Central Banking

LCH payments system raises concentration concerns

Plumbing
Fears the proportion of payments routed via two banks could create risks

A significant proportion of payments between clearing members and LCH.Clearnet are transferred via just two banks, claim market participants, creating concentration and systemic risk concerns across the industry.

When a clearing member has to transfer a cash payment such as initial or variation margin to LCH.Clearnet Limited, the clearing house's UK subsidiary, it has to do so via an account at a so-called protected payments system (PPS) banking entity. The clearing member deposits its funds in

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