Written question asked by Lord Myners (Labour), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 3 October 2011.

Finance: Clearing Houses

Question: To ask Her Majesty’s Government what assessment they have made of the consequences for financial system stability of any change of control or ownership of LCH Clearnet.

Answer: The Government welcome market developments that will increase efficiency, improve innovation and lower the cost of economic activity. The Government believe that it is important to look at the potential benefits to the market of any deal. As with any such corporate transaction, the Financial Services Authority will ensure that the owners of the clearing house are fit and proper persons; and that the clearing house continues to meet its recognition requirements as set out in the Recognised Investment Exchanges and Recognised Clearing Houses handbook. These requirements include the corporate governance arrangements and the financial resources, the management and controls of the clearing house.

Secondary information

Type: Written question
Reference: 11658; 730 c108WA
Session: 2010-12
Notes: Answer received between Thursday 15 September and Monday 26 September 2011.
Subjects: Ownership LCH
Link: View this Written question on www.publications.parliament.uk