CME vs LCH.Clearnet: Clients may face CCP-specific pricing, warn FCMs

The two biggest clearing houses for interest rate swaps, CME and LCH.Clearnet, have different margin models – which may affect the prices charged to clients by clearing members. It could also affect the contest between the two venues. Joe Rennison reports


Customers that visit the McDonald’s restaurant on Victoria Street in London can buy a Big Mac for £2.69 – the equivalent of $4.06. That burger would cost $4.49 – or £2.97 – from the McDonalds at 160 Broadway in New York. The same product, bought at two different venues, has two different prices.

Some futures commission merchants (FCMs) argue the same should be true for the charges they apply to cleared over-the-counter derivatives – the cost of clearing a five-year, US dollar interest rate swap

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here