LCH.Clearnet, the London-based clearing house active in over-the-counter steel, iron ore and freight market, is facing increasing costs from new global regulation requiring greater transparency for OTC derivatives, which is likely to increase member fees, a company official said Thursday. LCH.Clearnet is not currently passing on the higher costs from implementing new regulation, the source said. The size of compliance and regulatory departments are growing fast at exchanges, banks and other participants to meet the changes proposed, adding to expenses, the official. "Perhaps we have to raise clearing fees in the future while absorbing them for now," the LCH.Clearnet source said.
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