FIA Europe Obtains Legal Options with Respect to LCH.Clearnet Limited

The Futures Industry Association Europe ("FIA Europe") obtained two legal opinions under Capital Requirements Regulation Article 305(2)(c). The opinions enable clients of English clearing members of LCH.Clearnet Limited to "look through" their clearing member and apply a favorable two percent risk weight subject to certain conditions.

The first opinion addresses the rules of LCH.Clearnet and the supporting law, while the second opinion addresses English insolvency law issues for English banks and investment firms, and certain other types of firms providing clearing member services in England.

FIA Europe stated that the long-term plan is that these opinions could be supplemented with other central counterparty clearinghouse ("CCP") opinions or other clearing member opinions.

See: FIA Europe Press Release. Related news: CFTC Issues Extensions in Two No-Action Letters Regarding DCO and DCM (CFTC Letters 14-85 and 14-86) (June 25, 2014); FIA Europe Clarifies Scope of EMIR Article 39 following LCH.Clearnet EMIR Authorization (with Lofchie Comment) (June 12, 2014).