On January 13, the Commodity Futures Trading Commission issued an order authorizing LCH.Clearnet Limited (LCH), a CFTC-registered derivatives clearing organization (DCO), and its clearing members that are registered futures commission merchants to: (1) commingle in a cleared swaps customer account customer money, securities and property used to margin, secure or guarantee both futures and foreign futures (“futures”) and cleared swaps; and (2) portfolio margin such futures and cleared swaps, subject to the requirements of CFTC Regulation 39.13(g)(4). Regulation 39.13(b)(4) provides that a DCO may allow reductions in initial margin requirements provided the price risks with respect to such positons are significantly and reliably correlated.

For more information on the order, click here.