LCH.Clearnet Names Bakhshi CEO10.22.2013
LCH.Clearnet has named Suneel Bakhshi from Citigroup as its new group chief executive as the clearer prepares for a tract of new regulations.
Bakhshi is due to join LCH.Clearnet early next year, subject to regulatory approval, according to a statement.
Jacques Aigrain, interim executive chairman will then resume his role as non-executive chairman of LCH.Clearnet Group. Aigrain is also a non-executive director of London Stock Exchange Group, which owns 57.8% of LCH.Clearnet.
Aigrain said in a statement: “Suneel has worked around the world, across asset class and geography, in delivering growth programmes and implementing change and he has an exceptional understanding of the complexities of our industry and the needs of our global customer base.”
Bakhshi has worked at Citigroup since 1982 in the Middle East, London and New York and he is currently based in Tokyo as president and chief executive of global markets in Japan.
“It’s understandable a proven OTC hand would be chosen to head LCH.Clearnet as that’s the big area for expansion and employing a banker reinforces LSE’s orientation as a sell-side friendly exchange,” Patrick Young, executive director of DV Advisors, said in email to Markets Media.
Bakhshi has been Citigroup’s representative at the International Swaps & Derivatives Association and a member of the derivatives consultative committee at the Bank of England.
“In a world driven by Dodd-EMIR-Frank, LCH.Clearnet faces enormous challenges and the great opportunity in the wake of the fragmentation of their futures/options franchise is in OTC markets. Hence they chose an experienced ISDA board member as the new LCH.Clearnet CEO,” added Young.
Under both the European Markets Infrastructure Regulation and the Dodd-Frank financial reform act in the US, regulators have been pushing for over-the-counter trades to move onto exchanges and be centrally cleared.
Last week LCH.Clearnet SA the clearer’s Paris-based unit signed a five-year contract with NYSE Euronext to clear the exchange’s continental listed derivatives until December 2018. The current contract was due to expire in March next year.
“Bakhshi’s task will be focusing LCH.Clearnet on capitalising on growth opportunities and achieving a material increase in profit margins,” said Peter Lenardos, an analyst at RBC Capital Markets, in a report.