LCH.Clearnet Group Ltd has made David Weisbrod the chief executive officer (CEO) of its US subsidiary to oversee its planned expansion of its multi-national central counterparty clearing (CCP) business in the world’s largest capital market. The market will grow rapidly on the back of new post-crash regulations and enhanced transparency rules so a fierce battle for business is already gearing up as previously over-the-counter (OTC) derivatives flow moves ‘on exchange’.
Weisbrod, who has extensive experience in financial services including in clearing and CCP services in the US, will be responsible for leading and developing LCH.Clearnet’s US-based subsidiary, which was formed after the acquisition of the International Derivatives Clearing Group (IDCG) in the US last year. LCH.Clearnet LLC, as it is now known, gives the firm access to a US-based infrastructure as it seeks to win more business in the country.
Weisbrod enjoyed a 40-year career at JPMorgan Chase, where he was most recently vice chairman of risk management for the entire group. He also sat on the bank’s corporate risk policy group and chaired its exchange and clearinghouse steering committee, which coordinated JPMorgan Chase’s clearinghouse and exchange risk management procedures. He was also previously chief risk officer for JP Morgan’s Treasury and Securities Services division for ten years, where he guided the payments and custody business through the September 11th attacks and the 2008 financial crisis.
In addition, Weisbrod was an active member of a number of key committees of the New York Federal Reserve. He served for many years on the board of the Depository Trust & Clearing Corporation (DTCC) and is currently a member of the board of directors of CLS Group Holdings AG, which handles the global settlement of foreign exchange (FX) transactions.
Weisbrod will work closely with Ian Axe, group chief executive, and the LCH.Clearnet board to set and execute the clearer’s US strategy. He is also tasked with working closely with the current US management team, regulators, members and clients to ensure the CCP meets the market’s needs and requirements. Weisbrod’s core mission will be to expand global capabilities to US clients in both OTC and exchange traded instruments, leveraging SwapClear’s experience and strong penetration in the US market.
According to Ian Axe, the new appointee, “joins the Group at a critical stage of our US growth” and brings vast risk management expertise, clearing knowledge and experience working with US regulators.
The man himself says that LCH.Clearnet is at the forefront of counterparty risk management and has a great platform to build on for growth in the US, utilising SwapClear. “I am excited to work for an industry leading CCP,” he said, adding that he believes it is well placed for the new regulatory and competitive world in which it operates.