21 February 2018
Visit www.avoka.com

LCH adds Commonwealth Bank of Australia as first Australian PPS Bank

30 September 2016  |  2683 views  |  0 Source: LCH

LCH, a leading global clearing house, announced today that Commonwealth Bank of Australia (CBA) has become its first Australian Protected Payments System (PPS) Bank.

Having an Australian PPS Bank enables LCH to make and receive Australian Dollar payments in the local time zone.

The PPS system is the method by which LCH calls and pays cash margin to its clearing members. As part of the membership criteria for LCH, members are required to maintain a PPS bank account. Overseen by the Bank of England, PPS has been in operation in London for over 20 years, and also operates in New York. The move follows the establishment of LCH’s central bank account with the Reserve Bank of Australia in 2015, and there is the potential to add more Australian banks to the system in the coming months and widen participation to additional members.

Gerard Smith, Director of Collateral Services, 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. 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.”

Andrew Hinchcliff, Executive General Manager, Markets, Commonwealth Bank of Australia, said: “We’re delighted to be the first Australian bank to offer PPS services to LCH. Clearing has gained significant momentum in Australia in recent years and this initiative makes posting cash collateral at LCH more flexible than ever before.”

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.swift.com/your-needs/instant-paymentsvisit www.nextgenbanking.co.ukVisit www.vasco.com

Top topics

Most viewed Most shared
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
10117 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
9712 views 10 comments | 22 tweets | 26 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
8477 views comments | 13 tweets | 12 linkedin
BBVA-backed digital banking startup targets gig economy workersBBVA-backed digital banking startup target...
7147 views comments | 8 tweets | 12 linkedin
hands typing furiouslyMaking Customer Experience Your Business
6851 views 0 | 7 tweets | 5 linkedin

Featured job

Basic c. EUR 90K OTE c. EUR 180K plus full bene...
Paris (preferred) or London

Find your next job