LCH.Clearnet gets new CFO in countdown to LSE merger

LONDON Thu Aug 23, 2012 8:06am EDT

LONDON Aug 23 (Reuters) - LCH.Clearnet has hired a new chief financial officer in the latest top management change at the European clearing house as it works to sell itself to the London Stock Exchange Group.

Oliver Corbett, most recently the finance director of insurer Novae Group, replaces interim CFO Jeffrey Hughes, who is leaving the group, LCH said on Thursday.

Corbett, who was at Dresdner Kleinwort Benson before joining Novae in 2003, will join the clearing house in December, LCH said.

The appointment of Corbett - the fourth management change at the firm in three months - comes at a crucial time for LCH.Clearnet as the firm looks to sell a majority stake of its shares to British exchange group LSE.

In April, the firms agreed a deal under which the LSE would buy up to 60 percent of LCH.Clearnet in a deal valuing the clearing house at 813 million euros. The transaction still needs approval from European competition authorities.

LCH and LSE have said they plan to complete the trade in the fourth quarter of this year.

Last month LCH appointed Martin Ryan, formerly of RBS and Morgan Stanley, as global head of operations.

In May, the clearing house hired Dennis McLaughlin as chief risk officer from insurance firm AON and Magnus Spencer as group general counsel.

Spencer was latterly the head of European counsel at Barclays Capital, where he worked with LCH Chief Executive Ian Axe before Axe joined LCH from Barclays in May last year.

Clearing houses, which sit between trading partners, holding cash to be used to refund firms left out of pocket by a counterparty default, won support from regulators for their performance after the collapse of Lehman Brothers in 2008.

LCH.Clearnet's Swapclear is the market-leading service for clearing interest rate swaps, the largest OTC market, and is seen by analysts as a prized asset given regulatory changes to force the OTC products to use clearing house.

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