources claim

Fears the proportion of payments routed via two banks could create risks

A significant proportion of payments between clearing members and LCH.Clearnet are transferred via just two banks, claim market participants, creating concentration and systemic risk concerns across the industry.

When a clearing member has to transfer a cash payment such as initial or variation margin to LCH.Clearnet Limited, the clearing house's UK subsidiary, it has to do so via an account at a so-called protected payments system (PPS) banking entity. The clearing member deposits its funds in