Inteview by Telis Demos at the FT in New York, subscription required: view here.

• He talks about LSOC, about segregation and handling of collateral for US clients, risk standards,
• Early part of November LSOC is applicable
• LCH being UK based – are the rules different? LCH is a registered DCO in the US since 2001. Assets are set from the FCM, no commingling across clients.
• Assets are held on-shore in the US
• CCPs shouldn’t compete on risk standards – not good in a stressed market, LCH wants to be the ‘gold standard’ in this area
• Will LCH take collateral against OTCs, which you wouldn’t in other markets? No – LCH is risk averse, and will remove systemic risk
• Expect competitors to take risk seriously to the same level
• Some firms waiting for the final DFA rules outcome before embracing clearing