LCHClearnet has opened a new deposit and liquidity facilities account with the Reserve Bank of Australia (RBA).

LCHClearnet is the RBA's first overseas licensed CCP to maintain an exchange settlement account (ESA). LCHClearnet has started to settle its Australian dollar payments through the account. 

“We are delighted to announce the opening of a new central bank account with the RBA," said Martin Pluves, CEO, LCHClearnet. "This addition will help further improve sources of liquidity, in line with regulatory standards.”

The clearing house has also become a direct member of Australia's high-value payments system, the Reserve Bank Information and Transfer System, which settles banks and other approved institutions' payment obligations on a real-time gross settlement basis.

LCHClearnet also maintains a sterling and euro central bank account at the Bank of England and a Canadian dollar account at the Bank of Canada.

National and international regulatory standards encourage CCPs to settle in central bank money where practical and available, to avoid credit and liquidity risks. 

Where a CCP uses central bank money, a payment obligation is discharged by providing the CCP with a direct claim on the central bank.