By Carolina Mandl
BOCA RATON, Florida (Reuters) -London Stock Exchange Group’s London Clearing House (LCH) business is looking into clearing U.S. Treasuries, its head of Americas John Horkan said on Wednesday at a conference hosted by the Futures Industry Association in Boca Raton, Florida.
The comments come a day after CME Group said it also plans to apply to clear U.S. Treasuries and Intercontinental Exchange said it is interested in this market.
The U.S. Securities and Exchange Commission in December adopted new rules aimed at reducing systemic risk in the $26 trillion U.S. Treasury market by forcing more trades through clearing houses.
Currently, the Fixed Income Clearing Corporation, a subsidiary of trade processor DTCC, is the country’s sole clearer of Treasuries.
DTCC’s Head Of Fixed Income Laura Klimpel said in the panel about clearing that the new U.S. Treasuries clearing mandate was likely to increase DTCC’s activity by between $2.5 trillion and $4 trillion a day. Currently, it clears $7 trillion a day.
(Reporting by Carolina Mandl; Editing by Megan Davies and Franklin Paul)
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