LCH SA Gets Nod to Update CDS Rules for EU Compliance
Published Date: 5/8/2026
Notice
Summary
LCH SA, a big player in clearing credit default swaps, got the green light to update its rulebook to better match French and EU laws. This change mainly affects clearing members who outsource some tasks, making sure everyone plays by the same rules. The updates kick in soon and help keep the system smooth and secure without extra costs.
Analyzed Economic Effects
5 provisions identified: 0 benefits, 4 costs, 1 mixed.
Resolution Authority Can Call Cash from Non‑Defaulting Members
Under the CCP Recovery and Resolution Regulation provisions added to the Rule Book, the Resolution Authority (identified as the ACPR) can require Non-Defaulting Clearing Members to contribute additional cash to LCH SA of up to twice the amount equivalent to their Contribution. If a member does not pay, the Resolution Authority may require LCH SA to declare an Event of Default and use that member's Initial Margin and Default Fund Contribution to cover deficits.
VM Haircut Tool, Payment Suspensions, and Resolution Powers
The Rule Book adds a VM Haircut Tool allowing reductions in amounts LCH SA would pay Non-Defaulting Clearing Members (e.g., for Variation Margin or net present value gains), requires clearing members to notify their clients if the tool is applied, and gives the Resolution Authority powers to suspend payments or delivery obligations, suspend termination rights, reduce or eliminate LCH SA debt, and authorize tools (like position or loss allocation and write-downs). Clearing Members agree to be bound by such tools without those actions constituting an LCH SA default if substantive obligations continue to be performed.
Stricter Outsourcing Rules for Clearing Members
If you are a clearing member, LCH SA now requires prior consent before you outsource any clearing activities and can withdraw that consent later. Outsourcing is limited to certain entities, requires written agreements using an LCH SA template that grant regulator access (including the AMF and the ACPR), and leaves the clearing member liable for outsourced activities.
Regulator Access & Outsourcer Requirements
Outsourcing providers that are not Clearing Members must meet capability, confidentiality, and notification requirements and must enter a written agreement requiring them to give AMF, ACPR, and other recognized foreign authorities access to information about the outsourced activities.
LCH SA Contribution Will Be Adjustable
LCH SA's own contribution (currently fixed at €20,000,000) will remain at least €20,000,000 but may be adjusted periodically to align with EMIR and the European Commission Delegated Regulation No 153/2013.
Your PRIA Score
Personalized for You
How does this regulation affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-07651 — Concept Release on Consolidated Audit Trail and Other Audit Trails and Data Sources
The SEC wants your thoughts on how it tracks stock market trades using the Consolidated Audit Trail and other data tools. They’re thinking about updating rules to keep up with new tech, privacy, and security needs, and to make sure the system is fair and cost-effective. If you’re involved in the stock market or data tracking, speak up by June 22, 2026!
2026-10241 — Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services)
The Depository Trust Company (DTC) is updating its rules to make it easier and clearer for agents handling corporate offers like tenders and subscriptions through its automated systems. This change affects companies and agents using DTC services to process these offers and starts right away with no extra costs. It’s all about smoother, faster, and more reliable processing for everyone involved!
2026-10244 — Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Exchange's Fee Schedule Applicable to Members Concerning Equities Transaction Pricing
Investors Exchange (IEX) is updating its fee schedule starting June 1, 2026. Members who trade stocks will see changes in how they qualify for rebates and fee discounts based on their trading volume. These tweaks aim to make fees fairer and encourage more trading activity on the exchange.
2026-10245 — Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 3120 To Increase the Position and Exercise Limits for Options on the iShares Bitcoin Trust ETF
BOX Exchange is raising the limits on how many options traders can hold and exercise for the iShares Bitcoin Trust ETF. This change lets bigger players trade more freely and takes effect immediately, matching similar moves by other exchanges. If you trade these options, get ready for bigger opportunities starting now!
2026-10129 — The Goldman Sachs Group, Inc.
Goldman Sachs is asking the SEC for special permission to create investment funds just for its employees, letting them skip some usual rules. This change mainly affects Goldman Sachs workers and could speed up how these funds work without changing important protections. If no one objects by June 12, 2026, the SEC will approve this request.
2026-10168 — Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 17a-2
The SEC is asking to keep the rules that require underwriters to keep records about certain stock market activities for three years. About 647 companies spend around 3,235 hours and $530,000 yearly to follow these rules. This extension keeps things running smoothly without adding new costs or changes.
Previous / Next Documents
Previous: 2026-09127 — Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the DTC Rules To Align a Provision With Rule 17ad-22(e)(19) Under the Securities Exchange Act of 1934
The Depository Trust Company (DTC) is updating its rules to match a specific federal rule called 17ad-22(e)(19). This change affects financial institutions that use DTC’s services and helps keep everything clear and consistent. The update took effect right away on April 28, 2026, with no extra costs involved.
Next: 2026-09129 — Self-Regulatory Organizations; Long-Term Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the LTSE Fee Schedule To Introduce the LTSE Membership Launchpad Program
The Long-Term Stock Exchange (LTSE) is rolling out the Membership Launchpad Program to give new members a sweet deal: discounted fees on membership, connectivity, and market data for up to a year. This change kicked in on April 9, 2026, making it easier and cheaper for fresh members to join and grow with LTSE. If you’re thinking about joining, now’s the perfect time to jump in and save some cash!