Banque centrale de compensation

Banque centrale de compensation S.A. (trading as LCH SA) is a French central counterparty clearing house that interposes itself between buyers and sellers to manage counterparty risk across several European markets. It clears cash equities and listed derivatives for Euronext-operated venues, euro-denominated cash bonds and repurchase agreements through its RepoClear service, and credit default swaps via CDSClear. The firm operates service-specific risk models and maintains a multilayer default waterfall comprising initial and variation margin, a dedicated default fund, and its own capital, supported by routine stress testing, intraday margining, and default-management tools such as hedging and auctions. Collateral frameworks accept cash and high-quality securities subject to eligibility criteria and haircuts, with segregation options for client assets and portability arrangements in line with European requirements. Settlements are conducted through euro-area payment and securities infrastructures, with access to central bank money where applicable. LCH SA is authorized as a CCP under the European Market Infrastructure Regulation and is supervised by a college including ESMA and French authorities such as the AMF, the ACPR, and the Banque de France, and it publishes CPMI-IOSCO and EMIR disclosures on its risk, margin, and liquidity metrics. The company is a subsidiary of LCH Group, which is majority owned by London Stock Exchange Group, and offers membership to financial institutions meeting specified capital, operational, and risk-management criteria, alongside client-clearing arrangements through general clearing members.