In an interview with Women in Clearing, Corentine Poilvet-Clédière, CEO of LCH SA and LSEG France
country head, discussed the future of clearing in 10 years as financial services enter an era of “massive uncertainty, divergence and fragmentation”.
In such context, a trusted mutualization tool where clear and stable rules apply transparently to all, designed to independently anticipate the future, based on quantitative models and long-term expert views and to protect actors from one another has a more than ever critical role to play and relevance,” she told Women in Clearing.
The right CCP for the future, she said, has to be: multi asset, clearing asset classes relatively uncorrelated with one another; well diversified in membership, trading venues, settlement partners, geographic footprint and currency; fully and deeply understood by its users via a sophisticated system of partnership and co-construction of services.
“These conditions seem essential to me to have the caliber of a proper safe harbor for the decade to come,” she said.
In the context of fast moving technological development, including of the worst type, for example, a broad operational risk and cyber-attack, the right CCP for the next decade has got to be a well-capitalized one that stands on its own two feet financially, not “hiding behind an exchange for healthy ratios, able to fend for itself on what we call ‘non default losses’ in our jargon (operational risk, cyber risk, investment risk).”