New head for CME's proposed European clearing house

The Chicago Mercantile Exchange (CME) has named Andrew Lamb as chief executive of its European clearing house, CME Clearing Europe, subject to regulatory approval of the venture.

Lamb will be based in London and will act as a special adviser to the exchange during the approval process. As chief executive, he will have responsibility for developing risk management policies and the daily operations of the clearing house.

Before joining CME Group, Lamb worked as an independent consultant for private and public companies on clearing, risk management and settlement issues. Clients included the Futures Industry Association, the Futures and Options Association, and various US and European investment funds.

Between 2004 and 2006, he was chief executive at LCH.Clearnet, having worked at the London Clearing House, the firm that merged with Clearnet SA to become LCH.Clearnet in 2003, as head of risk and deputy chief executive between 1993 and 2003.

Lamb also worked for 15 years at the Bank of England, which included four years as senior adviser in the derivatives and commodity markets department.

CME Group has put in a proposal to the UK Financial Services Authority to create a recognised clearing house in London. However, with the major European dealers having committed to begin clearing credit default swaps (CDS) in Europe by July 31, an official at the firm conceded it was unlikely to meet that deadline.

Ice Trust Europe, the London-based European clearing business of Atlanta-based IntercontinentalExchange (Ice), is also waiting for Financial Services Authority approval. Meanwhile, Frankfurt-based Eurex has received the necessary regulatory thumbs-up to begin clearing CDSs in Europe. It intends to commence clearing on June 30.

See also: Race against the clock for European CDS CCPs