2026-17061NoticeWallet

SEC okays LCH SA's cash buffer plan for swaps.

Published Date: 8/21/2026

Notice

Summary

LCH SA, a key player in clearing credit swaps, just got the green light from the SEC for its new Liquidity Plan. This plan lays out how LCH SA will keep enough cash on hand to meet its financial promises, making sure everything runs smoothly and safely. The changes kick in right away, helping protect everyone involved from money troubles.

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Approved Plan to Protect Settlements

The SEC approved LCH SA's Liquidity Plan on August 18, 2026. The plan requires LCH SA (which clears security-based swaps and credit default swaps) to maintain enough liquid resources, run daily and 5-day forward liquidity stress tests, and monitor intraday flows so it can complete settlements and reduce the risk of disruption to clearance and settlement.

New Collateral and Margin Tools for Liquidity

The Liquidity Plan lets LCH SA use tools like requiring minimum cash collateral from members, applying caps on pledged amounts and non-Euro securities, increasing notice periods for substituting non-cash collateral, and making extraordinary margin calls if the Liquidity Coverage Ratio falls below specified thresholds. These measures change how clearing members must post and manage collateral and how LCH SA can demand cash in stressed conditions.

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Key Dates

Published Date
8/21/2026

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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