LCH signs up first Australian PPS 30 September 2016London Reporter: Mark Dugdale
Image: Shutterstock
The Commonwealth Bank of Australia (CBA) has become LCH’s first Australian Protected Payments System (PPS) bank.
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.”
NO FEE, NO RISK 100% ON RETURNSIf you invest in only one asset servicing news source this
year, make sure it is your free subscription to Asset Servicing Times
Image: Shutterstock 