LSE appoints Suneel Bakhshi as new LCH.Clearnet CEO to replace axed Axe

22 October 2013

LCH.Clearnet, the multinational clearing house owned by the London Stock Exchange (LSE) since March, is appointing Suneel Bakhshi as its new group chief executive officer (CEO).

Starting in Q1 2014, Bakhshi will replace Ian Axe, and relieve Jacques Aigrain, the interim executive chairman, as he returns to his non-executive role as chair of the LSE group.

Upon taking up his position as CEO of LCH.Clearnet next year, Bakhshi will also become a member of LSE group’s executive committee, headed by the overall CEO, Xavier Rolet. LSE is the 57.8% majority shareholder in LCH.Clearnet since its takeover earlier this year.

Bakhshi is presently in charge of Citigroup Global Markets Japan Inc, which is based in Tokyo, so will need some time to move to his new role in the UK. He has spent most of his career at Citi, fulfilling a number of roles including as chief risk officer for global commercial and consumer banking in London. He also headed up commercial banking, emerging markets and sales and trading in the UK capital, as well as working on local finance initiatives in emerging markets out of the New York, US, office. His time at Citi includes time focused on Japanese derivatives in Tokyo and he oversaw risk activities in the middle-eastern treasury services unit in Dubai and Bahrain, so Bakhshi has considerable global experience. He was also a member of the Derivatives Consultative Committee at the Bank of England from 1997-1998 and Citigroup’s representative to the International Swaps and Derivatives Association (ISDA) trade body at that time.

Bakhshi has an MBA from Queen's University in Canada, and a B.Comm (Hons) degree from Shri Ram College of Commerce, Delhi University in India, from where he hails. He has also attended the IMD Business School in Lausanne, Switzerland.

Commenting on his appointment, Jacques Aigrain, said: “Suneel is an outstanding business leader with an extensive and proven track record in trading, banking and risk management. He 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.”

He will certainly needs those skills to navigate the ‘new normal’ trading and clearing environment instigated by the US Dodd Frank Act and the European Market Infrastructure Regulation (EMIR) which are introducing the requirement for centralised repositories, clearing and more transparency, in accordance with the post-crash wishes of the Pittsburgh G20 meeting from 2009. Collateral requirements and trading and clearing patterns are changing quickly in this new regulatory and market environment as demonstrated in the bobsguide blogger (aka contributing editor) FIX blog.

“I am excited to be joining LCH.Clearnet at this important time for the business and the industry,” declares Bakhshi boldly. “The opportunities for LCH.Clearnet in the delivery of risk management solutions to the world’s capital markets are considerable [in this ‘new normal’ environment].”

By Neil Ainger

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