On Dec. 16, LCH LTD announced amendments to the LCH rules.
LCH LTD submitted for self-certification changes to its rulebook to remove eligibility of legacy transactions, namely, GBP, CHF and JPY legacy LIBOR, USD FRA, SGD SOR, THB THBFIX SwapClear transactions from the Product and eligibility manual.
As well as the FCM product specific contract terms and Eligibility Criteria Manual.
Summary
To support ongoing industry efforts to transition from interest rate benchmarks to risk-free rates (RFRs), LCH plans to discontinue the eligibility of legacy transactions.
LCH will revise the Product and eligibility manual schedule 2 (SwapClear Service) and FCM product and eligibility manual to remove all references to the legacy transactions.
LCH reviewed proposed rule changes against requirements of the core principles and finds it will continue to comply with all requirements and standards laid out.
Effectiveness
These changes will take effect no earlier than Jan. 1, 2025.
