LCH.Clearnet is making the over-the-counter derivatives market its top priority this year, according to Roger Liddell, its ceo. While pretax profit at the clearinghouse, which saw the end of many contracts with customers last year, plunged 80% in 2010, revenue from OTC derivatives rose 26%, with clearing revenue accounting for 36.7% of total earnings. “This increased focus on OTC is the natural evolution of the business strategy over the last few years, which anticipated structural changes in the exchange sector,” Liddell stated in the firm’s annual report.
