The Australian Securities Exchange (ASX) has been advised today that third-party clearers have terminated their clearing services for Lehman Brothers Australia Limited.
Consequently, in the absence of clearing arrangements, Lehman Brothers Australia has had its status as an ASX Market Participant suspended immediately, under the terms of ASX’s Operating Rules.
The third-party clearers – Citi Securities Clearing Australia and Berndale Securities – have committed to meet obligations on behalf of Lehman Brothers Australia for all unsettled, novated transactions.
Lehman Brothers Australia is not a Trading Participant on the SFE market or a Clearing Participant on either of ASX’s two central counterparty clearing houses – ACH (cash) and SFECC (futures). Consequently, neither ACH nor SFECC has any direct exposure to Lehman Brothers Australia or to the wider Lehman Brothers group. In addition, Lehman Brothers Australia is not an ASTC Settlement Participant and does not directly participate in ASX’s daily batch settlement process.
All on-market trades, regardless of the broker that transacted them, are novated by ASX’s clearing houses, guaranteeing the performance of the trades.
ASX’s clearing houses continue to monitor the clearing exposures and related risk management activities of their Clearing Participants to ensure the ongoing compliance of Participants with their obligations. Settlement completed as normal for the whole market today.
Attached is the ASX Circular sent to Participants.
