Securities Law & Instruments

IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, CHAPTER S.5, AS AMENDED (Act) AND IN THE MATTER OF LCH.CLEARNET LLC (LCH)

REVOCATION ORDER (Section 144 of the Act)

WHEREAS the Ontario Securities Commission (Commission) issued an order dated April 25, 2014, exempting LCH, pursuant to section 147 of the Act, from the requirement to be recognized as a Clearing Agency under subsection 21.2(0.1) of the Act (Exemption Order);

AND WHEREAS LCH has notified the Commission that, due to lack of clearing volumes, LCH:

(i) has decided to close its SwapClear US service effective June 30, 2016;

(ii) will be an inactive registered Derivatives Clearing Organization (DCO) with the Commodity Futures Trading Commission (CFTC) from July 1, 2016 to June 30, 2017, and will become a dormant DCO from July 1, 2017.

AND WHEREAS LCH has requested to withdraw from its status as an exempt Clearing Agency as of June 30, 2016;

AND WHEREAS LCH has filed with the Commission a report on Form 24-102F Cessation of Operations Report for Clearing Agency under NI 24-102 Clearing Agency Requirements;

AND WHEREAS LCH applied for and was granted an exemption from Section 2.3(1) of NI 24-102 Clearing Agency Requirements regarding the 90-day notice period for filing the Form 24-102F2;

AND WHEREAS the Commission has determined that revocation of the Exemption Order would not be prejudicial to the public interest;

THE COMMISSION hereby revokes the Exemption Order pursuant to section 144 of the Act.

DATED June 28, 2016, effective June 30, 2016.

Christopher Portner
 
Edward P. Kerwin