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Self-Regulatory Organizations; LCH SA; Notice of Filing of Proposed Rule Change Relating to the LCH SA CDS Clear Trade Registration Fund
Plain English Summary
LCH SA has made changes to its rules regarding the registration of trades in credit default swaps, which are financial contracts that protect against the risk of default on debt. These changes specifically update how 'stress losses' are defined to better match their financial resource policies. This affects financial professionals involved in trading and clearing these types of contracts. Agents should review the updated rules to ensure compliance and understand how these changes may impact their operations.
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credit risk arising from guarantee arrangements.
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See Exchange Act Release No. 34-90207 (October 15, 2020); File No. SR-LCH SA-2020-004 which approved the Proposed Rule Change Relating to the Clearing of Single Name Credit Default Swaps Referencing Monoline <span class="match">Insurance</span> Companies and the Amendment of LCH SA's Rules in Accordance With its Risk Policies.
The Paragraphs 85 and 86 of Section 9.10 under the Annex to the Policy have been amended to align the definition of `stress losses' with the LCH SA Financial Resource Adequacy Policy