The London Stock Exchange Group has ended a three-month search for a new head of its LCH.Clearnet clearing business with the appointment of Suneel Bakhshi of Citigroup.
Mr Bakhshi, currently chief executive of Citigroup Global Markets Japan, has spent more than 30 years at the US bank. The appointment is subject to regulatory approval and Mr Bakhshi is expected to begin his new role in early 2014.
The appointment completes a reshuffle of top management at LCH, the world’s largest clearer of off-exchange interest rate swaps, following the takeover by the LSE in May.
The bourse, which owns a controlling 58 per cent stake in LCH, has been looking for a successor to Ian Axe, who announced his resignation in July. It also appointed Michael Davie, chief executive of LCH’s SwapClear business, as chief executive of its UK operations last month.
LCH’s importance in the daily operation of global markets has grown as global authorities push for more OTC derivatives to be processed through clearing houses. Derivatives are typically used for hedging risk against future movements in prices, as well as for speculation.
It hopes to exploit the incoming regulations by making savings in the margin customers need to post for trading. By offsetting their positions, customers of the same clearing house can potentially save millions in margin payments.
“He has an exceptional understanding of the complexities of our industry and the needs of our global customer base,” said Mr Aigrain.
When Mr Bakhshi begins, Jacques Aigrain will relinquish his role as interim executive chairman and resume his position as non-executive chairman of LCH.Clearnet Group.
Mr Bakhshi has held a variety of positions at Citigroup, including chief risk officer for its global commercial banking and global consumer group businesses. He has also been head of Citigroup’s global emerging markets corporate banking operations and was head of both Japanese derivatives and European fixed income derivatives trading in the 1990s.