An Australian PPS Bank enables LCH to make and receive Australian dollar payments in the local time zone.
LCH uses the Bank of England-overseen PPS system to call and pay cash margin to its clearing members. Members of the clearinghouse must have a PPS bank account.
The clearinghouse established a central bank account with the Reserve Bank of Australia in 2015.
Gerard Smith, director of collateral services at LCH, said: “Signing Commonwealth Bank of Australia as our first Australian PPS bank generates more flexibility in making and receiving cash payments in the local timezone.”
“The Asia Pacific is a region of strategic importance for LCH and we understand the importance of engaging with local partners to offer the best possible service to our members and their clients.”